FORM 10-Q
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x
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Quarterly Report-
Pursuant To Section 13 or 15(d) of the Securities Exchange Act of 1934
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o
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Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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First Connecticut Bancorp, Inc.
(Exact name of registrant as specified in its charter)
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Maryland
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45-1496206
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification Number)
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One Farm Glen Boulevard, Farmington, CT
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06032
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(Address of Principal Executive Offices)
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(Zip Code)
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N/A
(Former name or former address, if changed since last report)
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Large accelerated filer
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o
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Accelerated filer
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x
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Non-accelerated filer
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o
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Smaller reporting company
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o
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Page
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Part I. Financial Information
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Item 1.
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Consolidated Financial Statements
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Consolidated Statements of Condition at June 30, 2013 (unaudited) and December 31, 2012
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1
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Consolidated Statements of Operations for the three and six months ended June 30, 2013 and 2012 (unaudited)
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2
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Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2013, and 2012 (unaudited)
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3
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Consolidated Statement of Stockholders’ Equity for the six months ended June 30, 2013 (unaudited)
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4
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Consolidated Statements of Cash Flows for the six months ended June 30, 2013 and 2012 (unaudited)
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5
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Notes to Unaudited Consolidated Financial Statements
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6
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Item 2.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations
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43
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Item 3.
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Quantitative and Qualitative Disclosures About Market Risk
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61
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Item 4.
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Controls and Procedures
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62
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Part II. Other Information
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Item 1.
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Legal Proceedings
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63
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Item1A.
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Risk Factors
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63
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Item 2.
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Unregistered Sales of Equity Securities and Use of Proceeds
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63
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Item 3.
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Defaults upon Senior Securities
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63
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Item 4.
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Mine Safety Disclosure
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63
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Item 5.
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Other Information
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63
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Item 6.
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Exhibits
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64
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Signatures
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66
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Exhibit 31.1
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Exhibit 31.2
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Exhibit 32.1
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Exhibit 32.2
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First Connecticut Bancorp, Inc.
Consolidated Statements of Condition (Unaudited)
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June 30, 2013
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December 31, 2012
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|||||||
(Dollars in thousands)
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||||||||
Assets | ||||||||
Cash and cash equivalents
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$ | 36,650 | $ | 50,641 | ||||
Securities held-to-maturity, at amortized cost
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3,003 | 3,006 | ||||||
Securities available-for-sale, at fair value
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112,801 | 138,241 | ||||||
Loans held for sale
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4,801 | 9,626 | ||||||
Loans, net
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1,588,275 | 1,520,170 | ||||||
Premises and equipment, net
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20,767 | 19,967 | ||||||
Federal Home Loan Bank of Boston stock, at cost
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8,383 | 8,939 | ||||||
Accrued income receivable
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4,403 | 4,415 | ||||||
Bank-owned life insurance
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37,952 | 37,449 | ||||||
Deferred income taxes
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15,918 | 15,682 | ||||||
Prepaid expenses and other assets
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12,298 | 14,810 | ||||||
Total assets
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$ | 1,845,251 | $ | 1,822,946 | ||||
Liabilities and Stockholders’ Equity
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||||||||
Deposits | ||||||||
Interest-bearing
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$ | 1,176,538 | $ | 1,082,869 | ||||
Noninterest-bearing
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275,781 | 247,586 | ||||||
1,452,319 | 1,330,455 | |||||||
Federal Home Loan Bank of Boston advances
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51,250 | 128,000 | ||||||
Repurchase agreement borrowings
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21,000 | 21,000 | ||||||
Repurchase liabilities
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50,262 | 54,187 | ||||||
Accrued expenses and other liabilities
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39,105 | 47,782 | ||||||
Total liabilities
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1,613,936 | 1,581,424 | ||||||
Commitments and contingencies
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- | - | ||||||
Stockholders' Equity
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||||||||
Common stock, $0.01 par value, 30,000,000 shares authorized; 18,064,539 shares issued and 16,763,516 shares outstanding at June 30, 2013 and 18,076,971 shares issued and 17,714,481 shares outstanding at December 31, 2012
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181 | 181 | ||||||
Additional paid-in-capital
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174,342 | 172,247 | ||||||
Unallocated common stock held by ESOP
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(14,281 | ) | (14,806 | ) | ||||
Treasury stock, at cost (1,301,023 shares at June 30, 2013 and 362,490 shares at December 31, 2012)
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(18,524 | ) | (4,860 | ) | ||||
Retained earnings
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95,605 | 94,890 | ||||||
Accumulated other comprehensive loss
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(6,008 | ) | (6,130 | ) | ||||
Total stockholders’ equity
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231,315 | 241,522 | ||||||
Total liabilities and stockholders’ equity
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$ | 1,845,251 | $ | 1,822,946 |
1 |
First Connecticut Bancorp, Inc.
Consolidated Statements of Income (Unaudited)
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Three Months Ended
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Six Months Ended
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|||||||||||||||
June 30,
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June 30,
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|||||||||||||||
2013
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2012
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2013
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2012
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|||||||||||||
(Dollars in thousands, except per share data)
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||||||||||||||||
Interest income
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||||||||||||||||
Interest and fees on loans
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||||||||||||||||
Mortgage | $ | 11,917 | $ | 10,882 | $ | 23,385 | $ | 21,992 | ||||||||
Other | 3,233 | 3,859 | 6,547 | 7,748 | ||||||||||||
Interest and dividends on investments
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||||||||||||||||
United States Government and agency obligations
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102 | 249 | 241 | 515 | ||||||||||||
Other bonds
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59 | 60 | 118 | 118 | ||||||||||||
Corporate stocks
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64 | 70 | 126 | 140 | ||||||||||||
Other interest income
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6 | 26 | 11 | 60 | ||||||||||||
Total interest income
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15,381 | 15,146 | 30,428 | 30,573 | ||||||||||||
Interest expense
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||||||||||||||||
Deposits | 1,827 | 1,643 | 3,532 | 3,398 | ||||||||||||
Federal Home Loan Bank of Boston advances
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401 | 462 | 870 | 943 | ||||||||||||
Repurchase agreement borrowings
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180 | 181 | 351 | 361 | ||||||||||||
Repurchase liabilities
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41 | 61 | 91 | 118 | ||||||||||||
Total interest expense
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2,449 | 2,347 | 4,844 | 4,820 | ||||||||||||
Net interest income
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12,932 | 12,799 | 25,584 | 25,753 | ||||||||||||
Provision for allowance for loan losses
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256 | 520 | 655 | 850 | ||||||||||||
Net interest income after provision for loan losses
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12,676 | 12,279 | 24,929 | 24,903 | ||||||||||||
Noninterest income
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||||||||||||||||
Fees for customer services
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1,097 | 900 | 2,079 | 1,716 | ||||||||||||
Net gain on sales of investments
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36 | - | 36 | - | ||||||||||||
Net gain on loans sold
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1,739 | 431 | 3,769 | 529 | ||||||||||||
Brokerage and insurance fee income
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41 | 32 | 73 | 57 | ||||||||||||
Bank owned life insurance income
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303 | 321 | 712 | 640 | ||||||||||||
Other | (92 | ) | 294 | (7 | ) | 349 | ||||||||||
Total noninterest income
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3,124 | 1,978 | 6,662 | 3,291 | ||||||||||||
Noninterest expense
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||||||||||||||||
Salaries and employee benefits
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8,555 | 7,619 | 17,589 | 15,043 | ||||||||||||
Occupancy expense
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1,126 | 1,098 | 2,366 | 2,288 | ||||||||||||
Furniture and equipment expense
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1,099 | 1,112 | 2,117 | 2,211 | ||||||||||||
FDIC assessment
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311 | 294 | 602 | 573 | ||||||||||||
Marketing | 610 | 753 | 1,204 | 1,359 | ||||||||||||
Other operating expenses
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2,854 | 2,257 | 5,376 | 4,288 | ||||||||||||
Total noninterest expense
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14,555 | 13,133 | 29,254 | 25,762 | ||||||||||||
Income before income taxes
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1,245 | 1,124 | 2,337 | 2,432 | ||||||||||||
Income tax expense
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308 | 293 | 587 | 610 | ||||||||||||
Net income
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$ | 937 | $ | 831 | $ | 1,750 | $ | 1,822 | ||||||||
Net earnings per share (See Note 2):
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||||||||||||||||
Basic and Diluted
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$ | 0.06 | $ | 0.05 | $ | 0.11 | $ | 0.11 | ||||||||
Weighted average shares outstanding:
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||||||||||||||||
Basic and Diluted
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15,774,385 | 16,686,810 | 16,122,208 | 16,735,892 |
2 |
First Connecticut Bancorp, Inc.
Consolidated Statements of Comprehensive Income (Unaudited)
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Three Months Ended
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Six Months Ended
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|||||||||||||||
June 30,
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June 30,
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|||||||||||||||
2013
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2012
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2013
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2012
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(Dollars in thousands)
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Net income
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$ | 937 | $ | 831 | $ | 1,750 | $ | 1,822 | ||||||||
Other comprehensive income (loss), before tax
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||||||||||||||||
Unrealized losses on securities:
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||||||||||||||||
Unrealized holding losses arising during the period
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(482 | ) | (318 | ) | (134 | ) | (65 | ) | ||||||||
Less: reclassification adjustment for gains included in net income
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36 | - | 36 | - | ||||||||||||
Net change in unrealized losses
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(446 | ) | (318 | ) | (98 | ) | (65 | ) | ||||||||
Change related to employee benefit plans
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147 | 133 | 283 | 265 | ||||||||||||
Other comprehensive income (loss), before tax
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(299 | ) | (185 | ) | 185 | 200 | ||||||||||
Income tax expense (benefit)
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(101 | ) | (63 | ) | 63 | 68 | ||||||||||
Other comprehensive income (loss), net of tax
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(198 | ) | (122 | ) | 122 | 132 | ||||||||||
Comprehensive income
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$ | 739 | $ | 709 | $ | 1,872 | $ | 1,954 |
3 |
First Connecticut Bancorp, Inc.
Consolidated Statement of Changes in Stockholders’ Equity (Unaudited)
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Unallocated
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Accumulated
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|||||||||||||||||||||||||||||||
Common Stock
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Additional
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Common
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Other
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|||||||||||||||||||||||||||||
Shares
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Paid in
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Shares Held
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Treasury
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Retained
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Comprehensive
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|||||||||||||||||||||||||||
Outstanding
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Amount
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Capital
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by ESOP
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Stock
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Earnings
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Income (Loss)
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Total
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(Dollars in thousands)
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Balance at December 31, 2012
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17,714,481 | $ | 181 | $ | 172,247 | $ | (14,806 | ) | $ | (4,860 | ) | $ | 94,890 | $ | (6,130 | ) | $ | 241,522 | ||||||||||||||
ESOP shares released and committed to be released
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- | - | 153 | 525 | - | - | - | 678 | ||||||||||||||||||||||||
Cash dividend paid ($0.06 per common share)
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- | - | - | - | - | (1,035 | ) | - | (1,035 | ) | ||||||||||||||||||||||
Treasury stock acquired
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(939,583 | ) | - | - | - | (13,664 | ) | - | - | (13,664 | ) | |||||||||||||||||||||
Stock options exercised
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1,050 | - | - | - | 14 | - | - | 14 | ||||||||||||||||||||||||
Cancellation of shares for tax withholding
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(12,432 | ) | - | (161 | ) | - | (14 | ) | - | - | (175 | ) | ||||||||||||||||||||
Share based compensation expense
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- | - | 2,103 | - | - | - | - | 2,103 | ||||||||||||||||||||||||
Net income
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- | - | - | - | - | 1,750 | - | 1,750 | ||||||||||||||||||||||||
Other comprehensive income
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- | - | - | - | - | - | 122 | 122 | ||||||||||||||||||||||||
Balance at June 30, 2013
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16,763,516 | $ | 181 | $ | 174,342 | $ | (14,281 | ) | $ | (18,524 | ) | $ | 95,605 | $ | (6,008 | ) | $ | 231,315 |
4 |
First Connecticut Bancorp, Inc.
Consolidated Statements of Cash Flows (Unaudited)
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Six Months Ended
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||||||||
June 30,
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||||||||
(Dollars in thousands)
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2013
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2012
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||||||
Cash flows from operating activities
|
||||||||
Net income
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$ | 1,750 | $ | 1,822 | ||||
Adjustments to reconcile net income to net cash provided by operating activities:
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||||||||
Provision for allowance for loan losses
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655 | 850 | ||||||
Provision for off-balance sheet commitments
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25 | 12 | ||||||
Depreciation and amortization
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1,465 | 1,626 | ||||||
Amortization of ESOP expense
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678 | 619 | ||||||
Share based compensation expense
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2,103 | - | ||||||
Loans originated for sale
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(119,819 | ) | (18,105 | ) | ||||
Proceeds from the sale of loans held for sale
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128,310 | 18,006 | ||||||
Loss on sale of foreclosed real estate
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84 | 18 | ||||||
Loss (gain) on sale of premises and equipment
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2 | (28 | ) | |||||
Loss on fair value adjustment on loans held for sale
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103 | - | ||||||
Net gain on loans sold
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(3,769 | ) | (529 | ) | ||||
Gain on sale of investment
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(36 | ) | - | |||||
Accretion and amortization of investment security discounts and premiums, net
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(37 | ) | (53 | ) | ||||
Amortization and accretion of loan fees and discounts, net
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1,342 | (670 | ) | |||||
Decrease in accrued income receivable
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12 | 104 | ||||||
Deferred income tax
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(294 | ) | 11 | |||||
Increase in cash surrender value of bank-owned life insurance
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(603 | ) | (640 | ) | ||||
Decrease (increase) in prepaid expenses and other assets
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2,477 | (806 | ) | |||||
(Decrease) increase in accrued expenses and other liabilities
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(8,419 | ) | 781 | |||||
Net cash provided by operating activities
|
6,029 | 3,018 | ||||||
Cash flow from investing activities
|
||||||||
Maturities of securities held-to-maturity
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3 | 209 | ||||||
Maturities, calls and principal payments of securities available-for-sale
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151,469 | 142,743 | ||||||
Purchases of securities available-for-sale
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(126,059 | ) | (137,972 | ) | ||||
Loan originations, net of principal repayments
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(70,384 | ) | (120,921 | ) | ||||
Redemption of Federal Home Loan Bank of Boston stock, net
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556 | 312 | ||||||
Purchases of bank-owned life insurance
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- | (6,000 | ) | |||||
Proceeds from bank-owned life insurance
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100 | - | ||||||
Proceeds from sale of land
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- | 249 | ||||||
Proceeds from sale of foreclosed real estate
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233 | 94 | ||||||
Purchases of premises and equipment
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(2,267 | ) | (1,982 | ) | ||||
Net cash used in investing activities
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(46,349 | ) | (123,268 | ) | ||||
Cash flows from financing activities
|
||||||||
Purchase of common stock for ESOP
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- | (5,376 | ) | |||||
Net (decrease) increase in borrowings
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(76,750 | ) | 28,000 | |||||
Net increase in demand deposits, NOW accounts, savings accounts and money market accounts
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126,441 | 65,141 | ||||||
Net decrease in certificates of deposit
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(4,577 | ) | (23,080 | ) | ||||
Net (decrease) increase in repurchase liabilities
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(3,925 | ) | 3,068 | |||||
Cancellation of shares for tax withholding
|
(161 | ) | - | |||||
Repurchase of common stock
|
(13,664 | ) | - | |||||
Cash dividend paid
|
(1,035 | ) | (1,072 | ) | ||||
Net cash provided by financing activities
|
26,329 | 66,681 | ||||||
Net decrease in cash and cash equivalents
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(13,991 | ) | (53,569 | ) | ||||
Cash and cash equivalents at beginning of period
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50,641 | 90,296 | ||||||
Cash and cash equivalents at end of period
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$ | 36,650 | $ | 36,727 | ||||
Supplemental disclosure of cash flow information
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||||||||
Cash paid for interest
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$ | 4,662 | $ | 4,790 | ||||
Cash paid for income taxes
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4,285 | 6 | ||||||
Loans transferred to other real estate owned
|
282 | 246 |
5 |
First Connecticut Bancorp, Inc.
Notes to Consolidated Financial Statements (Unaudited)
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1.
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Summary of Significant Accounting Policies
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6 |
First Connecticut Bancorp, Inc.
Notes to Consolidated Financial Statements (Unaudited)
|
7 |
8 |
9 |
10 |
11 |
First Connecticut Bancorp, Inc.
|
Notes to Consolidated Financial Statements (Unaudited)
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2.
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Earnings Per Share
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
||||||||||||||||
2013
|
2012
|
2013
|
2012
|
||||||||||||||
(Dollars in thousands, except Per Share data):
|
|||||||||||||||||
Net income
|
$ | 937 | $ | 831 | $ | 1,750 | $ | 1,822 | |||||||||
Weighted-average shares outstanding
|
18,064,539 | 17,880,200 | 18,070,652 | 17,880,200 | |||||||||||||
Less:
|
Average unallocated ESOP shares
|
(1,205,641 | ) | (1,193,390 | ) | (1,219,735 | ) | (1,144,308 | ) | ||||||||
Average treasury stock
|
(1,084,513 | ) | - | (728,709 | ) | - | |||||||||||
Weighted-average basic shares outstanding
|
15,774,385 | 16,686,810 | 16,122,208 | 16,735,892 | |||||||||||||
Plus:
|
Dilutive stock options
|
- | - | - | - | ||||||||||||
Weighted-average diluted shares outstanding
|
15,774,385 | 16,686,810 | 16,122,208 | 16,735,892 | |||||||||||||
Net earnings per share:
|
|||||||||||||||||
Basic and Diluted
|
$ | 0.06 | $ | 0.05 | $ | 0.11 | $ | 0.11 |
12 |
First Connecticut Bancorp, Inc.
|
Notes to Consolidated Financial Statements (Unaudited)
|
3.
|
Investment Securities
|
June 30, 2013
|
||||||||||||||||
Gross
|
Gross
|
|||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||
(Dollars in thousands)
|
Cost
|
Gains
|
Losses
|
Value
|
||||||||||||
Available-for-sale
|
||||||||||||||||
Debt securities:
|
||||||||||||||||
U.S. Treasury obligations
|
$ | 96,996 | $ | 2 | $ | (4 | ) | $ | 96,994 | |||||||
Government sponsored residential mortgage-backed securities
|
6,375 | 494 | - | 6,869 | ||||||||||||
Corporate debt securities
|
2,970 | 146 | - | 3,116 | ||||||||||||
Preferred equity securities
|
2,100 | 297 | (231 | ) | 2,166 | |||||||||||
Marketable equity securities
|
108 | 37 | (2 | ) | 143 | |||||||||||
Mutual funds
|
3,646 | - | (133 | ) | 3,513 | |||||||||||
Total securities available-for-sale
|
$ | 112,195 | $ | 976 | $ | (370 | ) | $ | 112,801 | |||||||
Held-to-maturity
|
||||||||||||||||
Government sponsored residential
|
||||||||||||||||
mortgage-backed securities
|
$ | 3 | $ | - | $ | - | $ | 3 | ||||||||
Trust preferred debt security
|
3,000 | - | - | 3,000 | ||||||||||||
Total securities held-to-maturity
|
$ | 3,003 | $ | - | $ | - | $ | 3,003 |
December 31, 2012
|
||||||||||||||||
Gross
|
Gross
|
|||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||
(Dollars in thousands)
|
Cost
|
Gains
|
Losses
|
Value
|
||||||||||||
Available-for-sale
|
||||||||||||||||
Debt securities:
|
||||||||||||||||
U.S. Treasury obligations
|
$ | 118,984 | $ | 5 | $ | (9 | ) | $ | 118,980 | |||||||
Government sponsored residential mortgage-backed securities
|
9,803 | 800 | - | 10,603 | ||||||||||||
Corporate debt securities
|
2,958 | 195 | - | 3,153 | ||||||||||||
Preferred equity securities
|
2,100 | 19 | (333 | ) | 1,786 | |||||||||||
Marketable equity securities
|
108 | 27 | (3 | ) | 132 | |||||||||||
Mutual funds
|
3,585 | 2 | - | 3,587 | ||||||||||||
Total securities available-for-sale
|
$ | 137,538 | $ | 1,048 | $ | (345 | ) | $ | 138,241 | |||||||
Held-to-maturity
|
||||||||||||||||
Government sponsored residential mortgage-backed securities
|
$ | 6 | $ | - | $ | - | $ | 6 | ||||||||
Trust preferred debt security
|
3,000 | - | - | 3,000 | ||||||||||||
Total securities held-to-maturity
|
$ | 3,006 | $ | - | $ | - | $ | 3,006 |
13 |
First Connecticut Bancorp, Inc.
