10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x Quarterly Report-  Pursuant To Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended June 30, 2013

OR

o Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from to

Commission File No. 333-171913

First Connecticut Bancorp, Inc.

(Exact name of registrant as specified in its charter)

Maryland	45-1496206
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)
One Farm Glen Boulevard, Farmington, CT	06032
(Address of Principal Executive Offices)	(Zip Code)

(860) 676-4600

(Registrant’s telephone number)

N/A

(Former name or former address, if changed since last report)

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports) and (2) has been subject to such requirements for the past 90 days. YES x NO o.

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate web site if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). YES x NO o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definition of “large accelerated filer” and “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	o	Accelerated filer	x
Non-accelerated filer	o	Smaller reporting company	o

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES o NO x

As of August 2, 2013, there were 16,746,494 shares of First Connecticut Bancorp, Inc. common stock, par value $0.01, outstanding.

First Connecticut Bancorp, Inc.

Table of Contents

		Page
Part I. Financial Information
Item 1.	Consolidated Financial Statements
	Consolidated Statements of Condition at June 30, 2013 (unaudited) and December 31, 2012	1
	Consolidated Statements of Operations for the three and six months ended June 30, 2013 and 2012 (unaudited)	2
	Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2013, and 2012 (unaudited)	3
	Consolidated Statement of Stockholders’ Equity for the six months ended June 30, 2013 (unaudited)	4
	Consolidated Statements of Cash Flows for the six months ended June 30, 2013 and 2012 (unaudited)	5
	Notes to Unaudited Consolidated Financial Statements	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	43
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	61
Item 4.	Controls and Procedures	62
Part II. Other Information
Item 1.	Legal Proceedings	63
Item1A.	Risk Factors	63
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	63
Item 3.	Defaults upon Senior Securities	63
Item 4.	Mine Safety Disclosure	63
Item 5.	Other Information	63
Item 6.	Exhibits	64
Signatures		66
Exhibit 31.1
Exhibit 31.2
Exhibit 32.1
Exhibit 32.2

First Connecticut Bancorp, Inc.

Consolidated Statements of Condition (Unaudited)

	June 30, 2013			December 31, 2012
(Dollars in thousands)
Assets
Cash and cash equivalents	$	36,650		$	50,641
Securities held-to-maturity, at amortized cost		3,003			3,006
Securities available-for-sale, at fair value		112,801			138,241
Loans held for sale		4,801			9,626
Loans, net		1,588,275			1,520,170
Premises and equipment, net		20,767			19,967
Federal Home Loan Bank of Boston stock, at cost		8,383			8,939
Accrued income receivable		4,403			4,415
Bank-owned life insurance		37,952			37,449
Deferred income taxes		15,918			15,682
Prepaid expenses and other assets		12,298			14,810
Total assets	$	1,845,251		$	1,822,946
Liabilities and Stockholders’ Equity
Deposits
Interest-bearing	$	1,176,538		$	1,082,869
Noninterest-bearing		275,781			247,586
		1,452,319			1,330,455
Federal Home Loan Bank of Boston advances		51,250			128,000
Repurchase agreement borrowings		21,000			21,000
Repurchase liabilities		50,262			54,187
Accrued expenses and other liabilities		39,105			47,782
Total liabilities		1,613,936			1,581,424
Commitments and contingencies		-			-
Stockholders' Equity
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		181			181
Additional paid-in-capital		174,342			172,247
Unallocated common stock held by ESOP		(14,281	)		(14,806	)
Treasury stock, at cost (1,301,023 shares at June 30, 2013 and 362,490 shares at December 31, 2012)		(18,524	)		(4,860	)
Retained earnings		95,605			94,890
Accumulated other comprehensive loss		(6,008	)		(6,130	)
Total stockholders’ equity		231,315			241,522
Total liabilities and stockholders’ equity	$	1,845,251		$	1,822,946

The accompanying notes are an integral part of these consolidated financial statements.

1

First Connecticut Bancorp, Inc.

Consolidated Statements of Income (Unaudited)

	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2013			2012		2013			2012
(Dollars in thousands, except per share data)
Interest income
Interest and fees on loans
Mortgage	$	11,917		$	10,882	$	23,385		$	21,992
Other		3,233			3,859		6,547			7,748
Interest and dividends on investments
United States Government and agency obligations		102			249		241			515
Other bonds		59			60		118			118
Corporate stocks		64			70		126			140
Other interest income		6			26		11			60
Total interest income		15,381			15,146		30,428			30,573
Interest expense
Deposits		1,827			1,643		3,532			3,398
Federal Home Loan Bank of Boston advances		401			462		870			943
Repurchase agreement borrowings		180			181		351			361
Repurchase liabilities		41			61		91			118
Total interest expense		2,449			2,347		4,844			4,820
Net interest income		12,932			12,799		25,584			25,753
Provision for allowance for loan losses		256			520		655			850
Net interest income after provision for loan losses		12,676			12,279		24,929			24,903
Noninterest income
Fees for customer services		1,097			900		2,079			1,716
Net gain on sales of investments		36			-		36			-
Net gain on loans sold		1,739			431		3,769			529
Brokerage and insurance fee income		41			32		73			57
Bank owned life insurance income		303			321		712			640
Other		(92	)		294		(7	)		349
Total noninterest income		3,124			1,978		6,662			3,291
Noninterest expense
Salaries and employee benefits		8,555			7,619		17,589			15,043
Occupancy expense		1,126			1,098		2,366			2,288
Furniture and equipment expense		1,099			1,112		2,117			2,211
FDIC assessment		311			294		602			573
Marketing		610			753		1,204			1,359
Other operating expenses		2,854			2,257		5,376			4,288
Total noninterest expense		14,555			13,133		29,254			25,762
Income before income taxes		1,245			1,124		2,337			2,432
Income tax expense		308			293		587			610
Net income	$	937		$	831	$	1,750		$	1,822
Net earnings per share (See Note 2):
Basic and Diluted	$	0.06		$	0.05	$	0.11		$	0.11
Weighted average shares outstanding:
Basic and Diluted		15,774,385			16,686,810		16,122,208			16,735,892

The accompanying notes are an integral part of these consolidated financial statements.

2

First Connecticut Bancorp, Inc.

Consolidated Statements of Comprehensive Income (Unaudited)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2013			2012			2013			2012
(Dollars in thousands)
Net income	$	937		$	831		$	1,750		$	1,822
Other comprehensive income (loss), before tax
Unrealized losses on securities:
Unrealized holding losses arising during the period		(482	)		(318	)		(134	)		(65	)
Less: reclassification adjustment for gains included in net income		36			-			36			-
Net change in unrealized losses		(446	)		(318	)		(98	)		(65	)
Change related to employee benefit plans		147			133			283			265
Other comprehensive income (loss), before tax		(299	)		(185	)		185			200
Income tax expense (benefit)		(101	)		(63	)		63			68
Other comprehensive income (loss), net of tax		(198	)		(122	)		122			132
Comprehensive income	$	739		$	709		$	1,872		$	1,954

The accompanying notes are an integral part of these consolidated financial statements.

3

First Connecticut Bancorp, Inc.

Consolidated Statement of Changes in Stockholders’ Equity (Unaudited)

									Unallocated									Accumulated
	Common Stock					Additional			Common									Other
	Shares					Paid in			Shares Held			Treasury			Retained			Comprehensive
	Outstanding			Amount		Capital			by ESOP			Stock			Earnings			Income (Loss)			Total
(Dollars in thousands)
Balance at December 31, 2012		17,714,481		$	181	$	172,247		$	(14,806	)	$	(4,860	)	$	94,890		$	(6,130	)	$	241,522
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		(939,583	)		-		-			-			(13,664	)		-			-			(13,664	)
Stock options exercised		1,050			-		-			-			14			-			-			14
Cancellation of shares for tax withholding		(12,432	)		-		(161	)		-			(14	)		-			-			(175	)
Share based compensation expense		-			-		2,103			-			-			-			-			2,103
Net income		-			-		-			-			-			1,750			-			1,750
Other comprehensive income		-			-		-			-			-			-			122			122
Balance at June 30, 2013		16,763,516		$	181	$	174,342		$	(14,281	)	$	(18,524	)	$	95,605		$	(6,008	)	$	231,315

The accompanying notes are an integral part of these consolidated financial statements.

4

First Connecticut Bancorp, Inc.

Consolidated Statements of Cash Flows (Unaudited)

	Six Months Ended
	June 30,
(Dollars in thousands)	2013			2012
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

The accompanying notes are an integral part of these consolidated financial statements.

5

First Connecticut Bancorp, Inc.

Notes to Consolidated Financial Statements (Unaudited)

1. 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.

6

First Connecticut Bancorp, Inc.

Notes to Consolidated Financial Statements (Unaudited)

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.

7

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.

8

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.

9

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.

10

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.

11

First Connecticut Bancorp, Inc.

Notes to Consolidated Financial Statements (Unaudited)

2. 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:

		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

Investment securities are summarized as follows:

	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)

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:

	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	)

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.

14

First Connecticut Bancorp, Inc.

Notes to Consolidated Financial Statements (Unaudited)

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:

	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

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.

4. Loans and Allowance for Loan Losses

       Loans consisted of the following:

	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)

A summary of changes in the allowance for loan losses for the three and six months ended June 30, 2013 and 2012 are as follows:

	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

Changes in the allowance for loan losses by segments for the three and six months ended June 30, 2013 are as follows:

	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)

The following table lists the allocation of the allowance by impairment methodology and by loan segment at June 30, 2013 and December 31, 2012:

Loans individually evaluated for impairment:

	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)

The following is a summary of loan aging at recorded investment values at June 30, 2013 and December 31, 2012:

	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)

Nonperforming assets consist of non-accruing loans and loans past due more than 90 days and still accruing interest and other real estate owned. Nonperforming assets were:

(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)

The following is a summary of information pertaining to impaired loans at June 30, 2013:

	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)

The following is a summary of information pertaining to impaired loans at December 31, 2012:

	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

Troubled Debt Restructuring

A loan is considered a troubled debt restructuring (“TDR”) when we, for economic or legal reasons related to the borrower’s financial difficulties, grant a concession to the borrower in modifying or renewing the loan that we would not otherwise consider. In connection with troubled debt restructurings, terms may be modified to fit the ability of the borrower to repay in line with their current financial status, which may include a reduction in the interest rate to market rate or below, a change in the term or movement of past due amounts to the back-end of the loan or refinancing. A loan is placed on non-accrual status upon being restructured, even if it was not previously, unless the modified loan was current for the six months prior to its modification and we believe the loan is fully collectable in accordance with its new terms. Our policy to restore a restructured loan to performing status is dependent on the receipt of regular payments, generally for a period of six months and one calendar year-end. All troubled debt restructurings are classified as impaired loans and are reviewed for impairment by management on a quarterly basis per our policy.

21

First Connecticut Bancorp, Inc.

Notes to Consolidated Financial Statements (Unaudited)

The recorded investment balance of TDRs approximated $31.0 million and $29.7 million at June 30, 2013 and December 31, 2012, respectively. At June 30, 2013 and December 31, 2012, the majority of the Company’s TDRs are on accrual status. TDRs on accrual status were $23.9 million and $22.1 million while TDRs on nonaccrual status were $7.1 million and $7.6 million at June 30, 2013 and December 31, 2012, respectively. At June 30, 2013, 100% of the accruing TDRs have been performing in accordance with the restructured terms.  At June 30, 2013 and December 31, 2012, the allowance for loan losses included specific reserves of $1.5 million and $889,000 related to TDRs, respectively. For the six months ended June 30, 2013 and 2012, the Bank had charge-offs totaling $293,000 and $217,000, respectively, related to portions of TDRs deemed to be uncollectible.  The amount of additional funds available to borrowers in TDR status was $632,000 and $872,000 at June 30, 2013 and December 31, 2012, respectively. The Bank in very rare circumstances may provide additional funds to borrowers in TDR status.

The following tables present information on loans whose terms had been modified in a troubled debt restructuring at June 30, 2013 and December 31, 2012:

	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)

The following tables include the recorded investment and number of modifications for modified loans. The Company reports the recorded investment in the loans prior to a modification and also the recorded investment in the loans after the loans were restructured for the three and six months ended June 30, 2013 and 2012:

	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

(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.

	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

(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.

The following tables provide TDR loans that were 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 and/or concessions for the three and six months ended June 30, 2013 and 2012:

	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

A loan is considered to be in default once it is more than 30 days past due following a modification.  There were no loans that defaulted and had been modified as a TDR during the 12 month period preceding the default date during the six months ended June 30, 2013 and 2012.

24

First Connecticut Bancorp, Inc.

Notes to Consolidated Financial Statements (Unaudited)

Credit Quality Information

At the time of loan origination, a risk rating based on a nine point grading system is assigned to each commercial-related loan based on the loan officer’s and management’s assessment of the risk associated with each particular loan. This risk assessment is based on an in depth analysis of a variety of factors. More complex loans and larger commitments require that our internal credit risk management department further evaluate the risk rating of the individual loan or relationship, with credit risk management having final determination of the appropriate risk rating. These more complex loans and relationships receive ongoing periodic review to assess the appropriate risk rating on a post-closing basis with changes made to the risk rating as the borrower’s and economic conditions warrant. Our risk rating system is designed to be a dynamic system and we grade loans on a “real time” basis. The Company places considerable emphasis on risk rating accuracy, risk rating justification, and risk rating triggers. Our risk rating process has been enhanced with our implementation of industry-based risk rating “cards.” The cards are used by our loan officers and promote risk rating accuracy and consistency on an institution-wide basis. Most loans are reviewed annually as part of a comprehensive portfolio review conducted by management and/or by our independent loan review firm. More frequent reviews of loans rated low pass, special mention, substandard and doubtful are conducted by our credit risk management department. We utilize an independent loan review consulting firm to review our rating accuracy and the overall credit quality of our loan portfolio. The review is designed to provide an evaluation of the portfolio with respect to risk rating profile as well as with regard to the soundness of individual loan files.  The individual loan reviews include an analysis of the creditworthiness of obligors, via appropriate key ratios and cash flow analysis and an assessment of collateral protection.  The consulting firm conducts two loan reviews per year aiming at a 65.0% or higher commercial and industrial loans and commercial real estate portfolio penetration. Summary findings of all loan reviews performed by the outside consulting firm are reported to our board of directors and senior management upon completion.

The Company utilizes a nine point risk rating scale as follows:

Risk Rating Definitions

Residential and consumer loans are not rated unless they are 45 days or more delinquent, in which case, depending on past-due days, they will be rated 6, 7 or 8.

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)

The following table presents the Company’s loans by risk rating at June 30, 2013 and December 31, 2012:

	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

The Company places considerable emphasis on the early identification of problem assets, problem-resolution and minimizing loss exposure. Delinquency notices are mailed monthly to all delinquent borrowers, advising them of the amount of their delinquency.  Residential and consumer lending borrowers are typically given 30 days to pay the delinquent payments or to contact us to make arrangements to bring the loan current over a longer period of time. Generally, if a residential or consumer lending borrower fails to bring the loan current within 90 days from the original due date or to make arrangements to cure the delinquency over a longer period of time, the matter is referred to legal counsel and foreclosure or other collection proceedings are initiated. The Company may consider forbearance or a loan restructuring in certain circumstances where a temporary loss of income is the primary cause of the delinquency, and if a reasonable plan is presented by the borrower to cure the delinquency in a reasonable period of time after his or her income resumes. Problem or delinquent borrowers in our commercial real estate, commercial business and resort portfolios are handled on a case-by-case basis, typically by our Special Assets Department. Appropriate problem-resolution and workout strategies are formulated based on the specific facts and circumstances.

26

First Connecticut Bancorp, Inc.

Notes to Consolidated Financial Statements (Unaudited)

Related Party Loans

During the regular course of its business, the Company makes loans to its executive officers, Directors and other related parties.  These related party loans totaled $596,000 and $716,000 at June 30, 2013 and December 31, 2012, respectively.  All related party loans were performing according to their credit terms.

5. Credit Arrangements

The Company has access to a pre-approved line of credit with the Federal Home Loan Bank of Boston (“FHLBB”) for $8.8 million, which was undrawn at June 30, 2013 and December 31, 2012.  The Company has access to a pre-approved unsecured line of credit with a bank totaling $20.0 million, which was undrawn at June 30, 2013 and December 31, 2012.  The Company has access to a $3.5 million unsecured line of credit agreement with a bank which expires on August 31, 2013.  The Company maintains a cash balance of $262,500 with the bank to avoid fees associated with the above line.  The line was undrawn at June 30, 2013 and December 31, 2012.

The Company participates in the Federal Reserve Bank’s discount window loan collateral program that enables the Company to borrow up to $86.4 million and $93.9 million on an overnight basis at June 30, 2013 and December 31, 2012, respectively, and was undrawn as of June 30, 2013 and December 31, 2012. The funding arrangement was collateralized by $128.6 million and $145.8 million in pledged commercial real estate loans as of June 30, 2013 and December 31, 2012, respectively.

In accordance with an agreement with the FHLBB, the Company is required to maintain qualified collateral, as defined in the FHLBB Statement of Credit Policy, free and clear of liens, pledges and encumbrances, as collateral for the advances, if any, and the preapproved line of credit.  The Company is in compliance with these collateral requirements.

FHLBB advances totaled $51.3 million and $128.0 million at June 30, 2013 and December 31, 2012, respectively.  Advances from the FHLBB are collateralized by first mortgage loans with an estimated eligible collateral value of $608.8 million and $602.2 million at June 30, 2013 and December 31, 2012, respectively. The Company has available borrowings of $360.1 million and $294.3 million at June 30, 2013 and December 31, 2012, respectively, subject to collateral requirements of the FHLBB. The Company is required to acquire and hold shares of capital stock in the FHLBB in an amount at least equal to the sum of 0.35% of the aggregate principal amount of its unpaid residential mortgage loans and similar obligations at the beginning of each year, or up to 4.5% of its advances (borrowings) from the FHLBB. The carrying value of FHLBB stock approximates fair value based on the redemption provisions of the stock.

The Bank has a Master Repurchase Agreement borrowing facility with a broker.  Borrowings under the Master Repurchase Agreement are secured by the Company’s investments in certain treasury bill securities with a fair value of $24.0 million and cash of $451,000 at June 30, 2013. Outstanding borrowings totaled $21.0 million at June 30, 2013 and December 31, 2012.

The Bank offers overnight repurchase liability agreements to commercial or municipal customers whose excess deposit account balances are swept daily into collateralized repurchase liability accounts. The Bank had repurchase liabilities outstanding of $50.3 million and $54.2 million at June 30, 2013 and December 31, 2012, respectively. They are secured by the Company’s investment in specific issues of U.S. Treasury obligations, Government sponsored residential mortgage-backed securities and U.S. Government agency obligations with a market value of $59.3 million and $84.3 million as of June 30, 2013 and December 31, 2012, respectively.

27

First Connecticut Bancorp, Inc.

Notes to Consolidated Financial Statements (Unaudited)

6. Deposits

Deposit balances at June 30, 2013 and December 31, 2012 are as follows:

	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

We have established a relationship to participate in a reciprocal deposit program with other financial institutions as a service to our customers. This program provides enhanced FDIC insurance to participating customers.  As of June 30, 2013 and December 31, 2012, we have no reciprocal deposits.

7. Pension and Other Postretirement Benefit Plans

The following tables set forth the components of net periodic pension and benefit costs.

	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

First Connecticut Bancorp, Inc.

Notes to Consolidated Financial Statements (Unaudited)

On December 27, 2012, the Company announced the freezing of the non-contributory defined-benefit pension plan and certain defined benefit postretirement plans as of February 28, 2013.  All benefits under these plans were frozen as of that date and no additional benefits shall accrue.  As a result, the Company recognized a $1.5 million reduction in pension and defined postretirement benefit expenses related to unrecognized prior service costs for the year ended December 31, 2012.

