Form 8-K First Connecticut Bancor For: Jan 27
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E-mailSECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): January 27, 2016
First Connecticut Bancorp, Inc.
(Exact name of registrant as specified in its charter)
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Maryland
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333-171913
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45-1496206
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(State or other jurisdiction of incorporation)
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(Commission File Number)
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(IRS Employer Identification No.)
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One Farm Glen Boulevard, Farmington, Connecticut 06032
(860) 676-4600
(Address and Telephone Number)
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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☐
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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☐
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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☐
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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☐
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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TABLE OF CONTENTS
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Item 2.02
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Results of Operations and Financial Conditions
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Item 9.01
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Financial Statements and Exhibits
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SIGNATURES
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EXHIBIT INDEX
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EX-99.1
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Press Release
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Item 2.02
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Results of Operations and Financial Conditions
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On January 27, 2016, First Connecticut Bancorp, Inc., the holding company for Farmington Bank, issued a Press Release describing its results of operations for the fourth quarter and year ended December 31, 2015.
A copy of the Press Release is included as Exhibit 99.1 to this current Form 8-K and is incorporated herein by reference.
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Item 9.01
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Financial Statements and Exhibits
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(a)
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Not applicable.
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(b)
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Not applicable.
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(c)
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Not applicable.
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(d)
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Exhibits.
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Exhibit Number
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Description
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99.1
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Press Release dated January 27, 2016.
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2
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SIGNATURES
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Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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FIRST CONNECTICUT BANCORP, INC.
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Registrant
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January 27, 2016
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By: /s/ John J. Patrick, Jr.
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John J. Patrick, Jr.
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Chairman, President and
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and Chief Executive Officer
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3
EXHIBIT INDEX
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Exhibit Number
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Description
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99.1
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Press Release dated January 27, 2016.
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4
Exhibit 99.1
First Connecticut Bancorp, Inc. reports fourth quarter 2015 earnings of $0.16 earnings per share
FARMINGTON, Conn., January 27, 2016 – First Connecticut Bancorp, Inc. (the "Company") (NASDAQ: FBNK), the holding company for Farmington Bank (the "Bank"), reported net income of $2.4 million, or $0.16 diluted earnings per share for the quarter ended December 31, 2015 compared to net income of $3.1 million, or $0.21 diluted earnings per share for the quarter ended December 31, 2014.
Net income on a core earnings basis was $2.7 million or $0.18 diluted core earnings per share for the quarter ended December 31, 2015 compared to $2.5 million, or $0.17 diluted core earnings per share for the quarter ended December 31, 2014. Core earnings exclude non-recurring items which include a $768,000 valuation allowance in the fourth quarter related to a deferred tax asset associated with the establishment of the Bank's foundation in 2011 offset by $379,000 of bank owned life insurance proceeds.
"In the fourth quarter we capped off another year of double digit organic loan and core deposit growth. During the year we repositioned and strengthened our balance sheet improving our interest rate risk position. In addition to growing the balance sheet, we focused on further strengthening our cybersecurity and compliance areas," stated John J. Patrick Jr., First Connecticut Bancorp's Chairman, President and CEO.
"Overall, I am pleased we continued to grow tangible book value to $15.47, an increase of $0.17 for the quarter and $0.83 for the year. Additionally, we opened two branch offices in western Massachusetts and a loan center in Branford, Connecticut during the fourth quarter."
Financial Highlights
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·
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Strong organic loan growth continued during the quarter as loans increased $23.5 million to $2.4 billion at December 31, 2015 and increased $222.9 million or 10% from a year ago. Loan growth during the quarter was primarily driven by a $25.6 million increase in the commercial loan portfolio.
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·
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Net interest income decreased $309,000 to $17.4 million in the fourth quarter of 2015 compared to the linked quarter and increased $968,000 or 6% compared to the fourth quarter of 2014.
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·
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Net gain on loans sold decreased $426,000 to $567,000 in the fourth quarter of 2015 compared to the linked quarter primarily due to selling $83.2 million of fixed rate residential portfolio loans in the linked quarter to reposition the balance sheet and improve our interest rate risk position.
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·
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Overall deposits increased $18.0 million to $2.0 billion in the fourth quarter of 2015 compared to the linked quarter and increased $258.3 million or 15% from a year ago.
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·
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Checking accounts grew by 3.8% or 1,846 net new accounts in the fourth quarter of 2015 and by 12.8% or 5,786 net new accounts from a year ago.
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·
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Our loan to deposit ratio improved to 118.6% compared to 123.4% at December 31, 2014.
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·
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Tangible book value per share is $15.47 compared to $15.30 on a linked quarter basis and $14.64 at December 31, 2014.
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·
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Asset quality improved as loan delinquencies 30 days and greater represented 0.63% of total loans at December 31, 2015 compared to 0.67% at September 30, 2015 and 0.75% at December 31, 2014. Non-accrual loans represented 0.63% of total loans compared to 0.71% of total loans on a linked quarter basis and 0.72% of total loans at December 31, 2014.
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·
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The allowance for loan losses represented 0.86% of total loans at December 31, 2015 and September 30, 2015 and 0.89% at December 31, 2014.
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·
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The Company paid a quarterly cash dividend of $0.06 per share during the fourth quarter and paid a cash dividend of $0.22 per share for the year, an increase of $0.05 compared to the prior year.
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Fourth quarter 2015 compared with third quarter 2015
Net interest income
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·
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Net interest income decreased $309,000 to $17.4 million in the fourth quarter of 2015 compared to the linked quarter due primarily to a $309,000 increase in interest expense related to money market and certificate of deposit promotions and higher average costs of Federal Home Loan Bank of Boston borrowings.
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·
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Net interest margin decreased 3 basis points to 2.76% in the fourth quarter of 2015 compared to 2.79% in the linked quarter due to a 7 basis point increase in the cost of interest-bearing liabilities offset by 3 basis point increase in the yield on interest-earning assets.
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Provision for loan losses
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·
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Provision for loan losses was $776,000 for the fourth quarter of 2015 compared to $386,000 for the linked quarter. The increase in the fourth quarter was primarily due to $293,000 in charge-offs related to one commercial customer who is in bankruptcy.