|
Notes to Consolidated Financial Statements (Unaudited)
|
June 30, 2013
|
||||||||||||||||||||||||||||
Less than 12 Months
|
12 Months or More
|
Total
|
||||||||||||||||||||||||||
Gross
|
Gross
|
Gross
|
||||||||||||||||||||||||||
Number of
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
||||||||||||||||||||||
(Dollars in thousands)
|
Securities
|
Value
|
Loss
|
Value
|
Loss
|
Value
|
Loss
|
|||||||||||||||||||||
U.S. Treasury obligations
|
4 | $ | 38,993 | $ | (4 | ) | $ | - | $ | - | $ | 38,993 | $ | (4 | ) | |||||||||||||
Preferred equity securities
|
1 | - | - | 1,769 | (231 | ) | 1,769 | (231 | ) | |||||||||||||||||||
Marketable equity securities
|
1 | - | - | 5 | (2 | ) | 5 | (2 | ) | |||||||||||||||||||
Mutual funds
|
1 | 2,825 | (133 | ) | - | - | 2,825 | (133 | ) | |||||||||||||||||||
7 | $ | 41,818 | $ | (137 | ) | $ | 1,774 | $ | (233 | ) | $ | 43,592 | $ | (370 | ) |
December 31, 2012
|
||||||||||||||||||||||||||||
Less than 12 Months
|
12 Months or More
|
Total
|
||||||||||||||||||||||||||
Gross
|
Gross
|
Gross
|
||||||||||||||||||||||||||
Number of
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
||||||||||||||||||||||
(Dollars in thousands)
|
Securities
|
Value
|
Loss
|
Value
|
Loss
|
Value
|
Loss
|
|||||||||||||||||||||
U.S. Treasury obligations
|
4 | $ | 52,985 | $ | (9 | ) | $ | - | $ | - | $ | 52,985 | $ | (9 | ) | |||||||||||||
Preferred equity securities
|
1 | - | - | 1,667 | (333 | ) | 1,667 | (333 | ) | |||||||||||||||||||
Marketable equity securities
|
1 | - | - | 4 | (3 | ) | 4 | (3 | ) | |||||||||||||||||||
6 | $ | 52,985 | $ | (9 | ) | $ | 1,671 | $ | (336 | ) | $ | 54,656 | $ | (345 | ) |
14 |
First Connecticut Bancorp, Inc.
|
Notes to Consolidated Financial Statements (Unaudited)
|
June 30, 2013
|
||||||||||||||||
Available-for-Sale
|
Held-to-Maturity
|
|||||||||||||||
Estimated
|
Estimated
|
|||||||||||||||
Amortized
|
Fair
|
Amortized
|
Fair
|
|||||||||||||
Cost
|
Value
|
Cost
|
Value
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Due in one year or less
|
$ | 96,996 | $ | 96,994 | $ | - | $ | - | ||||||||
Due after one year through five years
|
2,970 | 3,116 | - | - | ||||||||||||
Due after five years through ten years
|
- | - | - | - | ||||||||||||
Due after ten years
|
- | - | 3,000 | 3,000 | ||||||||||||
Government sponsored residential mortgage-backed securities
|
||||||||||||||||
mortgage-backed securities
|
6,375 | 6,869 | 3 | 3 | ||||||||||||
$ | 106,341 | $ | 106,979 | $ | 3,003 | $ | 3,003 |
4.
|
Loans and Allowance for Loan Losses
|
June 30,
|
December 31,
|
|||||||
2013
|
2012
|
|||||||
(Dollars in thousands)
|
||||||||
Real estate
|
||||||||
Residential
|
$ | 625,345 | $ | 620,991 | ||||
Commercial
|
533,072 | 473,788 | ||||||
Construction
|
80,198 | 64,362 | ||||||
Installment
|
5,384 | 6,719 | ||||||
Commercial
|
199,328 | 192,210 | ||||||
Collateral
|
1,801 | 2,086 | ||||||
Home equity line of credit
|
144,548 | 142,543 | ||||||
Demand
|
- | 25 | ||||||
Revolving credit
|
62 | 65 | ||||||
Resort
|
12,425 | 31,232 | ||||||
Total loans
|
1,602,163 | 1,534,021 | ||||||
Less:
|
||||||||
Allowance for loan losses
|
(17,505 | ) | (17,229 | ) | ||||
Net deferred loan costs
|
3,617 | 3,378 | ||||||
Loans, net
|
$ | 1,588,275 | $ | 1,520,170 |
15 |
First Connecticut Bancorp, Inc.
|
Notes to Consolidated Financial Statements (Unaudited)
|
For The Three Months Ended June 30,
|
For The Six Months Ended June 30,
|
||||||||||||||||
(Dollars in thousands)
|
2013
|
2012
|
(Dollars in thousands)
|
2013
|
2012
|
||||||||||||
Balance at beginning of period
|
$ | 17,332 | $ | 17,727 |
Balance at beginning of period
|
$ | 17,229 | $ | 17,533 | ||||||||
Provision for loan losses
|
256 | 520 |
Provision for loan losses
|
655 | 850 | ||||||||||||
Charge-offs
|
(93 | ) | (492 | ) |
Charge-offs
|
(399 | ) | (640 | ) | ||||||||
Recoveries
|
10 | 172 |
Recoveries
|
20 | 184 | ||||||||||||
Balance at end of period
|
$ | 17,505 | $ | 17,927 |
Balance at end of period
|
$ | 17,505 | $ | 17,927 |
For the Three Months Ended June 30, 2013
|
||||||||||||||||||||
Balance at beginning of period
|
Charge-offs
|
Recoveries
|
Provision for (Reduction) loan losses
|
Balance at end of period
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Real estate
|
||||||||||||||||||||
Residential
|
$ | 3,901 | $ | (81 | ) | $ | - | $ | (92 | ) | $ | 3,728 | ||||||||
Commercial
|
7,926 | - | - | 86 | 8,012 | |||||||||||||||
Construction
|
847 | - | - | 291 | 1,138 | |||||||||||||||
Installment
|
64 | - | - | (7 | ) | 57 | ||||||||||||||
Commercial
|
2,990 | - | 4 | 5 | 2,999 | |||||||||||||||
Collateral
|
- | - | - | - | - | |||||||||||||||
Home equity line of credit
|
1,393 | - | - | 8 | 1,401 | |||||||||||||||
Demand
|
- | - | - | - | - | |||||||||||||||
Revolving credit
|
- | (12 | ) | 6 | 6 | - | ||||||||||||||
Resort
|
211 | - | - | (41 | ) | 170 | ||||||||||||||
Unallocated
|
- | - | - | - | - | |||||||||||||||
$ | 17,332 | $ | (93 | ) | $ | 10 | $ | 256 | $ | 17,505 |
For the Six Months Ended June 30, 2013
|
||||||||||||||||||||
Balance at beginning of period
|
Charge-offs
|
Recoveries
|
Provision for (Reduction) loan losses
|
Balance at end of period
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Real estate
|
||||||||||||||||||||
Residential
|
$ | 3,778 | $ | (375 | ) | $ | - | $ | 325 | $ | 3,728 | |||||||||
Commercial
|
8,105 | - | - | (93 | ) | 8,012 | ||||||||||||||
Construction
|
760 | - | - | 378 | 1,138 | |||||||||||||||
Installment
|
77 | - | - | (20 | ) | 57 | ||||||||||||||
Commercial
|
2,654 | - | 9 | 336 | 2,999 | |||||||||||||||
Collateral
|
- | - | - | - | - | |||||||||||||||
Home equity line of credit
|
1,377 | - | - | 24 | 1,401 | |||||||||||||||
Demand
|
- | - | - | - | - | |||||||||||||||
Revolving credit
|
- | (24 | ) | 11 | 13 | - | ||||||||||||||
Resort
|
456 | - | - | (286 | ) | 170 | ||||||||||||||
Unallocated
|
22 | - | - | (22 | ) | - | ||||||||||||||
$ | 17,229 | $ | (399 | ) | $ | 20 | $ | 655 | $ | 17,505 |
16 |
First Connecticut Bancorp, Inc.
|
Notes to Consolidated Financial Statements (Unaudited)
|
June 30, 2013
|
December 31, 2012
|
|||||||||||||||
Total
|
Reserve
Allocation |
Total
|
Reserve
Allocation |
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Real estate
|
||||||||||||||||
Residential
|
$ | 11,719 | $ | 330 | $ | 10,695 | $ | 340 | ||||||||
Commercial
|
17,119 | 83 | 17,546 | 126 | ||||||||||||
Construction
|
187 | 7 | 1,179 | 6 | ||||||||||||
Installment
|
35 | 9 | 7 | - | ||||||||||||
Commercial
|
8,091 | 1,112 | 5,313 | 476 | ||||||||||||
Collateral
|
- | - | - | - | ||||||||||||
Home equity line of credit
|
534 | - | 491 | - | ||||||||||||
Demand
|
- | - | - | - | ||||||||||||
Revolving Credit
|
- | - | - | - | ||||||||||||
Resort
|
1,474 | 1 | 1,626 | 1 | ||||||||||||
Total
|
$ | 39,159 | $ | 1,542 | $ | 36,857 | $ | 949 | ||||||||
Loans collectively evaluated for impairment:
|
June 30, 2013
|
December 31, 2012
|
|||||||||||||||
Total
|
Reserve
Allocation |
Total
|
Reserve
Allocation |
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Real estate
|
||||||||||||||||
Residential
|
$ | 617,131 | $ | 3,398 | $ | 613,343 | $ | 3,438 | ||||||||
Commercial
|
516,065 | 7,929 | 456,109 | 7,979 | ||||||||||||
Construction
|
80,011 | 1,131 | 63,124 | 754 | ||||||||||||
Installment
|
5,349 | 48 | 6,712 | 77 | ||||||||||||
Commercial
|
191,237 | 1,887 | 187,466 | 2,178 | ||||||||||||
Collateral
|
1,801 | - | 2,086 | - | ||||||||||||
Home equity line of credit
|
144,014 | 1,401 | 142,056 | 1,377 | ||||||||||||
Demand
|
- | - | 25 | - | ||||||||||||
Revolving Credit
|
62 | - | 65 | - | ||||||||||||
Resort
|
10,951 | 169 | 29,556 | 455 | ||||||||||||
Total
|
$ | 1,566,621 | $ | 15,963 | $ | 1,500,542 | $ | 16,258 | ||||||||
Unallocated
|
- | - | - | 22 | ||||||||||||
Total
|
$ | 1,605,780 | $ | 17,505 | $ | 1,537,399 | $ | 17,229 |
17 |
First Connecticut Bancorp, Inc.
|
Notes to Consolidated Financial Statements (Unaudited)
|
June 30, 2013 | ||||||||||||||||||||||||||||||||||||
Past Due 90 Days or More and Still Accruing | ||||||||||||||||||||||||||||||||||||
30-59 Days
|
60-89 Days | > 90 Days | ||||||||||||||||||||||||||||||||||
(Dollars in thousands)
|
Past Due
|
Past Due
|
Past Due
|
Total
|
||||||||||||||||||||||||||||||||
Number
|
Amount
|
Number
|
Amount
|
Number
|
Amount
|
Number
|
Amount
|
|||||||||||||||||||||||||||||
Real estate
|
||||||||||||||||||||||||||||||||||||
Residential
|
10 | $ | 1,989 | 4 | $ | 595 | 21 | $ | 8,188 | 35 | $ | 10,772 | $ | - | ||||||||||||||||||||||
Commercial
|
1 | 128 | - | - | 1 | 827 | 2 | 955 | - | |||||||||||||||||||||||||||
Construction
|
- | - | - | - | 1 | 187 | 1 | 187 | - | |||||||||||||||||||||||||||
Installment
|
5 | 77 | - | - | 3 | 59 | 8 | 136 | - | |||||||||||||||||||||||||||
Commercial
|
5 | 555 | 1 | 106 | 6 | 1,947 | 12 | 2,608 | - | |||||||||||||||||||||||||||
Collateral
|
12 | 225 | - | - | - | - | 12 | 225 | - | |||||||||||||||||||||||||||
Home equity line of credit
|
1 | 74 | 1 | 68 | 2 | 150 | 4 | 292 | - | |||||||||||||||||||||||||||
Demand
|
1 | 16 | - | - | - | - | 1 | 16 | - | |||||||||||||||||||||||||||
Revolving Credit
|
- | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
Resort
|
- | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
Total
|
35 | $ | 3,064 | 6 | $ | 769 | 34 | $ | 11,358 | 75 | $ | 15,191 | $ | - | ||||||||||||||||||||||
December 31, 2012
|
||||||||||||||||||||||||||||||||||||
Past Due 90 Days or More and Still Accruing | ||||||||||||||||||||||||||||||||||||
30-59 Days |
60-89 Days
|
> 90 Days | ||||||||||||||||||||||||||||||||||
(Dollars in thousands)
|
Past Due
|
Past Due
|
Past Due
|
Total
|
||||||||||||||||||||||||||||||||
Number
|
Amount
|
Number
|
Amount
|
Number
|
Amount
|
Number
|
Amount
|
|||||||||||||||||||||||||||||
Real estate
|
||||||||||||||||||||||||||||||||||||
Residential
|
17 | $ | 3,080 | 6 | $ | 1,663 | 16 | $ | 7,803 | 39 | $ | 12,546 | $ | - | ||||||||||||||||||||||
Commercial
|
- | - | 1 | 349 | 2 | 925 | 3 | 1,274 | - | |||||||||||||||||||||||||||
Construction
|
- | - | - | - | 1 | 419 | 1 | 419 | - | |||||||||||||||||||||||||||
Installment
|
1 | 14 | - | - | 2 | 73 | 3 | 87 | - | |||||||||||||||||||||||||||
Commercial
|
2 | 1,435 | 1 | 66 | 6 | 585 | 9 | 2,086 | - | |||||||||||||||||||||||||||
Collateral
|
7 | 57 | - | - | - | - | 7 | 57 | - | |||||||||||||||||||||||||||
Home equity line of credit
|
1 | 75 | 2 | 94 | 3 | 379 | 6 | 548 | - | |||||||||||||||||||||||||||
Demand
|
1 | 6 | - | - | 2 | 40 | 3 | 46 | - | |||||||||||||||||||||||||||
Revolving Credit
|
- | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
Resort
|
- | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
Total
|
29 | $ | 4,667 | 10 | $ | 2,172 | 32 | $ | 10,224 | 71 | $ | 17,063 | $ | - |
18 |
First Connecticut Bancorp, Inc.
|
Notes to Consolidated Financial Statements (Unaudited)
|
(Dollars in thousands)
|
June 30,
2013 |
December 31,
2012 |
||||||
Nonaccrual loans:
|
||||||||
Real estate
|
||||||||
Residential
|
$ | 10,167 | $ | 9,194 | ||||
Commercial
|
827 | 925 | ||||||
Construction
|
187 | 419 | ||||||
Installment
|
145 | 157 | ||||||
Commercial
|
2,262 | 2,351 | ||||||
Collateral
|
- | - | ||||||
Home equity line of credit
|
737 | 711 | ||||||
Demand
|
- | 25 | ||||||
Revolving Credit
|
- | - | ||||||
Resort
|
- | - | ||||||
Total nonaccruing loans
|
14,325 | 13,782 | ||||||
Loans 90 days past due and still accruing
|
- | - | ||||||
Real estate owned
|
514 | 549 | ||||||
Total nonperforming assets
|
$ | 14,839 | $ | 14,331 |
19 |
First Connecticut Bancorp, Inc.
Notes to Consolidated Financial Statements (Unaudited)
|
June 30, 2013
|
||||||||||||||||||||||||
Cash-basis
|
||||||||||||||||||||||||
Unpaid
|
Average
|
Interest
|
Interest
|
|||||||||||||||||||||
Recorded
|
Principal
|
Related
|
Recorded
|
Income
|
Income
|
|||||||||||||||||||
(Dollars in thousands)
|
Investment
|
Balance
|
Allowance
|
Investment
|
Recognized
|
Recognized
|
||||||||||||||||||
Impaired loans without a valuation allowance:
|
||||||||||||||||||||||||
Real estate
|
||||||||||||||||||||||||
Residential
|
$ | 5,539 | $ | 6,033 | $ | - | $ | 4,254 | $ | 1 | $ | 1 | ||||||||||||
Commercial
|
3,203 | 3,388 | - | 3,762 | 82 | 81 | ||||||||||||||||||
Construction
|
- | - | - | 380 | - | - | ||||||||||||||||||
Installment
|
6 | 6 | - | - | - | - | ||||||||||||||||||
Commercial
|
5,031 | 5,046 | - | 2,988 | 96 | 96 | ||||||||||||||||||
Collateral
|
- | - | - | - | - | - | ||||||||||||||||||
Home equity line of credit
|
534 | 657 | - | 506 | - | - | ||||||||||||||||||
Demand
|
- | - | - | - | - | - | ||||||||||||||||||
Revolving Credit
|
- | - | - | - | - | - | ||||||||||||||||||
Resort
|
- | - | - | - | - | - | ||||||||||||||||||
Total
|
14,313 | 15,130 | - | 11,890 | 179 | 178 | ||||||||||||||||||
Impaired loans with a valuation allowance:
|
||||||||||||||||||||||||
Real estate
|
||||||||||||||||||||||||
Residential
|
6,180 | 6,660 | 330 | 6,712 | 41 | 40 | ||||||||||||||||||
Commercial
|
13,916 | 13,915 | 83 | 13,733 | 470 | 470 | ||||||||||||||||||
Construction
|
187 | 433 | 7 | 377 | - | - | ||||||||||||||||||
Installment
|
29 | 29 | 9 | 17 | - | - | ||||||||||||||||||
Commercial
|
3,060 | 3,077 | 1,112 | 3,702 | 40 | 40 | ||||||||||||||||||
Collateral
|
- | - | - | - | - | - | ||||||||||||||||||
Home equity line of credit
|
- | - | - | - | - | - | ||||||||||||||||||
Demand
|
- | - | - | - | - | - | ||||||||||||||||||
Revolving Credit
|
- | - | - | - | - | - | ||||||||||||||||||
Resort
|
1,474 | 1,473 | 1 | 1,199 | 29 | 29 | ||||||||||||||||||
Total
|
24,846 | 25,587 | 1,542 | 25,740 | 580 | 579 | ||||||||||||||||||
Total impaired loans
|
$ | 39,159 | $ | 40,717 | $ | 1,542 | $ | 37,630 | $ | 759 | $ | 757 |
20 |
First Connecticut Bancorp, Inc.