The Company expects to contribute a total of $1.3 million to the qualified defined benefit plan for the year ended December 31, 2013.  Since the supplemental plan and the postretirement benefit plans are unfunded, the Company accrues for the estimated costs of these plans through charges to expense during the year that employees render service. The Company makes contributions to cover the current benefits paid under these plans.

Employee Stock Ownership Plan

As part of the reorganization, the Company established the ESOP to provide eligible employees the opportunity to own Company stock.  The Company provided a loan to the Farmington Bank Employee Stock Ownership Plan Trust in the amount needed to purchase up to 1,430,416 shares of the Company’s common stock in the open market subsequent to the initial public offering.  The loan bears an interest rate equal to the Wall Street Journal Prime Rate plus one percentage point, adjusted annually, and provides for annual payments of interest and principal over the 15 year term of the loan.  At June 30, 2013, the loan had an outstanding balance of $14.8 million and an interest rate of 4.25%.  The Bank has committed to make contributions to the ESOP sufficient to support the debt service of the loan.  The loan is secured by the unallocated shares purchased.  The ESOP compensation expense for the three and six months ended June 30, 2013 was $341,000 and $678,000, respectively.

Shares held by the ESOP include the following as of June 30, 2013:

Allocated	190,722
Committed to be released	47,289
Unallocated	1,192,405
	1,430,416

The fair value of unallocated ESOP shares was $16.6 million at June 30, 2013.

8. Stock Incentive Plan

In August 2012, the Company implemented the First Connecticut Bancorp, Inc. 2012 Stock Incentive Plan (the “Plan”). The Plan provides for a total of 2,503,228 shares of common stock for issuance upon the grant or exercise of awards.  The Plan allowed for the granting of 1,788,020 non-qualified stock options and 715,208 shares of restricted stock.

In accordance with generally accepted accounting principles for Share-Based Payments, the Company expenses the fair value of all share-based compensation grants over the requisite service periods.  Stock options granted vested 20% immediately and will vest 20% at each annual anniversary of the grant date through 2016 and expire ten years after grant date. The Company recognizes compensation expense for the fair values of these awards, which vest on a straight-line basis over the requisite service period of the awards.  Restricted shares granted vested 20% immediately and will vest 20% at each annual anniversary of the grant date through 2016.  The product of the number of shares granted and the grant date market price of the Company’s common stock determines the fair value of restricted shares under the Company’s restricted stock plan. The Company recognizes compensation expense for the fair value of restricted shares on a straight-line basis over the requisite service period for the entire award.

29

First Connecticut Bancorp, Inc.

Notes to Consolidated Financial Statements (Unaudited)

The Company classifies share-based compensation for employees within “Salaries and employee benefits” and share-based payments for outside directors within “Other operating expenses” in the consolidated statement of operations.  For the three and six months ended June 30, 2013, the Company recorded $682,000 and $2.1 million of share-based compensation expense, respectively, comprised of $272,000 and $790,000 of stock option expense, respectively and $410,000 and $1.3 million of restricted stock expense, respectively.  Expected future compensation expense relating to the 1,294,807 non-vested options outstanding at June 30, 2013, is $3.6 million over the remaining vesting period of 3.19 years. Expected future compensation expense relating to the 533,767 non-vested restricted shares at June 30, 2013, is $5.5 million over the remaining vesting period of 3.19 years.

The fair value of the options awarded is estimated on the date of grant using the Black-Scholes option pricing model that uses the assumptions noted in the following table.  Expected volatility is based on the Company’s historical volatility and the historical volatility of a peer group as the Company does not have reliably determined stock price for the period needed that is at least equal to its expected term and the Company’s recent historical volatility may not reflect future expectations.  The peer group consisted of financial institutions located in New England and the Mid-Atlantic regions of the United States based on whose common stock is traded on a national securities exchange, asset size, tangible capital ratio and earnings factors. The expected term of options granted is derived from using the simplified method due to the Company not having sufficient historical share option experience upon which to estimate an expected term.  The risk-free rate is based on the grant date for a traded zero-coupon U.S. Treasury bond with a term equal to the option’s expected term.

	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

The following is a summary of the Company’s stock option activity and related information for its option grants for the six months ended June 30, 2013.

	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

First Connecticut Bancorp, Inc.

Notes to Consolidated Financial Statements (Unaudited)

The following is a summary of the status of the Company’s restricted stock for the six months ended June 30, 2013.

	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

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:

● 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

First Connecticut Bancorp, Inc.

Notes to Consolidated Financial Statements (Unaudited)

● 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.

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:

				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

First Connecticut Bancorp, Inc.

Notes to Consolidated Financial Statements (Unaudited)

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:

	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	$	-		$	-		$	-		$	-		$	-		$	-

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.

33

First Connecticut Bancorp, Inc.

Notes to Consolidated Financial Statements (Unaudited)

10. 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:

	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

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.

11. Fair Value Measurements

Fair value estimates are made as of a specific point in time based on the characteristics of the financial instruments and relevant market information.  In accordance with FASB ASC 820-10, the fair value estimates are measured within the fair value hierarchy.  The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).  The three levels of the fair value hierarchy under FASB ASC 820-10 are described as follows:

34

First Connecticut Bancorp, Inc.

Notes to Consolidated Financial Statements (Unaudited)

Basis of Fair Value Measurement

● 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).

When available, quoted market prices are used.  In other cases, fair values are based on estimates using present value or other valuation techniques.  These techniques involve uncertainties and are significantly affected by the assumptions used and judgments made regarding risk characteristics of various financial instruments, discount rates, and estimates of future cash flows, future expected loss experience and other factors.  Changes in assumptions could significantly affect these estimates.  Derived fair value estimates cannot be substantiated by comparison to independent markets and, in certain cases, could not be realized in an immediate sale of the instrument.

Fair value estimates are based on existing financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not financial instruments.  Accordingly, the aggregate fair value amounts presented do not purport to represent the underlying market value of the Company. There are no transfers between levels during the three and six months ended June 30, 2013 or during the year ended December 31, 2012.

35

First Connecticut Bancorp, Inc.

Notes to Consolidated Financial Statements (Unaudited)

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table details the financial instruments carried at fair value on a recurring basis as of June 30, 2013 and December 31, 2012 and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine the fair value:

	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)

The following tables present additional information about assets measured at fair value for which the Company has utilized Level 3 inputs.

	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

The following is a description of the valuation methodologies used for instruments measured at fair value:

Securities Available for Sale: Investment securities available for sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models. Level 1 securities are those traded on active markets for identical securities including U.S. treasury obligations and, marketable equity securities. Level 2 securities include U.S. government agency obligations, government-sponsored residential mortgage-backed securities, corporate debt securities, preferred equity securities and mutual funds. When a market is illiquid or there is a lack of transparency around the inputs to valuation, the respective securities are classified as level 3 and reliance is placed upon internally developed models and management judgment and evaluation for valuation.

The Company utilizes a third party, nationally-recognized pricing service (“pricing service”); subject to review by management, to estimate fair value measurements for almost 100% of its investment securities portfolio.  The pricing service evaluates each asset class based on relevant market information considering observable data that may include dealer quotes, reported trades, market spreads, cash flows, the U.S. Treasury yield curve, the LIBOR swap yield curve, trade execution data, market prepayment speeds, credit information and the bond’s terms and conditions, among other things.  The fair value prices on all investment securities are reviewed for reasonableness by management.  Also, management assessed the valuation techniques used by the pricing service based on a review of their pricing methodology to ensure proper hierarchy classifications.

37

First Connecticut Bancorp, Inc.

Notes to Consolidated Financial Statements (Unaudited)

Interest Rate Swap Derivative Receivable and Liability: The Company’s derivative positions are valued using proprietary models that use as their basis readily observable market parameters and are classified within Level 2 of the valuation hierarchy.  Such derivatives are basic interest rate swaps that do not have any embedded interest rate caps and floors.

Forward loan sale commitments and derivative loan commitments: Forward loan sale commitments and derivative loan commitments are based on fair values of the underlying mortgage loans and the probability of such commitments being exercised. Significant management judgment and estimation is required in determining these fair value measurements. Derivatives that are valued based upon models with significant unobservable market parameters and that are normally traded less actively or have trade activity that is one way are classified within Level 3 of the valuation hierarchy.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

Certain assets and liabilities are measured at fair value on a non-recurring basis in accordance with generally accepted accounting principles.  These include assets that are measured at the lower of cost or market that were recognized at fair value below cost at the end of the period as well as assets that are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment.

The following table details the financial instruments carried at fair value on a nonrecurring basis at June 30, 2013 and December 31, 2012 and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine the fair value:

	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)

The following is a description of the valuation methodologies used for instruments measured at fair value:

Mortgage Servicing Rights: A mortgage servicing right asset represents the amount by which the present value of the estimated future net cash flows to be received from servicing loans are expected to more than adequately compensate the Company for performing the servicing.  The fair value of servicing rights is estimated using a present value cash flow model.  The most important assumptions used in the valuation model are the anticipated rate of the loan prepayments and discount rates.  Adjustments are only recorded when the discounted cash flows derived from the valuation model are less than the carrying value of the asset.  As such, measurement at fair value is on a nonrecurring basis.  Although some assumptions in determining fair value are based on standards used by market participants, some are based on unobservable inputs and therefore are classified in Level 3 of the valuation hierarchy.

Loans Held for Sale: Loans held for sale are accounted for at the lower of cost or market. The fair value of loans held for sale are based on quoted market prices of similar loans sold in conjunction with securitization transactions, adjusted as required for changes in loan characteristics.

Impaired Loans:  Loans are generally not recorded at fair value on a recurring basis.  Periodically, the Company records nonrecurring adjustments to the carrying value of loans based on fair value measurements for partial charge-offs of the uncollectible portions of those loans.  Nonrecurring adjustments also include certain impairment amounts for collateral-dependent loans calculated in accordance with FASB ASC 310-10 when establishing the allowance for credit losses.  Such amounts are generally based on the fair value of the underlying collateral supporting the loan.  Collateral is typically valued using appraisals or other indications of value based on recent comparable sales of similar properties or other assumptions.  Estimates of fair value based on collateral are generally based on assumptions not observable in the marketplace and therefore such valuations have been classified as Level 3. Any impaired loan for which no specific valuation allowance was necessary at June 30, 2013 is the result of either sufficient cash flow or sufficient collateral coverage, or previous charge off amount that reduced the book value of the loan to an amount equal to or below the fair value of the collateral. Impaired loans are measured based on either collateral values supported by appraisals, observed market prices or where potential losses have been identified and reserved accordingly. Updated appraisals are obtained at least annually for impaired loans $250,000 or greater. Management performs a quarterly review of the valuation of impaired loans and considers the current market and collateral conditions for collateral dependent loans when estimating their fair value for purposes of determining whether an allowance for loan losses is necessary for impaired loans.  When assessing the collateral coverage for an impaired loan, management discounts appraisals based upon the age of the appraisal, anticipated selling charges and any other costs needed to prepare the collateral for sale to determine its net realizable value.

Other Real Estate Owned: The Company classifies property acquired through foreclosure or acceptance of deed-in-lieu of foreclosure as other real estate owned in its financial statements.  Upon foreclosure, the property securing the loan is written down to fair value less selling costs.  The writedown is based upon the difference between the appraised value and the book value.  Appraisals are based on observable market data such as comparable sales within the real estate market, however assumptions made in determining comparability are unobservable and therefore these assets are classified as Level 3 within the valuation hierarchy.

The following tables present the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a non-recurring basis at June 30, 2013:

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)

Disclosures about Fair Value of Financial Instruments

The following methods and assumptions were used by the Company in estimating its fair value disclosure for financial instruments:

Cash and cash equivalents:  The carrying amounts reported in the statement of condition for cash and cash equivalents approximate those assets’ fair values.

Investment securities:  Fair values for investment securities are based on quoted market prices, where available.  If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments.

Investment in Federal Home Loan Bank of Boston (“FHLBB”) stock:  FHLBB stock does not have a readily determinable fair value and is assumed to have a fair value equal to its carrying value. Ownership of FHLBB stock is restricted to the FHLBB, and can only be purchased and redeemed at par value.

Loans:  In general, discount rates used to calculate values for loan products were based on the Company’s pricing at the respective period end and included appropriate adjustments for expected credit losses.  A higher discount rate was assumed with respect to estimated cash flows associated with nonaccrual loans.  Projected loan cash flows were adjusted for estimated credit losses.  However, such estimates made by the Company may not be indicative of assumptions and adjustments that a purchaser of the Company’s loans would seek.

Accrued interest:  The carrying amount of accrued interest approximates its fair value.

Deposits:  The fair values disclosed for demand deposits and savings accounts (e.g., interest and noninterest checking and passbook savings) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts).  The carrying amounts for variable-rate, fixed-term certificates of deposit approximate their fair values at the reporting date.  Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates to a schedule of aggregate expected monthly maturities of time deposits.

Borrowed funds:  The fair value for borrowed funds are estimated using discounted cash flow analysis based on the Company’s current incremental borrowing rate for similar types of agreements.

Repurchase liability:  Repurchase liabilities represent a short-term customer sweep account product.  Because of the short-term nature of these liabilities, the carrying amount approximates its fair value.

Interest Rate Swap Derivative: The fair values of interest rate swap agreements are calculated using a discounted cash flow approach and utilize observable inputs such as the LIBOR swap curve, effective date, maturity date, notional amount, and stated interest rate. 

Derivative Loan Commitments: The fair values of derivative loan commitments are calculated based on the value of the underlying loan, which in turn is based on quoted prices for similar loans in the secondary market. However, this value is adjusted by a factor which considers the likelihood that the loan in a lock position will ultimately close.  This factor, the closing ratio, is derived from the Company’s internal data and is adjusted using significant management judgment

Forward Loan Sale Commitments: Forward loan sale commitments are primarily based on quoted prices from the secondary market based on the settlement date of the contracts, interpolated or extrapolated, if necessary, to estimate a fair value as of the end of the reporting period.

40

First Connecticut Bancorp, Inc.

Notes to Consolidated Financial Statements (Unaudited)

The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments as of June 30, 2013 and December 31, 2012.  For short-term financial assets such as cash and cash equivalents, the carrying amount is a reasonable estimate of fair value due to the relatively short time between the origination of the instrument and its expected realization. 

		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		-		-		-		-

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First Connecticut Bancorp, Inc.

Notes to Consolidated Financial Statements (Unaudited)

12. Regulatory Matters

Capital guidelines of the Federal Reserve Board and the Federal Deposit Insurance Corporation (“FDIC”) require the Company and the Bank to maintain certain minimum ratios, as set forth below.  At June 30, 2013 and December 31, 2012, the Company and the Bank were deemed to be “well capitalized” under the regulations of the Federal Reserve Board and the FDIC, respectively, and in compliance with the applicable capital requirements.

The following table presents the actual capital amounts and ratios for the Company and the Bank:

	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

The Company and its subsidiaries are involved in various legal proceedings which have arisen in the normal course of business. The Company believes there are no pending actions that will have a material adverse effect on the consolidated financial statements.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking Statements

This Form 10-Q contains “forward-looking statements.” You can identify these forward-looking statements through our use of words such as “may,” “will,” “anticipate,” “assume,” “should,” “indicate,” “would,” “believe,” “contemplate,” “expect,” “estimate,” “continue,” “plan,” “project,” “could,” “intend,” “target” and other similar words and expressions of the future. These forward-looking statements include, but are not limited to:

● 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.

These forward-looking statements are based on current beliefs and expectations of our management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change.

The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements:

● 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.

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● 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.  

Any forward-looking statements made by or on behalf of us in this Form 10-Q speak only as of the date of this Form 10-Q. We do not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statement was made. The reader should, however, consider any further disclosures of a forward-looking nature we may make in future filings. The Company wishes to advise readers that the factors listed above could affect the Company’s financial performance and could cause the Company’s actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements.

General

Established in 1851, Farmington Bank is a full-service, community bank with 20 full service branch offices and 4 limited services offices, including our main office, located throughout Hartford County, Connecticut. We opened our 21st branch in East Hartford, CT in July.  Farmington Bank provides a diverse range of commercial and consumer services to businesses, individuals and governments across Central Connecticut.

Our Business Strategy

Our business strategy is to operate as a well-capitalized and profitable community bank for businesses, individuals and governments. Our branch franchise extends throughout Hartford County with lending throughout the State of Connecticut. The key elements of our operating strategy include:

● 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;

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● 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.

Critical Accounting Policies

The accounting policies followed by us conform with the accounting principles generally accepted in the United States of America. Critical accounting policies are defined as those that are reflective of significant judgments and uncertainties, and could potentially result in materially different results under different assumptions and conditions. We believe that our most critical accounting policies, which involve the most complex subjective decisions or assessments, relate to allowance for loan losses, other-than-temporary impairment of investment securities, income taxes, pension and other post-retirement benefits, employee stock ownership plan, stock incentive plan and earnings per share. The following is a description of our critical accounting policies and an explanation of the methods and assumptions underlying their application.

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 three and six months ended June 30, 2013.

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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 or purchase 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, may 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, may 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.

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Resort – Loans in this segment include 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 consumer 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.

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Other-than-Temporary Impairment of Securities:In accordance with Financial Accounting Standards Board (“FASB”) 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. Management reviews the securities portfolio on a quarterly basis for the presence of OTTI. An assessment is made as to whether the decline in value results from company-specific events, industry developments, general economic conditions, credit losses on debt or other reasons. After the reasons for the decline are identified, further judgments are required as to whether those conditions are likely to reverse and, if so, whether that reversal is likely to result in a recovery of the fair value of the investment in the near term. If it is judged not to be near-term, a charge is taken which results in a new cost basis. Credit related OTTI for debt securities is recognized in earnings while non-credit related OTTI is recognized in other comprehensive income if there is no intent to sell or will not be required to sell the security. If an equity security is deemed other-than-temporarily impaired, the full impairment is considered to be credit-related and a charge to earnings would be recorded.   Management believes the policy for evaluating securities for other-than-temporary impairment is critical because it involves significant judgments by management and could have a material impact on our net income.

Gains and losses on sales of securities are recognized at the time of sale on a specific identification basis. 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, we had no debt or equity securities classified as trading. Held-to-maturity securities are debt securities for which we have 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. 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.

Premiums and discounts on debt securities are amortized or accreted into interest income over the term of the securities using the level yield method.

Income Taxes: Deferred income taxes are provided for differences arising in the timing of income and expenses for financial reporting and for income tax purposes. Deferred income taxes and tax benefits are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. We provide a deferred tax asset valuation allowance for the estimated future tax effects attributable to temporary differences and carryforwards when realization is determined not to be more likely than not. We adopted the provisions of FASB ASC 740-10, “Accounting for Uncertainty in Income Taxes”, on January 1, 2007. FASB ASC 740-10 prescribes a recognition threshold that a tax position is required to meet before being recognized in the financial statements and provides guidance on derecognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition issues. Pursuant to FASB ASC 740-10, we examine our financial statements, our income tax provision and our federal and state income tax returns and analyze our tax positions, including permanent and temporary differences, as well as the major components of income and expense, to determine whether a tax benefit is more likely than not to be sustained upon examination by tax authorities. We recognize interest and penalties arising from income tax settlements as part of our provision for income taxes.

Pension and Other Post-retirement Benefits: On December 27, 2012, the Company announced the freezing of the non-contributory defined-benefit pension plan and certain other postretirement benefit plans as of February 28, 2013.  All benefits under these plans will be frozen as of that date and no additional benefits shall accrue.