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·
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Net charge-offs (recoveries) in the quarter were $588,000 or 0.10% to average loans (annualized) compared to ($43,000) or (0.01%) to average loans (annualized) in the linked quarter.
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·
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The allowance for loan losses represented 0.86% of total loans at December 31, 2015 and September 30, 2015.
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Noninterest income
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·
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Total noninterest income increased $227,000 to $3.5 million in the fourth quarter of 2015 compared to the linked quarter primarily due to a $377,000 increase in bank owned life insurance income and a $248,000 increase in other noninterest income offset by a $426,000 decrease in net gain on loans sold.
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·
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Other income increased $248,000 to $557,000 in the fourth quarter of 2015 compared to $309,000 in the linked quarter primarily due to a $144,000 increase in mortgage banking derivatives income and a $52,000 increase in servicing fees.
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·
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Net gain on loans sold decreased $426,000 primarily due to selling $83.2 million of fixed rate residential portfolio loans in the linked quarter to reposition the balance sheet and improve our interest rate risk position.
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Noninterest expense
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·
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Noninterest expense increased $1.2 million in the fourth quarter of 2015 to $16.0 million compared to the linked quarter primarily due to a $426,000 increase in salaries and employee benefits, a $416,000 increase in other operating expenses and a $320,000 increase in marketing.
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·
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Other operating expenses increased $416,000 on a linked quarter basis primarily due to a $557,000 gain on foreclosed real estate in the third quarter. Excluding the gain on foreclosed real estate, other operating expenses decreased $141,000 in the fourth quarter of 2015 compared to the third quarter.
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Marketing increased $320,000 on a linked quarter basis primarily due to our expansion into western Massachusetts.
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Income tax expense
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·
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Income tax expense was $1.7 million in the fourth quarter of 2015 compared to $1.6 million in the linked quarter. The increase in income tax expense in the fourth quarter was primarily due to a $768,000 valuation allowance related to a deferred tax asset associated with the establishment of the Bank's foundation in 2011.
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Fourth quarter 2015 compared with fourth quarter 2014
Net interest income
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·
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Net interest income increased $968,000 to $17.4 million in the fourth quarter of 2015 compared to the prior year quarter due primarily to a $243.3 million increase in the average loan balance offset by a $714,000 increase in interest expense. Excluding a $250,000 non-recurring payment related to a loan participation in the prior year quarter, core net interest income increased $1.2 million in the fourth quarter of 2015.
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·
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Net interest margin decreased 7 basis points to 2.76% in the fourth quarter of 2015 compared to 2.83% in the prior year quarter primarily due to an 8 basis point decrease in the yield on average loans balance and a 7 basis point increase in cost of interest-bearing liabilities. Excluding the non-recurring payment related to a loan participation in the prior year quarter, net interest margin would have been 2.79%.
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Provision for loan losses
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Provision for loan losses was $776,000 for the fourth quarter of 2015 compared to $632,000 for the prior year quarter.
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Net charge-offs in the quarter were $588,000 or 0.10% to average loans (annualized) compared to $228,000 or 0.04% to average loans (annualized) in the prior year quarter.
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·
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The allowance for loan losses represented 0.86% of total loans at December 31, 2015 and 0.89% of total loans at December 31, 2014.
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Noninterest income
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·
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Total noninterest income increased $970,000 to $3.5 million in the fourth quarter of 2015 compared to the prior year quarter primarily due to a $220,000 increase in net gain on loans sold, a $443,000 increase in bank owned life insurance income and a $262,000 increase in other noninterest income.
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·
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Net gain on loans sold increased $220,000 primarily due to an increase in the volume of loans sold.
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·
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Other income increased $262,000 to $557,000 in the fourth quarter of 2015 compared to the prior year quarter primarily due to a $152,000 increase in mortgage banking derivatives income and a $69,000 increase in servicing fees.
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Noninterest expense
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·
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Noninterest expense increased $1.3 million in the fourth quarter of 2015 to $16.0 million compared to the prior year quarter primarily due to an $831,000 increase in salaries and employee benefits and a $392,000 increase in marketing.
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·
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Salaries and employee benefits increased $831,000 primarily due to an increase in staff to support our compliance areas, our expansion into western Massachusetts and to maintain the Bank's growth.
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·
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Marketing increased $392,000 to $763,000 compared to the prior year quarter primarily due to our expansion into western Massachusetts.
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Income tax expense
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·
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Income tax expense was $1.7 million in the fourth quarter of 2015 compared to $499,000 in the prior year quarter. The increase in income tax expense in the fourth quarter of 2015 was primarily due to a $768,000 valuation allowance related to a deferred tax asset associated with the establishment of the Bank's foundation in 2011 and $451,000 increase in income before taxes. The income tax expense in the fourth quarter of 2014 also decreased $441,000 due to adjusting the tax rate on our deferred tax assets from 34% to 35%.
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For the year ended December 31, 2015 compared with the year ended December 31, 2014
Net interest income
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·
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Net interest income increased $5.8 million or 9% to $68.5 million for the year ended 2015 compared to $62.7 million for the year ended 2014 primarily due to a $317.2 million increase in the average loan balance offset by a $3.3 million increase in interest expense.
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·
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Net interest margin decreased to 2.81% for the year ended 2015 compared to 2.94% for the year ended 2014. Excluding the non-recurring payment related to a loan participation, the year ended 2014 interest margin would have been 2.92%.
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·
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The total interest-earning assets yield decreased 6 basis points to 3.34% for the year ended 2015 compared to 3.40% for the year ended 2014 due to a $317.2 million increase in the average loan balance in a low interest rate environment.
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·
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The cost of interest-bearing liabilities increased 8 basis points to 68 basis points for the year ended 2015 compared to 60 basis points for the year ended 2014. The increase was primarily due to money market and certificate of deposit promotions and a 26 basis point increase in the average cost of Federal Home Loan Bank of Boston borrowings.
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Provision for loan losses
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·
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Provision for loan losses was $2.4 million for the year ended 2015 compared to $2.6 million for the year ended 2014.
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·
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Net charge-offs for the year ended 2015 were $1.2 million or 0.05% to average loans compared to $1.9 million or 0.10% to average loans for the year ended 2014.