Notes to Consolidated Financial Statements (Unaudited)
|
December 31, 2012
|
||||||||||||||||||||||||
Cash-basis
|
||||||||||||||||||||||||
Unpaid
|
Average
|
Interest
|
Interest
|
|||||||||||||||||||||
Recorded
|
Principal
|
Related
|
Recorded
|
Income
|
Income
|
|||||||||||||||||||
(Dollars in thousands)
|
Investment
|
Balance
|
Allowance
|
Investment
|
Recognized
|
Recognized
|
||||||||||||||||||
Impaired loans without a valuation allowance:
|
||||||||||||||||||||||||
Real estate
|
||||||||||||||||||||||||
Residential
|
$ | 4,061 | $ | 4,495 | $ | - | $ | 3,929 | $ | 10 | $ | 10 | ||||||||||||
Commercial
|
2,787 | 2,973 | - | 6,048 | 315 | 304 | ||||||||||||||||||
Construction
|
760 | 761 | - | 592 | 18 | 18 | ||||||||||||||||||
Installment
|
- | - | - | - | - | - | ||||||||||||||||||
Commercial
|
1,986 | 1,985 | - | 3,918 | 184 | 178 | ||||||||||||||||||
Collateral
|
- | - | - | - | - | - | ||||||||||||||||||
Home equity line of credit
|
491 | 569 | - | 494 | - | - | ||||||||||||||||||
Demand
|
- | - | - | - | - | - | ||||||||||||||||||
Revolving Credit
|
- | - | - | - | - | - | ||||||||||||||||||
Resort
|
- | - | - | 56 | 26 | 26 | ||||||||||||||||||
Total
|
10,085 | 10,783 | - | 15,037 | 553 | 536 | ||||||||||||||||||
Impaired loans with a valuation allowance:
|
||||||||||||||||||||||||
Real estate
|
||||||||||||||||||||||||
Residential
|
6,634 | 6,882 | 340 | 6,864 | 78 | 68 | ||||||||||||||||||
Commercial
|
14,759 | 14,753 | 126 | 11,594 | 818 | 814 | ||||||||||||||||||
Construction
|
419 | 664 | 6 | 226 | - | - | ||||||||||||||||||
Installment
|
7 | 7 | - | 4 | - | - | ||||||||||||||||||
Commercial
|
3,327 | 3,339 | 476 | 2,111 | 86 | 78 | ||||||||||||||||||
Collateral
|
- | - | - | - | - | - | ||||||||||||||||||
Home equity line of credit
|
- | - | - | - | - | - | ||||||||||||||||||
Demand
|
- | - | - | - | - | - | ||||||||||||||||||
Revolving Credit
|
- | - | - | - | - | - | ||||||||||||||||||
Resort
|
1,626 | 1,624 | 1 | 1,736 | 32 | 32 | ||||||||||||||||||
Total
|
26,772 | 27,269 | 949 | 22,535 | 1,014 | 992 | ||||||||||||||||||
Total impaired loans
|
$ | 36,857 | $ | 38,052 | $ | 949 | $ | 37,572 | $ | 1,567 | $ | 1,528 |
21 |
First Connecticut Bancorp, Inc.
Notes to Consolidated Financial Statements (Unaudited)
|
June 30, 2013
|
||||||||||||||||||||||||
TDRs on Accrual Status
|
TDRs on Nonaccrual Status
|
Total TDRs
|
||||||||||||||||||||||
(Dollars in thousands)
|
Number of
Loans |
Recorded
Investment |
Number of
Loans |
Recorded
Investment |
Number of
Loans |
Recorded
Investment |
||||||||||||||||||
Real estate
|
||||||||||||||||||||||||
Residential
|
4 | $ | 1,186 | 6 | $ | 4,918 | 10 | $ | 6,104 | |||||||||||||||
Commercial
|
14 | 16,293 | - | - | 14 | 16,293 | ||||||||||||||||||
Construction
|
- | - | 1 | 187 | 1 | 187 | ||||||||||||||||||
Installment
|
2 | 35 | - | - | 2 | 35 | ||||||||||||||||||
Commercial
|
7 | 4,902 | 6 | 1,843 | 13 | 6,745 | ||||||||||||||||||
Collateral
|
- | - | - | - | - | - | ||||||||||||||||||
Home equity line of credit
|
- | - | 2 | 200 | 2 | 200 | ||||||||||||||||||
Demand
|
- | - | - | - | - | - | ||||||||||||||||||
Revolving Credit
|
- | - | - | - | - | - | ||||||||||||||||||
Resort
|
2 | 1,474 | - | - | 2 | 1,474 | ||||||||||||||||||
Total
|
29 | $ | 23,890 | 15 | $ | 7,148 | 44 | $ | 31,038 | |||||||||||||||
December 31, 2012
|
||||||||||||||||||||||||
TDRs on Accrual Status
|
TDRs on Nonaccrual Status
|
Total TDRs
|
||||||||||||||||||||||
(Dollars in thousands)
|
Number of Loans |
Recorded
Investment |
Number of
Loans |
Recorded
Investment |
Number of
Loans |
Recorded
Investment |
||||||||||||||||||
Real estate
|
||||||||||||||||||||||||
Residential
|
3 | $ | 1,068 | 6 | $ | 5,264 | 9 | $ | 6,332 | |||||||||||||||
Commercial
|
12 | 16,381 | - | - | 12 | 16,381 | ||||||||||||||||||
Construction
|
2 | 999 | 1 | 419 | 3 | 1,418 | ||||||||||||||||||
Installment
|
1 | 7 | - | - | 1 | 7 | ||||||||||||||||||
Commercial
|
7 | 2,043 | 6 | 1,867 | 13 | 3,910 | ||||||||||||||||||
Collateral
|
- | - | - | - | - | - | ||||||||||||||||||
Home equity line of credit
|
- | - | - | - | - | - | ||||||||||||||||||
Demand
|
- | - | - | - | - | - | ||||||||||||||||||
Revolving Credit
|
- | - | - | - | - | - | ||||||||||||||||||
Resort
|
2 | 1,626 | - | - | 2 | 1,626 | ||||||||||||||||||
Total
|
27 | $ | 22,124 | 13 | $ | 7,550 | 40 | $ | 29,674 |
22 |
First Connecticut Bancorp, Inc.
Notes to Consolidated Financial Statements (Unaudited)
|
For the Three Months Ended June 30, 2013
|
For the Six Months Ended June 30, 2013
|
|||||||||||||||||||||||
(Dollars in thousands)
|
Number of
Modifications |
Recorded
Investment Prior to Modification |
Recorded
Investment After Modification (1) |
Number of
Modifications |
Recorded
Investment Prior to Modification |
Recorded
Investment After Modification (1) |
||||||||||||||||||
Trouble Debt Restructurings:
|
||||||||||||||||||||||||
Real estate
|
||||||||||||||||||||||||
Residential
|
- | $ | - | $ | - | 3 | $ | 588 | $ | 570 | ||||||||||||||
Commercial
|
2 | 1,726 | 1,725 | 2 | 1,725 | 1,725 | ||||||||||||||||||
Construction
|
1 | 187 | 187 | 1 | 187 | 187 | ||||||||||||||||||
Installment
|
1 | 29 | 29 | 2 | 36 | 35 | ||||||||||||||||||
Commercial
|
5 | 2,026 | 2,025 | 6 | 5,653 | 5,603 | ||||||||||||||||||
Home equity line of credit
|
- | - | - | 2 | 244 | 200 | ||||||||||||||||||
Total
|
9 | $ | 3,968 | $ | 3,966 | 16 | $ | 8,433 | $ | 8,320 |
For the Three Months Ended June 30, 2012
|
For the Six Months Ended June 30, 2012
|
|||||||||||||||||||||||
(Dollars in thousands)
|
Number of
Modifications |
Recorded
Investment Prior to Modification |
Recorded
Investment After Modification (1) |
Number of
Modifications |
Recorded
Investment Prior to Modification |
Recorded
Investment After Modification (1) |
||||||||||||||||||
Trouble Debt Restructurings:
|
||||||||||||||||||||||||
Real estate
|
||||||||||||||||||||||||
Residential
|
1 | $ | 462 | $ | 462 | 2 | $ | 579 | $ | 577 | ||||||||||||||
Commercial
|
5 | 8,305 | 8,305 | 5 | 8,305 | 8,305 | ||||||||||||||||||
Construction
|
- | - | - | 1 | 242 | 241 | ||||||||||||||||||
Installment
|
- | - | - | 1 | 7 | 7 | ||||||||||||||||||
Commercial
|
4 | 169 | 169 | 6 | 2,372 | 2,084 | ||||||||||||||||||
Total
|
10 | $ | 8,936 | $ | 8,936 | 15 | $ | 11,505 | $ | 11,214 |
For the Three Months Ended June 30, 2013
|
||||||||||||||||||||||||
(Dollars in thousands)
|
Number of Modifications |
Extended Maturity |
Adjusted Interest Rates |
Combination of Rate and Maturity |
Other
|
Total
|
||||||||||||||||||
Real estate
|
||||||||||||||||||||||||
Commercial
|
2 | $ | 1,577 | $ | - | $ | - | $ | 148 | $ | 1,725 | |||||||||||||
Construction
|
1 | - | - | - | 187 | 187 | ||||||||||||||||||
Installment
|
1 | - | - | 29 | - | 29 | ||||||||||||||||||
Commercial
|
5 | 1,919 | - | - | 106 | 2,025 | ||||||||||||||||||
Total
|
9 | $ | 3,496 | $ | - | $ | 29 | $ | 441 | $ | 3,966 |
23 |
First Connecticut Bancorp, Inc.
Notes to Consolidated Financial Statements (Unaudited)
|
For the Six Months Ended June 30, 2013
|
||||||||||||||||||||||||
(Dollars in thousands)
|
Number of
Modifications |
Extended
Maturity |
Adjusted
Interest Rates |
Combination
of Rate and Maturity |
Other
|
Total
|
||||||||||||||||||
Real estate
|
||||||||||||||||||||||||
Residential
|
3 | $ | - | $ | - | $ | 231 | $ | 339 | $ | 570 | |||||||||||||
Commercial
|
2 | 1,577 | - | - | 148 | 1,725 | ||||||||||||||||||
Construction
|
1 | - | - | - | 187 | 187 | ||||||||||||||||||
Installment
|
2 | - | - | 35 | - | 35 | ||||||||||||||||||
Commercial
|
6 | 5,497 | - | - | 106 | 5,603 | ||||||||||||||||||
Home equity line of credit
|
2 | - | - | 14 | 186 | 200 | ||||||||||||||||||
Total
|
16 | $ | 7,074 | $ | - | $ | 280 | $ | 966 | $ | 8,320 | |||||||||||||
For the Three Months Ended June 30, 2012
|
||||||||||||||||||||||||
(Dollars in thousands)
|
Number of Modifications |
Extended Maturity |
Adjusted Interest Rates |
Combination of Rate and Maturity |
Other | Total | ||||||||||||||||||
Real estate
|
||||||||||||||||||||||||
Residential
|
1 | $ | - | $ | - | $ | - | $ | 462 | $ | 462 | |||||||||||||
Commercial
|
5 | 1,754 | 3,301 | - | 3,250 | 8,305 | ||||||||||||||||||
Commercial
|
4 | - | - | 169 | - | 169 | ||||||||||||||||||
Total
|
10 | $ | 1,754 | $ | 3,301 | $ | 169 | $ | 3,712 | $ | 8,936 | |||||||||||||
For the Six Months Ended June 30, 2012
|
||||||||||||||||||||||||
(Dollars in thousands)
|
Number of Modifications |
Extended Maturity |
Adjusted Interest Rates |
Combination of Rate and Maturity |
Other | Total | ||||||||||||||||||
Real estate
|
||||||||||||||||||||||||
Residential
|
2 | $ | - | $ | 115 | $ | - | $ | 462 | $ | 577 | |||||||||||||
Commercial
|
5 | 1,754 | 3,301 | - | 3,250 | 8,305 | ||||||||||||||||||
Construction
|
1 | 241 | - | - | - | 241 | ||||||||||||||||||
Installment
|
1 | - | 7 | - | - | 7 | ||||||||||||||||||
Commercial
|
6 | 1,915 | - | 169 | - | 2,084 | ||||||||||||||||||
Total
|
15 | $ | 3,910 | $ | 3,423 | $ | 169 | $ | 3,712 | $ | 11,214 |
24 |
First Connecticut Bancorp, Inc.
Notes to Consolidated Financial Statements (Unaudited)
|
Loans rated 1 – 5:
|
Commercial loans in these categories are considered “pass” rated loans with low to average risk.
|
Loans rated 6:
|
Residential, Consumer and Commercial loans in this category are considered “special mention.” These loans are starting to show signs of potential weakness and are being closely monitored by management.
|
Loans rated 7: | Loans in this category are considered “substandard.” Generally, a loan is considered substandard if it is inadequately protected by the current net worth and paying capacity of the obligors and/or the collateral pledged. There is a distinct possibility that the Company will sustain some loss if the weakness is not corrected. |
Loans rated 8: | Loans in this category are considered “doubtful.” Loans classified as doubtful have all the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, highly questionable and improbable. |
Loans rated 9: | Loans in this category are considered uncollectible (“loss”) and of such little value that their continuance as loans is not warranted. |
25 |
First Connecticut Bancorp, Inc.
Notes to Consolidated Financial Statements (Unaudited)
|
June 30, 2013
|
||||||||||||||||||||
(Dollars in thousands)
|
Pass
|
Special Mention
|
Substandard
|
Doubtful
|
Total
|
|||||||||||||||
Real estate
|
||||||||||||||||||||
Residential
|
$ | 612,924 | $ | 902 | $ | 11,519 | $ | - | $ | 625,345 | ||||||||||
Commercial
|
502,352 | 8,260 | 22,460 | - | 533,072 | |||||||||||||||
Construction
|
73,867 | - | 6,331 | - | 80,198 | |||||||||||||||
Installment
|
5,131 | 83 | 170 | - | 5,384 | |||||||||||||||
Commercial
|
181,507 | 5,431 | 10,700 | 1,690 | 199,328 | |||||||||||||||
Collateral
|
1,793 | - | 8 | - | 1,801 | |||||||||||||||
Home equity line of credit
|
142,902 | 675 | 971 | - | 144,548 | |||||||||||||||
Demand
|
- | - | - | - | - | |||||||||||||||
Revolving Credit
|
62 | - | - | - | 62 | |||||||||||||||
Resort
|
10,952 | - | 1,473 | - | 12,425 | |||||||||||||||
Total Loans
|
$ | 1,531,490 | $ | 15,351 | $ | 53,632 | $ | 1,690 | $ | 1,602,163 | ||||||||||
December 31, 2012
|
||||||||||||||||||||
(Dollars in thousands)
|
Pass
|
Special Mention
|
Substandard
|
Doubtful
|
Total
|
|||||||||||||||
Real estate
|
||||||||||||||||||||
Residential
|
$ | 606,998 | $ | 2,425 | $ | 11,568 | $ | - | $ | 620,991 | ||||||||||
Commercial
|
434,183 | 24,902 | 14,703 | - | 473,788 | |||||||||||||||
Construction
|
60,293 | 770 | 3,299 | - | 64,362 | |||||||||||||||
Installment
|
6,481 | 53 | 185 | - | 6,719 | |||||||||||||||
Commercial
|
171,776 | 10,125 | 10,020 | 289 | 192,210 | |||||||||||||||
Collateral
|
2,086 | - | - | - | 2,086 | |||||||||||||||
Home equity line of credit
|
140,723 | 704 | 1,116 | - | 142,543 | |||||||||||||||
Demand
|
- | - | 25 | - | 25 | |||||||||||||||
Revolving Credit
|
65 | - | - | - | 65 | |||||||||||||||
Resort
|
29,596 | 12 | 1,624 | - | 31,232 | |||||||||||||||
Total Loans
|
$ | 1,452,201 | $ | 38,991 | $ | 42,540 | $ | 289 | $ | 1,534,021 |
26 |
First Connecticut Bancorp, Inc.
Notes to Consolidated Financial Statements (Unaudited)
|
5.
|
Credit Arrangements
|
27 |
6.
|
Deposits
|
June 30, 2013
|
December 31, 2012
|
|||||||
(Dollars in thousands)
|
||||||||
Noninterest-bearing demand deposits
|
$ | 275,781 | $ | 247,586 | ||||
Interest-bearing
|
||||||||
NOW accounts
|
280,462 | 227,205 | ||||||
Money market
|
349,621 | 317,030 | ||||||
Savings accounts
|
191,688 | 179,290 | ||||||
Time deposits
|
354,767 | 359,344 | ||||||
Total interest-bearing deposits
|
1,176,538 | 1,082,869 | ||||||
Total deposits
|
$ | 1,452,319 | $ | 1,330,455 |
7.
|
Pension and Other Postretirement Benefit Plans
|
Pension Benefits
|
Other Postretirement Benefits
|
|||||||||||||||
Three Months Ended June 30,
|
Three Months Ended June 30,
|
|||||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Service cost
|
$ | - | $ | 125 | $ | 26 | $ | 15 | ||||||||
Interest cost
|
239 | 272 | 32 | 34 | ||||||||||||
Expected return on plan assets
|
(283 | ) | (265 | ) | - | - | ||||||||||
Amortization:
|
||||||||||||||||
Loss
|
140 | 169 | 10 | - | ||||||||||||
Prior service cost
|
- | (32 | ) | (12 | ) | (12 | ) | |||||||||
Net periodic benefit cost
|
$ | 96 | $ | 269 | $ | 56 | $ | 37 | ||||||||
Pension Benefits
|
Other Postretirement Benefits
|
|||||||||||||||
Six Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Service cost
|
$ | - | $ | 250 | $ | 51 | $ | 30 | ||||||||
Interest cost
|
476 | 544 | 64 | 68 | ||||||||||||
Expected return on plan assets
|
(567 | ) | (518 | ) | - | - | ||||||||||
Amortization:
|
||||||||||||||||
Loss
|
286 | 338 | 21 | - | ||||||||||||
Prior service cost
|
- | (63 | ) | (25 | ) | (24 | ) | |||||||||
Net periodic benefit cost
|
$ | 195 | $ | 551 | $ | 111 | $ | 74 |
28 |
Allocated
|
190,722 | |||
Committed to be released
|
47,289 | |||
Unallocated
|
1,192,405 | |||
1,430,416 |
8.
|
Stock Incentive Plan
|
29 |
Six Months Ended
June 30, 2013 |
||||
Weighted per share average fair value of options granted
|
$ | 3.99 | ||
Assumptions:
|
||||
Risk-free interest rate
|
1.12 | % | ||
Expected volatility
|
32.35 | % | ||
Expected dividend yield
|
1.67 | % | ||
Weighted-average dividend yield
|
0.80% - 2.71 | % | ||
Expected life of options granted
|
6.0 years
|
Number of
Stock Options |
Weighted-Average
Exercise Price
|
Weighted-Average
Remaining
Contractual Term (in years)
|
Aggregate
Intrinsic Value (in thousands) |
|||||||||||||
Outstanding at December 31, 2012
|
1,696,357 | $ | 12.95 | |||||||||||||
Granted
|
12,000 | 14.85 | ||||||||||||||
Exercised
|
(1,050 | ) | 12.95 | |||||||||||||
Forfeited
|
(2,400 | ) | 12.95 | |||||||||||||
Outstanding at June 30, 2013
|
1,704,907 | $ | 12.96 | 8.75 | $ | 1,631 | ||||||||||
Exercisable at June 30, 2013
|
410,100 |
30 |
Number of
Restricted Stock |
Weighted-Average
Grant Date Fair Value |
|||||||
Unvested at December 31, 2012
|
572,167 | $ | 12.95 | |||||
Granted
|
- | - | ||||||
Vested
|
(38,400 | ) | 12.95 | |||||
Forfeited
|
- | - | ||||||
Unvested at June 30, 2013
|
533,767 | $ | 12.95 |
9.
|
Derivative Financial Instruments
|
|
●
|
if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations;
|
|
●
|
if the Company fails to maintain its status as a well/adequately capitalized institution, then the counterparty could terminate the derivative positions, and the Company would be required to settle its obligations under the agreements;
|
31 |
|
●
|
if the Company fails to maintain a specified minimum leverage ratio, then the Company could be declared in default on its derivative obligations; and
|
|
●
|
if a specified event or condition occurs that materially changes the Company’s creditworthiness in an adverse manner, it may be required to fully collateralize its obligations under the derivative instrument.