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We have a noncontributory defined benefit pension plan that provides benefits for substantially all employees hired before January 1, 2007 who meet certain requirements as to age and length of service. The benefits are based on years of service and average compensation, as defined in the plan. Our funding policy is to contribute annually the maximum amount that could be deducted for federal income tax purposes, while meeting the minimum funding standards established by the Employee Retirement Income Security Act of 1974.

In addition to providing pension benefits, we provide certain health care and life insurance benefits for retired employees. Participants or eligible employees hired before January 1, 1993 become eligible for the benefits if they retire after reaching age 62 with fifteen or more years of service. A fixed percent of annual costs are paid depending on length of service at retirement. We accrue for the estimated costs of these other post-retirement benefits through charges to expense during the years that employees render service. We make contributions to cover the current benefits paid under this plan. Management believes the policy for determining pension and other post-retirement benefit expenses is critical because judgments are required with respect to the appropriate discount rate, rate of return on assets, salary increases and other items. Management reviews and updates these assumptions annually. If our estimate of pension and post-retirement expense is too low we may experience higher expenses in the future, reducing our net income. If our estimate is too high, we may experience lower expenses in the future, increasing our net income.

Employee Stock Ownership Plan (“ESOP”): The Company accounts for its ESOP in accordance with FASB ASC 718-40, Compensation – Stock Compensation. Under this guidance, unearned ESOP shares are not considered outstanding and are shown as a reduction of stockholders' equity as unearned compensation. The Company will recognize compensation cost equal to the fair value of the ESOP shares during the periods in which they are committed to be released. To the extent that the fair value of the Company's ESOP shares differs from the cost of such shares, this difference will be credited or debited to equity. The Company will receive a tax deduction equal to the cost of the shares released to the extent of the principal pay down on the loan by the ESOP. As the loan is internally leveraged, the loan receivable from the ESOP to the Company is not reported as an asset nor is the debt of the ESOP shown as a liability in the Company's consolidated financial statements.

Stock Incentive Plan: During August 2012, the Company implemented the First Connecticut Bancorp, Inc. 2012 Stock Incentive Plan to provide for issuance or granting of shares of common stock for stock options or restricted stock. The Company applies ASC 718, Compensation – Stock Compensation, and has recorded stock-based employee compensation cost using the fair value method. Management estimated the fair values of all option grants using the Black-Scholes option-pricing model. Management estimated the expected life of the options using the simplified method allowed under SAB No. 107. The risk-free rate was determined utilizing the treasury yield for the expected life of the option contract.

Earnings Per Share: Basic net earnings (loss) per common share is calculated by dividing the net income (loss) available to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted net earnings (loss) per common share is computed in a manner similar to basic net earnings (loss) 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 period.  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 (loss) per common share.

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Comparison of Financial Condition at June 30, 2013 and December 31, 2012

Our total assets increased $22.3 million or 1% at June 30, 2013 to $1.8 billion compared to December 31, 2012 reflecting decreases in cash and cash equivalents and securities available for sale offset by an increase in loans.  Deposits increased $121.9 million and FHLB advances decreased $76.8 million.

Our investment portfolio totaled $115.8 million or 6.3% of total assets, and $141.2 million or 7.7% of total assets at June 30, 2013 and December 31, 2012, respectively. Available-for-sale investment securities totaled $112.8 million at June 30, 2013 compared to $138.2 million at December 31, 2012.  Securities held-to-maturity totaled $3.0 million at June 30, 2013 and December 31, 2012.  The Company purchases short term U.S. Treasury and agency securities in order to meet municipal and repurchase agreement pledge requirements and to minimize interest rate risk during the sustained low interest rate environment.

The net unrealized gains on securities available-for-sale, on a pre-tax basis, decreased by $97,000 to $606,000 at June 30, 2013.  As of June 30, 2013 and December 31, 2012, our available-for-sale investment securities portfolio gross unrealized losses equaled $370,000 and $345,000, respectively, of which $233,000 and $336,000, respectively, were from securities that had been in a loss position of twelve months or more. Management does not believe that the unrealized loss represents an other-than-temporary impairment.

Net loans increased $68.1 million at June 30, 2013 to $1.6 billion compared to December 31, 2012 primarily driven by increases in the commercial real estate, commercial construction and residential loan segments which, combined, increased $88.6 million, offset by a $18.8 million decrease in resort loans as we gradually exit the resort financing market.  At June 30, 2013 and December 31, 2012, respectively, the loan portfolio consisted of $625.3 million and $621.0 million in residential real estate loans, $533.1 million and $473.8 million in commercial real estate loans, $80.2 million and $64.4 million in construction loans, $199.3 million and $192.2 million in commercial loans, $144.5 million and $142.5 million in home equity lines of credit loans, $12.4 million and $31.2 million in resort loans and $7.3 million and $8.9 million in installment, collateral, demand and revolving credit loans.

The allowance for loan losses remained relatively flat increasing $276,000 to $17.5 million at June 30, 2013 from $17.2 million at December 31, 2012.  Impaired loans increased $2.3 million to $39.2 million at June 30, 2013 from $36.9 million at December 31, 2012.  Non-accrual loans increased $543,000 to $14.3 million at June 30, 2013 compared to $13.8 million at December 31, 2012.  At June 30, 2013, the allowance for loan losses represented 1.09% of total loans and 122.20% of non-performing loans, compared to 1.12% of total loans and 125.01% of non-performing loans as of December 31, 2012. Net charge-offs for the six months ended June 30, 2013 were $379,000 or 0.05% (annualized), compared to net charge-offs for the six months ended June 30, 2012 of $456,000 or 0.07% (annualized) of average loans outstanding.  Loan delinquencies 30 days and greater decreased $1.9 million to $15.2 million at June 30, 2013 compared to December 31, 2012 driven largely by decreases in delinquencies in the residential portfolio.

Deposits increased $121.9 million or 9.2% at June 30, 2013 compared to December 31, 2012, primarily due to continued growth in checking accounts, municipal deposits and branch openings.  Checking accounts grew by 8% or 2,832 net new accounts for the six months ended June 30, 2013.

Federal Home Loan Bank of Boston advances decreased $76.8 million to $51.3 million, primarily due to a decrease in overnight borrowings at June 30, 2013 compared to December 31, 2012.

Stockholders’ equity decreased $10.2 million to $231.3 million compared to December 31, 2013 primarily due to the $13.7 million repurchase of common stock at an average stock price of $14.54 completing our first 10% stock buyback during the year.

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Summary of Operating Results for the Three Months Ended June 30, 2013 and 2012

The following discussion provides a summary and comparison of our operating results for the three months ended June 30, 2013 and 2012.

	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	%

For the quarter ended June 30, 2013, net income increased by $106,000 to a net income of $937,000 compared to net income of $831,000 for the quarter ended June 30, 2012. The increase in net income resulted from an increase in noninterest income driven largely by our secondary market income and a reduction in the provision for loan losses offset by an increase in noninterest expense due to an increase in expense related to our 2012 Stock Incentive Plan (the “Plan”) implemented in August 2012 and an increase in salaries and employee benefits as we continue to add staff to expand the services we offer our existing and new customers and increases in other operating expenses.

Comparison of Operating Results for the Three Months Ended June 30, 2013 and 2012

Our results of operations depend primarily on net interest income, which is the difference between the interest income from earning assets, such as loans and investments, and the interest expense incurred on interest-bearing liabilities, such as deposits and borrowings. We also generate noninterest income, including service charges on deposit accounts, mortgage servicing income, bank-owned life insurance income, safe deposit box rental fees, brokerage fees, insurance commissions and other miscellaneous fees. Our noninterest expense primarily consists of employee compensation and benefits, occupancy and equipment costs and other noninterest expenses. Our results of operations are also affected by our provision for loan losses.

Interest and Dividend Income: For the quarter ended June 30, 2013, interest and dividend income increased $235,000 to $15.4 million from $15.1 million for the quarter ended June 30, 2012, primarily due to an increase in loan origination in the commercial and residential portfolios offset by a $819,000 decrease in resort income as we gradually exit the resort financing market and a $174,000 decrease in investment income.  The yield on average interest-earning assets decreased 33 basis points to 3.60% for the quarter ended June 30, 2013 from 3.93% for the quarter ended June 30, 2012.  The decline was due to a 50 basis points decrease in the yield on total average net loans to 3.85% offset by a $217.2 million or 16.0% increase in total average net loans and a 38 basis points decrease in securities to 0.75% as a result of maturing securities being replaced by lower yielding securities compared to the quarter ended June 30, 2012.

51

 Net Interest Income Analysis: Average Balance Sheets, Interest and Yields/Costs

The following tables present the average balance sheets, average yields and costs and certain other information for the periods indicated therein. No tax-equivalent yield adjustments were made, as the effect thereof was not material. All average balances are daily average balances. Non-accrual loans were included in the computation of average balances, but have been reflected in the table as loans carrying a zero percent yield. The yields set forth below include the effect of net deferred costs and premiums that are amortized to interest income or expense.  Yields and rates have been annualized.

	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

Rate Volume Analysis

The following table sets forth the effects of changing rates and volumes on net interest income for the periods indicated. The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume). The volume column shows the effects attributable to changes in volume (changes in volume multiplied by prior rate). The total column represents the sum of the volume and rate columns. For purposes of this table, changes attributable to both rate and volume that cannot be segregated have been allocated proportionately based on the changes due to rate and the changes due to volume.

	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

Net Interest Income:  Net interest income is determined by the interest rate spread (i.e., the difference between the yields earned on interest-earning assets and the rates paid on interest-bearing liabilities) and the relative amounts of interest-earning assets and interest-bearing liabilities. Net interest income before the provision for loan losses was $12.9 million for the quarter ended June 30, 2013, compared to $12.8 million for the quarter ended June 30, 2012.  The $133,000 increase in net interest income was primarily due to an increase in loan originations offset by a $819,000 decrease in resort income as we gradually exit the resort financing market and a $174,000 decrease in investment income.  Resort loan income was $205,000 and $1.0 million for the three months ended June 30, 2013 and 2012, respectively.  The yield on average interest-earning assets decreased 33 basis points to 3.60% for the quarter ended June 30, 2013 from 3.93% for the quarter ended June 30, 2012 due to a 50 basis points decrease in the yield on total average net loans to 3.85% offset by a $217.2 million or 16.0% increase in total average net loans and a 38 basis points decrease in securities to 0.75% as a result of maturing securities being replaced by lower yielding securities compared to the quarter ended June 30, 2012. The cost of average interest-earning liabilities decreased 5 basis points to 0.76% for the quarter ended June 30, 2013 reflecting lower funding costs.  Net interest margin decreased 30 basis points to 3.02% for the quarter ended June 30, 2013 compared to 3.32% for the quarter ended June 30, 2012 due to a historic low rate environment and a $52.3 million decline in the resort loan portfolio.

53

Interest Expense: Interest expense for the quarter ended June 30, 2013 increased $102,000 or 4.4% to $2.4 million from $2.3 million for the quarter ended June 30, 2012.  The increase in interest expense resulted primarily from a $143.4 million increase in the average balance interest-bearing deposits offset by a 2 basis point decline in the average cost of interest-bearing deposits to 0.63% for the quarter ended June 30, 2013 from 0.65% for the quarter ended June 30, 2012.   The average balance of time deposits decreased $13.6 million compared to the prior quarter with a decrease in yield of 11 basis to 0.99% for the three months ended June 30, 2013.

Provision for Loan Losses: The allowance for loan losses is maintained at a level management determines to be appropriate to absorb estimated credit losses that are both probable and reasonably estimable at the dates of the financial statements. Management evaluates the adequacy of the allowance for loan losses on a quarterly basis and charges any provision for loan losses needed to current operations. The assessment considers historical loss experience, historical and current delinquency statistics, the loan portfolio segment and the amount of loans in the loan portfolio, the financial strength of the borrowers, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, and prevailing economic conditions and other credit quality indicators.

Management recorded a provision for loan losses of $256,000 for the quarter ended June 30, 2013 compared to $520,000 for the quarter ended June 30, 2012.  The provision recorded is based upon management’s analysis of the allowance for loan losses necessary to absorb the estimated credit losses in the loan portfolio for the period.

At June 30, 2013, the allowance for loan losses totaled $17.5 million, or 1.09% of total loans and 122.20% of non-accrual loans, compared to an allowance for loan losses of $17.2 million which represented 1.12% of total loans and 125.01% of non-accrual loans at December 31, 2012. 

Noninterest Income: Sources of noninterest income primarily include banking service charges on deposit accounts, brokerage and insurance fees, bank-owned life insurance and mortgage servicing income. Other-than-temporary impairment of securities, if any, are also included in noninterest income (loss).

The following table summarizes noninterest income for the three months ended June 30, 2013 and 2012:

	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	%

Non-interest income increased $1.1 million or 57.9% to $3.1 million for the three months ended June 30, 2013 compared to the same period in the prior year.  Fees for customer services increased $197,000 or 21.9%.  Gain on sale of fixed-rate residential mortgage loans increased $1.3 million to $1.7 million compared to $431,000 for the quarter ended June 30, 2012 due to an expansion in our secondary market residential lending program.  Other income decreased $386,000 primarily due to a $103,000 write down on loans held for sale, a $154,000 decrease in mortgage banking derivatives and a $111,000 increase in amortization of mortgage servicing rights.

54

Noninterest Expense: The following table summarizes noninterest expense for the three months ended June 30, 2013 and 2012:

	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	%

Non-interest expense increased $1.4 million or 10.8% to $14.6 million for the three months ended June 30, 2013 compared to $13.1 million in the same period in the prior year. Salaries and employee benefits increased $936,000, primarily due to $454,000 in stock compensation expense related to our 2012 Stock Incentive Plan (the “Plan”) implemented in August 2012 and increases in compensation and other salary related costs to support our strategic growth.  Marketing decreased $143,000 to $610,000 compared to $753,000 for the quarter ended June 30, 2013 due to opening less branches in the quarter and a decrease in marketing campaigns.  Other operating expenses increased $597,000 or 26.5% to $2.9 million compared to $2.3 million for the quarter ended June 30, 2012.  The increase was primarily due to director’s stock compensation expense totaling $227,000 related to the Plan implemented in August 2012, an $84,000 loss on the sale of OREO property, costs associated with our system conversion and various other operating costs driven by our organic growth.

Income Tax Expense: Income taxes increased $15,000 to $308,000 for the quarter ended June 30, 2013 from $293,000 for the quarter ended June 30, 2012.

Summary of Operating Results for the Six Months Ended June 30, 2013 and 2012

The following discussion provides a summary and comparison of our operating results for the six months ended June 30, 2013 and 2012.

	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	) %

For the six months ended June 30, 2013, net income increased by $72,000 to $1.8 million compared to the six months ended June 30, 2012. The decrease in net income resulted from an increase in noninterest income driven largely by our secondary market income and a reduction in the provision for loan losses offset by an increase in noninterest expense due to an increase in expense related to our Plan implemented in August 2012 and an increase in salaries and employee benefits as we continue to add staff to expand the services we offer our existing and new customers and increases in other operating expenses.

55

Comparison of Operating Results for the Six Months Ended June 30, 2013 and 2012

Our results of operations depend primarily on net interest income, which is the difference between the interest income from earning assets, such as loans and investments, and the interest expense incurred on interest-bearing liabilities, such as deposits and borrowings. We also generate noninterest income, including service charges on deposit accounts, mortgage servicing income, bank-owned life insurance income, safe deposit box rental fees, brokerage fees, insurance commissions and other miscellaneous fees. Our noninterest expense primarily consists of employee compensation and benefits, occupancy and equipment costs and other noninterest expenses. Our results of operations are also affected by our provision for loan losses.

Interest and Dividend Income: For the six months ended June 30, 2013, interest and dividend income decreased $145,000 to $30.4 million from $30.6 million for the six months ended June 30, 2012, primarily due to a $337,000 decrease in investment income as a result of maturing securities being replaced by lower yielding securities partially offset by an $192,000 increase in loan originations in the commercial and residential portfolios.  Resort income decreased $1.6 million compared to the six months ended June 30, 2012 as we gradually exit the resort financing market.  The yield on average interest-earning assets decreased 37 basis points to 3.63% for the six months ended June 30, 2013 from 4.00% for the six months ended June 30, 2012.  The decline was due to a 57 basis points decrease in the yield on total average net loans to 3.89% offset by a $212.2 million or 15.9% increase in total average net loans and a 37 basis points decrease in securities to 0.78% as a result of maturing securities being replaced by lower yielding securities compared to the six months ended June 30, 2012.

56

Net Interest Income Analysis: Average Balance Sheets, Interest and Yields/Costs

The following tables present the average balance sheets, average yields and costs and certain other information for the periods indicated therein. No tax-equivalent yield adjustments were made, as the effect thereof was not material. All average balances are daily average balances. Non-accrual loans were included in the computation of average balances, but have been reflected in the table as loans carrying a zero percent yield. The yields set forth below include the effect of net deferred costs and premiums that are amortized to interest income or expense.  Yields and rates have been annualized.

	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

Rate Volume Analysis

The following table sets forth the effects of changing rates and volumes on net interest income for the periods indicated. The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume). The volume column shows the effects attributable to changes in volume (changes in volume multiplied by prior rate). The total column represents the sum of the volume and rate columns. For purposes of this table, changes attributable to both rate and volume that cannot be segregated have been allocated proportionately based on the changes due to rate and the changes due to volume.

	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	)

Net Interest Income:  Net interest income is determined by the interest rate spread (i.e., the difference between the yields earned on interest-earning assets and the rates paid on interest-bearing liabilities) and the relative amounts of interest-earning assets and interest-bearing liabilities. Net interest income before the provision for loan losses was $25.6 million for the six months ended June 30, 2013, compared to $25.8 million for the six months ended June 30, 2012.  The $169,000 decrease in net interest income was primarily due to a historic low rate environment and a $52.3 million decline in the resort loan portfolio.  Resort loan income decreased $1.6 million to $565,000 for the six months ended June 30, 2013 as we continue to successfully execute our planned exit of the resort financing market.  The yield on average interest-earning assets decreased 37 basis points to 3.63% for the six months ended June 30, 2013 from 4.00% for the six months ended June 30, 2012 due to a 57 basis points decrease in the yield on total average net loans to 3.89% offset by a $212.2 million or 15.9% increase in total average net loans and a 37 basis points decrease in securities to 0.78% as a result of maturing securities being replaced by lower yielding securities compared to the six months ended June 30, 2012. The cost of average interest-earning liabilities decreased 6 basis points to 0.77% for the six months ended June 30, 2013 reflecting lower funding costs.  Net interest margin decreased 32 basis points to 3.05% for the six months ended June 30, 2013 compared to 3.37% for the six months ended June 30, 2012.

58

Interest Expense: Interest expense for the six months ended June 30, 2013 remained flat at $4.8 million for the six months ended June 30, 2013 and 2012.  The cost of interest-bearing liabilities decreased 6 basis points to 0.77% for the six months ended June 30, 2013.  Time deposit interest expense decreased $292,000 due to a 10 basis point decrease in the yield to 1.01% offset by increases in NOW and money market interest expense of $114,000 and $279,000, respectively, due to increases in average balances for the six months ended June 30, 2013 compared to the same period in the prior year. 

Provision for Loan Losses:  Management recorded a provision for loan losses of $655,000 for the six months ended June 30, 2013 compared to $850,000 for the six months ended June 30, 2012.  The provision recorded is based upon management’s analysis of the allowance for loan losses necessary to absorb the estimated credit losses in the loan portfolio for the period.