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·
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The allowance for loan losses represented 0.86% of total loans at December 31, 2015 compared to 0.89% at December 31, 2014.
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Noninterest income
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·
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Total noninterest income increased $4.3 million to $13.4 million for the year ended 2015 compared to $9.1 million for the year ended 2014.
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·
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Fees for customer services increased $487,000 to $6.0 million for the year ended 2015 compared to the year ended 2014 driven by our growth in checking accounts and debit card fees.
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·
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Gain on sale of investments was $1.5 million for the year ended 2015 due to the sale of trust preferred securities. There was no gain on sale of investments for the year ended 2014.
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·
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Net gain on loans sold increased $1.1 million to $2.5 million for the year ended 2015 compared to the year ended 2014 as a result of an increase in volume of loans sold.
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·
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Bank owned life insurance income increased $542,000 to $1.7 million for the year ended 2015 compared to the year ended 2014 primarily due to a $10.0 million purchase of bank owned life insurance and $379,000 in bank owned life insurance proceeds in 2015.
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·
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Other income increased $695,000 to $1.6 million for the year ended 2015 compared to the year ended 2014 primarily due to a $709,000 increase in swap fee income.
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Noninterest expense
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Noninterest expense increased $4.2 million to $61.2 million for the year ended 2015 compared to $57.0 million for the year ended 2014.
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·
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Salaries and employee benefits increased $2.4 million to $36.9 million for the year ended 2015 compared to the year ended 2014. The increase is primarily due to an increase in staff to support our compliance areas, our expansion into western Massachusetts and to maintain the Bank's growth.
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·
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Marketing increased $559,000 to $2.1 million for the year ended 2015 compared to the prior year primarily due to our expansion into western Massachusetts and an increase in premiums and giveaways to obtain new customers in the geographical areas we serve.
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·
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Other operating expenses increased $1.0 million to $11.2 million for the year ended 2015 compared to the prior year primarily due to a $246,000 increase in service bureau fees and a general increase in office expenses to support the Bank's growth.
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Income tax expense
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·
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Income tax expense was $5.7 million for the year ended 2015 compared to $2.8 million for the year ended 2014. The increase in income tax expense for the year ended 2015 was primarily due to a $768,000 valuation allowance related to a deferred tax asset associated with the establishment of the Bank's foundation in 2011 and a $6.1 million increase in income before taxes. The income tax expense for the year ended 2014 also decreased $441,000 due to adjusting the tax rate on our deferred tax assets from 34% to 35%.
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December 31, 2015 compared to December 31, 2014
Financial Condition
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·
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Total assets increased $223.2 million or 9% at December 31, 2015 to $2.7 billion compared to $2.5 billion at December 31, 2014, largely reflecting an increase in loan growth.
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Our investment portfolio totaled $164.7 million at December 31, 2015 compared to $204.3 million at December 31, 2014, a decrease of $39.6 million due to reduction in collateral requirements.
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Net loans increased $221.7 million or 11% at December 31, 2015 to $2.3 billion compared to $2.1 billion at December 31, 2014 due to our continued focus on commercial and residential lending.
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Deposits increased $258.3 million to $2.0 billion at December 31, 2015 compared to $1.7 billion at December 31, 2014 primarily due to increases in municipal deposits, demand deposits and certificates of deposit as we continue to develop and grow relationships in the geographical areas we serve. We entered the brokered deposit market during the second quarter of 2015 with balances totaling $44.3 million at December 31, 2015.
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·
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Federal Home Loan Bank of Boston advances decreased $24.1 million to $377.6 million at December 31, 2015 compared to $401.7 million at December 31, 2014. Advances were used to support loan and securities growth during the year.
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Asset Quality
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·
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At December 31, 2015, the allowance for loan losses represented 0.86% of total loans and 135.44% of non-accrual loans, compared to 0.86% of total loans and 120.05% of non-accrual loans at September 30, 2015 and 0.89% of total loans and 122.58% of non-accrual loans at December 31, 2014.
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·
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Loan delinquencies 30 days and greater represented 0.63% of total loans at December 31, 2015 compared to 0.67% of total loans at September 30, 2015 and 0.75% of total loans at December 31, 2014.
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·
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Non-accrual loans represented 0.63% of total loans at December 31, 2015 compared to 0.71% of total loans at September 30, 2015 and 0.72% of total loans at December 31, 2014.
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·
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Net charge-offs (recoveries) in the quarter were $588,000 or 0.10% to average loans (annualized) compared to ($43,000) or (0.01%) to average loans (annualized) in the linked quarter and $228,000 or 0.04% to average loans (annualized) in the prior year quarter.
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Capital and Liquidity
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·
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The Company remained well-capitalized with an estimated total capital to risk-weighted asset ratio of 12.88% at December 31, 2015.
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·
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Tangible book value per share was $15.47 compared to $15.30 on a linked quarter basis and $14.64 at December 31, 2014.
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During the fourth quarter of 2015, the Company repurchased 15,000 shares of common stock at an average price per share of $15.80 at a total cost of $237,000. Repurchased shares are held as treasury stock and will be available for general corporate purposes. The Company had 757,745 shares remaining to repurchase at December 31, 2015 from prior regulatory approval.
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·
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At December 31, 2015, the Company continued to have adequate liquidity including significant unused borrowing capacity at the Federal Home Loan Bank of Boston and the Federal Reserve Bank, as well as access to funding through brokered deposits and pre-approved unsecured lines of credit.
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About First Connecticut Bancorp, Inc.
First Connecticut Bancorp, Inc. (NASDAQ: FBNK) is a Maryland-chartered stock holding company that wholly owns Farmington Bank. Farmington Bank is a full-service, community bank with 23 branch locations throughout central Connecticut and western Massachusetts, offering commercial and residential lending as well as wealth management services. Established in 1851, Farmington Bank is a diversified consumer and commercial bank with an ongoing commitment to contribute to the betterment of the communities in our region. For more information regarding the Bank's products and services and for First Connecticut Bancorp, Inc. investor relations information, please visit www.farmingtonbankct.com.