|
June 30, 2013
|
December 31, 2012
|
||||||||||||||||||||||||
(Dollars in thousands)
|
Consolidated
Balance Sheet Location |
# of
Instruments |
Notional
Amount |
Estimated
Fair Values |
# of
Instruments |
Notional
Amount |
Estimated
Fair Values |
||||||||||||||||||
Commercial loan customer
interest rate swap position |
Other Assets
|
30 | $ | 90,031 | $ | 4,310 | 35 | $ | 105,828 | $ | 8,379 | ||||||||||||||
Commercial loan customer
interest rate swap position |
Other Liabilities
|
13 | 52,759 | (2,079 | ) | 2 | 7,731 | (24 | ) | ||||||||||||||||
Counterparty interest
rate swap position |
Other Liabilities
|
43 | 142,790 | (2,231 | ) | 37 | 113,559 | (8,355 | ) | ||||||||||||||||
32 |
For The Three Months Ended June 30,
|
||||||||||||||||||||||||
2013
|
2012
|
|||||||||||||||||||||||
(Dollars in thousands)
|
Interest
Income |
MTM (Loss) Gain |
Net Impact
|
Interest
Income |
MTM (Loss) Gain |
Net Impact
|
||||||||||||||||||
Commercial loan customer
interest rate swap position |
$ | 702 | $ | (3,130 | ) | $ | (2,428 | ) | $ | 572 | $ | 2,630 | $ | 3,202 | ||||||||||
Counterparty interest
rate swap position |
(702 | ) | 3,130 | 2,428 | (572 | ) | (2,630 | ) | (3,202 | ) | ||||||||||||||
Total
|
$ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||
For The Six Months Ended June 30,
|
||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
(Dollars in thousands)
|
Interest
Income |
MTM (Loss) Gain |
Net Impact
|
Interest
Income |
MTM (Loss) Gain |
Net Impact
|
||||||||||||||||||
Commercial loan customer
interest rate swap position |
$ | 1,378 | $ | (4,069 | ) | $ | (2,691 | ) | $ | 1,121 | $ | 1,662 | $ | 2,783 | ||||||||||
Counterparty interest
rate swap position |
(1,378 | ) | 4,069 | 2,691 | (1,121 | ) | (1,662 | ) | (2,783 | ) | ||||||||||||||
Total
|
$ | - | $ | - | $ | - | $ | - | $ | - | $ | - |
33 |
10.
|
Financial Instruments with Off-Balance Sheet Risk
|
June 30,
2013 |
December 31,
2012 |
|||||||
(Dollars in thousands)
|
||||||||
Approved loan commitments
|
$ | 52,840 | $ | 14,761 | ||||
Unadvanced portion of construction loans
|
50,900 | 61,923 | ||||||
Unadvanced portion of resort loans
|
4,159 | 2,768 | ||||||
Unused lines for home equity loans
|
158,790 | 146,078 | ||||||
Unused revolving lines of credit
|
377 | 402 | ||||||
Unused commercial letters of credit
|
4,595 | 8,462 | ||||||
Unused commercial lines of credit
|
149,133 | 135,379 | ||||||
$ | 420,794 | $ | 369,773 |
11.
|
Fair Value Measurements
|
34 |
|
●
|
Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;
|
|
●
|
Level 2 - Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability;
|
|
●
|
Level 3 - Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity).
|
35 |
First Connecticut Bancorp, Inc.
|
Notes to Consolidated Financial Statements (Unaudited)
|
June 30, 2013
|
||||||||||||||||
Quoted Prices in Active Markets for Identical Assets
|
Significant Observable Inputs
|
Significant Unobservable Inputs
|
||||||||||||||
(Dollars in thousands)
|
Total
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||||||||||
Assets
|
||||||||||||||||
U.S. Treasury obligations
|
$ | 96,994 | $ | 96,994 | $ | - | $ | - | ||||||||
Government sponsored residential mortgage-backed securities
|
6,869 | - | 6,869 | - | ||||||||||||
Corporate debt securities
|
3,116 | - | 3,116 | - | ||||||||||||
Preferred equity securities
|
2,166 | - | 2,166 | - | ||||||||||||
Marketable equity securities
|
143 | 143 | - | - | ||||||||||||
Mutual funds
|
3,513 | - | 3,513 | - | ||||||||||||
Securities available-for-sale
|
112,801 | 97,137 | 15,664 | - | ||||||||||||
Interest rate swap derivative
|
4,310 | - | 4,310 | - | ||||||||||||
Derivative loan commitments
|
5 | - | - | 5 | ||||||||||||
Forward loan sales commitments
|
486 | - | - | 486 | ||||||||||||
Total
|
$ | 117,602 | $ | 97,137 | $ | 19,974 | $ | 491 | ||||||||
Liabilities
|
||||||||||||||||
Interest rate swap derivative
|
$ | 4,310 | $ | - | $ | 4,310 | $ | - | ||||||||
Total
|
$ | 4,310 | $ | - | $ | 4,310 | $ | - |
December 31, 2012
|
||||||||||||||||
Quoted Prices in Active Markets for Identical Assets
|
Significant Observable Inputs
|
Significant Unobservable Inputs
|
||||||||||||||
(Dollars in thousands)
|
Total
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||||||||||
Assets
|
||||||||||||||||
U.S. Treasury obligations
|
$ | 118,980 | $ | 118,980 | $ | - | $ | - | ||||||||
Government sponsored residential mortgage-backed securities
|
10,603 | - | 10,603 | - | ||||||||||||
Corporate debt securities
|
3,153 | - | 3,153 | - | ||||||||||||
Preferred equity securities
|
1,786 | - | 1,786 | - | ||||||||||||
Marketable equity securities
|
372 | 132 | 240 | - | ||||||||||||
Mutual funds
|
3,587 | - | 3,587 | - | ||||||||||||
Securities available-for-sale
|
138,481 | 119,112 | 19,369 | - | ||||||||||||
Interest rate swap derivative
|
8,379 | - | 8,379 | - | ||||||||||||
Derivative loan commitments
|
450 | - | - | 450 | ||||||||||||
Forward loan sales commitments
|
38 | - | 38 | |||||||||||||
Total
|
$ | 147,348 | $ | 119,112 | $ | 27,748 | $ | 488 | ||||||||
Liabilities
|
||||||||||||||||
Interest rate swap derivative
|
$ | 8,379 | $ | - | $ | 8,379 | $ | - | ||||||||
Total
|
$ | 8,379 | $ | - | $ | 8,379 | $ | - |
36 |
First Connecticut Bancorp, Inc.
|
Notes to Consolidated Financial Statements (Unaudited)
|
Securities Available-for-Sale
|
Derivative and Forward Loan Sales
|
|||||||||||||||
For the Three Months Ended
June 30, |
For the Three Months Ended
June 30, |
|||||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Balance, at beginning of period
|
$ | - | $ | 40 | $ | 494 | $ | (28 | ) | |||||||
Paydowns
|
- | (3 | ) | - | - | |||||||||||
Total losses - (realized/unrealized):
|
||||||||||||||||
Included in earnings
|
- | - | (3 | ) | 152 | |||||||||||
Balance, at the end of period
|
$ | - | $ | 37 | $ | 491 | $ | 124 | ||||||||
Securities Available-for-Sale
|
Commitments, Net
|
|||||||||||||||
For the Six Months Ended June 30,
|
For the Six Months Ended June 30,
|
|||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Balance, at beginning of period
|
$ | - | $ | 42 | $ | 488 | $ | (44 | ) | |||||||
Paydowns
|
- | (5 | ) | - | - | |||||||||||
Total losses - (realized/unrealized):
|
||||||||||||||||
Included in earnings
|
- | - | 3 | 168 | ||||||||||||
Balance, at the end of period
|
$ | - | $ | 37 | $ | 491 | $ | 124 |
37 |
First Connecticut Bancorp, Inc.
|
Notes to Consolidated Financial Statements (Unaudited)
|
June 30, 2013
|
||||||||||||
Quoted Prices in
|
Significant
|
Significant
|
||||||||||
Active Markets for
|
Observable
|
Unobservable
|
||||||||||
Identical Assets
|
Inputs
|
Inputs
|
||||||||||
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||||||||
(Dollars in thousands)
|
||||||||||||
Mortgage servicing rights
|
$ | - | $ | - | $ | 3,300 | ||||||
Loans held for sale
|
- | 4,801 | - | |||||||||
Impaired loans
|
- | - | 37,617 | |||||||||
Other real estate owned
|
- | - | 514 | |||||||||
December 31, 2012
|
||||||||||||
Quoted Prices in
|
Significant
|
Significant
|
||||||||||
Active Markets for
|
Observable
|
Unobservable
|
||||||||||
Identical Assets
|
Inputs
|
Inputs
|
||||||||||
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||||||||
(Dollars in thousands)
|
||||||||||||
Mortgage servicing rights
|
$ | - | $ | - | $ | 1,709 | ||||||
Loans held for sale
|
- | 9,626 | - | |||||||||
Impaired loans
|
- | - | 35,908 | |||||||||
Other real estate owned
|
- | - | 549 |
38 |
First Connecticut Bancorp, Inc.
|
Notes to Consolidated Financial Statements (Unaudited)
|
June 30, 2013
|
|||||||||||||||
Significant
|
Weighted
Average Inputs |
||||||||||||||
(Dollars in thousands)
|
Fair Value
|
Valuation Methodology
|
Unobservable Inputs
|
Range of Inputs
|
|||||||||||
Mortgage servicing rights
|
$ | 3,300 |
Discounted cash flows
|
Prepayment speed
|
0% - 33% | 8.0 | % | ||||||||
Discount rate
|
n/a | 7.3 | % | ||||||||||||
Impaired loans
|
$ | 37,617 |
Appraisals
|
Discount for dated appraisal
|
0% - 20% | 10.0 | % | ||||||||
Discount for costs to sell
|
8% - 15% | 11.5 | % | ||||||||||||
Other real estate owned
|
$ | 514 |
Appraisals
|
Discount for costs to sell
|
8% - 10% | 9.0 | % |
39 |
First Connecticut Bancorp, Inc.
|
Notes to Consolidated Financial Statements (Unaudited)
|
40 |
First Connecticut Bancorp, Inc.
|
Notes to Consolidated Financial Statements (Unaudited)
|
June 30, 2013
|
December 31, 2012
|
||||||||||||||||
Estimated
|
Estimated
|
||||||||||||||||
Fair Value
|
Carrying
|
Fair
|
Carrying
|
Fair
|
|||||||||||||
Hierarchy Level
|
Amount
|
Value
|
Amount
|
Value
|
|||||||||||||
(Dollars in thousands)
|
|||||||||||||||||
Financial assets
|
|||||||||||||||||
Securities held-to-maturity
|
Level 2
|
$ | 3,003 | $ | 3,003 | $ | 3,006 | $ | 3,006 | ||||||||
Securities available-for-sale
|
See previous table
|
112,801 | 112,801 | 138,481 | 138,481 | ||||||||||||
Loans
|
Level 3
|
1,602,163 | 1,603,833 | 1,534,021 | 1,563,430 | ||||||||||||
Loans held-for-sale
|
Level 2
|
4,801 | 4,801 | 9,626 | 9,626 | ||||||||||||
Mortgage servicing rights
|
Level 3
|
2,740 | 3,300 | 1,327 | 1,709 | ||||||||||||
Federal Home Loan Bank of Boston stock
|
Level 2
|
8,383 | 8,383 | 8,939 | 8,939 | ||||||||||||
Financial liabilities
|
|||||||||||||||||
Deposits
|
|||||||||||||||||
Noninterest-bearing demand deposits
|
Level 1
|
275,781 | 275,781 | 247,586 | 247,586 | ||||||||||||
NOW accounts
|
Level 1
|
280,462 | 280,462 | 227,205 | 227,205 | ||||||||||||
Money market
|
Level 1
|
349,621 | 349,621 | 317,030 | 317,030 | ||||||||||||
Savings accounts
|
Level 1
|
191,688 | 191,688 | 179,290 | 179,290 | ||||||||||||
Time deposits
|
Level 2
|
354,767 | 357,932 | 359,344 | 363,156 | ||||||||||||
FHLB advances
|
Level 2
|
51,250 | 52,537 | 128,000 | 130,062 | ||||||||||||
Repurchase agreement borrowings
|
Level 2
|
21,000 | 22,419 | 21,000 | 22,819 | ||||||||||||
Repurchase liabilities
|
Level 2
|
50,262 | 50,262 | 54,187 | 54,189 | ||||||||||||
On-balance sheet derivative financial instruments
|
|||||||||||||||||
Forward loan sales commitments:
|
|||||||||||||||||
Assets
|
Level 3
|
486 | 486 | 38 | 38 | ||||||||||||
Liabilities
|
Level 3
|
- | - | - | - | ||||||||||||
Interest rate swap derivative liability:
|
|||||||||||||||||
Assets
|
Level 2
|
4,310 | 4,310 | 8,379 | 8,379 | ||||||||||||
Liabilities
|
Level 2
|
4,310 | 4,310 | 8,379 | 8,379 | ||||||||||||
Derivative loan commitments
|
|||||||||||||||||
Assets
|
Level 3
|
5 | 5 | 450 | 450 | ||||||||||||
Liabilities
|
Level 3
|
- | - | - | - |
41 |
First Connecticut Bancorp, Inc.
|
Notes to Consolidated Financial Statements (Unaudited)
|
12.
|
Regulatory Matters
|
Actual
|
Minimum Required
for Capital Adequacy Purposes |
To Be Well Capitalized Under Prompt Corrective Action |
||||||||||||||||||||||
(Dollars in thousands)
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||||||||
Farmington Bank:
|
||||||||||||||||||||||||
At June 30, 2013
|
||||||||||||||||||||||||
Total Capital (to Risk Weighted Assets)
|
$ | 206,207 | 14.16 | % | $ | 116,501 | 8.00 | % | $ | 145,626 | 10.00 | % | ||||||||||||
Tier I Capital (to Risk Weighted Assets)
|
188,283 | 12.93 | 58,247 | 4.00 | 87,370 | 6.00 | ||||||||||||||||||
Tier I Capital (to Average Assets)
|
188,283 | 10.26 | 73,405 | 4.00 | 91,756 | 5.00 | ||||||||||||||||||
At December 31, 2012
|
||||||||||||||||||||||||
Total Capital (to Risk Weighted Assets)
|
$ | 203,344 | 14.44 | % | $ | 112,656 | 8.00 | % | $ | 140,820 | 10.00 | % | ||||||||||||
Tier I Capital (to Risk Weighted Assets)
|
185,743 | 13.19 | 56,328 | 4.00 | 84,493 | 6.00 | ||||||||||||||||||
Tier I Capital (to Average Assets)
|
185,743 | 10.44 | 71,166 | 4.00 | 88,957 | 5.00 | ||||||||||||||||||
First Connecticut Bancorp, Inc.:
|
||||||||||||||||||||||||
At June 30, 2013
|
||||||||||||||||||||||||
Total Capital (to Risk Weighted Assets)
|
$ | 255,213 | 17.48 | % | $ | 116,802 | 8.00 | % | $ | 146,003 | 10.00 | % | ||||||||||||
Tier I Capital (to Risk Weighted Assets)
|
237,289 | 16.25 | 58,410 | 4.00 | 87,614 | 6.00 | ||||||||||||||||||
Tier I Capital (to Average Assets)
|
237,289 | 12.92 | 73,464 | 4.00 | 91,830 | 5.00 | ||||||||||||||||||
At December 31, 2012
|
||||||||||||||||||||||||
Total Capital (to Risk Weighted Assets)
|
$ | 264,987 | 18.78 | % | $ | 112,881 | 8.00 | % | $ | 141,101 | 10.00 | % | ||||||||||||
Tier I Capital (to Risk Weighted Assets)
|
247,364 | 17.53 | 56,444 | 4.00 | 84,665 | 6.00 | ||||||||||||||||||
Tier I Capital (to Average Assets)
|
247,364 | 13.88 | 71,286 | 4.00 | 89,108 | 5.00 |
13.
|
Legal Actions
|
42 |
●
|
statements of our goals, intentions and expectations;
|
●
|
statements regarding our business plans, prospects, growth and operating strategies;
|
●
|
statements regarding the asset quality of our loan and investment portfolios; and
|
●
|
estimates of our risks and future costs and benefits.
|
●
|
Local, regional and national business or economic conditions may differ from those expected.
|
●
|
The effects of and changes in trade, monetary and fiscal policies and laws, including the U.S. Federal Reserve Board’s interest rate policies, may adversely affect our business.
|
●
|
The ability to increase market share and control expenses may be more difficult than anticipated.
|
●
|
Changes in laws and regulatory requirements (including those concerning taxes, banking, securities and insurance) may adversely affect us or our business.
|
●
|
Changes in accounting policies and practices, as may be adopted by regulatory agencies, the Public Company Accounting Oversight Board or the Financial Accounting Standards Board, may affect expected financial reporting.
|
●
|
Future changes in interest rates may reduce our profits which could have a negative impact on the value of our stock.
|
●
|
We are subject to lending risk and could incur losses in our loan portfolio despite our underwriting practices. Changes in real estate values could also increase our lending risk.
|
●
|
Changes in demand for loan products, financial products and deposit flow could impact our financial performance.
|
●
|
Strong competition within our market area may limit our growth and profitability.
|
●
|
If our allowance for loan losses is not sufficient to cover actual loan losses, our earnings could decrease.
|
●
|
Our stock value may be negatively affected by federal regulations and articles of incorporation provisions restricting takeovers.
|
43 |
●
|
Implementation of stock benefit plans will increase our costs, which will reduce our income.
|
●
|
The Dodd-Frank Act was signed into law on July 21, 2010 and has resulted in dramatic regulatory changes that affects the industry in general, and may impact our competitive position in ways that cannot be predicted at this time.
|
●
|
The Emergency Economic Stabilization Act (“EESA”) of 2008 has and may continue to have a significant impact on the banking industry.
|
●
|
The increased cost of maintaining or the Company’s ability to maintain adequate liquidity and capital, based on the requirements adopted by the Basel Committee on Banking Supervision and U.S. regulators.
|
●
|
Changes to the amount and timing of proposed common stock repurchases.
|
●
|
Computer systems on which we depend could fail or experience a security breach, implementation of new technologies may not be successful; and our ability to anticipate and respond to technological changes can affect our ability to meet customer needs.
|
|
●
|
We may not manage the risks involved in the foregoing as well as anticipated.
|
|
●
|
maintaining a strong capital position in excess of the well-capitalized standards set by our banking regulators to support our current operations and future growth;
|
|
●
|
continuing our focus on commercial lending and continuing to expand commercial banking operations;
|
|
●
|
continuing to focus on consumer and residential lending;
|
|
●
|
maintaining asset quality and prudent lending standards;
|
|
●
|
expanding our existing products and services and developing new products and services to meet the changing needs of consumers and businesses in our market area;
|
44 |
|
●
|
continuing expansion through de novo branching;
|
|
●
|
increase consumer, small business and commercial deposit transaction account portfolio to grow customer base and have more non-interest bearing source of funds;
|
|
●
|
expand electronic banking delivery capability and usage to complement our de novo branch strategy and provide customer access 24/7;
|
|
●
|
taking advantage of acquisition opportunities that are consistent with our strategic growth plans; and
|
|
●
|
continuing our efforts to control non-interest expenses.