At June 30, 2013, the allowance for loan losses represented 1.09% of total loans and 122.20% of non-performing loans, compared to 1.12% of total loans and 125.01% of non-performing loans as of December 31, 2012. Net charge-offs for the six months ended June 30, 2013 were $379,000 or 0.05% (annualized), compared to net charge-offs for the six months ended June 30, 2012 of $456,000 or 0.07% (annualized) of average loans outstanding.

Noninterest Income: Sources of noninterest income primarily include banking service charges on deposit accounts, brokerage and insurance fees, bank-owned life insurance and mortgage servicing income. Other-than-temporary impairment of securities, if any, are also included in noninterest income (loss).

The following table summarizes noninterest income for the six months ended June 30, 2013 and 2012:

	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	%

Non-interest income increased $3.4 million or 102.4% to $6.7 million for the six months ended June 30, 2013 compared to the same period in the prior year.  Fees for customer services increased $363,000 or 21.2%.  Gain on sale of fixed-rate residential mortgage loans increased $3.2 million to $3.8 million compared to $529,000 for the six months ended June 30, 2012 due to an expansion in our secondary market residential lending program.  Other income decreased $356,000 primarily due to a $103,000 write down on loans held for sale, a $164,000 decrease in mortgage banking derivatives and a $184,000 increase in amortization of mortgage servicing rights due to an increase in loan volume.

59

Noninterest Expense: The following table summarizes noninterest expense for the six months ended June 30, 2013 and 2012:

	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	%

Non-interest expense increased $3.4 million or 13.6% to $29.3 million for the six months ended June 30, 2013 compared to $25.8 million in the same period in the prior year. Salaries and employee benefits increased $2.5 million, primarily due to $1.7 million in stock compensation expense related to our 2012 Stock Incentive Plan (the “Plan”) implemented in August 2012, off which $633,000 is related to the accelerated vesting of stock compensation due to the passing of a key executive and increases in compensation and other salary related costs to support our strategic growth reflective of an increase in headcount partially offset by a decrease in pension expense of $182,000 as the pension plans were frozen at the end of 2012.  Marketing decreased $155,000 to $1.2 million for the six months ended June 30, 2013 due to opening fewer branches during the period and a decrease in marketing campaigns.  Other operating expenses increased $1.1 million or 25.4% to $5.4 million compared to $4.3 million for the six months ended June 30, 2012.  The increase was primarily due to director’s stock compensation expense totaling $452,000 related to the Plan, an $84,000 loss on the sale of OREO property, costs associated with our system conversion and various other operating costs driven by our organic growth.

Income Tax Expense: Income taxes decreased $23,000 to $587,000 for the six months ended June 30, 2013 from $610,000 for the six months ended June 30, 2012.

Liquidity and Capital Resources:

We maintain liquid assets at levels we consider adequate to meet our liquidity needs. We adjust our liquidity levels to fund loan commitments, repay our borrowings, fund deposit outflows, fund operations and pay escrow obligations on items in our loan portfolio. We also adjust liquidity as appropriate to meet asset and liability management objectives.

Our primary sources of liquidity are deposits, principal repayment and prepayment of loans, the sale in the secondary market of loans held for sale, maturities and sales of investment securities and other short-term investments, periodic pay downs of mortgage-backed securities, and earnings and funds provided from operations. While scheduled principal repayments on loans are a relatively predictable source of funds, deposit flows and loan prepayments are greatly influenced by market interest rates, economic conditions and rates offered by our competitors. We set the interest rates on our deposits to maintain a desired level of total deposits. In addition, we invest excess funds in short-term interest-earning assets, which provide liquidity to meet lending requirements.

A portion of our liquidity consists of cash and cash equivalents, which are a product of our operating, investing and financing activities. At June 30, 2013, $36.7 million of our assets were invested in cash and cash equivalents compared to $50.6 million at December 31, 2012. Our primary sources of cash are principal repayments on loans, proceeds from the maturities of investment securities, increases in deposit accounts, proceeds from residential loan sales and advances from FHLBB.

For the six months ended June, 2013 and 2012, loan originations and purchases, net of collected principal and loan sales, totaled $70.4 million and $121.0 million, respectively.  Cash received from the sales and maturities of investment securities totaled $151.5 million and $143.0 million for the six months ended June 30, 2013 and 2012, respectively.  We purchased $126.1 million and $138.0 million of available-for-sale investment securities during the six months ended June 30, 2013 and 2012, respectively.

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Liquidity management is both a daily and longer-term function of business management. If we require funds beyond our ability to generate them internally, borrowing agreements exist with the FHLBB, which provides an additional source of funds. At June 30, 2013, we had $51.3 million in advances from the FHLBB and an additional available borrowing limit of $360.1 million, compared to $128.0 million in advances and an additional available borrowing limit of $294.3 million at December 31, 2012, subject to collateral requirements of the FHLBB. Internal policies limit borrowings to 25.0% of total assets, or $461.3 million and $455.7 million at June 30, 2013 and December 31, 2012, respectively. Other sources of funds include access to a pre-approved unsecured line of credit with PNC Bank for $20.0 million, our $8.8 million secured line of credit with the FHLBB and our $3.5 million unsecured line of credit with a bank which were all undrawn at June 30, 2013.  The Federal Reserve Bank’s discount window loan collateral program enables us to borrow up to $86.4 million on an overnight basis as of June 30, 2013. The funding arrangement was collateralized by $128.6 million in pledged commercial real estate loans as of June 30, 2013.

We had outstanding commitments to originate loans of $52.8 million and $14.8 million and unfunded commitments under construction loans, lines of credit and stand-by letters of credit of $368.0 million and $355.0 million at June 30, 2013 and December 31, 2012, respectively. At June 30, 2013 and December 31, 2012, time deposits scheduled to mature in less than one year totaled $237.3 million and $239.8 million, respectively. Based on prior experience, management believes that a significant portion of such deposits will remain with us, although there can be no assurance that this will be the case. In the event a significant portion of our deposits are not retained by us, we will have to utilize other funding sources, such as FHLBB advances, brokered deposits, our $20.0 million unsecured line of credit with PNC Bank, our $8.8 million secured line of credit with the FHLBB, our $3.5 million unsecured line of credit with a bank or our $86.4 million overnight borrowing arrangement with the Federal Reserve Bank in order to maintain our level of assets. Alternatively, we would reduce our level of liquid assets, such as our cash and cash equivalents in order to meet funding needs. In addition, the cost of such deposits may be significantly higher if market interest rates are higher or if there is an increased amount of competition for deposits in our market area at the time of renewal.

Item 3.  Quantitative and Qualitative Disclosures About Market Risk

General:The majority of our assets and liabilities are monetary in nature. Consequently, our most significant form of market risk is interest rate risk. Our assets, consisting primarily of loans and available-for-sale investment securities, generally have longer contractual maturities than our liabilities, consisting primarily of deposits. As a result, a principal part of our business strategy is to manage interest rate risk and reduce the exposure of our net interest income to changes in market interest rates. Accordingly, our board of directors has established an asset/liability committee which is responsible for (i) evaluating the interest rate risk inherent in our assets and liabilities, (ii) determining the level of risk that is appropriate given our business strategy, operating environment, capital, liquidity and performance objectives and (iii) managing this risk consistent with the guidelines approved by our board of directors. Management monitors the level of interest rate risk on a regular basis and the asset/liability committee meets at least quarterly to review our asset/liability policies and interest rate risk position.

We have sought to manage our interest rate risk in order to minimize the exposure of our earnings and capital to changes in interest rates. During the low interest rate environment that has existed in recent years, we have implemented the following strategies to manage our interest rate risk: (i) emphasizing adjustable rate loans, including adjustable rate one-to-four family, commercial and consumer loans, (ii) reducing and shortening the expected average life of the investment portfolio and (iii) periodically lengthening the term structure of our borrowings from the FHLBB. Additionally, we sell a portion of our fixed-rate residential mortgages to the secondary market. These measures should serve to reduce the volatility of our future net interest income in different interest rate environments.

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Quantitative Analysis:An economic value of equity and an income simulation analysis are used to estimate our interest rate risk exposure at a particular point in time. We are most reliant on the income simulation method as it is a dynamic method in that it incorporates our forecasted balance sheet growth assumptions under the different interest rate scenarios tested. We utilize the income simulation method to analyze our interest rate sensitivity position and to manage the risk associated with interest rate movements. At least quarterly, our asset/liability committee reviews the potential effect that changes in interest rates could have on the repayment or repricing of rate sensitive assets and the funding requirements of rate sensitive liabilities. Our most recent simulation uses projected repricing of assets and liabilities on the basis of contractual maturities, anticipated repayments and scheduled rate adjustments. Prepayment rate assumptions can have a significant impact on interest income simulation results. Because of the large percentage of loans and mortgage-backed securities we hold, rising or falling interest rates may have a significant impact on the actual prepayment speeds of our mortgage related assets that may in turn effect our interest rate sensitivity position. When interest rates rise, prepayment speeds slow and the average expected life of our assets would tend to lengthen more than the expected average life of our liabilities and would therefore alter our existing interest rate risk position.

Our asset/liability policy currently limits projected changes in net interest income to a maximum variance of (4.0%, 8.0%, 10.0%, 12.0% and 18.0%) assuming a 100, 200, 300, 400 or 500 basis point interest rate shock, respectively, as measured over a 12 month period when compared to the flat rate scenario.

At June 30, 2013, income at risk (i.e., the change in net interest income) increased 9.1% and 8.6% and decreased 3.3% based on a 300 basis point increase, a 400 basis point increase and a 100 basis point decrease, respectively. At December 31, 2012, income at risk (i.e., the change in net interest income) increased 7.3% and 6.2% and decreased 4.9% based on a 300 basis point increase, a 400 basis point increase and a 100 basis point decrease, respectively, respectively.  The following table depicts the percentage increase and/or decrease in estimated net interest income over twelve months based on the scenarios run during each of the years presented:

	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

Under the supervision and with the participation of our management, including our Chief Executive Officer, Chief Financial Officer and Principal Accounting Officer, we evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934) as of the end of the period covered by this report. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that, as of the end of the period covered by this report, our disclosure controls and procedures were effective.

During the second quarter of 2013, we implemented and completed a core banking system conversion. This conversion has resulted in the modification of certain business processes and internal controls impacting financial reporting, among other things, improving user access security and automating a number of accounting, back office and reporting processes and activities. Management will continue to evaluate the operating effectiveness of related key controls during subsequent periods.

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Part II. Other Information

Item 1. Legal Proceedings

The Company and its subsidiaries are subject to various legal actions arising in the normal course of business. In the opinion of management, the resolution of these legal actions is not expected to have a material adverse effect on the Company’s consolidated financial statements.

Item 1A. Risk Factors

There have been no material changes in the “Risk Factors” from those previously disclosed in the Form 10-K filed on March 18, 2013.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

(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

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 and completed this repurchase during the quarter ended June 30, 2013.  On June 21, 2013, the Company received regulatory approval to repurchase up to 1,676,452 shares, or 10% of its current outstanding common stock.  Repurchased shares will be held as treasury stock and will be available for general corporate purposes.

Item 3. Defaults Upon Senior Securities

Not Applicable

Item 4. Mine Safety Disclosures

Not Applicable

Item 5. Other Information

Not Applicable

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Item 6. Exhibits

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).

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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

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	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

EX-31.1

Exhibit 31.1

Certification of Chief Executive Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, John J. Patrick, certify that:

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

EX-31.2

Exhibit 31.2

Certification of Chief Financial Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Gregory A. White, certify that:

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

EX-32.1

Exhibit 32.1

Certification of Chief Executive Officer Pursuant to Section 906 of the

Sarbanes-Oxley Act of 2002

I, John J. Patrick, Chief Executive Officer and President of First Connecticut Bancorp, Inc., a Maryland corporation (the “Company”), certify in my capacity as an officer of the Company that I have reviewed the quarterly report on Form 10-Q for the three and six months ended June 30, 2013 (the “Report”) and that to the best of my knowledge:

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

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

Certification of Chief Financial Officer Pursuant to Section 906 of the

Sarbanes-Oxley Act of 2002

I, Gregory A. White, Executive Vice President and Chief Financial Officer of First Connecticut Bancorp, Inc., a Maryland corporation (the “Company”), certify in my capacity as an officer of the Company that I have reviewed the quarterly report on Form 10-Q for the three and six months ended June 30, 2013 (the “Report”) and that to the best of my knowledge:

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

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

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

XML

Derivative Financial Instruments

6 Months Ended

Jun. 30, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

9. 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:

● 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;

● 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.

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:

				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	)

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:

	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	$	-		$	-		$	-		$	-		$	-		$	-

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.

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Credit Arrangements (Detail Textuals) (USD $)	Jun. 30, 2013	Dec. 31, 2012
Line of Credit Facility [Line Items]
Balance with bank	$ 262,500	$ 262,500
Federal Home Loan Bank Of Boston
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
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
Line of Credit Facility [Line Items]
Amount under unsecured line of credit agreement	$ 3,500,000	$ 3,500,000

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Consolidated Statements of Income (Unaudited) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Interest and fees on loans
Mortgage	$ 11,917	$ 10,882	$ 23,385	$ 21,992
Other	3,233	3,859	6,547	7,748
Interest and dividends on investments
United States Government and agency obligations	102	249	241	515
Other bonds	59	60	118	118
Corporate stocks	64	70	126	140
Other interest income	6	26	11	60
Total interest income	15,381	15,146	30,428	30,573
Interest expense
Deposits	1,827	1,643	3,532	3,398
Federal Home Loan Bank of Boston advances	401	462	870	943
Repurchase agreement borrowings	180	181	351	361
Repurchase liabilities	41	61	91	118
Total interest expense	2,449	2,347	4,844	4,820
Net interest income	12,932	12,799	25,584	25,753
Provision for allowance for loan losses	256	520	655	850
Net interest income after provision for loan losses	12,676	12,279	24,929	24,903
Noninterest income
Fees for customer services	1,097	900	2,079	1,716
Net gain on sales of investments	36		36
Net gain on loans sold	1,739	431	3,769	529
Brokerage and insurance fee income	41	32	73	57
Bank owned life insurance income	303	321	712	640
Other	(92)	294	(7)	349
Total noninterest income	3,124	1,978	6,662	3,291
Noninterest expense
Salaries and employee benefits	8,555	7,619	17,589	15,043
Occupancy expense	1,126	1,098	2,366	2,288
Furniture and equipment expense	1,099	1,112	2,117	2,211
FDIC assessment	311	294	602	573
Marketing	610	753	1,204	1,359
Other operating expenses	2,854	2,257	5,376	4,288
Total noninterest expense	14,555	13,133	29,254	25,762
Income before income taxes	1,245	1,124	2,337	2,432
Income tax expense	308	293	587	610
Net income	$ 937	$ 831	$ 1,750	$ 1,822
Net earnings per share (See Note 2):
Basic and Diluted (in dollars per share)	$ 0.06	$ 0.05	$ 0.11	$ 0.11
Weighted average shares outstanding:
Basic and Diluted (in shares)	15,774,385	16,686,810	16,122,208	16,735,892

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Earnings Per Share

6 Months Ended

Jun. 30, 2013

Earnings Per Share [Abstract]

Earnings Per Share

2. 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:

		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

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Investment Securities (Tables)

6 Months Ended

Jun. 30, 2013

Investments, Debt and Equity Securities [Abstract]

Schedule of 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

Schedule of gross unrealized losses and fair value aggregated by investment category

	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	)

Schedule of amortized cost and estimated market value of debt securities by contractual maturity

	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

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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
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Derivative [Line Items]
Changes in fair value of non-hedge accounting derivatives
Interest Income
Derivative [Line Items]
Changes in fair value of non-hedge accounting derivatives
MTM (Loss) Gain
Derivative [Line Items]
Changes in fair value of non-hedge accounting derivatives
Commercial loan customer interest rate swap position
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
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
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
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
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
Derivative [Line Items]
Changes in fair value of non-hedge accounting derivatives	$ 3,130	$ (2,630)	$ 4,069	$ (1,662)

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Credit Arrangements (Detail Textuals 3) (USD $)	Jun. 30, 2013	Dec. 31, 2012
Schedule of Investments [Line Items]
Repurchase liabilities	$ 50,262,000	$ 54,187,000
US Treasury Bill Securities
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

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Financial Instruments with Off-Balance Sheet Risk

6 Months Ended

Jun. 30, 2013

Financial Instruments With Off Balance Sheet Risk Disclosure [Abstract]

Financial Instruments with Off-Balance Sheet Risk

10. 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:

	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

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.

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Loans and Allowance for Loan Losses - Information modified in a troubled debt restructuring (Details 7) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]
TDRs on Accrual Status of Recorded Investment	$ 23,900	$ 22,100
TDRs on Nonaccrual Status of Recorded Investment	7,100	7,600
Total TDRs of Recorded Investment	31,000	29,700
Loans receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of TDRs on Accrual Status of Loans	29	27
TDRs on Accrual Status of Recorded Investment	23,890	22,124
Number of TDRs on Nonaccrual Status of Loans	15	13
TDRs on Nonaccrual Status of Recorded Investment	7,148	7,550
Number of Total TDRs of Loans	44	40
Total TDRs of Recorded Investment	31,038	29,674
Loans receivable | Real estate Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of TDRs on Accrual Status of Loans	4	3
TDRs on Accrual Status of Recorded Investment	1,186	1,068
Number of TDRs on Nonaccrual Status of Loans	6	6
TDRs on Nonaccrual Status of Recorded Investment	4,918	5,264
Number of Total TDRs of Loans	10	9
Total TDRs of Recorded Investment	6,104	6,332
Loans receivable | Real estate Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of TDRs on Accrual Status of Loans	14	12
TDRs on Accrual Status of Recorded Investment	16,293	16,381
Number of TDRs on Nonaccrual Status of Loans
TDRs on Nonaccrual Status of Recorded Investment
Number of Total TDRs of Loans	14	12
Total TDRs of Recorded Investment	16,293	16,381
Loans receivable | Real estate Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of TDRs on Accrual Status of Loans		2
TDRs on Accrual Status of Recorded Investment		999
Number of TDRs on Nonaccrual Status of Loans	1	1
TDRs on Nonaccrual Status of Recorded Investment	187	419
Number of Total TDRs of Loans	1	3
Total TDRs of Recorded Investment	187	1,418
Loans receivable | Installment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of TDRs on Accrual Status of Loans	2	1
TDRs on Accrual Status of Recorded Investment	35	7
Number of TDRs on Nonaccrual Status of Loans
TDRs on Nonaccrual Status of Recorded Investment
Number of Total TDRs of Loans	2	1
Total TDRs of Recorded Investment	35	7
Loans receivable | Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of TDRs on Accrual Status of Loans	7	7
TDRs on Accrual Status of Recorded Investment	4,902	2,043
Number of TDRs on Nonaccrual Status of Loans	6	6
TDRs on Nonaccrual Status of Recorded Investment	1,843	1,867
Number of Total TDRs of Loans	13	13
Total TDRs of Recorded Investment	6,745	3,910
Loans receivable | Collateral
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of TDRs on Accrual Status of Loans
TDRs on Accrual Status of Recorded Investment
Number of TDRs on Nonaccrual Status of Loans
TDRs on Nonaccrual Status of Recorded Investment
Number of Total TDRs of Loans
Total TDRs of Recorded Investment
Loans receivable | Home equity line of credit
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of TDRs on Accrual Status of Loans
TDRs on Accrual Status of Recorded Investment
Number of TDRs on Nonaccrual Status of Loans	2
TDRs on Nonaccrual Status of Recorded Investment	200
Number of Total TDRs of Loans	2
Total TDRs of Recorded Investment	200
Loans receivable | Demand
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of TDRs on Accrual Status of Loans
TDRs on Accrual Status of Recorded Investment
Number of TDRs on Nonaccrual Status of Loans
TDRs on Nonaccrual Status of Recorded Investment
Number of Total TDRs of Loans
Total TDRs of Recorded Investment
Loans receivable | Revolving credit
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of TDRs on Accrual Status of Loans
TDRs on Accrual Status of Recorded Investment
Number of TDRs on Nonaccrual Status of Loans
TDRs on Nonaccrual Status of Recorded Investment
Number of Total TDRs of Loans
Total TDRs of Recorded Investment
Loans receivable | Resort
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of TDRs on Accrual Status of Loans	2	2
TDRs on Accrual Status of Recorded Investment	1,474	1,626
Number of TDRs on Nonaccrual Status of Loans
TDRs on Nonaccrual Status of Recorded Investment
Number of Total TDRs of Loans	2	2
Total TDRs of Recorded Investment	$ 1,474	$ 1,626