Conference Call
First Connecticut will host a conference call on Thursday, January 28, 2016 at 10:30am Eastern Time to discuss fourth quarter results. Those wishing to participate in the call may dial-in to the call at 1-888-336-7151. The Canada dial-in number is 1-855-669-9657 and the international dial-in number is 1-412-902-4177. A webcast of the call will be available on the Investor Relations Section of the Farmington Bank website for an extended period of time.
Forward Looking Statements
In addition to historical information, this earnings release may contain forward-looking statements for purposes of applicable securities laws. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Such forward-looking statements may or may not include words such as "believe," "expect," "anticipate," "estimate," and "intend" or future or conditional verbs such as "will," "would," "should," "could," or "may." Forward-looking statements are subject to numerous assumptions, risks and uncertainties. There are a number of important factors described in documents previously filed by the Company with the Securities and Exchange Commission, and other factors that could cause the Company's actual results to differ materially from those contemplated by such forward-looking statements. The Company undertakes no obligation to publicly release the results of any revisions to those forward-looking statements which may be made to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events.
Non-GAAP Financial Measures
In addition to evaluating the Company's financial performance in accordance with U.S. generally accepted accounting principles ("GAAP"), management routinely supplements their evaluation with an analysis of certain non-GAAP financial measures, such as core net income, the efficiency ratio and tangible book value per share. A reconciliation to the most directly comparable GAAP financial measure; net income in the case of core net income and the efficiency ratio and stockholders' equity in the case of tangible book value per share, appears in the accompanying Reconciliation of Non-GAAP Financial Measures table.
We believe that providing certain non-GAAP financial measures provides investors with information useful in understanding our financial performance, our performance trends and financial position. Specifically, we provide measures based on what we believe are our operating earnings on a consistent basis and exclude non-core operating items which affect the GAAP reporting of results of operations. The Company believes that core net income is useful for both investors and management to understand the effects of items that are non-recurring and infrequent in nature. The Company believes that the efficiency ratio, which measures the costs expended to generate a dollar of revenue, is useful in the assessment of financial performance, including non-interest expense control. The Company believes that tangible book value per share is useful to evaluate the relative strength of the Company's capital position. The Company does not have goodwill and intangible assets for any of the periods presented. As such, tangible book value per common share is equal to book value per common share.
We utilize these measures for internal planning and forecasting purposes. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures and results, and we strongly encourage investors to review our consolidated financial statements in their entirety and not to rely on any single financial measure.
First Connecticut Bancorp, Inc.
Selected Financial Data (Unaudited)
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At or for the Three Months Ended
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||||||||||||||||||||
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December 31,
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September 30,
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June 30,
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March 31,
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December 31,
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(Dollars in thousands, except per share data)
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2015
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2015
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2015
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2015
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2014
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Selected Financial Condition Data:
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Total assets
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$
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2,708,546
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$
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2,708,454
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$
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2,626,217
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$
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2,549,074
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$
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2,485,360
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||||||||||
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Cash and cash equivalents
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59,139
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47,447
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42,992
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44,847
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42,863
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|||||||||||||||
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Securities held-to-maturity, at amortized cost
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32,246
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25,486
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34,366
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21,006
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16,224
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|||||||||||||||
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Securities available-for-sale, at fair value
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132,424
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171,390
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143,799
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173,829
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188,041
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|||||||||||||||
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Federal Home Loan Bank of Boston stock, at cost
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21,729
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23,038
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21,496
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19,785
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19,785
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|||||||||||||||
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Loans, net
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2,341,598
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2,318,257
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2,268,385
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2,186,937
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2,119,917
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|||||||||||||||
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Deposits
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1,991,358
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1,973,355
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1,878,040
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1,887,954
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1,733,041
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|||||||||||||||
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Federal Home Loan Bank of Boston advances
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377,600