|
45 |
46 |
47 |
48 |
49 |
50 |
For the Three Months Ended June 30,
|
||||||||||||||||
2013
|
2012
|
$ Change
|
% Change
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Net interest income
|
$ | 12,932 | $ | 12,799 | $ | 133 | 1.0 | % | ||||||||
Provision for loan losses
|
256 | 520 | (264 | ) | (50.8 | ) | ||||||||||
Noninterest income
|
3,124 | 1,978 | 1,146 | 57.9 | ||||||||||||
Noninterest expense
|
14,555 | 13,133 | 1,422 | 10.8 | ||||||||||||
Income before taxes
|
1,245 | 1,124 | 121 | 10.8 | ||||||||||||
Income tax expense
|
308 | 293 | 15 | 5.1 | ||||||||||||
Net income
|
$ | 937 | $ | 831 | $ | 106 | 12.8 | % |
51 |
For The Three Months Ended June 30,
|
||||||||||||||||||||||||
2013
|
2012
|
|||||||||||||||||||||||
Average
Balance |
Interest and Dividends
|
Yield/Cost
|
Average
Balance |
Interest and Dividends
|
Yield/Cost
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Loans, net
|
$ | 1,577,565 | $ | 15,150 | 3.85 | % | $ | 1,360,401 | $ | 14,741 | 4.35 | % | ||||||||||||
Securities
|
115,280 | 216 | 0.75 | % | 131,309 | 370 | 1.13 | % | ||||||||||||||||
Federal Home Loan Bank of Boston stock
|
8,383 | 9 | 0.43 | % | 7,137 | 9 | 0.51 | % | ||||||||||||||||
Federal funds and other earning assets
|
14,317 | 6 | 0.17 | % | 48,049 | 26 | 0.22 | % | ||||||||||||||||
Total interest-earning assets
|
1,715,545 | 15,381 | 3.60 | % | 1,546,896 | 15,146 | 3.93 | % | ||||||||||||||||
Noninterest-earning assets
|
120,623 | 117,486 | ||||||||||||||||||||||
Total assets
|
$ | 1,836,168 | $ | 1,664,382 | ||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
NOW accounts
|
$ | 266,905 | $ | 151 | 0.23 | % | $ | 204,611 | $ | 83 | 0.16 | % | ||||||||||||
Money market
|
354,914 | 725 | 0.82 | % | 270,157 | 488 | 0.72 | % | ||||||||||||||||
Savings accounts
|
184,307 | 73 | 0.16 | % | 174,321 | 64 | 0.15 | % | ||||||||||||||||
Certificates of deposit
|
354,381 | 878 | 0.99 | % | 368,006 | 1,008 | 1.10 | % | ||||||||||||||||
Total interest-bearing deposits
|
1,160,507 | 1,827 | 0.63 | % | 1,017,095 | 1,643 | 0.65 | % | ||||||||||||||||
Federal Home Loan Bank of Boston advances
|
68,660 | 401 | 2.34 | % | 62,869 | 462 | 2.95 | % | ||||||||||||||||
Repurchase agreement borrowings
|
21,000 | 180 | 3.44 | % | 21,000 | 181 | 3.46 | % | ||||||||||||||||
Repurchase liabilities
|
46,539 | 41 | 0.35 | % | 63,166 | 61 | 0.39 | % | ||||||||||||||||
Total interest-bearing liabilities
|
1,296,706 | 2,449 | 0.76 | % | 1,164,130 | 2,347 | 0.81 | % | ||||||||||||||||
Noninterest-bearing deposits
|
257,670 | 210,874 | ||||||||||||||||||||||
Other noninterest-bearing liabilities
|
46,292 | 38,273 | ||||||||||||||||||||||
Total liabilities
|
1,600,668 | 1,413,277 | ||||||||||||||||||||||
Stockholders’ equity
|
235,500 | 251,105 | ||||||||||||||||||||||
Total liabilities and stockholders’ equity
|
$ | 1,836,168 | $ | 1,664,382 | ||||||||||||||||||||
Net interest income
|
$ | 12,932 | $ | 12,799 | ||||||||||||||||||||
Net interest rate spread (1)
|
2.84 | % | 3.12 | % | ||||||||||||||||||||
Net interest-earning assets (2)
|
$ | 418,839 | $ | 382,766 | ||||||||||||||||||||
Net interest margin (3)
|
3.02 | % | 3.37 | % | ||||||||||||||||||||
Average interest-earning assets to average interest-bearing liabilities
|
||||||||||||||||||||||||
132.30 | % | 132.88 | % |
(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.
|
52 |
Three Months Ended June 30, 2013 Compared to
Three Months Ended June 30, 2012 |
||||||||||||
Increase (decrease) due to
|
||||||||||||
(Dollars in thousands)
|
Volume
|
Rate
|
Total
|
|||||||||
Interest-earning assets:
|
||||||||||||
Loans, net
|
$ | 1,424 | $ | (1,015 | ) | $ | 409 | |||||
Investment securities
|
(44 | ) | (110 | ) | (154 | ) | ||||||
Federal Home Loan Bank of Boston stock
|
- | - | - | |||||||||
Federal funds and other interest-earning assets
|
(15 | ) | (5 | ) | (20 | ) | ||||||
Total interest-earning assets
|
1,365 | (1,130 | ) | 235 | ||||||||
Interest-bearing liabilities:
|
||||||||||||
NOW accounts
|
34 | 34 | 68 | |||||||||
Money market
|
159 | 78 | 237 | |||||||||
Savings accounts
|
9 | - | 9 | |||||||||
Certificates of deposit
|
(35 | ) | (95 | ) | (130 | ) | ||||||
Total interest-bearing deposits
|
167 | 17 | 184 | |||||||||
Advances from the Federal Home Loan Bank
|
45 | (106 | ) | (61 | ) | |||||||
Repurchase agreement borrowing
|
- | (1 | ) | (1 | ) | |||||||
Repurchase liabilities
|
(20 | ) | - | (20 | ) | |||||||
Total interest-bearing liabilities
|
192 | (90 | ) | 102 | ||||||||
(Decrease) increase in net interest income
|
$ | 1,173 | $ | (1,040 | ) | $ | 133 |
53 |
For the Three Months Ending June 30,
|
||||||||||||||||
2013
|
2012
|
$ Change
|
% Change
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Fees for customer services
|
$ | 1,097 | $ | 900 | $ | 197 | 21.9 | % | ||||||||
Net gain on sales of investments
|
36 | - | 36 | 100.0 | ||||||||||||
Net gain on loans sold
|
1,739 | 431 | 1,308 | 303.5 | ||||||||||||
Brokerage and insurance fee income
|
41 | 32 | 9 | 28.1 | ||||||||||||
Bank owned life insurance income
|
303 | 321 | (18 | ) | (5.6 | ) | ||||||||||
Other | (92 | ) | 294 | (386 | ) | (131.3 | ) | |||||||||
Total noninterest income
|
$ | 3,124 | $ | 1,978 | $ | 1,146 | 57.9 | % |
54 |
For the Three Months Ended June 30,
|
||||||||||||||||
2013
|
2012
|
$ Change
|
% Change
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Salaries and employee benefits
|
$ | 8,555 | $ | 7,619 | $ | 936 | 12.3 | % | ||||||||
Occupancy expense
|
1,126 | 1,098 | 28 | 2.6 | ||||||||||||
Furniture and equipment expense
|
1,099 | 1,112 | (13 | ) | (1.2 | ) | ||||||||||
FDIC assessment
|
311 | 294 | 17 | 5.8 | ||||||||||||
Marketing | 610 | 753 | (143 | ) | (19.0 | ) | ||||||||||
Other operating expenses
|
2,854 | 2,257 | 597 | 26.5 | ||||||||||||
Total noninterest expense
|
$ | 14,555 | $ | 13,133 | $ | 1,422 | 10.8 | % |
For the Six Months Ended June 30,
|
||||||||||||||||
2013
|
2012
|
$ Change
|
% Change
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Net interest income
|
$ | 25,584 | $ | 25,753 | $ | (169 | ) | (0.7 | ) % | |||||||
Provision for loan losses
|
655 | 850 | (195 | ) | (22.9 | ) | ||||||||||
Noninterest income
|
6,662 | 3,291 | 3,371 | 102.4 | ||||||||||||
Noninterest expense
|
29,254 | 25,762 | 3,492 | 13.6 | ||||||||||||
Income before taxes
|
2,337 | 2,432 | (95 | ) | (3.9 | ) | ||||||||||
Income tax expense
|
587 | 610 | (23 | ) | (3.8 | ) | ||||||||||
Net income | $ | 1,750 | $ | 1,822 | $ | (72 | ) | (4.0 | ) % |
55 |
56 |
For The Six Months Ended June 30,
|
||||||||||||||||||||||||
2013
|
2012
|
|||||||||||||||||||||||
Average
Balance |
Interest and
Dividends |
Yield/Cost
|
Average
Balance |
Interest and
Dividends |
Yield/Cost
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Loans, net
|
$ | 1,550,340 | $ | 29,932 | 3.89 | % | $ | 1,338,093 | $ | 29,740 | 4.46 | % | ||||||||||||
Securities
|
120,901 | 468 | 0.78 | % | 131,695 | 755 | 1.15 | % | ||||||||||||||||
Federal Home Loan Bank of Boston stock
|
8,595 | 17 | 0.40 | % | 7,253 | 18 | 0.50 | % | ||||||||||||||||
Federal funds and other earning assets
|
12,675 | 11 | 0.18 | % | 57,381 | 60 | 0.21 | % | ||||||||||||||||
Total interest-earning assets
|
1,692,511 | 30,428 | 3.63 | % | 1,534,422 | 30,573 | 4.00 | % | ||||||||||||||||
Noninterest-earning assets
|
120,870 | 117,171 | ||||||||||||||||||||||
Total assets
|
$ | 1,813,381 | $ | 1,651,593 | ||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
NOW accounts
|
$ | 250,489 | $ | 286 | 0.23 | % | $ | 204,771 | $ | 172 | 0.17 | % | ||||||||||||
Money market
|
345,486 | 1,311 | 0.77 | % | 266,238 | 1,032 | 0.78 | % | ||||||||||||||||
Savings accounts
|
177,825 | 158 | 0.18 | % | 167,973 | 125 | 0.15 | % | ||||||||||||||||
Certificates of deposit
|
355,396 | 1,777 | 1.01 | % | 374,996 | 2,069 | 1.11 | % | ||||||||||||||||
Total interest-bearing deposits
|
1,129,196 | 3,532 | 0.63 | % | 1,013,978 | 3,398 | 0.67 | % | ||||||||||||||||
Federal Home Loan Bank of Boston advances
|
74,531 | 870 | 2.35 | % | 62,955 | 943 | 3.00 | % | ||||||||||||||||
Repurchase agreement borrowings
|
21,000 | 351 | 3.37 | % | 21,000 | 361 | 3.45 | % | ||||||||||||||||
Repurchase liabilities
|
51,031 | 91 | 0.36 | % | 60,617 | 118 | 0.39 | % | ||||||||||||||||
Total interest-bearing liabilities
|
1,275,758 | 4,844 | 0.77 | % | 1,158,550 | 4,820 | 0.83 | % | ||||||||||||||||
Noninterest-bearing deposits
|
248,804 | 203,033 | ||||||||||||||||||||||
Other noninterest-bearing liabilities
|
49,041 | 38,603 | ||||||||||||||||||||||
Total liabilities
|
1,573,603 | 1,400,186 | ||||||||||||||||||||||
Stockholders’ equity
|
239,778 | 251,407 | ||||||||||||||||||||||
Total liabilities and stockholders’ equity
|
$ | 1,813,381 | $ | 1,651,593 | ||||||||||||||||||||
Net interest income
|
$ | 25,584 | $ | 25,753 | ||||||||||||||||||||
Net interest rate spread (1)
|
2.86 | % | 3.17 | % | ||||||||||||||||||||
Net interest-earning assets (2)
|
$ | 416,753 | $ | 375,872 | ||||||||||||||||||||
Net interest margin (3)
|
3.05 | % | 3.37 | % | ||||||||||||||||||||
Average interest-earning assets to average interest-bearing liabilities
|
132.67 | % | 132.44 | % | ||||||||||||||||||||
(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.
|
57 |
Six Months Ended June 30, 2013 Compared to Six
Months Ended June 30, 2012 |
||||||||||||
Increase (decrease) due to
|
||||||||||||
(Dollars in thousands)
|
Volume
|
Rate
|
Total
|
|||||||||
Interest-earning assets:
|
||||||||||||
Loans, net
|
$ | 912 | $ | (720 | ) | $ | 192 | |||||
Investment securities
|
(48 | ) | (239 | ) | (287 | ) | ||||||
Federal Home Loan Bank of Boston stock
|
14 | (15 | ) | (1 | ) | |||||||
Federal funds and other interest-earning assets
|
(40 | ) | (9 | ) | (49 | ) | ||||||
Total interest-earning assets
|
838 | (983 | ) | (145 | ) | |||||||
Interest-bearing liabilities:
|
||||||||||||
NOW accounts
|
50 | 64 | 114 | |||||||||
Money market
|
279 | - | 279 | |||||||||
Savings accounts
|
4 | 29 | 33 | |||||||||
Certificates of deposit
|
(103 | ) | (189 | ) | (292 | ) | ||||||
Total interest-bearing deposits
|
230 | (96 | ) | 134 | ||||||||
Advances from the Federal Home Loan Bank
|
486 | (559 | ) | (73 | ) | |||||||
Repurchase agreement borrowing
|
- | (10 | ) | (10 | ) | |||||||
Repurchase liabilities
|
(27 | ) | - | (27 | ) | |||||||
Total interest-bearing liabilities
|
689 | (665 | ) | 24 | ||||||||
(Decrease) increase in net interest income
|
$ | 149 | $ | (318 | ) | $ | (169 | ) |
58 |
For the Six Months Ending June 30,
|
||||||||||||||||
2013
|
2012
|
$ Change
|
% Change
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Fees for customer services
|
$ | 2,079 | $ | 1,716 | $ | 363 | 21.2 | % | ||||||||
Net gain on sales of investments
|
36 | - | 36 | 100.0 | ||||||||||||
Net gain on loans sold
|
3,769 | 529 | 3,240 | 612.5 | ||||||||||||
Brokerage and insurance fee income
|
73 | 57 | 16 | 28.1 | ||||||||||||
Bank owned life insurance income
|
712 | 640 | 72 | 11.3 | ||||||||||||
Other | (7 | ) | 349 | (356 | ) | (102.0 | ) | |||||||||
Total noninterest income
|
$ | 6,662 | $ | 3,291 | $ | 3,371 | 102.4 | % |
59 |
For the Six Months Ended June 30,
|
||||||||||||||||
2013
|
2012
|
$ Change
|
% Change
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Salaries and employee benefits
|
$ | 17,589 | $ | 15,043 | $ | 2,546 | 16.9 | % | ||||||||
Occupancy expense
|
2,366 | 2,288 | 78 | 3.4 | ||||||||||||
Furniture and equipment expense
|
2,117 | 2,211 | (94 | ) | (4.3 | ) | ||||||||||
FDIC assessment
|
602 | 573 | 29 | 5.1 | ||||||||||||
Marketing | 1,204 | 1,359 | (155 | ) | (11.4 | ) | ||||||||||
Other operating expenses
|
5,376 | 4,288 | 1,088 | 25.4 | ||||||||||||
Total noninterest expense
|
$ | 29,254 | $ | 25,762 | $ | 3,492 | 13.6 | % |
60 |
61 |
Percentage Increase (Decrease) in
Estimated Net Interest Income Over 12 Months |
||||||||
At June 30, 2013
|
At December 31,
2012 |
|||||||
300 basis point increase
|
9.06 | % | 7.31 | % | ||||
400 basis point increase
|
8.55 | % | 6.23 | % | ||||
100 basis point decrease
|
(3.33 | )% | (4.89 | ) % |
Item 4.
|
Controls and Procedures
|
62 |
|
(a)
|
Not applicable.
|
|
(b)
|
Not applicable.
|
|
(c)
|
During the quarter ending June 30, 2013, the Company made the following repurchases of common stock:
|
Period
|
(a) Total
Number of Shares (or Units) Purchased |
(b) Average
Price Paid per Share (or Unit) |
(c) Total Number of
Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs |
(d) Maximum Number
(or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs |
||||||||||||
April 1-30, 2013
|
557,043 | $ | 14.55 | 1,465,130 | 322,890 | |||||||||||
May 1-31, 2013
|
322,890 | $ | 14.53 | 1,788,020 | - | |||||||||||
June 1-30, 2013
|
1,000 | $ | 13.40 | 1,000 | 1,675,452 |
63 |
|
3.1
|
Amended and Restated Certificate of Incorporation of First Connecticut Bancorp, Inc. (filed as Exhibit 3.1 to the Registration Statement on the Form S-1 filed for the Company on January 28, 2011, as amended, and incorporated herein by reference).
|
|
3.2
|
Bylaws of First Connecticut Bancorp, Inc. (filed as Exhibit 3.2 to the Registration Statement on the Form S-1 filed for the Company on January 28, 2011, as amended, and incorporated herein by reference).
|
|
4.1
|
Form of Common Stock Certificate of First Connecticut Bancorp, Inc. (filed as Exhibit 4.1 to the Registration Statement on the Form S-1 filed for the Company on January 28, 2011, as amended, and incorporated herein by reference).
|
|
10.1
|
Phantom Stock Plan of Farmington Bank (filed as Exhibit 10.1 to the Registration Statement on the Form S-1 filed for the Company on January 28, 2011, as amended, and incorporated herein by reference).
|
|
10.2
|
Supplemental Executive Retirement Plan of Farmington Bank (filed as Exhibit 10.2 to the Registration Statement on the Form S-1 filed for the Company on January 28, 2011, as amended, and incorporated herein by reference).
|
|
10.3
|
Voluntary Deferred Compensation Plan for Directors and Key Employees (filed as Exhibit 10.3 to the Registration Statement on the Form S-1 filed for the Company on January 28, 2011, as amended, and incorporated herein by reference).
|
|
10.4
|
First Amendment to Voluntary Deferred Compensation Plan for Directors and Key Employees (filed as Exhibit 10.4 to the Registration Statement on the Form S-1 filed for the Company on January 28, 2011, as amended, and incorporated herein by reference).
|
|
10.4.1
|
Second Amendment to Voluntary Deferred Compensation Plan for Directors and Key Employees (filed as Exhibit 10.4.1 to the Form 10-K for the year ended December 31, 2012 filed on March 18, 2013, and incorporated herein by reference).
|
|
10.5
|
Voluntary Deferred Compensation Plan for Key Employees (filed as Exhibit 10.5 to the Registration Statement on the Form S-1 filed for the Company on January 28, 2011, as amended, and incorporated herein by reference).
|
|
10.6
|
Life Insurance Premium Reimbursement Agreement between Farmington Bank and John J. Patrick, Jr. (filed as Exhibit 10.6 to the Registration Statement on the Form S-1 filed for the Company on January 28, 2011, as amended, and incorporated herein by reference).
|
|
10.7
|
Life Insurance Premium Reimbursement Agreement between Farmington Bank and Gregory A. White (filed as Exhibit 10.7 to the Registration Statement on the Form S-1 filed for the Company on January 28, 2011, as amended, and incorporated herein by reference).
|
|
10.8
|
Farmington Savings Bank Defined Benefit Employees’ Pension Plan, as amended (filed as Exhibit 10.8 to the Registration Statement on the Form S-1 filed for the Company on January 28, 2011, as amended, and incorporated herein by reference).
|
|
10.8.1
|
Farmington Savings Bank Defined Benefit Employees’ Pension Plan, as amended (filed as Exhibit 10.8.1 to the Form 10-K for the year ended December 31, 2012 filed on March 18, 2013, and incorporated herein by reference).
|
|
10.9
|
Annual Incentive Compensation Plan (filed as Exhibit 10.9 to the Registration Statement on the Form S-1 filed for the Company on January 28, 2011, as amended, and incorporated herein by reference).
|
|
10.10
|
Supplemental Retirement Plan Participation Agreement between John J. Patrick, Jr. and Farmington Bank (filed as Exhibit 10.10 to the Registration Statement on the Form S-1 filed for the Company on January 28, 2011, as amended, and incorporated herein by reference).
|
64 |
|
10.11
|
Supplemental Retirement Plan Participation Agreement between Michael T. Schweighoffer and Farmington Bank (filed as Exhibit 10.11 to the Registration Statement on the Form S-1 filed for the Company on January 28, 2011, as amended, and incorporated herein by reference).
|
|
10.12
|
Supplemental Retirement Plan Participation Agreement between Gregory A. White and Farmington Bank (filed as Exhibit 10.12 to the Registration Statement on the Form S-1 filed for the Company on January 28, 2011, as amended, and incorporated herein by reference).
|
|
10.13
|
Employment Agreement among First Connecticut Bancorp, Inc., Farmington Bank and John J. Patrick, Jr. (filed as Exhibit 10.1 Employment Agreement on Form 8-K for the Company on April 24, 2012 and incorporated herein by reference).
|
|
10.13.1
|
Employment Agreement First Amendment among First Connecticut Bancorp, Inc., Farmington Bank and John J. Patrick, Jr. (filed as Exhibit 10.13.1 to the current report on the Form 8-K filed for the Company on February 28, 2013, as amended, and incorporated herein by reference).
|
|
10.14
|
Life Insurance Premium Reimbursement Agreement between Farmington Bank and Michael T. Schweighoffer (filed as Exhibit 10.14 to the Form 10-Q filed for the Company on May 15, 2012, and incorporated herein by reference).
|
|
10.15
|
First Connecticut Bancorp, Inc. 2012 Stock Incentive Plan (Incorporated by reference to Appendix A in the Definitive Proxy Statement on Form 14A filed on June 6, 2012 and amended on July 2, 2012 (File No. 001-35209-12890818 and 12960688).
|
|
21.1
|
Subsidiaries of First Connecticut Bancorp, Inc. and Farmington Bank (filed as Exhibit 21.1 to the Registration Statement on the Form S-1 filed for the Company on January 28, 2011, as amended, and incorporated herein by reference).
|
|
31.1
|
Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, signed by the Company’s Chief Executive Officer.
|
|
31.2
|
Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, signed by the Company’s Chief Financial Officer.
|
|
32.1
|
Written Statement pursuant to 18 U.S.C. § 1350, as created by section 906 of the Sarbanes-Oxley Act of 2002, signed by the Company’s Chief Executive Officer.
|
|
32.2
|
Written Statement pursuant to 18 U.S.C. § 1350, as created by section 906 of the Sarbanes-Oxley Act of 2002, signed by the Company’s Chief Financial Officer.
|
|
101
|
Interactive data files pursuant to Rule 405 of Regulation S-t: (i) the Consolidated Statements of Condition, (ii) the Consolidated Statements of Operations, (iii) the Consolidated Statement of Changes in Stockholders’ Equity, (iv) the Consolidated Statements of Cash Flows, and (iv) Notes to Unaudited Consolidated Financial Statements tagged as blocks of text and in detail.*
|
|
*
|
As provided in Rule 406T of Regulation S-T, this information is furnished and not filed for purposes of Sections 11 and 12 of the Securities Act of 1933 and Section 18 of the Securities Act of 1934.
|
65 |
FIRST CONNECTICUT BANCORP, INC.
|
||
Date: August 9, 2013
|
/s/ John J. Patrick, Jr.
|
|
John J. Patrick, Jr.
|
||
Chairman, President and Chief Executive Officer
|
||
Date: August 9, 2013
|
/s/ Gregory A. White
|
|
Gregory A. White
|
||
Executive Vice President and Chief Financial Officer
|
||
Date: August 9, 2013
|
/s/ Kimberly Rozanski Ruppert
|
|
Kimberly Rozanski Ruppert
|
||
Senior Vice President and Principal Accounting Officer
|
66 |
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of First Connecticut Bancorp, Inc., a Maryland corporation;
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15-15(f) for the registrant and have:
|
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
|
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors:
|
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: August 9, 2013
|
/s/ John J. Patrick, Jr.
|
|
John J. Patrick, Jr.
|
||
Chairman, President and Chief Executive Officer
|
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of First Connecticut Bancorp, Inc., a Maryland corporation;
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15-15(f) for the registrant and have:
|
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d)
|
Disclosed in this report any change in the registrant’s internal
control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s
fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect,
the registrant’s internal control over financial reporting.
|
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors:
|
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: August 9, 2013
|
/s/ Gregory A White
|
|
Gregory A. White
|
||
Executive Vice President and Chief Financial Officer
|
|
1.
|
the Report fully complies with the requirements of Sections 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
|
2.