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Deposits - Summary (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
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

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Investment Securities - Gross unrealized losses and fair value (Details 1) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013 Derivative_Instrument	Dec. 31, 2012 Derivative_Instrument
Schedule of Available-for-sale Securities [Line Items]
Number of Securities	7	6
Available-for-sale securities less than 12 months, fair value	$ 41,818	$ 52,985
Available-for-sale securities less than 12 months, gross unrealized loss	(137)	(9)
Available-for-sale securities 12 months or more, fair value	1,774	1,671
Available-for-sale securities 12 months or more, gross unrealized loss	(233)	(336)
Available-for-sale securities, total fair value	43,592	54,656
Available-for-sale securities, total gross unrealized loss	(370)	(345)
U.S. Treasury obligations
Schedule of Available-for-sale Securities [Line Items]
Number of Securities	4	4
Available-for-sale securities less than 12 months, fair value	38,993	52,985
Available-for-sale securities less than 12 months, gross unrealized loss	(4)	(9)
Available-for-sale securities 12 months or more, fair value
Available-for-sale securities 12 months or more, gross unrealized loss
Available-for-sale securities, total fair value	38,993	52,985
Available-for-sale securities, total gross unrealized loss	(4)	(9)
Preferred equity securities
Schedule of Available-for-sale Securities [Line Items]
Number of Securities	1	1
Available-for-sale securities less than 12 months, fair value
Available-for-sale securities less than 12 months, gross unrealized loss
Available-for-sale securities 12 months or more, fair value	1,769	1,667
Available-for-sale securities 12 months or more, gross unrealized loss	(231)	(333)
Available-for-sale securities, total fair value	1,769	1,667
Available-for-sale securities, total gross unrealized loss	(231)	(333)
Marketable equity securities
Schedule of Available-for-sale Securities [Line Items]
Number of Securities	1	1
Available-for-sale securities less than 12 months, fair value
Available-for-sale securities less than 12 months, gross unrealized loss
Available-for-sale securities 12 months or more, fair value	5	4
Available-for-sale securities 12 months or more, gross unrealized loss	(2)	(3)
Available-for-sale securities, total fair value	5	4
Available-for-sale securities, total gross unrealized loss	(2)	(3)
Mutual funds
Schedule of Available-for-sale Securities [Line Items]
Number of Securities	1
Available-for-sale securities less than 12 months, fair value	2,825
Available-for-sale securities less than 12 months, gross unrealized loss	(133)
Available-for-sale securities 12 months or more, fair value
Available-for-sale securities 12 months or more, gross unrealized loss
Available-for-sale securities, total fair value	2,825
Available-for-sale securities, total gross unrealized loss	$ (133)

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Pension and Other Postretirement Benefit Plans (Tables)

6 Months Ended

Jun. 30, 2013

Compensation and Retirement Disclosure [Abstract]

Schedule of components of net periodic pension and benefit costs

	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

Schedule of shares held by ESOP

Allocated	190,722
Committed to be released	47,289
Unallocated	1,192,405
	1,430,416

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Deposits (Tables)

6 Months Ended

Jun. 30, 2013

Banking and Thrift [Abstract]

Schedule of 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

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Loans and Allowance for Loan Losses - Nonperforming assets (Details 5) (Loans receivable, USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]
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
Real estate Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total nonaccruing loans	10,167	9,194
Loans 90 days past due and still accruing
Real estate Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total nonaccruing loans	827	925
Loans 90 days past due and still accruing
Real estate Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total nonaccruing loans	187	419
Loans 90 days past due and still accruing
Installment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total nonaccruing loans	145	157
Loans 90 days past due and still accruing
Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total nonaccruing loans	2,262	2,351
Loans 90 days past due and still accruing
Collateral
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total nonaccruing loans
Loans 90 days past due and still accruing
Home equity line of credit
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total nonaccruing loans	737	711
Loans 90 days past due and still accruing
Demand
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total nonaccruing loans		25
Loans 90 days past due and still accruing
Revolving credit
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total nonaccruing loans
Loans 90 days past due and still accruing
Resort
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total nonaccruing loans
Loans 90 days past due and still accruing

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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	Jun. 30, 2013 2012 Stock Incentive Plan	Sep. 05, 2012 2012 Stock Incentive Plan
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

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Investment Securities (Detail Textuals) (USD $)	3 Months Ended	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2013	Dec. 31, 2012
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
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
FHLB Stock	$ 8,400,000	$ 8,400,000	$ 8,900,000

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Loans and Allowance for Loan Losses - Recorded investment and number of modifications for modified loans (Details 8) (Loans receivable, USD $) In Thousands, unless otherwise specified	3 Months Ended				6 Months Ended
	Jun. 30, 2013 Contract		Jun. 30, 2012 Contract		Jun. 30, 2013 Contract		Jun. 30, 2012 Contract
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Modifications	9		10		16		15
Recorded Investment Prior to Modification	$ 3,968		$ 8,936		$ 8,433		$ 11,505
Recorded Investment After Modification	3,966	[1]	8,936	[1]	8,320	[1]	11,214	[1]
Real estate Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Modifications			1		3		2
Recorded Investment Prior to Modification			462		588		579
Recorded Investment After Modification		[1]	462	[1]	570	[1]	577	[1]
Real estate Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Modifications	2		5		2		5
Recorded Investment Prior to Modification	1,726		8,305		1,725		8,305
Recorded Investment After Modification	1,725	[1]	8,305	[1]	1,725	[1]	8,305	[1]
Real estate Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Modifications	1				1		1
Recorded Investment Prior to Modification	187				187		242
Recorded Investment After Modification	187	[1]		[1]	187	[1]	241	[1]
Installment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Modifications	1				2		1
Recorded Investment Prior to Modification	29				36		7
Recorded Investment After Modification	29	[1]		[1]	35	[1]	7	[1]
Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Modifications	5		4		6		6
Recorded Investment Prior to Modification	2,026		169		5,653		2,372
Recorded Investment After Modification	2,025	[1]	169	[1]	5,603	[1]	2,084	[1]
Home equity line of credit
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Modifications					2
Recorded Investment Prior to Modification					244
Recorded Investment After Modification		[1]			$ 200	[1]

[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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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2013

Fair Value Disclosures [Abstract]

Schedule of financial instruments carried at fair value on a recurring basis

	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	$	-

Schedule of assets measured at fair value according to level 3 inputs

	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

Schedule of financial instruments carried at fair value on a nonrecurring basis

	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

Schedule of valuation methodology and unobservable inputs for level 3 assets measured at fair value on a non-recurring basis

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	%

Schedule of carrying amount, fair value, and placement in the fair value hierarchy of company's financial instruments

		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		-		-		-		-

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Stock Incentive Plan - Summary of status of restricted stock (Details 2) (Restricted Stock, USD $)	6 Months Ended
	Jun. 30, 2013
Restricted Stock
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

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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	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Securities Available-for-Sale
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
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

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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
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

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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
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
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

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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

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Loans and Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2013

Receivables [Abstract]

Schedule of loans

	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

Schedule of changes in the allowance for loan losses

	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

Schedule of changes in the allowance for loan losses by segments

	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

Schedule of the allowance by impairment methodology and by loan segment allocation

Loans individually evaluated for impairment:

	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

Schedule of loan aging at recorded investment values

	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	$	-

Schedule of nonperforming assets

(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

Schedule of information pertaining to impaired loans

	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

	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

Schedule of loans terms modified in a troubled debt restructuring

	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

Schedule of recorded investment in the loans prior to a modification and also the recorded investment in the loans after the loans were restructured

	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

(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.

	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

(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.

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

	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

 

	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

Schedule of loans by risk rating

	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

XML

Consolidated Statement of Changes in Stockholders' Equity (Unaudited) (USD $) In Thousands, except Share data, unless otherwise specified	Common Stock	Additional Paid in Capital	Unallocated Common Shares Held by ESOP	Treasury Stock	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Total
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

XML

Consolidated Statements of Cash Flows (Unaudited) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
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

XML

Investment Securities

6 Months Ended

Jun. 30, 2013

Investments, Debt and Equity Securities [Abstract]

Investment Securities

3. Investment Securities

Investment securities are summarized as follows:

	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

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:

	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	)

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:

	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

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.

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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)
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)
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

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Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2013

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

1. 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.

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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)

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Stock Incentive Plan (Tables)

6 Months Ended

Jun. 30, 2013

Compensation and Retirement Disclosure [Abstract]

Schedule of weighted-average estimated fair values of stock option grants

	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

Schedule of summary of the company's stock option activity and related information for its option grants

	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

Schedule of summary of status of company's restricted stock

	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

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Regulatory Matters (Tables)

6 Months Ended

Jun. 30, 2013

Regulatory Matters Disclosure [Abstract]

Schedule of actual capital amounts and ratios for company and bank

	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

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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

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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

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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

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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%

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Loans and Allowance for Loan Losses - TDR loans (Details 9) (Loans receivable, USD $) In Thousands, unless otherwise specified	3 Months Ended				6 Months Ended
	Jun. 30, 2013 Contract		Jun. 30, 2012 Contract		Jun. 30, 2013 Contract		Jun. 30, 2012 Contract
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Modifications	9		10		16		15
Extended Maturity	$ 3,496		$ 1,754		$ 7,074		$ 3,910
Adjusted Interest Rates			3,301				3,423
Combination of Rate and Maturity	29		169		280		169
Other	441		3,712		966		3,712
Recorded Investment After Modification	3,966	[1]	8,936	[1]	8,320	[1]	11,214	[1]
Real estate Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Modifications			1		3		2
Extended Maturity
Adjusted Interest Rates							115
Combination of Rate and Maturity					231
Other			462		339		462
Recorded Investment After Modification		[1]	462	[1]	570	[1]	577	[1]
Real estate Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Modifications	2		5		2		5
Extended Maturity	1,577		1,754		1,577		1,754
Adjusted Interest Rates			3,301				3,301
Combination of Rate and Maturity
Other	148		3,250		148		3,250
Recorded Investment After Modification	1,725	[1]	8,305	[1]	1,725	[1]	8,305	[1]
Real estate Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Modifications	1				1		1
Extended Maturity							241
Adjusted Interest Rates
Combination of Rate and Maturity
Other	187				187
Recorded Investment After Modification	187	[1]		[1]	187	[1]	241	[1]
Installment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Modifications	1				2		1
Extended Maturity
Adjusted Interest Rates							7
Combination of Rate and Maturity	29				35
Other
Recorded Investment After Modification	29	[1]		[1]	35	[1]	7	[1]
Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Modifications	5		4		6		6
Extended Maturity	1,919				5,497		1,915
Adjusted Interest Rates
Combination of Rate and Maturity			169				169
Other	106				106
Recorded Investment After Modification	2,025	[1]	169	[1]	5,603	[1]	2,084	[1]
Home equity line of credit
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Modifications					2
Extended Maturity
Adjusted Interest Rates
Combination of Rate and Maturity					14
Other					186
Recorded Investment After Modification		[1]			$ 200	[1]

[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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Loans and Allowance for Loan Losses - Summary of loan delinquencies at recorded investment (Details 4) (Loans receivable, USD $) In Thousands, unless otherwise specified	Jun. 30, 2013 Loan	Dec. 31, 2012 Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of loan receivable, recorded investment, 30 to 59 days past due	35	29
Loan receivable, recorded investment, 30 to 59 days past due	$ 3,064	$ 4,667
Number of loan receivable recorded investment 60 to 89 days past due	6	10
Loan receivable, recorded investment, 60 to 89 days past due	769	2,172
Number of loan receivable recorded investment equal to greater than 90 days past due	34	32
Loan receivable, recorded investment, equal to greater than 90 days past due	11,358	10,224
Number of loan receivable recorded investment past due	75	71
Loan receivable, recorded investment, past due	15,191	17,063
Loan receivable, recorded investment, 90 days past due and still accruing
Real estate Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of loan receivable, recorded investment, 30 to 59 days past due	10	17
Loan receivable, recorded investment, 30 to 59 days past due	1,989	3,080
Number of loan receivable recorded investment 60 to 89 days past due	4	6
Loan receivable, recorded investment, 60 to 89 days past due	595	1,663
Number of loan receivable recorded investment equal to greater than 90 days past due	21	16
Loan receivable, recorded investment, equal to greater than 90 days past due	8,188	7,803
Number of loan receivable recorded investment past due	35	39
Loan receivable, recorded investment, past due	10,772	12,546
Loan receivable, recorded investment, 90 days past due and still accruing
Real estate Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of loan receivable, recorded investment, 30 to 59 days past due	1
Loan receivable, recorded investment, 30 to 59 days past due	128
Number of loan receivable recorded investment 60 to 89 days past due		1
Loan receivable, recorded investment, 60 to 89 days past due		349
Number of loan receivable recorded investment equal to greater than 90 days past due	1	2
Loan receivable, recorded investment, equal to greater than 90 days past due	827	925
Number of loan receivable recorded investment past due	2	3
Loan receivable, recorded investment, past due	955	1,274
Loan receivable, recorded investment, 90 days past due and still accruing
Real estate Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of loan receivable, recorded investment, 30 to 59 days past due
Loan receivable, recorded investment, 30 to 59 days past due
Number of loan receivable recorded investment 60 to 89 days past due
Loan receivable, recorded investment, 60 to 89 days past due
Number of loan receivable recorded investment equal to greater than 90 days past due	1	1
Loan receivable, recorded investment, equal to greater than 90 days past due	187	419
Number of loan receivable recorded investment past due	1	1
Loan receivable, recorded investment, past due	187	419
Loan receivable, recorded investment, 90 days past due and still accruing
Installment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of loan receivable, recorded investment, 30 to 59 days past due	5	1
Loan receivable, recorded investment, 30 to 59 days past due	77	14
Number of loan receivable recorded investment 60 to 89 days past due
Loan receivable, recorded investment, 60 to 89 days past due
Number of loan receivable recorded investment equal to greater than 90 days past due	3	2
Loan receivable, recorded investment, equal to greater than 90 days past due	59	73
Number of loan receivable recorded investment past due	8	3
Loan receivable, recorded investment, past due	136	87
Loan receivable, recorded investment, 90 days past due and still accruing
Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of loan receivable, recorded investment, 30 to 59 days past due	5	2
Loan receivable, recorded investment, 30 to 59 days past due	555	1,435
Number of loan receivable recorded investment 60 to 89 days past due	1	1
Loan receivable, recorded investment, 60 to 89 days past due	106	66
Number of loan receivable recorded investment equal to greater than 90 days past due	6	6
Loan receivable, recorded investment, equal to greater than 90 days past due	1,947	585
Number of loan receivable recorded investment past due	12	9
Loan receivable, recorded investment, past due	2,608	2,086
Loan receivable, recorded investment, 90 days past due and still accruing
Collateral
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of loan receivable, recorded investment, 30 to 59 days past due	12	7
Loan receivable, recorded investment, 30 to 59 days past due	225	57
Number of loan receivable recorded investment 60 to 89 days past due
Loan receivable, recorded investment, 60 to 89 days past due
Number of loan receivable recorded investment equal to greater than 90 days past due
Loan receivable, recorded investment, equal to greater than 90 days past due
Number of loan receivable recorded investment past due	12	7
Loan receivable, recorded investment, past due	225	57
Loan receivable, recorded investment, 90 days past due and still accruing
Home equity line of credit
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of loan receivable, recorded investment, 30 to 59 days past due	1	1
Loan receivable, recorded investment, 30 to 59 days past due	74	75
Number of loan receivable recorded investment 60 to 89 days past due	1	2
Loan receivable, recorded investment, 60 to 89 days past due	68	94
Number of loan receivable recorded investment equal to greater than 90 days past due	2	3
Loan receivable, recorded investment, equal to greater than 90 days past due	150	379
Number of loan receivable recorded investment past due	4	6
Loan receivable, recorded investment, past due	292	548
Loan receivable, recorded investment, 90 days past due and still accruing
Demand
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of loan receivable, recorded investment, 30 to 59 days past due	1	1
Loan receivable, recorded investment, 30 to 59 days past due	16	6
Number of loan receivable recorded investment 60 to 89 days past due
Loan receivable, recorded investment, 60 to 89 days past due
Number of loan receivable recorded investment equal to greater than 90 days past due		2
Loan receivable, recorded investment, equal to greater than 90 days past due		40
Number of loan receivable recorded investment past due	1	3
Loan receivable, recorded investment, past due	16	46
Loan receivable, recorded investment, 90 days past due and still accruing
Revolving credit
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of loan receivable, recorded investment, 30 to 59 days past due
Loan receivable, recorded investment, 30 to 59 days past due
Number of loan receivable recorded investment 60 to 89 days past due
Loan receivable, recorded investment, 60 to 89 days past due
Number of loan receivable recorded investment equal to greater than 90 days past due
Loan receivable, recorded investment, equal to greater than 90 days past due
Number of loan receivable recorded investment past due
Loan receivable, recorded investment, past due
Loan receivable, recorded investment, 90 days past due and still accruing
Resort
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of loan receivable, recorded investment, 30 to 59 days past due
Loan receivable, recorded investment, 30 to 59 days past due
Number of loan receivable recorded investment 60 to 89 days past due
Loan receivable, recorded investment, 60 to 89 days past due
Number of loan receivable recorded investment equal to greater than 90 days past due
Loan receivable, recorded investment, equal to greater than 90 days past due
Number of loan receivable recorded investment past due
Loan receivable, recorded investment, past due
Loan receivable, recorded investment, 90 days past due and still accruing

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Consolidated Statements of Condition (Unaudited) (Parentheticals) (USD $)	Jun. 30, 2013	Dec. 31, 2012
Statement Of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	30,000,000	30,000,000
Common stock, shares issued	18,064,539	18,076,971
Common stock, shares outstanding	16,763,516	17,714,481
Treasury stock, shares	1,301,023	362,490

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Deposits

6 Months Ended

Jun. 30, 2013

Banking and Thrift [Abstract]

Deposits

6. Deposits

Deposit balances at June 30, 2013 and December 31, 2012 are as follows:

	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

We have established a relationship to participate in a reciprocal deposit program with other financial institutions as a service to our customers. This program provides enhanced FDIC insurance to participating customers.  As of June 30, 2013 and December 31, 2012, we have no reciprocal deposits.