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373,600
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400,700
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308,700
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401,700
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|||||||||||||||
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Total stockholders' equity
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245,721
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243,195
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239,082
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237,709
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234,563
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|||||||||||||||
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Allowance for loan losses
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20,198
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20,010
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19,581
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19,232
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18,960
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|||||||||||||||
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Non-accrual loans
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14,913
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16,668
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12,973
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14,086
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15,468
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|||||||||||||||
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Impaired loans
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41,017
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42,664
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39,975
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42,130
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43,452
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|||||||||||||||
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Loan delinquencies 30 days and greater
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14,945
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15,598
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13,244
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14,193
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16,079
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|||||||||||||||
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Selected Operating Data:
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||||||||||||||||||||
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Interest income
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$
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21,094
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$
|
21,094
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$
|
20,164
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$
|
19,532
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$
|
19,412
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||||||||||
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Interest expense
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3,731
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3,422
|
3,065
|
3,157
|
3,017
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|||||||||||||||
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Net interest income
|
17,363
|
17,672
|
17,099
|
16,375
|
16,395
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|||||||||||||||
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Provision for loan losses
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776
|
386
|
663
|
615
|
632
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|||||||||||||||
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Net interest income after provision for loan losses
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16,587
|
17,286
|
16,436
|
15,760
|
15,763
|
|||||||||||||||
|
Noninterest income
|
3,468
|
3,241
|
4,074
|
2,664
|
2,498
|
|||||||||||||||
|
Noninterest expense
|
15,958
|
14,718
|
15,597
|
14,937
|
14,615
|
|||||||||||||||
|
Income before income taxes
|
4,097
|
5,809
|
4,913
|
3,487
|
3,646
|
|||||||||||||||
|
Income tax expense
|
1,716
|
1,594
|
1,441
|
976
|
499
|
|||||||||||||||
|
Net income
|
$
|
2,381
|
$
|
4,215
|
$
|
3,472
|
$
|
2,511
|
$
|
3,147
|
||||||||||
|
Performance Ratios (annualized):
|
||||||||||||||||||||
|
Return on average assets
|
0.35
|
%
|
0.62
|
%
|
0.54
|
%
|
0.40
|
%
|
0.52
|
%
|
||||||||||
|
Return on average equity
|
3.86
|
%
|
6.92
|
%
|
5.77
|
%
|
4.24
|
%
|
5.31
|
%
|
||||||||||
|
Net interest rate spread (1)
|
2.61
|
%
|
2.65
|
%
|
2.72
|
%
|
2.68
|
%
|
2.68
|
%
|
||||||||||
|
Net interest rate margin (2)
|
2.76
|
%
|
2.79
|
%
|
2.86
|
%
|
2.83
|
%
|
2.83
|
%
|
||||||||||
|
Non-interest expense to average assets (3)
|
2.37
|
%
|
2.26
|
%
|
2.39
|
%
|
2.34
|
%
|
2.39
|
%
|
||||||||||
|
Efficiency ratio (4)
|
78.19
|
%
|
73.04
|
%
|
77.13
|
%
|
78.35
|
%
|
78.39
|
%
|
||||||||||
|
Average interest-earning assets to average
|
||||||||||||||||||||
|
interest-bearing liabilities
|
127.48
|
%
|
126.44
|
%
|
126.98
|
%
|
126.86
|
%
|
127.88
|
%
|
||||||||||
|
Loans to deposits
|
118.60
|
%
|
118.49
|
%
|
121.83
|
%
|
116.86
|
%
|
123.42
|
%
|
||||||||||
|
Asset Quality Ratios:
|
||||||||||||||||||||
|
Allowance for loan losses as a percent of total loans
|
0.86
|
%
|
0.86
|
%
|
0.86
|
%
|
0.87
|
%
|
0.89
|
%
|
||||||||||
|
Allowance for loan losses as a percent of
|
||||||||||||||||||||
|
non-accrual loans
|
135.44
|
%
|
120.05
|
%
|
150.94
|
%
|
136.53
|
%
|
122.58
|
%
|
||||||||||
|
Net charge-offs (recoveries) to average loans (annualized)
|
0.10
|
%
|
(0.01
|
%)
|
0.06
|
%
|
0.06
|
%
|
0.04
|
%
|
||||||||||
|
Non-accrual loans as a percent of total loans
|
0.63
|
%
|
0.71
|
%
|
0.57
|
%
|
0.64
|
%
|
0.72
|
%
|
||||||||||
|
Non-accrual loans as a percent of total assets
|
0.55
|
%
|
0.62
|
%
|
0.49
|
%
|
0.55
|
%
|
0.62
|
%
|
||||||||||
|
Loan delinquencies 30 days and greater as a
|
||||||||||||||||||||
|
percent of total loans
|
0.63
|
%
|
0.67
|
%
|
0.58
|
%
|
0.64
|
%
|
0.75
|
%
|
||||||||||
|
Per Share Related Data:
|
||||||||||||||||||||
|
Basic earnings per share
|
$
|
0.16
|
$
|
0.28
|
$
|
0.23
|
$
|
0.17
|
$
|
0.21
|
||||||||||
|
Diluted earnings per share
|
$
|
0.16
|
$
|
0.28
|
$
|
0.23
|
$
|
0.17
|
$
|
0.21
|
||||||||||
|
Dividends declared per share
|
$
|
0.06
|
$
|
0.06
|
$
|
0.05
|
$
|
0.05
|
$
|
0.05
|
||||||||||
|
Tangible book value (5)
|
$
|
15.47
|
$
|
15.30
|
$
|
15.01
|
$
|
14.82
|
$
|
14.64
|
||||||||||
|
Common stock shares outstanding
|
15,881,663
|
15,893,263
|
15,922,888
|
16,035,005
|
16,026,319
|
|||||||||||||||
|
Weighted-average basic shares outstanding
|
14,785,058
|
14,632,951
|
14,694,472
|
14,722,112
|
14,695,490
|
|||||||||||||||
|
Weighted-average diluted shares outstanding
|
15,146,365
|
14,887,461
|
14,839,454
|
14,850,597
|
14,836,032
|
|||||||||||||||
|
(1) Represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
|
||||||||||||||||||||
|
(2) Represents tax-equivalent net interest income as a percent of average interest-earning assets.
|
||||||||||||||||||||
|
(3) Represents core noninterest expense annualized divided by average assets. See "Reconciliation of Non-GAAP Financial Measures" table.
|
||||||||||||||||||||
|
(4) Represents core noninterest expense divided by the sum of core net interest income and core noninterest income.
|
||||||||||||||||||||
|
See "Reconciliation of Non-GAAP Financial Measures" table.
|
||||||||||||||||||||
|
(5) Represents ending stockholders' equity less goodwill and intangible assets (excluding mortgage servicing rights) divided by ending common shares outstanding.
|
||||||||||||||||||||
|
The Company does not have goodwill and intangible assets for any of the periods presented. See "Reconciliation of Non-GAAP Financial Measures" table.
|
||||||||||||||||||||
First Connecticut Bancorp, Inc.