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Date: August 9, 2013
|
/s/ John J. Patrick, Jr.
|
|
John J. Patrick, Jr.
|
||
Chairman, President and Chief Executive Officer
|
|
1.
|
the Report fully complies with the requirements of Sections 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
|
2.
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Date: August 9, 2013
|
/s/ Gregory A. White
|
|
Gregory A. White
|
||
Executive Vice President and Chief Financial Officer
|
Fair Value Measurements (Detail Textuals) (USD $)
|
6 Months Ended |
---|---|
Jun. 30, 2013
|
|
Securities Available for Sale
|
|
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Percentage of investment securities portfolio to estimate fair value measurements | 100.00% |
Impaired loans
|
|
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Minimum amount of impaired loans that are annually appraised | $ 250,000 |
Derivative Financial Instruments
|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments |
Non-Hedge Accounting Derivatives/Non-designated Hedges:
The Company does not use derivatives for trading or speculative purposes. Interest rate swap derivatives not designated as hedges are offered to certain qualifying commercial customers and to manage the Company’s exposure to interest rate movements but do not meet the strict hedge accounting under FASB ASC 815, “Derivatives and Hedging”. The interest rate swap agreements enable these customers to synthetically fix the interest rate on variable interest rate loans. The customers pay a variable rate and enter into a fixed rate swap agreement with the Company. The credit risk associated with the interest rate swap derivatives executed with these customers is essentially the same as that involved in extending loans and is subject to our normal credit policies. The Company obtains collateral, if needed, based upon its assessment of the customers’ credit quality. Generally, interest rate swap agreements are offered to “pass” rated customers requesting long-term commercial loans or commercial mortgages in amounts generally of at least $1.0 million. The interest rate swap agreement with our customers is cross-collateralized by the loan collateral. The interest rate swap agreements do not have any embedded interest rate caps or floors.
For every variable interest rate swap agreement entered into with a commercial customer, the Company simultaneously enters into a fixed rate interest rate swap agreement with a correspondent bank, PNC Bank, agreeing to pay a fixed income stream and receive a variable interest rate swap. The Company is required to collateralize the fair value of its derivative liability. As of June 30, 2013, the Company maintained a cash balance of $3.7 million with PNC Bank to collateralize our position. The Company’s agreement with PNC Bank will require PNC Bank to collateralize their position at an agreed upon threshold based upon their investor rating at the time should the Company’s liability to them ever become a receivable. As of June 30, 2013, the Company’s agreement would require PNC Bank to secure any outstanding receivable in excess of $10.0 million.
Credit-risk-related Contingent
Features
The Company’s agreement with PNC Bank, its derivative counterparty, contains the following provisions:
The Company is in compliance with the above provisions as of June 30, 2013.
The Company has established a derivatives policy which sets forth the parameters for such transactions (including underwriting guidelines, rate setting process, maximum maturity, approval and documentation requirements), as well as identifies internal controls for the management of risks related to these hedging activities (such as approval of counterparties, limits on counterparty credit risk, maximum loan amounts, and limits to single dealer counterparties).
The interest rate swap derivatives executed with our customers and our counterparty, PNC Bank, are marked to market and are included with prepaid expenses and other assets and accrued expenses and other liabilities on our consolidated statements of condition at fair value.
The Company had the following outstanding interest rate swaps that were not designated for hedge accounting:
The Company recorded the changes in the fair value of non-hedge accounting derivatives as a component of other noninterest income except for interest received and paid which is reported in interest income in the accompanying consolidated statements of operations as follows:
Mortgage Banking Derivatives
Certain derivative instruments, primarily forward sales of mortgage loans and mortgage-backed securities (“MBS”) are utilized by the Company in its efforts to manage risk of loss associated with its mortgage loan commitments and mortgage loans held for sale. Prior to closing and funding certain single-family residential mortgage loans, an interest-rate lock commitment is generally extended to the borrower. During the period from commitment date to closing date, the Company is subject to the risk that market rates of interest may change. If market rates rise, investors generally will pay less to purchase such loans resulting in a reduction in the gain on sale of the loans or, possibly, a loss. In an effort to mitigate such risk, forward delivery sales commitments, under which the Company agrees to deliver whole mortgage loans to various investors or issue MBS, are established. At June 30, 2013, the notional amount of outstanding rate locks totaled approximately $22.2 million and the notional amount of outstanding commitments to sell residential mortgage loans totaled approximately $24.6 million. Forward sales, which include mandatory forward commitments, notional amount totaled approximately $19.9 million at June 30, 2013; establish the price to be received upon the sale of the related mortgage loan, thereby mitigating certain interest rate risk. There is, however, still certain execution risk specifically related to the Company’s ability to close and deliver to its investors the mortgage loans it has committed to sell. |
Credit Arrangements (Detail Textuals) (USD $)
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Jun. 30, 2013
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Dec. 31, 2012
|
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Line of Credit Facility [Line Items] | ||
Balance with bank | $ 262,500 | $ 262,500 |
Federal Home Loan Bank Of Boston
|
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Line of Credit Facility [Line Items] | ||
Pre-approved line of credit | 8,800,000 | 8,800,000 |
Federal Home Loan Bank Of Boston | Unsecured Line Of Credit With Bank One
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Line of Credit Facility [Line Items] | ||
Pre-approved line of credit | 20,000,000 | 20,000,000 |
Federal Home Loan Bank Of Boston | Unsecured Line Of Credit With Bank Two
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Line of Credit Facility [Line Items] | ||
Amount under unsecured line of credit agreement | $ 3,500,000 | $ 3,500,000 |
Earnings Per Share
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Jun. 30, 2013
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share |
Basic net earnings per common share is calculated by dividing the net income available to common stockholders by the weighted-average number of common shares outstanding during the year. Diluted net earnings per common share is computed in a manner similar to basic net earnings per common share except that the weighted-average number of common shares outstanding is increased to include the incremental common shares (as computed using the treasury stock method) that would have been outstanding if all potentially dilutive common stock equivalents were issued during the year. Unvested restricted stock are participating securities and are considered outstanding and included in the weighted-average number of common shares outstanding for purposes of calculating both basic and diluted earnings per common share since the shares participate in dividends and the right to dividends are non-forfeitable. Losses are not allocated to participating securities since there is not a contractual obligation to participate in the net loss. Unallocated common shares held by the ESOP are not included in the weighted-average number of common shares outstanding for purposes of calculating both basic and diluted earnings per common share.
The following table sets forth the calculation of basic and diluted earnings per share:
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Investment Securities (Tables)
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Jun. 30, 2013
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of investment securities |
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Schedule of gross unrealized losses and fair value aggregated by investment category |
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Schedule of amortized cost and estimated market value of debt securities by contractual maturity |
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Derivative Financial Instruments - Changes in the fair value of non-hedge accounting derivatives (Details 1) (Not Designated as Hedging Instrument, USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2013
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Jun. 30, 2012
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Jun. 30, 2013
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Jun. 30, 2012
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Derivative [Line Items] | ||||
Changes in fair value of non-hedge accounting derivatives | ||||
Interest Income
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Derivative [Line Items] | ||||
Changes in fair value of non-hedge accounting derivatives | ||||
MTM (Loss) Gain
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Derivative [Line Items] | ||||
Changes in fair value of non-hedge accounting derivatives | ||||
Commercial loan customer interest rate swap position
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||||
Derivative [Line Items] | ||||
Changes in fair value of non-hedge accounting derivatives | (2,428) | 3,202 | (2,691) | 2,783 |
Commercial loan customer interest rate swap position | Interest Income
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||||
Derivative [Line Items] | ||||
Changes in fair value of non-hedge accounting derivatives | 702 | 572 | 1,378 | 1,121 |
Commercial loan customer interest rate swap position | MTM (Loss) Gain
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||||
Derivative [Line Items] | ||||
Changes in fair value of non-hedge accounting derivatives | (3,130) | 2,630 | (4,069) | 1,662 |
Counterparty interest rate swap position
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||||
Derivative [Line Items] | ||||
Changes in fair value of non-hedge accounting derivatives | 2,428 | (3,202) | 2,691 | (2,783) |
Counterparty interest rate swap position | Interest Income
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Derivative [Line Items] | ||||
Changes in fair value of non-hedge accounting derivatives | (702) | (572) | (1,378) | (1,121) |
Counterparty interest rate swap position | MTM (Loss) Gain
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Derivative [Line Items] | ||||
Changes in fair value of non-hedge accounting derivatives | $ 3,130 | $ (2,630) | $ 4,069 | $ (1,662) |
Credit Arrangements (Detail Textuals 3) (USD $)
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Jun. 30, 2013
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Dec. 31, 2012
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Schedule of Investments [Line Items] | ||
Repurchase liabilities | $ 50,262,000 | $ 54,187,000 |
US Treasury Bill Securities
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Schedule of Investments [Line Items] | ||
Treasury bill securities with a fair value | 24,000,000 | |
Cash for securing repurchase agreement | 451,000 | |
Outstanding borrowings | 21,000,000 | 21,000,000 |
Repurchase liabilities | 50,300,000 | 54,200,000 |
Market value of investment for securing repurchase liability | $ 59,300,000 | $ 84,300,000 |
Financial Instruments with Off-Balance Sheet Risk
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Financial Instruments With Off Balance Sheet Risk Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments with Off-Balance Sheet Risk |
The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and unused lines of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated statement of condition. The contract amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments.
The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. Financial instruments whose contract amounts represent credit risk are as follows:
Financial instruments with off-balance sheet risk had a valuation allowance of $419,000 and $394,000 as of June 30, 2013 and December 31, 2012, respectively.
Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained if deemed necessary by the Company upon extension of credit is based on management’s credit evaluation of the counterparty. Collateral held is primarily residential property and commercial assets.
At June 30, 2013 and December 31, 2012, the Company had no off-balance sheet special purpose entities and participated in no securitizations of assets. |
Deposits - Summary (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
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Dec. 31, 2012
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---|---|---|
Banking and Thrift [Abstract] | ||
Noninterest-bearing demand deposits | $ 275,781 | $ 247,586 |
Interest-bearing | ||
NOW accounts | 280,462 | 227,205 |
Money market | 349,621 | 317,030 |
Savings accounts | 191,688 | 179,290 |
Time deposits | 354,767 | 359,344 |
Total interest-bearing deposits | 1,176,538 | 1,082,869 |
Total deposits | $ 1,452,319 | $ 1,330,455 |
Pension and Other Postretirement Benefit Plans (Tables)
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Jun. 30, 2013
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Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of components of net periodic pension and benefit costs |
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Schedule of shares held by ESOP |
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Deposits (Tables)
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6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Banking and Thrift [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of deposits |
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Summary of Significant Accounting Policies (Detail Textuals 1) (USD $)
In Millions, except Share data, unless otherwise specified |
1 Months Ended | 6 Months Ended | |
---|---|---|---|
Jun. 21, 2013
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Jun. 30, 2013
2012 Stock Incentive Plan
|
Sep. 05, 2012
2012 Stock Incentive Plan
|
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Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares repurchased | 1,676,452 | 1,788,020 | |
Value of shares repurchased | $ 24.9 | ||
Number of shares reissued, held as treasury stock | 486,947 | ||
Number of shares reserved for issuance | 2,503,228 |
Investment Securities (Detail Textuals) (USD $)
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3 Months Ended | 6 Months Ended | |
---|---|---|---|
Jun. 30, 2013
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Jun. 30, 2013
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Dec. 31, 2012
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Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
FHLB Stock | $ 8,383,000 | $ 8,383,000 | $ 8,939,000 |
Available-for-sale Securities, Gross Realized Gains | 36,000 | 36,000 | |
Federal Home Loan Bank Of Boston
|
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Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
FHLB Stock | $ 8,400,000 | $ 8,400,000 | $ 8,900,000 |
Fair Value Measurements (Tables)
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of financial instruments carried at fair value on a recurring basis |
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Schedule of assets measured at fair value according to level 3 inputs |
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Schedule of financial instruments carried at fair value on a nonrecurring basis |
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Schedule of valuation methodology and unobservable inputs for level 3 assets measured at fair value on a non-recurring basis |
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Schedule of carrying amount, fair value, and placement in the fair value hierarchy of company's financial instruments |
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Stock Incentive Plan - Summary of status of restricted stock (Details 2) (Restricted Stock, USD $)
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6 Months Ended |
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Jun. 30, 2013
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Restricted Stock
|
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Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Unvested at December 31, 2012 | 572,167 |
Granted | |
Vested | (38,400) |
Forfeited | |
Outstanding at June 30, 2013 | 533,767 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |
Unvested at December 31, 2012 | $ 12.95 |
Granted | |
Vested | $ 12.95 |
Forfeited | |
Unvested at June 30, 2013 | $ 12.95 |
Fair Value Measurements - Additional information about assets measured at fair value (Details 1) (Fair Value Measurements Recurring, Significant Unobservable Inputs (Level 3), USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
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Jun. 30, 2012
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Jun. 30, 2013
|
Jun. 30, 2012
|
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Securities Available-for-Sale
|
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Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, at beginning of period | $ 40 | $ 42 | ||
Paydowns | (3) | (5) | ||
Total gains (losses) - (realized/unrealized) | ||||
Included in earnings | ||||
Balance, at the end of period | 37 | 37 | ||
Derivative and Forward Loan Sales
|
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Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, at beginning of period | 494 | (28) | 488 | (44) |
Paydowns | ||||
Total gains (losses) - (realized/unrealized) | ||||
Included in earnings | (3) | 152 | 3 | 168 |
Balance, at the end of period | $ 491 | $ 124 | $ 491 | $ 124 |
Stock Incentive Plan - Summary of stock option activity (Details 1) (Stock options, USD $)
In Thousands, except Share data, unless otherwise specified |
6 Months Ended |
---|---|
Jun. 30, 2013
|
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Stock options
|
|
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Outstanding at December 31, 2012 | 1,696,357 |
Granted | 12,000 |
Exercised | (1,050) |
Forfeited | (2,400) |
Outstanding at June 30, 2013 | 1,704,907 |
Exercisable at June 30, 2013 | 410,100 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |
Outstanding at December 31, 2012 | $ 12.95 |
Granted | $ 14.85 |
Exercised | $ 12.95 |
Forfeited | $ 12.95 |
Outstanding at June 30, 2013 | $ 12.96 |
Weighted-average remaining contractual term (in years) | 8 years 9 months |
Aggregate intrinsic value | $ 1,631 |
Method used | Black-Scholes option pricing model |
Loans and Allowance for Loan Losses - Changes in allowance for loan losses by segments (Details 2) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | $ 17,332 | $ 17,727 | $ 17,229 | $ 17,533 |
Charge-offs | (93) | (492) | (399) | (640) |
Recoveries | 10 | 172 | 20 | 184 |
Provision for (Reduction) loan losses | 256 | 520 | 655 | 850 |
Balance at end of period | 17,505 | 17,927 | 17,505 | 17,927 |
Loans receivable
|
||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 17,332 | 17,229 | ||
Charge-offs | (93) | (399) | ||
Recoveries | 10 | 20 | ||
Provision for (Reduction) loan losses | 256 | 655 | ||
Balance at end of period | 17,505 | 17,505 | ||
Loans receivable | Real estate Residential
|
||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 3,901 | 3,778 | ||
Charge-offs | (81) | (375) | ||
Recoveries | ||||
Provision for (Reduction) loan losses | (92) | 325 | ||
Balance at end of period | 3,728 | 3,728 | ||
Loans receivable | Real estate Commercial
|
||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 7,926 | 8,105 | ||
Charge-offs | ||||
Recoveries | ||||
Provision for (Reduction) loan losses | 86 | (93) | ||
Balance at end of period | 8,012 | 8,012 | ||
Loans receivable | Real estate Construction
|
||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 847 | 760 | ||
Charge-offs | ||||
Recoveries | ||||
Provision for (Reduction) loan losses | 291 | 378 | ||
Balance at end of period | 1,138 | 1,138 | ||
Loans receivable | Installment
|
||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 64 | 77 | ||
Charge-offs | ||||
Recoveries | ||||
Provision for (Reduction) loan losses | (7) | (20) | ||
Balance at end of period | 57 | 57 | ||
Loans receivable | Commercial
|
||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 2,990 | 2,654 | ||
Charge-offs | ||||
Recoveries | 4 | 9 | ||
Provision for (Reduction) loan losses | 5 | 336 | ||
Balance at end of period | 2,999 | 2,999 | ||
Loans receivable | Collateral
|
||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | ||||
Charge-offs | ||||
Recoveries | ||||
Provision for (Reduction) loan losses | ||||
Balance at end of period | ||||
Loans receivable | Home equity line of credit
|
||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 1,393 | 1,377 | ||
Charge-offs | ||||
Recoveries | ||||
Provision for (Reduction) loan losses | 8 | 24 | ||
Balance at end of period | 1,401 | 1,401 | ||
Loans receivable | Demand
|
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Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | ||||
Charge-offs | ||||
Recoveries | ||||
Provision for (Reduction) loan losses | ||||
Balance at end of period | ||||
Loans receivable | Revolving credit
|
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Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | ||||
Charge-offs | (12) | (24) | ||
Recoveries | 6 | 11 | ||
Provision for (Reduction) loan losses | 6 | 13 | ||
Balance at end of period | ||||
Loans receivable | Resort
|
||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 211 | 456 | ||
Charge-offs | ||||
Recoveries | ||||
Provision for (Reduction) loan losses | (41) | (286) | ||
Balance at end of period | 170 | 170 | ||
Loans receivable | Unallocated
|
||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 22 | |||
Charge-offs | ||||
Recoveries | ||||
Provision for (Reduction) loan losses | (22) | |||
Balance at end of period |
Financial Instruments with Off-Balance Sheet Risk (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
|
Dec. 31, 2012
|
---|---|---|
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair value, off-balance sheet risks, amount, liability | $ 420,794 | $ 369,773 |
Approved loan commitments
|
||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair value, off-balance sheet risks, amount, liability | 52,840 | 14,761 |
Unadvanced portion of construction loans
|
||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair value, off-balance sheet risks, amount, liability | 50,900 | 61,923 |
Unadvanced portion of resort loans
|
||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair value, off-balance sheet risks, amount, liability | 4,159 | 2,768 |
Unused lines for home equity loans
|
||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair value, off-balance sheet risks, amount, liability | 158,790 | 146,078 |
Unused revolving lines of credit
|
||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair value, off-balance sheet risks, amount, liability | 377 | 402 |
Unused commercial letters of credit
|
||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair value, off-balance sheet risks, amount, liability | 4,595 | 8,462 |
Unused commercial lines of credit
|
||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair value, off-balance sheet risks, amount, liability | $ 149,133 | $ 135,379 |
Loans and Allowance for Loan Losses (Tables)
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of loans |
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Schedule of changes in the allowance for loan losses |
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Schedule of changes in the allowance for loan losses by segments |
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Schedule of the allowance by impairment methodology and by loan segment allocation | Loans individually evaluated for impairment:
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Schedule of loan aging at recorded investment values |
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Schedule of nonperforming assets |
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Schedule of information pertaining to impaired loans |
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Schedule of loans terms modified in a troubled debt restructuring |
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Schedule of recorded investment in the loans prior to a modification and also the recorded investment in the loans after the loans were restructured |
(1) The period end balances are inclusive of all partial paydowns and charge-offs since the modification date. TDRs fully paid off, charged-off or foreclosed upon by period end are not included.