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Consolidated Statements of Comprehensive Income (Unaudited) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Statement Of Income (Loss) and Comprehensive Income (Loss) [Abstract]
Net income	$ 937	$ 831	$ 1,750	$ 1,822
Unrealized losses on securities:
Unrealized holding losses arising during the period	(482)	(318)	(134)	(65)
Less: reclassification adjustment for gains included in net income	36		36
Net change in unrealized losses	(446)	(318)	(98)	(65)
Change related to employee benefit plans	147	133	283	265
Other comprehensive income (loss), before tax	(299)	(185)	185	200
Income tax expense (benefit)	(101)	(63)	63	68
Other comprehensive income (loss), net of tax	(198)	(122)	122	132
Comprehensive income	$ 739	$ 709	$ 1,872	$ 1,954

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Pension and Other Postretirement Benefit Plans - Components of net periodic pension and benefit costs (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost		$ 125		$ 250
Interest cost	239	272	476	544
Expected return on plan assets	(283)	(265)	(567)	(518)
Amortization:
Loss	140	169	286	338
Prior service cost		(32)		(63)
Net periodic benefit cost	96	269	195	551
Other Postretirement Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	26	15	51	30
Interest cost	32	34	64	68
Expected return on plan assets
Amortization:
Loss	10		21
Prior service cost	(12)	(12)	(25)	(24)
Net periodic benefit cost	$ 56	$ 37	$ 111	$ 74

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Consolidated Statements of Condition (Unaudited) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Assets
Cash and cash equivalents	$ 36,650	$ 50,641
Securities held-to-maturity, at amortized cost	3,003	3,006
Securities available-for-sale, at fair value	112,801	138,241
Loans held for sale	4,801	9,626
Loans, net	1,588,275	1,520,170
Premises and equipment, net	20,767	19,967
Federal Home Loan Bank of Boston stock, at cost	8,383	8,939
Accrued income receivable	4,403	4,415
Bank-owned life insurance	37,952	37,449
Deferred income taxes	15,918	15,682
Prepaid expenses and other assets	12,298	14,810
Total assets	1,845,251	1,822,946
Deposits
Interest-bearing	1,176,538	1,082,869
Noninterest-bearing	275,781	247,586
Total deposits	1,452,319	1,330,455
Federal Home Loan Bank of Boston advances	51,250	128,000
Repurchase agreement borrowings	21,000	21,000
Repurchase liabilities	50,262	54,187
Accrued expenses and other liabilities	39,105	47,782
Total liabilities	1,613,936	1,581,424
Commitments and contingencies
Stockholders' Equity
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	181	181
Additional paid-in-capital	174,342	172,247
Unallocated common stock held by ESOP	(14,281)	(14,806)
Treasury stock, at cost (1,301,023 shares at June 30, 2013 and 362,490 shares at December 31, 2012)	(18,524)	(4,860)
Retained earnings	95,605	94,890
Accumulated other comprehensive loss	(6,008)	(6,130)
Total stockholders' equity	231,315	241,522
Total liabilities and stockholders' equity	$ 1,845,251	$ 1,822,946

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Loans and Allowance for Loan Losses - Risk rating (Details 10) (Loans receivable, USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 1,602,163	$ 1,534,021
Pass
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	1,531,490	1,452,201
Special Mention
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	15,351	38,991
Substandard
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	53,632	42,540
Doubtful
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	1,690	289
Real estate Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	625,345	620,991
Real estate Residential | Pass
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	612,924	606,998
Real estate Residential | Special Mention
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	902	2,425
Real estate Residential | Substandard
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	11,519	11,568
Real estate Residential | Doubtful
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans
Real estate Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	533,072	473,788
Real estate Commercial | Pass
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	502,352	434,183
Real estate Commercial | Special Mention
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	8,260	24,902
Real estate Commercial | Substandard
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	22,460	14,703
Real estate Commercial | Doubtful
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans
Real estate Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	80,198	64,362
Real estate Construction | Pass
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	73,867	60,293
Real estate Construction | Special Mention
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans		770
Real estate Construction | Substandard
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	6,331	3,299
Real estate Construction | Doubtful
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans
Installment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	5,384	6,719
Installment | Pass
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	5,131	6,481
Installment | Special Mention
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	83	53
Installment | Substandard
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	170	185
Installment | Doubtful
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans
Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	199,328	192,210
Commercial | Pass
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	181,507	171,776
Commercial | Special Mention
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	5,431	10,125
Commercial | Substandard
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	10,700	10,020
Commercial | Doubtful
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	1,690	289
Collateral
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	1,801	2,086
Collateral | Pass
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	1,793	2,086
Collateral | Special Mention
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans
Collateral | Substandard
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	8
Collateral | Doubtful
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans
Home equity line of credit
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	144,548	142,543
Home equity line of credit | Pass
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	142,902	140,723
Home equity line of credit | Special Mention
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	675	704
Home equity line of credit | Substandard
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	971	1,116
Home equity line of credit | Doubtful
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans
Demand
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans		25
Demand | Pass
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans
Demand | Special Mention
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans
Demand | Substandard
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans		25
Demand | Doubtful
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans
Revolving credit
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	62	65
Revolving credit | Pass
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	62	65
Revolving credit | Special Mention
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans
Revolving credit | Substandard
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans
Revolving credit | Doubtful
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans
Resort
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	12,425	31,232
Resort | Pass
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	10,952	29,596
Resort | Special Mention
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans		12
Resort | Substandard
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	1,473	1,624
Resort | Doubtful
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans

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Fair Value Measurements - Carrying amount, fair value of financial instruments (Details 4) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013		Dec. 31, 2012
Financial assets
Securities held-to-maturity	$ 3,003		$ 3,006
Securities available-for-sale	112,801		138,241
Deposits
Noninterest-bearing demand deposits	275,781		247,586
NOW accounts	280,462		227,205
Money market	349,621		317,030
Savings accounts	191,688		179,290
Time deposits	354,767		359,344
FHLBB advances	51,250		128,000
Repurchase agreement borrowings	21,000		21,000
Repurchase liabilities	50,262		54,187
Carrying Amount
Financial assets
Securities held-to-maturity	3,003	[1]	3,006	[1]
Securities available-for-sale	112,801		138,481
Loans	1,602,163	[2]	1,534,021	[2]
Loans held for sale	4,801	[1]	9,626	[1]
Mortgage servicing rights	2,740	[2]	1,327	[2]
Federal Home Loan Bank of Boston stock	8,383	[1]	8,939	[1]
Deposits
Noninterest-bearing demand deposits	275,781	[3]	247,586	[3]
NOW accounts	280,462	[3]	227,205	[3]
Money market	349,621	[3]	317,030	[3]
Savings accounts	191,688	[3]	179,290	[3]
Time deposits	354,767	[1]	359,344	[1]
FHLBB advances	51,250	[1]	128,000	[1]
Repurchase agreement borrowings	21,000	[1]	21,000	[1]
Repurchase liabilities	50,262	[1]	54,187	[1]
Forward loan sales commitments assets
Assets	486	[2]	38	[2]
Liabilities		[2]		[2]
Interest rate swap derivative liability:
Assets	4,310	[1]	8,379	[1]
Liabilities	4,310	[1]	8,379	[1]
Derivative loan commitments
Assets	5	[2]	450	[2]
Liabilities		[2]		[2]
Estimated Fair Value
Financial assets
Securities held-to-maturity	3,003	[1]	3,006	[1]
Securities available-for-sale	112,801		138,481
Loans	1,603,833	[2]	1,563,430	[2]
Loans held for sale	4,801	[1]	9,626	[1]
Mortgage servicing rights	3,300	[2]	1,709	[2]
Federal Home Loan Bank of Boston stock	8,383	[1]	8,939	[1]
Deposits
Noninterest-bearing demand deposits	275,781	[3]	247,586	[3]
NOW accounts	280,462	[3]	227,205	[3]
Money market	349,621	[3]	317,030	[3]
Savings accounts	191,688	[3]	179,290	[3]
Time deposits	357,932	[1]	363,156	[1]
FHLBB advances	52,537	[1]	130,062	[1]
Repurchase agreement borrowings	22,419	[1]	22,819	[1]
Repurchase liabilities	50,262	[1]	54,189	[1]
Forward loan sales commitments assets
Assets	486	[2]	38	[2]
Liabilities		[2]		[2]
Interest rate swap derivative liability:
Assets	4,310	[1]	8,379	[1]
Liabilities	4,310	[1]	8,379	[1]
Derivative loan commitments
Assets	5	[2]	450	[2]
Liabilities		[2]		[2]

[1] Level 2

[2] Level 3

[3] Level 1

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Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of interest rate swaps that were not designated for hedge accounting

				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	)

Schedule of changes in the fair value of non-hedge accounting derivatives

	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	$	-		$	-		$	-		$	-		$	-		$	-

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Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2013

Earnings Per Share [Abstract]

Schedule of calculation of basic and diluted earnings per common 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

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Loans and Allowance for Loan Losses - Allocation of the allowance by impairment methodology and by loan segment (Details 3) (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]
Reserve Allocation - Loans collectively evaluated for impairment with unallocated	$ 17,505	$ 17,332	$ 17,229	$ 17,927	$ 17,727	$ 17,533
Loans receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans individually evaluated for impairment	39,159		36,857
Reserve Allocation - loans individually evaluated for impairment	1,542		949
Total loans collectively evaluated for impairment	1,566,621		1,500,542
Reserve Allocation - Loans collectively evaluated for impairment	15,963		16,258
Total loans collectively evaluated for impairment with unallocated	1,605,780		1,537,399
Reserve Allocation - Loans collectively evaluated for impairment with unallocated	17,505	17,332	17,229
Loans receivable | Real estate Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans individually evaluated for impairment	11,719		10,695
Reserve Allocation - loans individually evaluated for impairment	330		340
Total loans collectively evaluated for impairment	617,131		613,343
Reserve Allocation - Loans collectively evaluated for impairment	3,398		3,438
Reserve Allocation - Loans collectively evaluated for impairment with unallocated	3,728	3,901	3,778
Loans receivable | Real estate Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans individually evaluated for impairment	17,119		17,546
Reserve Allocation - loans individually evaluated for impairment	83		126
Total loans collectively evaluated for impairment	516,065		456,109
Reserve Allocation - Loans collectively evaluated for impairment	7,929		7,979
Reserve Allocation - Loans collectively evaluated for impairment with unallocated	8,012	7,926	8,105
Loans receivable | Real estate Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans individually evaluated for impairment	187		1,179
Reserve Allocation - loans individually evaluated for impairment	7		6
Total loans collectively evaluated for impairment	80,011		63,124
Reserve Allocation - Loans collectively evaluated for impairment	1,131		754
Reserve Allocation - Loans collectively evaluated for impairment with unallocated	1,138	847	760
Loans receivable | Installment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans individually evaluated for impairment	35		7
Reserve Allocation - loans individually evaluated for impairment	9
Total loans collectively evaluated for impairment	5,349		6,712
Reserve Allocation - Loans collectively evaluated for impairment	48		77
Reserve Allocation - Loans collectively evaluated for impairment with unallocated	57	64	77
Loans receivable | Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans individually evaluated for impairment	8,091		5,313
Reserve Allocation - loans individually evaluated for impairment	1,112		476
Total loans collectively evaluated for impairment	191,237		187,466
Reserve Allocation - Loans collectively evaluated for impairment	1,887		2,178
Reserve Allocation - Loans collectively evaluated for impairment with unallocated	2,999	2,990	2,654
Loans receivable | Collateral
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans individually evaluated for impairment
Reserve Allocation - loans individually evaluated for impairment
Total loans collectively evaluated for impairment	1,801		2,086
Reserve Allocation - Loans collectively evaluated for impairment
Reserve Allocation - Loans collectively evaluated for impairment with unallocated
Loans receivable | Home equity line of credit
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans individually evaluated for impairment	534		491
Reserve Allocation - loans individually evaluated for impairment
Total loans collectively evaluated for impairment	144,014		142,056
Reserve Allocation - Loans collectively evaluated for impairment	1,401		1,377
Reserve Allocation - Loans collectively evaluated for impairment with unallocated	1,401	1,393	1,377
Loans receivable | Demand
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans individually evaluated for impairment
Reserve Allocation - loans individually evaluated for impairment
Total loans collectively evaluated for impairment			25
Reserve Allocation - Loans collectively evaluated for impairment
Reserve Allocation - Loans collectively evaluated for impairment with unallocated
Loans receivable | Revolving credit
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans individually evaluated for impairment
Reserve Allocation - loans individually evaluated for impairment
Total loans collectively evaluated for impairment	62		65
Reserve Allocation - Loans collectively evaluated for impairment
Reserve Allocation - Loans collectively evaluated for impairment with unallocated
Loans receivable | Resort
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans individually evaluated for impairment	1,474		1,626
Reserve Allocation - loans individually evaluated for impairment	1		1
Total loans collectively evaluated for impairment	10,951		29,556
Reserve Allocation - Loans collectively evaluated for impairment	169		455
Reserve Allocation - Loans collectively evaluated for impairment with unallocated	170	211	456
Loans receivable | Unallocated
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans collectively evaluated for impairment			22
Reserve Allocation - Loans collectively evaluated for impairment
Reserve Allocation - Loans collectively evaluated for impairment with unallocated			$ 22

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Regulatory Matters - Actual capital amounts and ratios (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Total Capital (to Risk Weighted Assets) Actual Amount	$ 255,213	$ 264,987
Total Capital (to Risk Weighted Assets) Actual Ratio	17.48%	18.78%
Total Capital (to Risk Weighted Assets) Minimum Required for Capital Adequacy Purposes Amount	116,802	112,881
Total Capital (to Risk Weighted Assets) Minimum Required for Capital Adequacy Purposes Ratio	8.00%	8.00%
Total Capital (to Risk Weighted Assets) To Be Well Capitalized Under Prompt Corrective Action Amount	146,003	141,101
Total Capital (to Risk Weighted Assets) To Be Well Capitalized Under Prompt Corrective Action Ratio	10.00%	10.00%
Tier I Capital (to Risk Weighted Assets) Actual Amount	237,289	247,364
Tier I Capital (to Risk Weighted Assets) Actual Ratio	16.25%	17.53%
Tier I Capital (to Risk Weighted Assets) Minimum Required for Capital Adequacy Purposes Amount	58,410	56,444
Tier I Capital (to Risk Weighted Assets) Minimum Required for Capital Adequacy Purposes Ratio	4.00%	4.00%
Tier I Capital (to Risk Weighted Assets) To Be Well Capitalized Under Prompt Corrective Action Amount	87,614	84,665
Tier I Capital (to Risk Weighted Assets) To Be Well Capitalized Under Prompt Corrective Action Ratio	6.00%	6.00%
Tier I Capital (to Average Assets) Actual Amount	237,289	247,364
Tier I Capital (to Average Assets) Actual Ratio	12.92%	13.88%
Tier I Capital (to Average Assets) Minimum Required for Capital Adequacy Purposes Amount	73,464	71,286
Tier I Capital (to Average Assets) Minimum Required for Capital Adequacy Purposes Ratio	4.00%	4.00%
Tier I Capital (to Average Assets) To Be Well Capitalized Under Prompt Corrective Action Amount	91,830	89,108
Tier I Capital (to Average Assets) To Be Well Capitalized Under Prompt Corrective Action Ratio	5.00%	5.00%
Farmington Bank
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Total Capital (to Risk Weighted Assets) Actual Amount	206,207	203,344
Total Capital (to Risk Weighted Assets) Actual Ratio	14.16%	14.44%
Total Capital (to Risk Weighted Assets) Minimum Required for Capital Adequacy Purposes Amount	116,501	112,656
Total Capital (to Risk Weighted Assets) Minimum Required for Capital Adequacy Purposes Ratio	8.00%	8.00%
Total Capital (to Risk Weighted Assets) To Be Well Capitalized Under Prompt Corrective Action Amount	145,626	140,820
Total Capital (to Risk Weighted Assets) To Be Well Capitalized Under Prompt Corrective Action Ratio	10.00%	10.00%
Tier I Capital (to Risk Weighted Assets) Actual Amount	188,283	185,743
Tier I Capital (to Risk Weighted Assets) Actual Ratio	12.93%	13.19%
Tier I Capital (to Risk Weighted Assets) Minimum Required for Capital Adequacy Purposes Amount	58,247	56,328
Tier I Capital (to Risk Weighted Assets) Minimum Required for Capital Adequacy Purposes Ratio	4.00%	4.00%
Tier I Capital (to Risk Weighted Assets) To Be Well Capitalized Under Prompt Corrective Action Amount	87,370	84,493
Tier I Capital (to Risk Weighted Assets) To Be Well Capitalized Under Prompt Corrective Action Ratio	6.00%	6.00%
Tier I Capital (to Average Assets) Actual Amount	188,283	185,743
Tier I Capital (to Average Assets) Actual Ratio	10.26%	10.44%
Tier I Capital (to Average Assets) Minimum Required for Capital Adequacy Purposes Amount	73,405	71,166
Tier I Capital (to Average Assets) Minimum Required for Capital Adequacy Purposes Ratio	4.00%	4.00%
Tier I Capital (to Average Assets) To Be Well Capitalized Under Prompt Corrective Action Amount	$ 91,756	$ 88,957
Tier I Capital (to Average Assets) To Be Well Capitalized Under Prompt Corrective Action Ratio	5.00%	5.00%

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Credit Arrangements (Detail Textuals 1) (Discount Window Loan Collateral Program, USD $) In Millions, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Discount Window Loan Collateral Program
Line Of Program [Line Items]
Amount borrowed through Federal Reserve Bank's discount window loan collateral program	$ 86.4	$ 93.9
Pledged commercial real estate loans	$ 128.6	$ 145.8

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Stock Incentive Plan (Detail Textuals) (USD $)			3 Months Ended	6 Months Ended		3 Months Ended	6 Months Ended	3 Months Ended	6 Months Ended
	Jun. 30, 2013	Dec. 31, 2012	Jun. 30, 2013 2012 Stock Incentive Plan	Jun. 30, 2013 2012 Stock Incentive Plan	Aug. 31, 2012 2012 Stock Incentive Plan	Jun. 30, 2013 2012 Stock Incentive Plan Stock options	Jun. 30, 2013 2012 Stock Incentive Plan Stock options	Jun. 30, 2013 2012 Stock Incentive Plan Restricted Stock	Jun. 30, 2013 2012 Stock Incentive Plan Restricted Stock	Aug. 31, 2012 2012 Stock Incentive Plan Restricted Stock	Aug. 31, 2012 2012 Stock Incentive Plan Non Qualified Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, number of shares authorized					2,503,228					715,208	1,788,020
Common stock, shares issued	18,064,539	18,076,971
Percentage of options vested immediately							20.00%		20.00%
Percentage of options vested at each annual anniversary of the grant date							20.00%		20.00%
Expiry term of stock options							10 years
Share-based compensation expense			$ 682,000	$ 2,100,000		$ 272,000	$ 790,000	$ 410,000	$ 1,300,000
Expected future compensation expense							$ 3,600,000		$ 5,500,000
Number of non-vested options outstanding						1,294,807	1,294,807	533,767	533,767
Remaining vesting period of non-vested options							3 years 2 months 9 days		3 years 2 months 8 days

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Investment Securities - Amortized cost and estimated market value of debt securities (Details 2) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Rolling Maturity [Abstract]
Due in one year or less	$ 96,996
Due after one year through five years	2,970
Due after five years through ten years
Due after ten years
Government sponsored residential mortgage-backed securities	6,375
Available-for-sale securities amortized cost	106,341
Available-for-sale Securities, Debt Maturities, Fair Value, Rolling Maturity [Abstract]
Due in one year or less	96,994
Due after one year through five years	3,116
Due after five years through ten years
Due after ten years
Government sponsored residential mortgage-backed securities	6,869
Available for sale securities total estimated market value	106,979
Held To Maturity Securities, Debt Maturities, Amortized Cost Basis, Rolling Maturity [Abstract]
Due in one year or less
Due after one year through five years
Due after five years through ten years
Due after ten years	3,000
Government sponsored residential mortgage-backed securities	3
Held-to-maturity securities, amortized cost	3,003	3,006
Held-to-maturity Securities, Debt Maturities, Fair Value, Rolling Maturity [Abstract]
Due in one year or less
Due after one year through five years
Due after five years through ten years
Due after ten years	3,000
Government sponsored residential mortgage-backed securities	3
Held-to-maturity securities estimated market value	$ 3,003

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Summary of Significant Accounting Policies (Detail Textuals 2) (USD $)	6 Months Ended
	Jun. 30, 2013
Financing Receivable, Impaired [Line Items]
Minimum limit of nonaccrual loans outstanding	$ 100,000
Minimum
Financing Receivable, Impaired [Line Items]
Percentage of unallocated allowances	0.00%
Maximum
Financing Receivable, Impaired [Line Items]
Percentage of unallocated allowances	5.00%
Real Estate Residential
Financing Receivable, Impaired [Line Items]
Threshold percentage limit of purchase price of the property	95.00%
Maximum limit loan-to-value ratio in percentage	80.00%
Home equity line of credit
Financing Receivable, Impaired [Line Items]
Maximum limit loan-to-value ratio in percentage	80.00%
Resort
Financing Receivable, Impaired [Line Items]
Percentage of receivable loans	88.00%

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Earnings Per Share - Calculation of basic and diluted earnings per common share (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Earnings Per Share [Abstract]
Net income	$ 937	$ 831	$ 1,750	$ 1,822
Weighted-average shares outstanding (in shares)	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 (in dollars per share)	$ 0.06	$ 0.05	$ 0.11	$ 0.11

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Credit Arrangements

6 Months Ended

Jun. 30, 2013

Debt Disclosure [Abstract]

Credit Arrangements

5. Credit Arrangements

The Company has access to a pre-approved line of credit with the Federal Home Loan Bank of Boston (“FHLBB”) for $8.8 million, which was undrawn at June 30, 2013 and December 31, 2012.  The Company has access to a pre-approved unsecured line of credit with a bank totaling $20.0 million, which was undrawn at June 30, 2013 and December 31, 2012.  The Company has access to a $3.5 million unsecured line of credit agreement with a bank which expires on August 31, 2013.  The Company maintains a cash balance of $262,500 with the bank to avoid fees associated with the above line.  The line was undrawn at June 30, 2013 and December 31, 2012.