Selected Financial Data (Unaudited)
|
At or for the Three Months Ended
|
||||||||||
|
December 31,
|
September 30,
|
June 30,
|
March 31,
|
December 31,
|
||||||
|
(Dollars in thousands)
|
2015
|
2015
|
2015
|
2015
|
2014
|
|||||
|
Capital Ratios:
|
||||||||||
|
Equity to total assets at end of period
|
9.07%
|
8.98%
|
9.10%
|
9.33%
|
9.44%
|
|||||
|
Average equity to average assets
|
9.17%
|
9.00%
|
9.36%
|
9.45%
|
9.71%
|
|||||
|
Total Capital (to Risk Weighted Assets)
|
12.88%
|
*
|
12.72%
|
13.11%
|
13.44%
|
13.73%
|
||||
|
Tier I Capital (to Risk Weighted Assets)
|
11.91%
|
*
|
11.76%
|
12.12%
|
12.44%
|
12.70%
|
||||
|
Common Equity Tier I Capital
|
11.91%
|
*
|
11.76%
|
12.12%
|
12.44%
|
n/a
|
||||
|
Tier I Leverage Capital (to Average Assets)
|
9.39%
|
*
|
9.24%
|
9.57%
|
9.72%
|
9.86%
|
||||
|
Total equity to total average assets
|
9.13%
|
8.98%
|
9.29%
|
9.48%
|
9.61%
|
|||||
|
* Estimated
|
||||||||||
|
Loans and Allowance for Loan Losses:
|
||||||||||
|
Real estate
|
||||||||||
|
Residential
|
$ 849,722
|
$ 851,784
|
$ 888,376
|
$ 850,819
|
$ 827,005
|
|||||
|
Commercial
|
887,431
|
862,367
|
817,955
|
769,712
|
765,066
|
|||||
|
Construction
|
30,895
|
29,244
|
42,858
|
53,913
|
57,371
|
|||||
|
Installment
|
2,970
|
3,007
|
3,103
|
3,114
|
3,356
|
|||||
|
Commercial
|
409,550
|
410,704
|
359,537
|
352,085
|
309,708
|
|||||
|
Collateral
|
1,668
|
1,632
|
1,551
|
1,676
|
1,733
|
|||||
|
Home equity line of credit
|
174,701
|
174,579
|
169,507
|
169,969
|
169,768
|
|||||
|
Revolving credit
|
91
|
96
|
77
|
80
|
99
|
|||||
|
Resort
|
784
|
807
|
837
|
880
|
929
|
|||||
|
Total loans
|
2,357,812
|
2,334,220
|
2,283,801
|
2,202,248
|
2,135,035
|
|||||
|
Net deferred loan costs
|
3,984
|
4,047
|
4,165
|
3,921
|
3,842
|
|||||
|
Loans
|
2,361,796
|
2,338,267
|
2,287,966
|
2,206,169
|
2,138,877
|
|||||
|
Allowance for loan losses
|
(20,198)
|
(20,010)
|
(19,581)
|
(19,232)
|
(18,960)
|
|||||
|
Loans, net
|
$ 2,341,598
|
$ 2,318,257
|
$ 2,268,385
|
$ 2,186,937
|
$ 2,119,917
|
|||||
|
Deposits:
|
||||||||||
|
Noninterest-bearing demand deposits
|
$ 401,388
|
$ 359,757
|
$ 377,092
|
$ 337,211
|
$ 330,524
|
|||||
|
Interest-bearing
|
||||||||||
|
NOW accounts
|
468,054
|
527,128
|
425,789
|
499,130
|
355,412
|
|||||
|
Money market
|
460,737
|
440,249
|
430,558
|
462,532
|
470,991
|
|||||
|
Savings accounts
|
220,389
|
211,170
|
220,154
|
214,083
|
210,892
|
|||||
|
Time deposits
|
440,790
|
435,051
|
424,447
|
374,998
|
365,222
|
|||||
|
Total interest-bearing deposits
|
1,589,970
|
1,613,598
|
1,500,948
|
1,550,743
|
1,402,517
|
|||||
|
Total deposits
|
$ 1,991,358
|
$ 1,973,355
|
$ 1,878,040
|
$ 1,887,954
|
$ 1,733,041
|
|||||
First Connecticut Bancorp, Inc.
Consolidated Statements of Condition (Unaudited)
| December 31, | September 30, | December 31, | ||||||||||
|
2015
|
2015
|
2014
|
||||||||||
|
(Dollars in thousands)
|
||||||||||||
|
Assets
|
||||||||||||
|
Cash and due from banks
|
$
|
45,732
|
$
|
33,564
|
$
|
35,232
|
||||||
|
Interest bearing deposits with other institutions
|
13,407
|
13,883
|
7,631
|
|||||||||
|
Total cash and cash equivalents
|
59,139
|
47,447
|
42,863
|
|||||||||
|
Securities held-to-maturity, at amortized cost
|
32,246
|
25,486
|
16,224
|
|||||||||
|
Securities available-for-sale, at fair value
|
132,424
|
171,390
|
188,041
|
|||||||||
|
Loans held for sale
|
9,637
|
8,416
|
2,417
|
|||||||||
|
Loans (1)
|
2,361,796
|
2,338,267
|
2,138,877
|
|||||||||
|
Allowance for loan losses
|
(20,198
|
)
|
(20,010
|
)
|
(18,960
|
)
|
||||||
|
Loans, net
|
2,341,598
|
2,318,257
|
2,119,917
|
|||||||||
|
Premises and equipment, net
|
18,565
|
17,870
|
18,873
|
|||||||||
|
Federal Home Loan Bank of Boston stock, at cost
|
21,729
|
23,038
|
19,785
|
|||||||||
|
Accrued income receivable
|
6,747
|
6,305
|
5,777
|
|||||||||
|
Bank-owned life insurance
|
50,618
|
50,633
|
39,686
|
|||||||||
|
Deferred income taxes
|
15,443
|
15,935
|
16,841
|
|||||||||
|
Prepaid expenses and other assets
|
20,400
|
23,677
|
14,936
|
|||||||||
|
Total assets
|
$
|
2,708,546
|
$
|
2,708,454
|
$
|
2,485,360
|
||||||
|
Liabilities and Stockholders' Equity
|
||||||||||||
|
Deposits
|
||||||||||||
|
Interest-bearing
|
$
|
1,589,970
|
$
|
1,613,598
|
$
|
1,402,517
|
||||||
|
Noninterest-bearing
|
401,388
|
359,757
|
330,524
|
|||||||||
|
1,991,358
|
1,973,355
|
1,733,041
|
||||||||||
|
Federal Home Loan Bank of Boston advances
|
377,600
|
373,600
|
401,700
|
|||||||||
|
Repurchase agreement borrowings
|
10,500
|
10,500
|
21,000
|
|||||||||
|
Repurchase liabilities
|
35,769
|
58,084
|
48,987
|
|||||||||
|
Accrued expenses and other liabilities
|
47,598
|
49,720
|
46,069
|
|||||||||
|
Total liabilities
|
2,462,825
|
2,465,259
|
2,250,797
|
|||||||||
|
Stockholders' Equity
|
||||||||||||
|
Common stock
|
181
|
181
|
181
|
|||||||||
|
Additional paid-in-capital
|
181,997
|
181,195
|
178,772
|
|||||||||
|
Unallocated common stock held by ESOP
|
(11,626
|
)
|
(11,893
|
)
|
(12,681
|
)
|
||||||
|
Treasury stock, at cost
|
(30,602
|
)
|
(30,411
|
)
|
(28,828
|
)
|
||||||
|
Retained earnings
|
112,933
|
111,274
|
103,630
|
|||||||||
|
Accumulated other comprehensive loss
|
(7,162
|
)
|
(7,151
|
)
|
(6,511
|
)
|
||||||
|
Total stockholders' equity
|
245,721
|
243,195
|
234,563
|
|||||||||
|
Total liabilities and stockholders' equity
|
$
|
2,708,546
|
$
|
2,708,454
|
$
|
2,485,360
|
||||||
|
(1) Loans include net deferred fees and unamortized premiums of $4.0 million, $4.0 million and $3.8 million at December 31, 2015,
|
||||||||||||
|
September 30, 2015 and December 31, 2014, respectively.
|
||||||||||||
First Connecticut Bancorp, Inc.