(1) The period end balances are inclusive of all partial paydowns and charge-offs since the modification date. TDRs fully paid off, charged-off or foreclosed upon by period end are not included.
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Schedule of TDR loans modified by means of extended maturity, below market adjusted interest rates, a combination of rate and maturity, or by other means including covenant modifications, forbearance concessions |
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Schedule of loans by risk rating |
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Consolidated Statement of Changes in Stockholders' Equity (Unaudited) (USD $)
In Thousands, except Share data, unless otherwise specified |
Common Stock
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Additional Paid in Capital
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Unallocated Common Shares Held by ESOP
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Treasury Stock
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Retained Earnings
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Accumulated Other Comprehensive Income (Loss)
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Total
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---|---|---|---|---|---|---|---|
Balance at Dec. 31, 2012 | $ 181 | $ 172,247 | $ (14,806) | $ (4,860) | $ 94,890 | $ (6,130) | $ 241,522 |
Balance (in shares) at Dec. 31, 2012 | 17,714,481 | 17,714,481 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
ESOP shares released and committed to be released | 153 | 525 | 678 | ||||
Cash dividend paid ($0.06 per common share) | (1,035) | (1,035) | |||||
Treasury stock acquired | (13,664) | (13,664) | |||||
Treasury stock acquired (in shares) | (939,583) | ||||||
Stock options exercised | 14 | 14 | |||||
Stock options exercised (in shares) | 1,050 | ||||||
Cancellation of shares for tax withholding | (161) | (14) | (175) | ||||
Cancellation of shares for tax withholding (in shares) | (12,432) | ||||||
Share based compensation expense | 2,103 | 2,103 | |||||
Net income | 1,750 | 1,750 | |||||
Other comprehensive income | 122 | 122 | |||||
Balance at Jun. 30, 2013 | $ 181 | $ 174,342 | $ (14,281) | $ (18,524) | $ 95,605 | $ (6,008) | $ 231,315 |
Balance (in shares) at Jun. 30, 2013 | 16,763,516 | 16,763,516 |
Consolidated Statements of Cash Flows (Unaudited) (USD $)
In Thousands, unless otherwise specified |
6 Months Ended | |
---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
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Cash flows from operating activities | ||
Net income | $ 1,750 | $ 1,822 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for allowance for loan losses | 655 | 850 |
Provision for off-balance sheet commitments | 25 | 12 |
Depreciation and amortization | 1,465 | 1,626 |
Amortization of ESOP expense | 678 | 619 |
Share based compensation expense | 2,103 | |
Loans originated for sale | (119,819) | (18,105) |
Proceeds from the sale of loans held for sale | 128,310 | 18,006 |
Loss on sale of foreclosed real estate | 84 | 18 |
Loss (gain) on sale of premises and equipment | 2 | (28) |
Loss on fair value adjustment on loans held for sale | 103 | |
Net gain on loans sold | (3,769) | (529) |
Gain on sale of investment | (36) | |
Accretion and amortization of investment security discounts and premiums, net | (37) | (53) |
Amortization and accretion of loan fees and discounts, net | 1,342 | (670) |
Decrease in accrued income receivable | 12 | 104 |
Deferred income tax | (294) | 11 |
Increase in cash surrender value of bank-owned life insurance | (603) | (640) |
Decrease (increase) in prepaid expenses and other assets | 2,477 | (806) |
(Decrease) increase in accrued expenses and other liabilities | (8,419) | 781 |
Net cash provided by operating activities | 6,029 | 3,018 |
Cash flow from investing activities | ||
Maturities of securities held-to-maturity | 3 | 209 |
Maturities, calls and principal payments of securities available-for-sale | 151,469 | 142,743 |
Purchases of securities available-for-sale | (126,059) | (137,972) |
Loan originations, net of principal repayments | (70,384) | (120,921) |
Redemption of Federal Home Loan Bank of Boston stock, net | 556 | 312 |
Purchases of bank-owned life insurance | (6,000) | |
Proceeds from bank-owned life insurance | 100 | |
Proceeds from sale of land | 249 | |
Proceeds from sale of foreclosed real estate | 233 | 94 |
Purchases of premises and equipment | (2,267) | (1,982) |
Net cash used in investing activities | (46,349) | (123,268) |
Cash flows from financing activities | ||
Purchase of common stock for ESOP | (5,376) | |
Net (decrease) increase in borrowings | (76,750) | 28,000 |
Net increase in demand deposits, NOW accounts, savings accounts and money market accounts | 126,441 | 65,141 |
Net decrease in certificates of deposit | (4,577) | (23,080) |
Net (decrease) increase in repurchase liabilities | (3,925) | 3,068 |
Cancellation of shares for tax withholding | (161) | |
Repurchase of common stock | (13,664) | |
Cash dividend paid | (1,035) | (1,072) |
Net cash provided by financing activities | 26,329 | 66,681 |
Net decrease in cash and cash equivalents | (13,991) | (53,569) |
Cash and cash equivalents at beginning of period | 50,641 | 90,296 |
Cash and cash equivalents at end of period | 36,650 | 36,727 |
Supplemental disclosure of cash flow information | ||
Cash paid for interest | 4,662 | 4,790 |
Cash paid for income taxes | 4,285 | 6 |
Loans transferred to other real estate owned | $ 282 | $ 246 |
Investment Securities
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Securities |
Investment securities are summarized as follows:
The following table summarizes gross unrealized losses and fair value, aggregated by investment category and length of time the investments have been in a continuous unrealized loss position at June 30, 2013 and December 31, 2012:
Management believes that no individual unrealized loss as of June 30, 2013 represents an other-than-temporary impairment, based on its detailed review of the securities portfolio. The Company has no intent to sell nor is it more likely than not that the Company will be required to sell any of the securities contained in the table during the period of time necessary to recover the unrealized losses, which may be until maturity. The unrealized loss on preferred equity securities in a loss position for 12 months or more relates to one preferred equity security that is rated Ba2 by Moody’s as of June 30, 2013. A detailed review of the preferred equity security was completed by management and procedures included an analysis of their most recent financial statements and management concluded that the preferred equity security is not other-than-temporarily impaired.
There were gross realized gains on sales of securities available for sale totaling $36,000 for the three and six months ended June 30, 2013. There were no gross realized gains or losses on sales of securities available for sale for the three and six months ended June 30, 2012.
The amortized cost and estimated market value of debt securities at June 30, 2013 by contractual maturity are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or repay obligations with or without call or repayment penalties:
The Company, as a member of the Federal Home Loan Bank of Boston (FHLBB), owned $8.4 million and $8.9 million of FHLBB capital stock at June 30, 2013 and December 31, 2012, respectively, which is equal to its FHLBB capital stock requirement. |
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis (Details 2) (Fair value, measurements, nonrecurring, USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
|
Dec. 31, 2012
|
---|---|---|
Quoted Prices in Active Markets for Identical Assets (Level 1)
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Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Mortgage servicing rights | ||
Loans held for sale | ||
Impaired loans | ||
Other real estate owned | ||
Significant Observable Inputs (Level 2)
|
||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Mortgage servicing rights | ||
Loans held for sale | 4,801 | 9,626 |
Impaired loans | ||
Other real estate owned | ||
Significant Unobservable Inputs (Level 3)
|
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Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Mortgage servicing rights | 3,300 | 1,709 |
Loans held for sale | ||
Impaired loans | 37,617 | 35,908 |
Other real estate owned | $ 514 | $ 549 |
Summary of Significant Accounting Policies
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6 Months Ended | ||
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Jun. 30, 2013
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Accounting Policies [Abstract] | |||
Summary of Significant Accounting Policies |
Organization and Business
On June 29, 2011, the Boards of Directors of Farmington Bank, a Connecticut stock savings bank (the “Bank”), First Connecticut Bancorp, Inc., a Maryland-chartered corporation (the “Company”), First Connecticut Bancorp, Inc., a Connecticut-chartered nonstock corporation and mutual holding company (the “MHC”) and Farmington Holdings, Inc., a Connecticut-chartered corporation (the “Mid-Tier”) completed a Plan of Conversion and Reorganization whereby: (1) the MHC converted from the mutual holding company form of organization to the stock holding company form of organization, (2) the Company sold shares of common stock of the Company in a subscription offering, and (3) the Company contributed shares of Company common stock equal to 4.0% of the shares sold in the subscription offering to the Farmington Bank Community Foundation, Inc. (the “Conversion and Reorganization”). First Connecticut Bancorp, Inc. sold 17,192,500 shares of its common stock to eligible stock holders at $10.00 per share for proceeds of $167.8 million, net of offering costs of $4.1 million. On June 29, 2011, with the completion of the Conversion and Reorganization, First Connecticut Bancorp, Inc. is 100% owned by public shareholders and the MHC and the Mid-Tier ceased to exist.
As part of the reorganization, the Company established an Employee Stock Ownership Plan (“ESOP”) for eligible employees. The Company loaned the ESOP the amount needed to purchase up to 1,430,416 shares or 8.0% of the Company’s common stock issued in the offering. During 2012, the ESOP completed its purchase of 1,430,416 shares of common stock at a cost of $16.9 million. The Bank makes annual contributions adequate to fund the payment of regular debt service requirements attributable to the indebtedness of the ESOP.
On July 2, 2012, the Company received regulatory approval to repurchase up to 1,788,020 shares, or 10% of its current
outstanding common stock. As of June 30, 2013 the Company completed its repurchase of 1,788,020 shares at a cost of $24.9 million, of which 486,947 shares were reissued as part of the 2012 Stock Incentive Plan. On June 21, 2013, the Company received regulatory approval to repurchase up to an additional 1,676,452 shares, or 10% of its current outstanding common stock. Repurchased shares are held as treasury stock and are available for general corporate purposes.
On September 5, 2012, the Company registered 2,503,228 shares to be reserved for issuance to the First Connecticut Bancorp, Inc. 2012 Stock Incentive Plan.
The consolidated financial statements include the accounts of First Connecticut Bancorp, Inc. and its wholly-owned subsidiary, Farmington Bank, (collectively, the “Company”). Significant inter-company accounts and transactions have been eliminated in consolidation.
First Connecticut Bancorp, Inc.'s only subsidiary is Farmington Bank. Farmington Bank's main office is located in Farmington, Connecticut. Farmington Bank operates twenty full service branch offices and four limited services offices in central Connecticut. Farmington Bank's primary source of income is interest accrued on loans to customers, which include small and middle market businesses and individuals residing within Farmington Bank's service area.
Wholly-owned subsidiaries of Farmington Bank include Farmington Savings Loan Servicing, Inc., a passive investment company that was established to service and hold loans collateralized by real property; Village Investments, Inc. presently inactive; the Village Corp., Limited, a subsidiary that held certain real estate; 28 Main Street Corp., a subsidiary that holds residential other real estate owned; Village Management Corp., a subsidiary that held commercial other real estate owned and Village Square Holdings, Inc., a subsidiary that holds certain bank premises and other real estate.
Basis of Financial Statement Presentation
The consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. The Company has condensed or omitted certain information and footnote disclosures normally included in the consolidated financial statements in accordance with accounting principles generally accepted in the United States of America pursuant to such rules and regulations. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair statement have been included. All significant intercompany transactions and balances have been eliminated in consolidation. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of and for the year ended December 31, 2012 included in the Company’s 10-K filed on March 18, 2013. The results of operations for the interim periods are not necessarily indicative of the results for the full year.
In preparing the consolidated financial statements, management is required to make extensive use of estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the statement of condition and revenues and expenses for the interim period. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, investment security other-than-temporary impairment judgments and investment security valuation.
Investment Securities
Marketable equity and debt securities are classified as either trading, available for sale, or held to maturity (applies only to debt securities). Management determines the appropriate classifications of securities at the time of purchase. At June 30, 2013 and December 31, 2012, the Company had no debt or equity securities classified as trading. Held to maturity securities are debt securities for which the Company has the ability and intent to hold until maturity. All other securities not included in held to maturity are classified as available for sale. Held to maturity securities are recorded at amortized cost, adjusted for the amortization or accretion of premiums or discounts. Premiums and discounts on debt securities are amortized or accreted into interest income over the term of the securities using the level yield method. Available for sale securities are recorded at fair value. Unrealized gains and losses, net of the related tax effect, on available for sale securities are excluded from earnings and are reported in accumulated other comprehensive income, a separate component of equity, until realized. Further information relating to the fair value of securities can be found within Note 4 of the Notes to Consolidated Financial Statements.
In accordance with Financial Accounting Standards Board Accounting Standards Codification ("FASB ASC") 320-Debt and Equity Securities, a decline in market value of a debt security below amortized cost that is deemed other-than-temporary is charged to earnings for the credit related other-than-temporary impairment ("OTTI"), resulting in the establishment of a new cost basis for the security, while the non-credit related OTTI is recognized in other comprehensive income if there is no intent or requirement to sell the security. The securities portfolio is reviewed on a quarterly basis for the presence of other-than-temporary impairment. If an equity security is deemed other-than-temporary
impaired, the full impairment is considered to be credit-related and a charge to earnings would be recorded. Gains and losses on sales of securities are recognized at the time of sale on a specific identification basis.
Loans Held for Sale
Loans originated and intended for sale in the secondary market are carried at the lower of amortized cost or fair value, as determined by aggregate outstanding commitments from investors or current investor yield requirements. Net unrealized losses, if any, are recognized through a valuation allowance by charges to noninterest income. Gains or losses on sales of mortgage loans are recognized based on the difference between the selling price and the carrying value of the related mortgage loans sold on the trade date.
Loans
The Company’s loan portfolio segments include residential real estate, commercial real estate, construction, installment, commercial, collateral, home equity lines of credit, demand, revolving credit and resort. Construction includes classes for commercial and residential construction.
Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off generally are reported at their outstanding unpaid principal balances adjusted for charge-offs, the allowance for loan losses, and any deferred fees or costs on originated loans. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the interest method. When loans are prepaid, sold or participated out, the unamortized portion is recognized as income or expense at that time.
Loan origination fees and direct loan origination costs (including loan commitment fees) are deferred, and the net amount is recognized as an adjustment of the related loan’s yield utilizing the interest method over the contractual life of the loan. When loans are prepaid, sold or participated out, the unamortized portion is recognized as income or expense at that time.
Interest on loans is accrued and recognized in interest income based on contractual rates applied to principal amounts outstanding. Accrual of interest is discontinued, and previously accrued income is reversed, when loan payments are 90 days or more past due or when, in the judgment of management, collectability of the loan or loan interest becomes uncertain. Loans may be returned to accrual status when all principal and interest amounts contractually due (including arrearages) are reasonably assured of repayment within a reasonable period and there is a sustained period of repayment performance (generally a minimum of six months) by the borrower, in accordance with contractual terms involving payment of cash or cash equivalents. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual status. If a residential real estate, commercial real estate, construction, installment, commercial, collateral, home equity line of credit, demand, revolving credit and resort loan is on non-accrual status or is considered to be impaired, cash payments are applied first to interest income and then as a reduction of principal as specified in the contractual agreement, unless the collection of the remaining principal amount due is considered doubtful.
The policy for determining past due or delinquency status for all loan portfolio segments is based on the number of days past due or the contractual terms of the loan. A loan is considered delinquent when the customer does not make their payments due according to their contractual terms. Generally, a loan can be demanded at any time if the loan is delinquent or if the borrower fails to meet any other agreed upon terms and conditions.
On a quarterly basis, our loan policy requires that we evaluate for impairment all commercial real estate, construction, commercial and resort loan segments that are classified as non-accrual, loans secured by real property in foreclosure or are otherwise likely to be impaired, non-accruing residential and installment loan segments greater than $100,000 and all troubled debt restructurings.
Nonperforming loans consist of non-accruing loans and loans past due more than 90 days and still accruing interest.
Allowance for Loan Losses
The allowance for loan losses is maintained at a level believed adequate by management to absorb potential losses inherent in the loan portfolio as of the statement of condition date. The allowance for loan losses consists of a formula allowance following FASB ASC 450 – Contingencies and FASB ASC 310 – Receivables. The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance.
The allowance for loan losses is evaluated on a regular basis by management. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of general, allocated and unallocated components, as further described below. All reserves are available to cover any losses regardless of how they are allocated.
General component:
The general component of the allowance for loan losses is based on historical loss experience adjusted for qualitative factors stratified by the following loan segments: residential real estate, commercial real estate, construction, installment, commercial, collateral, home equity line of credit, demand, revolving credit and resort. Construction loans include classes for commercial investment real estate construction, commercial owner occupied construction, residential development and residential subdivision construction loans. Management uses a rolling average of historical losses based on a time frame appropriate to capture relevant loss data for each loan segment. This historical loss factor is adjusted for the following qualitative factors: levels/trends in delinquencies; trends in volume and terms of loans; effects of changes in risk selection and underwriting standards and other changes in lending policies, procedures and practices; experience/ability/depth of lending management and staff; and national and local economic trends and conditions. There were no material changes in the Company’s policies or methodology pertaining to the general component of the allowance for loan losses during the six months ended June 30, 2013.
The qualitative factors are determined based on the various risk characteristics of each loan segment. Risk characteristics relevant to each portfolio segment are as follows:
Residential real estate – Residential real estate loans are generally originated in amounts up to 95.0% of the lesser of the appraised value or purchase price of the property, with private mortgage insurance required on loans with a loan-to-value ratio in excess of 80.0%. The Company does not grant subprime loans. All loans in this segment are collateralized by owner-occupied residential real estate and repayment is dependent on the credit quality of the individual borrower. Typically, all fixed-rate residential mortgage loans are underwritten pursuant to secondary market underwriting guidelines which include minimum FICO standards. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this segment.
Commercial real estate – Loans in this segment are primarily income-producing properties throughout New England. The underlying cash flows generated by the properties may be adversely impacted by a downturn in the economy as evidenced by increased vacancy rates, which in turn, may have an effect on the credit quality in this segment. Management generally obtains rent rolls and other financial information, as appropriate on an annual basis and continually monitors the cash flows of these loans.
Construction loans – Loans in this segment include commercial construction loans, real estate
subdivision development loans, to developers, licensed contractors and builders for the construction and development of commercial real estate projects and residential properties. Construction lending contains a unique risk characteristic as loans are originated under market and economic conditions that may change between the time of origination and the completion and subsequent purchaser financing of the property. In addition, construction subdivision loans and commercial and residential construction loans to contractors and developers entail additional risks as compared to single-family residential mortgage lending to owner-occupants. These loans typically involve large loan balances concentrated in single borrowers or groups of related borrowers. Real estate subdivision development loans to developers, licensed contractors and builders for the construction are generally speculative real estate development loans for which payment is derived from sale of the property. Credit risk may be affected by cost overruns, time to sell at an adequate price, and market conditions. Construction financing is generally considered to involve a higher degree of credit risk than longer-term financing on improved, owner-occupied real estate. Residential construction credit quality may be impacted by the overall health of the economy, including unemployment rates and housing prices.