The Company participates in the Federal Reserve Bank’s discount window loan collateral program that enables the Company to borrow up to $86.4 million and $93.9 million on an overnight basis at June 30, 2013 and December 31, 2012, respectively, and was undrawn as of June 30, 2013 and December 31, 2012. The funding arrangement was collateralized by $128.6 million and $145.8 million in pledged commercial real estate loans as of June 30, 2013 and December 31, 2012, respectively.

In accordance with an agreement with the FHLBB, the Company is required to maintain qualified collateral, as defined in the FHLBB Statement of Credit Policy, free and clear of liens, pledges and encumbrances, as collateral for the advances, if any, and the preapproved line of credit.  The Company is in compliance with these collateral requirements.

FHLBB advances totaled $51.3 million and $128.0 million at June 30, 2013 and December 31, 2012, respectively.  Advances from the FHLBB are collateralized by first mortgage loans with an estimated eligible collateral value of $608.8 million and $602.2 million at June 30, 2013 and December 31, 2012, respectively. The Company has available borrowings of $360.1 million and $294.3 million at June 30, 2013 and December 31, 2012, respectively, subject to collateral requirements of the FHLBB. The Company is required to acquire and hold shares of capital stock in the FHLBB in an amount at least equal to the sum of 0.35% of the aggregate principal amount of its unpaid residential mortgage loans and similar obligations at the beginning of each year, or up to 4.5% of its advances (borrowings) from the FHLBB. The carrying value of FHLBB stock approximates fair value based on the redemption provisions of the stock.

The Bank has a Master Repurchase Agreement borrowing facility with a broker.  Borrowings under the Master Repurchase Agreement are secured by the Company’s investments in certain treasury bill securities with a fair value of $24.0 million and cash of $451,000 at June 30, 2013. Outstanding borrowings totaled $21.0 million at June 30, 2013 and December 31, 2012.

The Bank offers overnight repurchase liability agreements to commercial or municipal customers whose excess deposit account balances are swept daily into collateralized repurchase liability accounts. The Bank had repurchase liabilities outstanding of $50.3 million and $54.2 million at June 30, 2013 and December 31, 2012, respectively. They are secured by the Company’s investment in specific issues of U.S. Treasury obligations, Government sponsored residential mortgage-backed securities and U.S. Government agency obligations with a market value of $59.3 million and $84.3 million as of June 30, 2013 and December 31, 2012, respectively.

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Stock Incentive Plan - Weighted-average estimated fair values of stock option grants (Details) (Stock options, USD $)	6 Months Ended
	Jun. 30, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted per share average fair value of options granted	$ 3.99
Risk-free interest rate	1.12%
Expected volatility	32.35%
Expected dividend yield	1.67%
Expected life of options granted	6 years
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average dividend yield	0.80%
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average dividend yield	2.71%

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Financial Instruments with Off-Balance Sheet Risk (Tables)

6 Months Ended

Jun. 30, 2013

Financial Instruments With Off Balance Sheet Risk Disclosure [Abstract]

Schedule of financial instruments whose contract amounts represent credit 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

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Loans and Allowance for Loan Losses - Changes in allowance for loan losses (Details 1) (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
Provision for loan losses	256	520	655	850
Charge-offs	(93)	(492)	(399)	(640)
Recoveries	10	172	20	184
Balance at end of period	$ 17,505	$ 17,927	$ 17,505	$ 17,927

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Stock Incentive Plan

6 Months Ended

Jun. 30, 2013

Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]

Stock Incentive Plan

8. Stock Incentive Plan

In August 2012, the Company implemented the First Connecticut Bancorp, Inc. 2012 Stock Incentive Plan (the “Plan”). The Plan provides for a total of 2,503,228 shares of common stock for issuance upon the grant or exercise of awards.  The Plan allowed for the granting of 1,788,020 non-qualified stock options and 715,208 shares of restricted stock.

In accordance with generally accepted accounting principles for Share-Based Payments, the Company expenses the fair value of all share-based compensation grants over the requisite service periods.  Stock options granted vested 20% immediately and will vest 20% at each annual anniversary of the grant date through 2016 and expire ten years after grant date. The Company recognizes compensation expense for the fair values of these awards, which vest on a straight-line basis over the requisite service period of the awards.  Restricted shares granted vested 20% immediately and will vest 20% at each annual anniversary of the grant date through 2016.  The product of the number of shares granted and the grant date market price of the Company’s common stock determines the fair value of restricted shares under the Company’s restricted stock plan. The Company recognizes compensation expense for the fair value of restricted shares on a straight-line basis over the requisite service period for the entire award.

The Company classifies share-based compensation for employees within “Salaries and employee benefits” and share-based payments for outside directors within “Other operating expenses” in the consolidated statement of operations.  For the three and six months ended June 30, 2013, the Company recorded $682,000 and $2.1 million of share-based compensation expense, respectively, comprised of $272,000 and $790,000 of stock option expense, respectively and $410,000 and $1.3 million of restricted stock expense, respectively.  Expected future compensation expense relating to the 1,294,807 non-vested options outstanding at June 30, 2013, is $3.6 million over the remaining vesting period of 3.19 years. Expected future compensation expense relating to the 533,767 non-vested restricted shares at June 30, 2013, is $5.5 million over the remaining vesting period of 3.19 years.

The fair value of the options awarded is estimated on the date of grant using the Black-Scholes option pricing model that uses the assumptions noted in the following table.  Expected volatility is based on the Company’s historical volatility and the historical volatility of a peer group as the Company does not have reliably determined stock price for the period needed that is at least equal to its expected term and the Company’s recent historical volatility may not reflect future expectations.  The peer group consisted of financial institutions located in New England and the Mid-Atlantic regions of the United States based on whose common stock is traded on a national securities exchange, asset size, tangible capital ratio and earnings factors. The expected term of options granted is derived from using the simplified method due to the Company not having sufficient historical share option experience upon which to estimate an expected term.  The risk-free rate is based on the grant date for a traded zero-coupon U.S. Treasury bond with a term equal to the option’s expected term.

	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

The following is a summary of the Company’s stock option activity and related information for its option grants for the six months ended June 30, 2013.

	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

The following is a summary of the status of the Company’s restricted stock for the six months ended June 30, 2013.

	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

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Fair Value Measurements - Valuation methodology and unobservable inputs for Level 3 assets (Details 3) (Significant Unobservable Inputs (Level 3), Fair value, measurements, nonrecurring, USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2013
Mortgage servicing rights
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value	$ 3,300
Mortgage servicing rights | Discounted cash flows
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Prepayment speed	8.00%
Discount rate	7.30%
Mortgage servicing rights | Discounted cash flows | Minimum
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Prepayment speed	0.00%
Mortgage servicing rights | Discounted cash flows | Maximum
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Prepayment speed	33.00%
Impaired loans
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value	37,617
Impaired loans | Appraisals
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Discount for dated appraisal	10.00%
Discount for costs to sell	11.50%
Impaired loans | Appraisals | Minimum
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Discount for dated appraisal	0.00%
Discount for costs to sell	8.00%
Impaired loans | Appraisals | Maximum
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Discount for dated appraisal	20.00%
Discount for costs to sell	15.00%
Other real estate owned
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value	$ 514
Other real estate owned | Appraisals
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Discount for costs to sell	9.00%
Other real estate owned | Appraisals | Minimum
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Discount for costs to sell	8.00%
Other real estate owned | Appraisals | Maximum
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Discount for costs to sell	10.00%

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Loans and Allowance for Loan Losses

6 Months Ended

Jun. 30, 2013

Receivables [Abstract]

Loans and Allowance for Loan Losses

4. Loans and Allowance for Loan Losses

       Loans consisted of the following:

	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

A summary of changes in the allowance for loan losses for the three and six months ended June 30, 2013 and 2012 are as follows:

	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

Changes in the allowance for loan losses by segments for the three and six months ended June 30, 2013 are as follows:

	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

The following table lists the allocation of the allowance by impairment methodology and by loan segment at June 30, 2013 and December 31, 2012:

Loans individually evaluated for impairment:

	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

The following is a summary of loan aging at recorded investment values at June 30, 2013 and December 31, 2012:

	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	$	-

Nonperforming assets consist of non-accruing loans and loans past due more than 90 days and still accruing interest and other real estate owned. Nonperforming assets were:

(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

The following is a summary of information pertaining to impaired loans at June 30, 2013:

	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

The following is a summary of information pertaining to impaired loans at December 31, 2012:

	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

Troubled Debt Restructuring

A loan is considered a troubled debt restructuring (“TDR”) when we, for economic or legal reasons related to the borrower’s financial difficulties, grant a concession to the borrower in modifying or renewing the loan that we would not otherwise consider. In connection with troubled debt restructurings, terms may be modified to fit the ability of the borrower to repay in line with their current financial status, which may include a reduction in the interest rate to market rate or below, a change in the term or movement of past due amounts to the back-end of the loan or refinancing. A loan is placed on non-accrual status upon being restructured, even if it was not previously, unless the modified loan was current for the six months prior to its modification and we believe the loan is fully collectable in accordance with its new terms. Our policy to restore a restructured loan to performing status is dependent on the receipt of regular payments, generally for a period of six months and one calendar year-end. All troubled debt restructurings are classified as impaired loans and are reviewed for impairment by management on a quarterly basis per our policy.

The recorded investment balance of TDRs approximated $31.0 million and $29.7 million at June 30, 2013 and December 31, 2012, respectively. At June 30, 2013 and December 31, 2012, the majority of the Company’s TDRs are on accrual status. TDRs on accrual status were $23.9 million and $22.1 million while TDRs on nonaccrual status were $7.1 million and $7.6 million at June 30, 2013 and December 31, 2012, respectively. At June 30, 2013, 100% of the accruing TDRs have been performing in accordance with the restructured terms.  At June 30, 2013 and December 31, 2012, the allowance for loan losses included specific reserves of $1.5 million and $889,000 related to TDRs, respectively. For the six months ended June 30, 2013 and 2012, the Bank had charge-offs totaling $293,000 and $217,000, respectively, related to portions of TDRs deemed to be uncollectible.  The amount of additional funds available to borrowers in TDR status was $632,000 and $872,000 at June 30, 2013 and December 31, 2012, respectively. The Bank in very rare circumstances may provide additional funds to borrowers in TDR status.

The following tables present information on loans whose terms had been modified in a troubled debt restructuring at June 30, 2013 and December 31, 2012:

	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

The following tables include the recorded investment and number of modifications for modified loans. The Company reports the recorded investment in the loans prior to a modification and also the recorded investment in the loans after the loans were restructured for the three and six months ended June 30, 2013 and 2012:

	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

(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.

	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

(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.

The following tables provide TDR loans that were 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 and/or concessions for the three and six months ended June 30, 2013 and 2012:

	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

	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

A loan is considered to be in default once it is more than 30 days past due following a modification.  There were no loans that defaulted and had been modified as a TDR during the 12 month period preceding the default date during the six months ended June 30, 2013 and 2012.

Credit Quality Information

At the time of loan origination, a risk rating based on a nine point grading system is assigned to each commercial-related loan based on the loan officer’s and management’s assessment of the risk associated with each particular loan. This risk assessment is based on an in depth analysis of a variety of factors. More complex loans and larger commitments require that our internal credit risk management department further evaluate the risk rating of the individual loan or relationship, with credit risk management having final determination of the appropriate risk rating. These more complex loans and relationships receive ongoing periodic review to assess the appropriate risk rating on a post-closing basis with changes made to the risk rating as the borrower’s and economic conditions warrant. Our risk rating system is designed to be a dynamic system and we grade loans on a “real time” basis. The Company places considerable emphasis on risk rating accuracy, risk rating justification, and risk rating triggers. Our risk rating process has been enhanced with our implementation of industry-based risk rating “cards.” The cards are used by our loan officers and promote risk rating accuracy and consistency on an institution-wide basis. Most loans are reviewed annually as part of a comprehensive portfolio review conducted by management and/or by our independent loan review firm. More frequent reviews of loans rated low pass, special mention, substandard and doubtful are conducted by our credit risk management department. We utilize an independent loan review consulting firm to review our rating accuracy and the overall credit quality of our loan portfolio. The review is designed to provide an evaluation of the portfolio with respect to risk rating profile as well as with regard to the soundness of individual loan files.  The individual loan reviews include an analysis of the creditworthiness of obligors, via appropriate key ratios and cash flow analysis and an assessment of collateral protection.  The consulting firm conducts two loan reviews per year aiming at a 65.0% or higher commercial and industrial loans and commercial real estate portfolio penetration. Summary findings of all loan reviews performed by the outside consulting firm are reported to our board of directors and senior management upon completion.

The Company utilizes a nine point risk rating scale as follows:

Risk Rating Definitions

Residential and consumer loans are not rated unless they are 45 days or more delinquent, in which case, depending on past-due days, they will be rated 6, 7 or 8.

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.

The following table presents the Company’s loans by risk rating at June 30, 2013 and December 31, 2012:

	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

The Company places considerable emphasis on the early identification of problem assets, problem-resolution and minimizing loss exposure. Delinquency notices are mailed monthly to all delinquent borrowers, advising them of the amount of their delinquency.  Residential and consumer lending borrowers are typically given 30 days to pay the delinquent payments or to contact us to make arrangements to bring the loan current over a longer period of time. Generally, if a residential or consumer lending borrower fails to bring the loan current within 90 days from the original due date or to make arrangements to cure the delinquency over a longer period of time, the matter is referred to legal counsel and foreclosure or other collection proceedings are initiated. The Company may consider forbearance or a loan restructuring in certain circumstances where a temporary loss of income is the primary cause of the delinquency, and if a reasonable plan is presented by the borrower to cure the delinquency in a reasonable period of time after his or her income resumes. Problem or delinquent borrowers in our commercial real estate, commercial business and resort portfolios are handled on a case-by-case basis, typically by our Special Assets Department. Appropriate problem-resolution and workout strategies are formulated based on the specific facts and circumstances.

Related Party Loans

During the regular course of its business, the Company makes loans to its executive officers, Directors and other related parties.  These related party loans totaled $596,000 and $716,000 at June 30, 2013 and December 31, 2012, respectively.  All related party loans were performing according to their credit terms.

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Consolidated Statement of Changes in Stockholders' Equity (Unaudited) (Parentheticals) (USD $)	6 Months Ended
	Jun. 30, 2013
Statement Of Stockholders Equity [Abstract]
Cash dividend per share (in dollars per share)	$ 0.06

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Loans and Allowance for Loan Losses (Detail Textuals) (USD $)	6 Months Ended
	Jun. 30, 2013 Loan	Jun. 30, 2012	Dec. 31, 2012
Receivables [Abstract]
Recorded investment balance of TDRs approximated	$ 31,000,000		$ 29,700,000
TDRs on accrual status	23,900,000		22,100,000
TDRs on nonaccrual status	7,100,000		7,600,000
Percentage of accuring TDRs	100.00%
Allowance for loan losses included specific reserves	1,500,000		889,000
Bank had charge-offs totaling	293,000	217,000
Additional funds available to borrowers in TDR status	632,000		872,000
Number of loan reviews undertaken by consulting firms	2
Threshold for percentage of market penetration for specified segment in loans of total lendings	65.00%
Related party loans	$ 596,000		$ 716,000