Consolidated Statements of Income (Unaudited)
|
Three Months Ended
|
For The Year Ended
|
|||||||||||||||||||
|
December 31,
|
September 30,
|
December 31,
|
December 31,
|
|||||||||||||||||
|
(Dollars in thousands, except per share data)
|
2015
|
2015
|
2014
|
2015
|
2014
|
|||||||||||||||
|
Interest income
|
||||||||||||||||||||
|
Interest and fees on loans
|
||||||||||||||||||||
|
Mortgage
|
$
|
15,670
|
$
|
15,861
|
$
|
15,170
|
$
|
61,920
|
$
|
56,963
|
||||||||||
|
Other
|
4,731
|
4,594
|
3,770
|
17,584
|
14,159
|
|||||||||||||||
|
Interest and dividends on investments
|
||||||||||||||||||||
|
United States Government and agency obligations
|
425
|
401
|
284
|
1,534
|
949
|
|||||||||||||||
|
Other bonds
|
13
|
13
|
63
|
79
|
259
|
|||||||||||||||
|
Corporate stocks
|
248
|
217
|
122
|
741
|
429
|
|||||||||||||||
|
Other interest income
|
7
|
8
|
3
|
26
|
15
|
|||||||||||||||
|
Total interest income
|
21,094
|
21,094
|
19,412
|
81,884
|
72,774
|
|||||||||||||||
|
Interest expense
|
||||||||||||||||||||
|
Deposits
|
2,611
|
2,412
|
2,119
|
9,372
|
7,369
|
|||||||||||||||
|
Interest on borrowed funds
|
1,004
|
890
|
675
|
3,449
|
1,841
|
|||||||||||||||
|
Interest on repo borrowings
|
97
|
96
|
181
|
448
|
719
|
|||||||||||||||
|
Interest on repurchase liabilities
|
19
|
24
|
42
|
106
|
151
|
|||||||||||||||
|
Total interest expense
|
3,731
|
3,422
|
3,017
|
13,375
|
10,080
|
|||||||||||||||
|
Net interest income
|
17,363
|
17,672
|
16,395
|
68,509
|
62,694
|
|||||||||||||||
|
Provision for loan losses
|
776
|
386
|
632
|
2,440
|
2,588
|
|||||||||||||||
|
Net interest income
|
||||||||||||||||||||
|
after provision for loan losses
|
16,587
|
17,286
|
15,763
|
66,069
|
60,106
|
|||||||||||||||
|
Noninterest income
|
||||||||||||||||||||
|
Fees for customer services
|
1,566
|
1,536
|
1,521
|
5,975
|
5,488
|
|||||||||||||||
|
Gain on sale of investments
|
-
|
-
|
-
|
1,523
|
-
|
|||||||||||||||
|
Net gain on loans sold
|
567
|
993
|
347
|
2,492
|
1,419
|
|||||||||||||||
|
Brokerage and insurance fee income
|
52
|
54
|
52
|
215
|
192
|
|||||||||||||||
|
Bank owned life insurance income
|
726
|
349
|
283
|
1,672
|
1,130
|
|||||||||||||||
|
Other
|
557
|
309
|
295
|
1,570
|
875
|
|||||||||||||||
|
Total noninterest income
|
3,468
|
3,241
|
2,498
|
13,447
|
9,104
|
|||||||||||||||
|
Noninterest expense
|
||||||||||||||||||||
|
Salaries and employee benefits
|
9,728
|
9,302
|
8,897
|
36,855
|
34,416
|
|||||||||||||||
|
Occupancy expense
|
1,257
|
1,219
|
1,251
|
5,115
|
5,080
|
|||||||||||||||
|
Furniture and equipment expense
|
1,057
|
1,034
|
1,125
|
4,204
|
4,342
|
|||||||||||||||
|
FDIC assessment
|
430
|
413
|
386
|
1,657
|
1,396
|
|||||||||||||||
|
Marketing
|
763
|
443
|
371
|
2,149
|
1,590
|
|||||||||||||||
|
Other operating expenses
|
2,723
|
2,307
|
2,585
|
11,230
|
10,224
|
|||||||||||||||
|
Total noninterest expense
|
15,958
|
14,718
|
14,615
|
61,210
|
57,048
|
|||||||||||||||
|
Income before income taxes
|
4,097
|
5,809
|
3,646
|
18,306
|
12,162
|
|||||||||||||||
|
Income tax expense
|
1,716
|
1,594
|
499
|
5,727
|
2,827
|
|||||||||||||||
|
Net income
|
$
|
2,381
|
$
|
4,215
|
$
|
3,147
|
$
|
12,579
|
$
|
9,335
|
||||||||||
|
Earnings per share:
|
||||||||||||||||||||
|
Basic
|
$
|
0.16
|
$
|
0.28
|
$
|
0.21
|
$
|
0.84
|
$
|
0.62
|
||||||||||
|
Diluted
|
0.16
|
0.28
|
0.21
|
0.83
|
0.62
|
|||||||||||||||
|
Weighted average shares outstanding:
|
||||||||||||||||||||
|
Basic
|
14,785,058
|
14,632,951
|
14,695,490
|
14,726,607
|
14,682,147
|
|||||||||||||||
|
Diluted
|
15,146,365
|
14,887,461
|
14,836,032
|
14,949,654
|
14,793,346
|
|||||||||||||||
First Connecticut Bancorp, Inc.