Installment, Collateral, Demand and Revolving Credit – Loans in these segments include installment, demand, revolving credit and collateral loans, principally to customers residing in our primary market area with acceptable credit ratings. Our installment and collateral consumer loans generally consist of loans on new and used automobiles, loans collateralized by deposit accounts and unsecured personal loans. The overall health of the economy, including unemployment rates and housing prices, may have an effect on the credit quality in this segment. Excluding collateral loans which are fully collateralized by a deposit account, repayment for loans in these segments are dependent on the credit quality of the individual borrower.
Commercial – Loans in this segment are made to businesses and are generally secured by assets of the business. Repayment is expected from the cash flows of the business. A weakened economy, and resultant decreased consumer spending, will have an effect on the credit quality in this segment.
Home equity line of credit – Loans in this segment include home equity loans and lines of credit underwritten with a loan-to-value ratio generally limited to no more than 80%, including any first mortgage. Our home equity lines of credit have ten-year terms and adjustable rates of interest which are indexed to the prime rate. The overall health of the economy, including unemployment rates and housing prices, may have an effect on the credit quality in this segment.
Resort – Loans in this segment include direct receivable loans, loans to timeshare developer / operators and participations in timeshare loans originated by experienced timeshare lending institutions, which originate and sell timeshare participations to other lending institutions. Lending to this industry is generally done on a nationwide basis, as the majority of timeshare operators are located outside of the Northeast. Receivable loans, which account for 88% of the resort portfolio at June 30, 2013, are typically underwritten utilizing a lending formula in which loan advances are based on a percentage of eligible consumer notes. In addition, these loans generally contain provisions for recourse to the developer, the obligation of the developer to replace defaulted notes, and parameters with respect to minimum FICO scores or average weighted FICO scores of the portfolio of pledged notes. The overall health of the economy, including unemployment rates and housing prices, may have an effect on the credit quality in this segment. The Company is gradually exiting the resort financing market.
Allocated component:
The allocated component relates to loans that are classified as impaired. Impairment is measured on a loan by loan basis for commercial real estate, construction, commercial and resort loans by the present value of expected cash flows discounted at the effective interest rate; the fair value of the collateral, if applicable; or the observable market price for the loan. An allowance is established when the discounted cash flows (or collateral value) of the impaired loan is lower than the carrying value of that loan. The Company does not separately identify individual consumer and residential real estate loans for impairment disclosures, unless such loans are subject to a troubled debt restructuring agreement or they are nonaccrual loans with outstanding balances of $100,000 or more.
A
loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis for commercial and construction loans by the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price or the fair value of the collateral if the loan is collateral dependent. Management updates the analysis quarterly. The assumptions used in appraisals are reviewed for appropriateness. Updated appraisals or valuations are obtained as needed or adjusted to reflect the estimated decline in the fair value based upon current market conditions for comparable properties.
The Company periodically may agree to modify the contractual terms of loans. When a loan is modified and a concession is made to a borrower experiencing financial difficulty, the modification is considered a troubled debt restructuring ("TDR"). All TDRs are classified as impaired.
Unallocated component:
An unallocated component is maintained, when needed, to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating allocated and general reserves in the portfolio. The Company’s Loan Policy allows management to utilize a high and low range of 0.0% to 5.0% of our total allowance for loan losses when establishing an unallocated allowance, when considered necessary. The unallocated allowance is used to provide for an unidentified loss that may exist in emerging problem loans that cannot be fully quantified or may be affected by conditions not fully understood as of the balance sheet date.
During 2013, we have started to see a slight improvement in the real estate markets and the overall economic conditions which have led to an improvement in collateral values and cash flows of borrowers. The stabilization of these economic conditions have led to improvements in charge-offs, delinquencies and non-performing loans and improved valuations for the Company’s impaired loans as of June 30, 2013. The economy is still very fragile and uncertain. If the current trend reverses itself in 2013, it could impact significant estimates such as the allowance for loan losses and the effect could be material.
Reclassifications
Amounts in prior period consolidated financial statements are reclassified whenever necessary to conform to the current year presentation.
Recent Accounting Pronouncements
In February 2013, the FASB issued ASU No. 2013-02, "Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income," to improve the transparency of reporting these reclassifications. ASU No. 2013-02 does not amend any existing requirements for reporting net income or other comprehensive income in the financial statements. ASU No. 2013-02 requires an entity to disaggregate the total change of each component of other comprehensive income (e.g., unrealized gains or losses on available-for-sale investment securities) and separately present reclassification adjustments and current period other comprehensive income. The provisions of ASU No. 2013-02 also requires that entities present either in a single note or
parenthetically on the face of the financial statements, the effect of significant amounts reclassified from each component of accumulated other comprehensive income based on its source (e.g., unrealized gains or losses on available-for-sale investment securities) and the income statement line item affected by the reclassification (e.g., realized gains (losses) on sales of investment securities). If a component is not required to be reclassified to net income in its entirety (e.g., amortization of defined benefit plan items), entities would instead cross reference to the related note to the financial statements for additional information (e.g., pension footnote). ASU No. 2013-02 is effective for interim and annual reporting periods beginning after December 15, 2012. The adoption of ASU No. 2013-02 did not have a material impact on the Company's financial condition or results of operations.
In January 2013, the FASB issued ASU No. 2013-01, “Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities,” (“ASU No. 2013-01”). ASU No. 2013-01 clarifies that ordinary trade receivables and receivables are not in the scope of ASU No. 2011-11, “Disclosures about Offsetting Assets and Liabilities,” and that ASU 2011-11 applies only to derivatives, repurchase agreements and reverse purchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with specific criteria contained in the ASC or subject to a master netting arrangement or similar agreement. ASU 2013-01 is effective for fiscal years beginning on or after January 1, 2013, and interim periods within those annual periods. An entity should provide the required disclosures retrospectively for all comparative periods presented. The adoption of ASU 2013-01 did not have an effect on the Company’s consolidated statement of condition or results of operations.
|
Loans and Allowance for Loan Losses - Summary (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
|
Mar. 31, 2013
|
Dec. 31, 2012
|
Jun. 30, 2012
|
Mar. 31, 2012
|
Dec. 31, 2011
|
---|---|---|---|---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Less: Allowance for loan losses | $ (17,505) | $ (17,332) | $ (17,229) | $ (17,927) | $ (17,727) | $ (17,533) |
Loans, net | 1,588,275 | 1,520,170 | ||||
Loans receivable
|
||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 1,602,163 | 1,534,021 | ||||
Less: Allowance for loan losses | (17,505) | (17,332) | (17,229) | |||
Net deferred loan costs | 3,617 | 3,378 | ||||
Loans, net | 1,588,275 | 1,520,170 | ||||
Loans receivable | Real estate Residential
|
||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 625,345 | 620,991 | ||||
Less: Allowance for loan losses | (3,728) | (3,901) | (3,778) | |||
Loans receivable | Real estate Commercial
|
||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 533,072 | 473,788 | ||||
Less: Allowance for loan losses | (8,012) | (7,926) | (8,105) | |||
Loans receivable | Real estate Construction
|
||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 80,198 | 64,362 | ||||
Less: Allowance for loan losses | (1,138) | (847) | (760) | |||
Loans receivable | Installment
|
||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 5,384 | 6,719 | ||||
Less: Allowance for loan losses | (57) | (64) | (77) | |||
Loans receivable | Commercial
|
||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 199,328 | 192,210 | ||||
Less: Allowance for loan losses | (2,999) | (2,990) | (2,654) | |||
Loans receivable | Collateral
|
||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 1,801 | 2,086 | ||||
Less: Allowance for loan losses | ||||||
Loans receivable | Home equity line of credit
|
||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 144,548 | 142,543 | ||||
Less: Allowance for loan losses | (1,401) | (1,393) | (1,377) | |||
Loans receivable | Demand
|
||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 25 | |||||
Less: Allowance for loan losses | ||||||
Loans receivable | Revolving credit
|
||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 62 | 65 | ||||
Less: Allowance for loan losses | ||||||
Loans receivable | Resort
|
||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 12,425 | 31,232 | ||||
Less: Allowance for loan losses | $ (170) | $ (211) | $ (456) |
Stock Incentive Plan (Tables)
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of weighted-average estimated fair values of stock option grants |
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Schedule of summary of the company's stock option activity and related information for its option grants |
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Schedule of summary of status of company's restricted stock |
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Regulatory Matters (Tables)
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Jun. 30, 2013
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Regulatory Matters Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of actual capital amounts and ratios for company and bank |
|
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
|
Dec. 31, 2012
|
---|---|---|
Assets | ||
Securities available-for-sale, at fair value | $ 112,801 | $ 138,241 |
Fair Value Measurements Recurring | Estimated Fair Value
|
||
Assets | ||
Securities available-for-sale, at fair value | 112,801 | 138,481 |
Total Assets | 117,602 | 147,348 |
Liabilities | ||
Derivative Liabilities | 4,310 | 8,379 |
Total Liabilities | 4,310 | 8,379 |
Fair Value Measurements Recurring | Estimated Fair Value | U.S. Treasury obligations
|
||
Assets | ||
Securities available-for-sale, at fair value | 96,994 | 118,980 |
Fair Value Measurements Recurring | Estimated Fair Value | Government sponsored residential mortgage-backed securities
|
||
Assets | ||
Securities available-for-sale, at fair value | 6,869 | 10,603 |
Fair Value Measurements Recurring | Estimated Fair Value | Corporate debt securities
|
||
Assets | ||
Securities available-for-sale, at fair value | 3,116 | 3,153 |
Fair Value Measurements Recurring | Estimated Fair Value | Preferred equity securities
|
||
Assets | ||
Securities available-for-sale, at fair value | 2,166 | 1,786 |
Fair Value Measurements Recurring | Estimated Fair Value | Marketable equity securities
|
||
Assets | ||
Securities available-for-sale, at fair value | 143 | 372 |
Fair Value Measurements Recurring | Estimated Fair Value | Mutual funds
|
||
Assets | ||
Securities available-for-sale, at fair value | 3,513 | 3,587 |
Fair Value Measurements Recurring | Estimated Fair Value | Interest rate swap derivative
|
||
Assets | ||
Derivative Assets | 4,310 | 8,379 |
Liabilities | ||
Derivative Liabilities | 4,310 | 8,379 |
Fair Value Measurements Recurring | Estimated Fair Value | Derivative loan commitments
|
||
Assets | ||
Derivative Assets | 5 | 450 |
Fair Value Measurements Recurring | Estimated Fair Value | Forward loan sales commitments
|
||
Assets | ||
Derivative Assets | 486 | 38 |
Fair Value Measurements Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1)
|
||
Assets | ||
Securities available-for-sale, at fair value | 97,137 | 119,112 |
Total Assets | 97,137 | 119,112 |
Liabilities | ||
Derivative Liabilities | ||
Total Liabilities | ||
Fair Value Measurements Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Treasury obligations
|
||
Assets | ||
Securities available-for-sale, at fair value | 96,994 | 118,980 |
Fair Value Measurements Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Government sponsored residential mortgage-backed securities
|
||
Assets | ||
Securities available-for-sale, at fair value | ||
Fair Value Measurements Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate debt securities
|
||
Assets | ||
Securities available-for-sale, at fair value | ||
Fair Value Measurements Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Preferred equity securities
|
||
Assets | ||
Securities available-for-sale, at fair value | ||
Fair Value Measurements Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Marketable equity securities
|
||
Assets | ||
Securities available-for-sale, at fair value | 143 | 132 |
Fair Value Measurements Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Mutual funds
|
||
Assets | ||
Securities available-for-sale, at fair value | ||
Fair Value Measurements Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest rate swap derivative
|
||
Assets | ||
Derivative Assets | ||
Liabilities | ||
Derivative Liabilities | ||
Fair Value Measurements Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Derivative loan commitments
|
||
Assets | ||
Derivative Assets | ||
Fair Value Measurements Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Forward loan sales commitments
|
||
Assets | ||
Derivative Assets | ||
Fair Value Measurements Recurring | Significant Observable Inputs (Level 2)
|
||
Assets | ||
Securities available-for-sale, at fair value | 15,664 | 19,369 |
Total Assets | 19,974 | 27,748 |
Liabilities | ||
Derivative Liabilities | 4,310 | 8,379 |
Total Liabilities | 4,310 | 8,379 |
Fair Value Measurements Recurring | Significant Observable Inputs (Level 2) | U.S. Treasury obligations
|
||
Assets | ||
Securities available-for-sale, at fair value | ||
Fair Value Measurements Recurring | Significant Observable Inputs (Level 2) | Government sponsored residential mortgage-backed securities
|
||
Assets | ||
Securities available-for-sale, at fair value | 6,869 | 10,603 |
Fair Value Measurements Recurring | Significant Observable Inputs (Level 2) | Corporate debt securities
|
||
Assets | ||
Securities available-for-sale, at fair value | 3,116 | 3,153 |
Fair Value Measurements Recurring | Significant Observable Inputs (Level 2) | Preferred equity securities
|
||
Assets | ||
Securities available-for-sale, at fair value | 2,166 | 1,786 |
Fair Value Measurements Recurring | Significant Observable Inputs (Level 2) | Marketable equity securities
|
||
Assets | ||
Securities available-for-sale, at fair value | 240 | |
Fair Value Measurements Recurring | Significant Observable Inputs (Level 2) | Mutual funds
|
||
Assets | ||
Securities available-for-sale, at fair value | 3,513 | 3,587 |
Fair Value Measurements Recurring | Significant Observable Inputs (Level 2) | Interest rate swap derivative
|
||
Assets | ||
Derivative Assets | 4,310 | 8,379 |
Liabilities | ||
Derivative Liabilities | 4,310 | 8,379 |
Fair Value Measurements Recurring | Significant Observable Inputs (Level 2) | Derivative loan commitments
|
||
Assets | ||
Derivative Assets | ||
Fair Value Measurements Recurring | Significant Observable Inputs (Level 2) | Forward loan sales commitments
|
||
Assets | ||
Derivative Assets | ||
Fair Value Measurements Recurring | Significant Unobservable Inputs (Level 3)
|
||
Assets | ||
Securities available-for-sale, at fair value | ||
Total Assets | 491 | 488 |
Liabilities | ||
Derivative Liabilities | ||
Total Liabilities | ||
Fair Value Measurements Recurring | Significant Unobservable Inputs (Level 3) | U.S. Treasury obligations
|
||
Assets | ||
Securities available-for-sale, at fair value | ||
Fair Value Measurements Recurring | Significant Unobservable Inputs (Level 3) | Government sponsored residential mortgage-backed securities
|
||
Assets | ||
Securities available-for-sale, at fair value | ||
Fair Value Measurements Recurring | Significant Unobservable Inputs (Level 3) | Corporate debt securities
|
||
Assets | ||
Securities available-for-sale, at fair value | ||
Fair Value Measurements Recurring | Significant Unobservable Inputs (Level 3) | Preferred equity securities
|
||
Assets | ||
Securities available-for-sale, at fair value | ||
Fair Value Measurements Recurring | Significant Unobservable Inputs (Level 3) | Marketable equity securities
|
||
Assets | ||
Securities available-for-sale, at fair value | ||
Fair Value Measurements Recurring | Significant Unobservable Inputs (Level 3) | Mutual funds
|
||
Assets | ||
Securities available-for-sale, at fair value | ||
Fair Value Measurements Recurring | Significant Unobservable Inputs (Level 3) | Interest rate swap derivative
|
||
Assets | ||
Derivative Assets | ||
Liabilities | ||
Derivative Liabilities | ||
Fair Value Measurements Recurring | Significant Unobservable Inputs (Level 3) | Derivative loan commitments
|
||
Assets | ||
Derivative Assets | 5 | 450 |
Fair Value Measurements Recurring | Significant Unobservable Inputs (Level 3) | Forward loan sales commitments
|
||
Assets | ||
Derivative Assets | $ 486 | $ 38 |
Investment Securities - Summary (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
|
Dec. 31, 2012
|
---|---|---|
Available-for-sale | ||
Available-for-sale securities, amortized cost | $ 112,195 | $ 137,538 |
Available-for-sale securities, gross unrealized gains | 976 | 1,048 |
Available-for-sale securities, gross unrealized losses | (370) | (345) |
Available-for-sale securities, estimated market value | 112,801 | 138,241 |
Held-to-maturity | ||
Held-to-maturity securities, amortized cost | 3,003 | 3,006 |
Held-to-maturity securities, gross unrealized gains | ||
Held-to-maturity securities, gross unrealized losses | ||
Held-to-maturity securities, market value | 3,003 | 3,006 |
U.S. Treasury obligations
|
||
Available-for-sale | ||
Available-for-sale securities, amortized cost | 96,996 | 118,984 |
Available-for-sale securities, gross unrealized gains | 2 | 5 |
Available-for-sale securities, gross unrealized losses | (4) | (9) |
Available-for-sale securities, estimated market value | 96,994 | 118,980 |
Government sponsored residential mortgage-backed securities
|
||
Available-for-sale | ||
Available-for-sale securities, amortized cost | 6,375 | 9,803 |
Available-for-sale securities, gross unrealized gains | 494 | 800 |
Available-for-sale securities, gross unrealized losses | ||
Available-for-sale securities, estimated market value | 6,869 | 10,603 |
Held-to-maturity | ||
Held-to-maturity securities, amortized cost | 3 | 6 |
Held-to-maturity securities, gross unrealized gains | ||
Held-to-maturity securities, gross unrealized losses | ||
Held-to-maturity securities, market value | 3 | 6 |
Corporate debt securities
|
||
Available-for-sale | ||
Available-for-sale securities, amortized cost | 2,970 | 2,958 |
Available-for-sale securities, gross unrealized gains | 146 | 195 |
Available-for-sale securities, gross unrealized losses | ||
Available-for-sale securities, estimated market value | 3,116 | 3,153 |
Preferred equity securities
|
||
Available-for-sale | ||
Available-for-sale securities, amortized cost | 2,100 | 2,100 |
Available-for-sale securities, gross unrealized gains | 297 | 19 |
Available-for-sale securities, gross unrealized losses | (231) | (333) |
Available-for-sale securities, estimated market value | 2,166 | 1,786 |
Marketable equity securities
|
||
Available-for-sale | ||
Available-for-sale securities, amortized cost | 108 | 108 |
Available-for-sale securities, gross unrealized gains | 37 | 27 |
Available-for-sale securities, gross unrealized losses | (2) | (3) |
Available-for-sale securities, estimated market value | 143 | 132 |
Mutual funds
|
||
Available-for-sale | ||
Available-for-sale securities, amortized cost | 3,646 | 3,585 |
Available-for-sale securities, gross unrealized gains | 2 | |
Available-for-sale securities, gross unrealized losses | (133) | |
Available-for-sale securities, estimated market value | 3,513 | 3,587 |
Trust preferred debt security
|
||
Held-to-maturity | ||
Held-to-maturity securities, amortized cost | 3,000 | 3,000 |
Held-to-maturity securities, gross unrealized gains | ||
Held-to-maturity securities, gross unrealized losses | ||
Held-to-maturity securities, market value | $ 3,000 | $ 3,000 |
Financial Instruments with Off-Balance Sheet Risk (Detail Textuals) (USD $)
|
Jun. 30, 2013
|
Dec. 31, 2012
|
---|---|---|
Financial Instruments With Off Balance Sheet Risk Disclosure [Abstract] | ||
Financial instruments with off-balance sheet risk, valuation allowance | $ 419,000 | $ 394,000 |
Credit Arrangements (Detail Textuals 2) (USD $)
|
Jun. 30, 2013
|
Dec. 31, 2012
|
---|---|---|
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
FHLBB advances | $ 51,250,000 | $ 128,000,000 |
Federal Home Loan Bank Of Boston
|
||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
FHLBB advances | 51,300,000 | 128,000,000 |
Collateral value first mortgage loans | 608,800,000 | 602,200,000 |
Line of credit facility, remaining borrowing capacity | $ 360,100,000 | $ 294,300,000 |
Federal Home Loan Bank Of Boston | Minimum
|
||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Minimum percent of aggregate principal amount of unpaid residential mortgage loans for acquiring shares in FHLBB | 0.35% | |
Federal Home Loan Bank Of Boston | Maximum
|
||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Maximum percent of advances (borrowings) from the FHLBB to acquire shares in FHLBB | 4.50% |