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Loans and Allowance for Loan Losses - Summary of impaired loans (Details 6) (Loans receivable, USD $) In Thousands, unless otherwise specified	6 Months Ended	12 Months Ended
	Jun. 30, 2013	Dec. 31, 2012
Impaired loans without a valuation allowance
Recorded Investment	$ 14,313	$ 10,085
Unpaid Principal Balance	15,130	10,783
Average Recorded Investment	11,890	15,037
Interest Income Recognized	179	553
Cash-basis Interest Income Recognized	178	536
Impaired loans with a valuation allowance
Recorded Investment	24,846	26,772
Unpaid Principal Balance	25,587	27,269
Related Allowance	1,542	949
Average Recorded Investment	25,740	22,535
Interest Income Recognized	580	1,014
Cash-basis Interest Income Recognized	579	992
Total Recorded Investment	39,159	36,857
Total Unpaid Principal Balance	40,717	38,052
Total Related Allowance	1,542	949
Total Average Recorded Investment	37,630	37,572
Total Interest Income Recognized	759	1,567
Total Cash-basis Interest Income Recognized	757	1,528
Real estate Residential
Impaired loans without a valuation allowance
Recorded Investment	5,539	4,061
Unpaid Principal Balance	6,033	4,495
Average Recorded Investment	4,254	3,929
Interest Income Recognized	1	10
Cash-basis Interest Income Recognized	1	10
Impaired loans with a valuation allowance
Recorded Investment	6,180	6,634
Unpaid Principal Balance	6,660	6,882
Related Allowance	330	340
Average Recorded Investment	6,712	6,864
Interest Income Recognized	41	78
Cash-basis Interest Income Recognized	40	68
Real estate Commercial
Impaired loans without a valuation allowance
Recorded Investment	3,203	2,787
Unpaid Principal Balance	3,388	2,973
Average Recorded Investment	3,762	6,048
Interest Income Recognized	82	315
Cash-basis Interest Income Recognized	81	304
Impaired loans with a valuation allowance
Recorded Investment	13,916	14,759
Unpaid Principal Balance	13,915	14,753
Related Allowance	83	126
Average Recorded Investment	13,733	11,594
Interest Income Recognized	470	818
Cash-basis Interest Income Recognized	470	814
Real estate Construction
Impaired loans without a valuation allowance
Recorded Investment		760
Unpaid Principal Balance		761
Average Recorded Investment	380	592
Interest Income Recognized		18
Cash-basis Interest Income Recognized		18
Impaired loans with a valuation allowance
Recorded Investment	187	419
Unpaid Principal Balance	433	664
Related Allowance	7	6
Average Recorded Investment	377	226
Interest Income Recognized
Cash-basis Interest Income Recognized
Installment
Impaired loans without a valuation allowance
Recorded Investment	6
Unpaid Principal Balance	6
Average Recorded Investment
Interest Income Recognized
Cash-basis Interest Income Recognized
Impaired loans with a valuation allowance
Recorded Investment	29	7
Unpaid Principal Balance	29	7
Related Allowance	9
Average Recorded Investment	17	4
Interest Income Recognized
Cash-basis Interest Income Recognized
Commercial
Impaired loans without a valuation allowance
Recorded Investment	5,031	1,986
Unpaid Principal Balance	5,046	1,985
Average Recorded Investment	2,988	3,918
Interest Income Recognized	96	184
Cash-basis Interest Income Recognized	96	178
Impaired loans with a valuation allowance
Recorded Investment	3,060	3,327
Unpaid Principal Balance	3,077	3,339
Related Allowance	1,112	476
Average Recorded Investment	3,702	2,111
Interest Income Recognized	40	86
Cash-basis Interest Income Recognized	40	78
Collateral
Impaired loans without a valuation allowance
Recorded Investment
Unpaid Principal Balance
Average Recorded Investment
Interest Income Recognized
Cash-basis Interest Income Recognized
Impaired loans with a valuation allowance
Recorded Investment
Unpaid Principal Balance
Related Allowance
Average Recorded Investment
Interest Income Recognized
Cash-basis Interest Income Recognized
Home equity line of credit
Impaired loans without a valuation allowance
Recorded Investment	534	491
Unpaid Principal Balance	657	569
Average Recorded Investment	506	494
Interest Income Recognized
Cash-basis Interest Income Recognized
Impaired loans with a valuation allowance
Recorded Investment
Unpaid Principal Balance
Related Allowance
Average Recorded Investment
Interest Income Recognized
Cash-basis Interest Income Recognized
Demand
Impaired loans without a valuation allowance
Recorded Investment
Unpaid Principal Balance
Average Recorded Investment
Interest Income Recognized
Cash-basis Interest Income Recognized
Impaired loans with a valuation allowance
Recorded Investment
Unpaid Principal Balance
Related Allowance
Average Recorded Investment
Interest Income Recognized
Cash-basis Interest Income Recognized
Revolving credit
Impaired loans without a valuation allowance
Recorded Investment
Unpaid Principal Balance
Average Recorded Investment
Interest Income Recognized
Cash-basis Interest Income Recognized
Impaired loans with a valuation allowance
Recorded Investment
Unpaid Principal Balance
Related Allowance
Average Recorded Investment
Interest Income Recognized
Cash-basis Interest Income Recognized
Resort
Impaired loans without a valuation allowance
Recorded Investment
Unpaid Principal Balance
Average Recorded Investment		56
Interest Income Recognized		26
Cash-basis Interest Income Recognized		26
Impaired loans with a valuation allowance
Recorded Investment	1,474	1,626
Unpaid Principal Balance	1,473	1,624
Related Allowance	1	1
Average Recorded Investment	1,199	1,736
Interest Income Recognized	29	32
Cash-basis Interest Income Recognized	$ 29	$ 32

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Summary of Significant Accounting Policies (Detail Textuals) (USD $) In Millions, except Share data, unless otherwise specified			1 Months Ended	6 Months Ended	12 Months Ended
	Jun. 21, 2013	Jul. 02, 2012 Office	Jun. 29, 2011 Farmington Bank Common Stock	Jun. 30, 2013 Employee Stock Ownership Plan (ESOP) Farmington Bank	Dec. 31, 2012 Employee Stock Ownership Plan (ESOP) Farmington Bank
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Percentage of common stock shares sold in the subscription offering to Farmington Bank Community Foundation, Inc.			4.00%
Number of shares of common stock sold			17,192,500
Common stock value per share (in dollars per share)			$ 10.00
Proceeds of common stock sold			$ 167.8
Offering costs of common stock			4.1
Percentage owned by public shareholders			100.00%
Number of shares purchased				1,430,416
Percentage loaned ESOP the amount needed to purchase				8.00%
Purchase cost of common stock acquired under ESOP					$ 16.9
Number of shares of common stock purchased by ESOP					1,430,416
Number of shares approved for repurchase		1,788,020
Shares to be repurchased in percentage	10.00%	10.00%
Number of branch offices		20
Number of limited service offices		4

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Derivative Financial Instruments - Not designated outstanding interest rate swaps (Details) (Not Designated as Hedging Instrument, USD $) In Thousands, unless otherwise specified	Jun. 30, 2013 Derivative_Instrument	Dec. 31, 2012 Derivative_Instrument
Other Assets | Commercial loan customer interest rate swap position
Derivatives, Fair Value [Line Items]
Number of instruments	30	35
Notional amount	$ 90,031	$ 105,828
Estimated fair values	4,310	8,379
Other Liabilities | Commercial loan customer interest rate swap position
Derivatives, Fair Value [Line Items]
Number of instruments	13	2
Notional amount	52,759	7,731
Estimated fair values	(2,079)	(24)
Other Liabilities | Counterparty interest rate swap position
Derivatives, Fair Value [Line Items]
Number of instruments	43	37
Notional amount	142,790	113,559
Estimated fair values	$ (2,231)	$ (8,355)

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Pension and Other Postretirement Benefit Plans - Shares held by the ESOP (Details 1)	Jun. 30, 2013
Compensation and Retirement Disclosure [Abstract]
Allocated	190,722
Committed to be released	47,289
Unallocated	1,192,405
Total shares held by the ESOP	1,430,416

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Fair Value Measurements

6 Months Ended

Jun. 30, 2013

Fair Value Disclosures [Abstract]

Fair Value Measurements

11. Fair Value Measurements

Fair value estimates are made as of a specific point in time based on the characteristics of the financial instruments and relevant market information.  In accordance with FASB ASC 820-10, the fair value estimates are measured within the fair value hierarchy.  The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).  The three levels of the fair value hierarchy under FASB ASC 820-10 are described as follows:

Basis of Fair Value Measurement

● 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).

When available, quoted market prices are used.  In other cases, fair values are based on estimates using present value or other valuation techniques.  These techniques involve uncertainties and are significantly affected by the assumptions used and judgments made regarding risk characteristics of various financial instruments, discount rates, and estimates of future cash flows, future expected loss experience and other factors.  Changes in assumptions could significantly affect these estimates.  Derived fair value estimates cannot be substantiated by comparison to independent markets and, in certain cases, could not be realized in an immediate sale of the instrument.

Fair value estimates are based on existing financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not financial instruments.  Accordingly, the aggregate fair value amounts presented do not purport to represent the underlying market value of the Company. There are no transfers between levels during the three and six months ended June 30, 2013 or during the year ended December 31, 2012.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table details the financial instruments carried at fair value on a recurring basis as of June 30, 2013 and December 31, 2012 and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine the fair value:

	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	$	-

The following tables present additional information about assets measured at fair value for which the Company has utilized Level 3 inputs.

	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

The following is a description of the valuation methodologies used for instruments measured at fair value:

Securities Available for Sale: Investment securities available for sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models. Level 1 securities are those traded on active markets for identical securities including U.S. treasury obligations and, marketable equity securities. Level 2 securities include U.S. government agency obligations, government-sponsored residential mortgage-backed securities, corporate debt securities, preferred equity securities and mutual funds. When a market is illiquid or there is a lack of transparency around the inputs to valuation, the respective securities are classified as level 3 and reliance is placed upon internally developed models and management judgment and evaluation for valuation.

The Company utilizes a third party, nationally-recognized pricing service (“pricing service”); subject to review by management, to estimate fair value measurements for almost 100% of its investment securities portfolio.  The pricing service evaluates each asset class based on relevant market information considering observable data that may include dealer quotes, reported trades, market spreads, cash flows, the U.S. Treasury yield curve, the LIBOR swap yield curve, trade execution data, market prepayment speeds, credit information and the bond’s terms and conditions, among other things.  The fair value prices on all investment securities are reviewed for reasonableness by management.  Also, management assessed the valuation techniques used by the pricing service based on a review of their pricing methodology to ensure proper hierarchy classifications.

Interest Rate Swap Derivative Receivable and Liability: The Company’s derivative positions are valued using proprietary models that use as their basis readily observable market parameters and are classified within Level 2 of the valuation hierarchy.  Such derivatives are basic interest rate swaps that do not have any embedded interest rate caps and floors.

Forward loan sale commitments and derivative loan commitments: Forward loan sale commitments and derivative loan commitments are based on fair values of the underlying mortgage loans and the probability of such commitments being exercised. Significant management judgment and estimation is required in determining these fair value measurements. Derivatives that are valued based upon models with significant unobservable market parameters and that are normally traded less actively or have trade activity that is one way are classified within Level 3 of the valuation hierarchy.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

Certain assets and liabilities are measured at fair value on a non-recurring basis in accordance with generally accepted accounting principles.  These include assets that are measured at the lower of cost or market that were recognized at fair value below cost at the end of the period as well as assets that are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment.

The following table details the financial instruments carried at fair value on a nonrecurring basis at June 30, 2013 and December 31, 2012 and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine the fair value:

	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

The following is a description of the valuation methodologies used for instruments measured at fair value:

Mortgage Servicing Rights: A mortgage servicing right asset represents the amount by which the present value of the estimated future net cash flows to be received from servicing loans are expected to more than adequately compensate the Company for performing the servicing.  The fair value of servicing rights is estimated using a present value cash flow model.  The most important assumptions used in the valuation model are the anticipated rate of the loan prepayments and discount rates.  Adjustments are only recorded when the discounted cash flows derived from the valuation model are less than the carrying value of the asset.  As such, measurement at fair value is on a nonrecurring basis.  Although some assumptions in determining fair value are based on standards used by market participants, some are based on unobservable inputs and therefore are classified in Level 3 of the valuation hierarchy.

Loans Held for Sale: Loans held for sale are accounted for at the lower of cost or market. The fair value of loans held for sale are based on quoted market prices of similar loans sold in conjunction with securitization transactions, adjusted as required for changes in loan characteristics.

Impaired Loans:  Loans are generally not recorded at fair value on a recurring basis.  Periodically, the Company records nonrecurring adjustments to the carrying value of loans based on fair value measurements for partial charge-offs of the uncollectible portions of those loans.  Nonrecurring adjustments also include certain impairment amounts for collateral-dependent loans calculated in accordance with FASB ASC 310-10 when establishing the allowance for credit losses.  Such amounts are generally based on the fair value of the underlying collateral supporting the loan.  Collateral is typically valued using appraisals or other indications of value based on recent comparable sales of similar properties or other assumptions.  Estimates of fair value based on collateral are generally based on assumptions not observable in the marketplace and therefore such valuations have been classified as Level 3. Any impaired loan for which no specific valuation allowance was necessary at June 30, 2013 is the result of either sufficient cash flow or sufficient collateral coverage, or previous charge off amount that reduced the book value of the loan to an amount equal to or below the fair value of the collateral. Impaired loans are measured based on either collateral values supported by appraisals, observed market prices or where potential losses have been identified and reserved accordingly. Updated appraisals are obtained at least annually for impaired loans $250,000 or greater. Management performs a quarterly review of the valuation of impaired loans and considers the current market and collateral conditions for collateral dependent loans when estimating their fair value for purposes of determining whether an allowance for loan losses is necessary for impaired loans.  When assessing the collateral coverage for an impaired loan, management discounts appraisals based upon the age of the appraisal, anticipated selling charges and any other costs needed to prepare the collateral for sale to determine its net realizable value.

Other Real Estate Owned: The Company classifies property acquired through foreclosure or acceptance of deed-in-lieu of foreclosure as other real estate owned in its financial statements.  Upon foreclosure, the property securing the loan is written down to fair value less selling costs.  The writedown is based upon the difference between the appraised value and the book value.  Appraisals are based on observable market data such as comparable sales within the real estate market, however assumptions made in determining comparability are unobservable and therefore these assets are classified as Level 3 within the valuation hierarchy.

The following tables present the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a non-recurring basis at June 30, 2013:

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	%

Disclosures about Fair Value of Financial Instruments

The following methods and assumptions were used by the Company in estimating its fair value disclosure for financial instruments:

Cash and cash equivalents:  The carrying amounts reported in the statement of condition for cash and cash equivalents approximate those assets’ fair values.

Investment securities:  Fair values for investment securities are based on quoted market prices, where available.  If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments.

Investment in Federal Home Loan Bank of Boston (“FHLBB”) stock:  FHLBB stock does not have a readily determinable fair value and is assumed to have a fair value equal to its carrying value. Ownership of FHLBB stock is restricted to the FHLBB, and can only be purchased and redeemed at par value.

Loans:  In general, discount rates used to calculate values for loan products were based on the Company’s pricing at the respective period end and included appropriate adjustments for expected credit losses.  A higher discount rate was assumed with respect to estimated cash flows associated with nonaccrual loans.  Projected loan cash flows were adjusted for estimated credit losses.  However, such estimates made by the Company may not be indicative of assumptions and adjustments that a purchaser of the Company’s loans would seek.

Accrued interest:  The carrying amount of accrued interest approximates its fair value.

Deposits:  The fair values disclosed for demand deposits and savings accounts (e.g., interest and noninterest checking and passbook savings) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts).  The carrying amounts for variable-rate, fixed-term certificates of deposit approximate their fair values at the reporting date.  Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates to a schedule of aggregate expected monthly maturities of time deposits.

Borrowed funds:  The fair value for borrowed funds are estimated using discounted cash flow analysis based on the Company’s current incremental borrowing rate for similar types of agreements.

Repurchase liability:  Repurchase liabilities represent a short-term customer sweep account product.  Because of the short-term nature of these liabilities, the carrying amount approximates its fair value.

Interest Rate Swap Derivative: The fair values of interest rate swap agreements are calculated using a discounted cash flow approach and utilize observable inputs such as the LIBOR swap curve, effective date, maturity date, notional amount, and stated interest rate. 

Derivative Loan Commitments: The fair values of derivative loan commitments are calculated based on the value of the underlying loan, which in turn is based on quoted prices for similar loans in the secondary market. However, this value is adjusted by a factor which considers the likelihood that the loan in a lock position will ultimately close.  This factor, the closing ratio, is derived from the Company’s internal data and is adjusted using significant management judgment

Forward Loan Sale Commitments: Forward loan sale commitments are primarily based on quoted prices from the secondary market based on the settlement date of the contracts, interpolated or extrapolated, if necessary, to estimate a fair value as of the end of the reporting period.

The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments as of June 30, 2013 and December 31, 2012.  For short-term financial assets such as cash and cash equivalents, the carrying amount is a reasonable estimate of fair value due to the relatively short time between the origination of the instrument and its expected realization. 

		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		-		-		-		-

 

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Pension and Other Postretirement Benefit Plans

6 Months Ended

Jun. 30, 2013

Compensation and Retirement Disclosure [Abstract]

Pension and Other Postretirement Benefit Plans

7. Pension and Other Postretirement Benefit Plans

The following tables set forth the components of net periodic pension and benefit costs.

	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

On December 27, 2012, the Company announced the freezing of the non-contributory defined-benefit pension plan and certain defined benefit postretirement plans as of February 28, 2013.  All benefits under these plans were frozen as of that date and no additional benefits shall accrue.  As a result, the Company recognized a $1.5 million reduction in pension and defined postretirement benefit expenses related to unrecognized prior service costs for the year ended December 31, 2012.

The Company expects to contribute a total of $1.3 million to the qualified defined benefit plan for the year ended December 31, 2013.  Since the supplemental plan and the postretirement benefit plans are unfunded, the Company accrues for the estimated costs of these plans through charges to expense during the year that employees render service. The Company makes contributions to cover the current benefits paid under these plans.

Employee Stock Ownership Plan

As part of the reorganization, the Company established the ESOP to provide eligible employees the opportunity to own Company stock.  The Company provided a loan to the Farmington Bank Employee Stock Ownership Plan Trust in the amount needed to purchase up to 1,430,416 shares of the Company’s common stock in the open market subsequent to the initial public offering.  The loan bears an interest rate equal to the Wall Street Journal Prime Rate plus one percentage point, adjusted annually, and provides for annual payments of interest and principal over the 15 year term of the loan.  At June 30, 2013, the loan had an outstanding balance of $14.8 million and an interest rate of 4.25%.  The Bank has committed to make contributions to the ESOP sufficient to support the debt service of the loan.  The loan is secured by the unallocated shares purchased.  The ESOP compensation expense for the three and six months ended June 30, 2013 was $341,000 and $678,000, respectively.

Shares held by the ESOP include the following as of June 30, 2013:

Allocated	190,722
Committed to be released	47,289
Unallocated	1,192,405
	1,430,416

The fair value of unallocated ESOP shares was $16.6 million at June 30, 2013.

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Derivative Financial Instruments (Detail Textuals) (USD $) In Millions, unless otherwise specified	Jun. 30, 2013
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Long term commercial loan	$ 1.0
Maintenance of cash balance with PNC bank as security against derivative liability	3.7
Outstanding receivables secured in excess of by PNC bank	10.0
Mortgage-backed securities outstanding rate locks totaled	22.2
Sell residential mortgage-backed securities totaled	24.6
Forward sales contract	$ 19.9

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Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2013

Accounting Policies [Abstract]

Organization and Business

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

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

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 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

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

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

Reclassifications

Amounts in prior period consolidated financial statements are reclassified whenever necessary to conform to the current year presentation.

Recent Accounting Pronouncements

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.

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Regulatory Matters

6 Months Ended

Jun. 30, 2013

Regulatory Matters Disclosure [Abstract]

Regulatory Matters

12. Regulatory Matters

Capital guidelines of the Federal Reserve Board and the Federal Deposit Insurance Corporation (“FDIC”) require the Company and the Bank to maintain certain minimum ratios, as set forth below.  At June 30, 2013 and December 31, 2012, the Company and the Bank were deemed to be “well capitalized” under the regulations of the Federal Reserve Board and the FDIC, respectively, and in compliance with the applicable capital requirements.

The following table presents the actual capital amounts and ratios for the Company and the Bank:

	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

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Document and Entity Information	6 Months Ended
	Jun. 30, 2013	Aug. 02, 2013
Document and Entity Information [Abstract]
Entity Registrant Name	First Connecticut Bancorp, Inc.
Entity Central Index Key	0001511198
Trading Symbol	fbnk
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock Shares Outstanding		16,746,494
Document Type	10-Q
Document Period End Date	Jun. 30, 2013
Amendment Flag	false
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q2

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Legal Actions

6 Months Ended

Jun. 30, 2013

Loss Contingency [Abstract]

Legal Actions

13. Legal Actions

The Company and its subsidiaries are involved in various legal proceedings which have arisen in the normal course of business. The Company believes there are no pending actions that will have a material adverse effect on the consolidated financial statements.

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Pension and Other Postretirement Benefit Plans (Detail Textuals 1) (Farmington Bank, USD $)	3 Months Ended	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2013
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Term of loan for annual payments of interest and principal		15 years
Outstanding balance of Loan provided by the company to purchase common stock	$ 14,800,000	$ 14,800,000
Interest rate of outstanding balance of Loan provided by the company to purchase common stock	4.25%	4.25%
ESOP compensation expense	341,000	678,000
Fair value of unallocated ESOP shares	$ 16,600,000	$ 16,600,000
Employee Stock Ownership Plan (ESOP)
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Loan provided by the company to purchase common stock (in shares)		1,430,416

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Pension and Other Postretirement Benefit Plans (Detail Textuals) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2013 Qualified Defined Benefit Plan Forecast
Defined Benefit Plan Disclosure [Line Items]
Company's contribution to qualified defined benefit plan		$ 1.3
Reduction in pension and defined post retirement benefit expenses	$ 1.5