Consolidated Average Balances, Yields and Rates (Unaudited)
|
For The Three Months Ended
|
|||||||||||
|
December 31, 2015
|
September 30, 2015
|
December 31, 2014
|
|||||||||
|
Average Balance
|
Interest and Dividends (1)
|
Yield/
Cost
|
Average Balance
|
Interest and Dividends (1)
|
Yield/
Cost
|
Average Balance
|
Interest and Dividends (1)
|
Yield/
Cost
|
|||
|
(Dollars in thousands)
|
|||||||||||
|
Interest-earning assets:
|
|||||||||||
|
Loans
|
$ 2,346,218
|
$ 20,916
|
3.54%
|
$ 2,359,293
|
$ 20,937
|
3.52%
|
$ 2,102,879
|
$ 19,199
|
3.62%
|
||
|
Securities
|
185,697
|
495
|
1.06%
|
191,530
|
465
|
0.96%
|
207,534
|
403
|
0.77%
|
||
|
Federal Home Loan Bank of Boston stock
|
21,729
|
191
|
3.49%
|
22,883
|
166
|
2.88%
|
17,969
|
66
|
1.46%
|
||
|
Federal funds and other earning assets
|
14,258
|
7
|
0.19%
|
11,089
|
8
|
0.29%
|
8,014
|
3
|
0.15%
|
||
|
Total interest-earning assets
|
2,567,902
|
21,609
|
3.34%
|
2,584,795
|
21,576
|
3.31%
|
2,336,396
|
19,671
|
3.34%
|
||
|
Noninterest-earning assets
|
122,500
|
122,438
|
105,368
|
||||||||
|
Total assets
|
$ 2,690,402
|
$ 2,707,233
|
$ 2,441,764
|
||||||||
|
Interest-bearing liabilities:
|
|||||||||||
|
NOW accounts
|
$ 498,658
|
$ 363
|
0.29%
|
$ 486,798
|
$ 357
|
0.29%
|
$ 401,269
|
$ 281
|
0.28%
|
||
|
Money market
|
459,047
|
957
|
0.83%
|
437,000
|
867
|
0.79%
|
451,288
|
926
|
0.81%
|
||
|
Savings accounts
|
216,219
|
54
|
0.10%
|
210,978
|
58
|
0.11%
|
206,794
|
51
|
0.10%
|
||
|
Certificates of deposit
|
436,676
|
1,237
|
1.12%
|
430,152
|
1,130
|
1.04%
|
352,100
|
861
|
0.97%
|
||
|
Total interest-bearing deposits
|
1,610,600
|
2,611
|
0.64%
|
1,564,928
|
2,412
|
0.61%
|
1,411,451
|
2,119
|
0.60%
|
||
|
Federal Home Loan Bank of Boston Advances
|
343,024
|
1,004
|
1.16%
|
411,236
|
890
|
0.86%
|
328,257
|
675
|
0.82%
|
||
|
Repurchase agreement borrowings
|
10,500
|
97
|
3.67%
|
10,500
|
96
|
3.63%
|
21,000
|
181
|
3.42%
|
||
|
Repurchase liabilities
|
50,264
|
19
|
0.15%
|
57,644
|
24
|
0.17%
|
66,305
|
42
|
0.25%
|
||
|
Total interest-bearing liabilities
|
2,014,388
|
3,731
|
0.73%
|
2,044,308
|
3,422
|
0.66%
|
1,827,013
|
3,017
|
0.66%
|
||
|
Noninterest-bearing deposits
|
380,041
|
368,200
|
336,141
|
||||||||
|
Other noninterest-bearing liabilities
|
49,273
|
51,089
|
41,602
|
||||||||
|
Total liabilities
|
2,443,702
|
2,463,597
|
2,204,756
|
||||||||
|
Stockholders' equity
|
246,700
|
243,636
|
237,008
|
||||||||
|
Total liabilities and stockholders' equity
|
$ 2,690,402
|
$ 2,707,233
|
$ 2,441,764
|
||||||||
|
Tax-equivalent net interest income
|
$ 17,878
|
$ 18,154
|
$ 16,654
|
||||||||
|
Less: tax-equivalent adjustment
|
(515)
|
(482)
|
(259)
|
||||||||
|
Net interest income
|
$ 17,363
|
$ 17,672
|
$ 16,395
|
||||||||
|
Net interest rate spread (2)
|
2.61%
|
2.65%
|
2.68%
|
||||||||
|
Net interest-earning assets (3)
|
$ 553,514
|
$ 540,487
|
$ 509,383
|
||||||||
|
Net interest margin (4)
|
2.76%
|
2.79%
|
2.83%
|
||||||||
|
Average interest-earning assets to average interest-bearing liabilities
|
127.48%
|
126.44%
|
127.88%
|
||||||||
(1) On a fully-tax equivalent basis.
(2) Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
(3) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(4) Net interest margin represents tax-equivalent net interest income divided by average total interest-earning assets.
First Connecticut Bancorp, Inc.
Consolidated Average Balances, Yields and Rates (Unaudited)
|
For The Years Ended December 31,
|
|||||||
|
2015
|
2014
|
||||||
|
Average
Balance
|
Interest and Dividends (1)
|
Yield/
Cost
|
Average
Balance
|
Interest and Dividends (1)
|
Yield/
Cost
|
||
|
(Dollars in thousands)
|
|||||||
|
Interest-earning assets:
|
|||||||
|
Loans
|
$ 2,279,418
|
$ 81,177
|
3.56%
|
$ 1,962,239
|
$ 71,967
|
3.67%
|
|
|
Securities
|
188,004
|
1,832
|
0.97%
|
181,317
|
1,429
|
0.79%
|
|
|
Federal Home Loan Bank of Boston stock
|
21,187
|
522
|
2.46%
|
15,911
|
208
|
1.31%
|
|
|
Federal funds and other earning assets
|
11,947
|
26
|
0.22%
|
4,947
|
15
|
0.30%
|
|
|
Total interest-earning assets
|
2,500,556
|
83,557
|
3.34%
|
2,164,414
|
73,619
|
3.40%
|
|
|
Noninterest-earning assets
|
119,857
|
105,474
|
|||||
|
Total assets
|
$ 2,620,413
|
$ 2,269,888
|
|||||
|
Interest-bearing liabilities:
|
|||||||
|
NOW accounts
|
$ 472,644
|
$ 1,351
|
0.29%
|
$ 380,936
|
$ 976
|
0.26%
|
|
|
Money market
|
453,017
|
3,592
|
0.79%
|
420,456
|
3,112
|
0.74%
|
|
|
Savings accounts
|
213,383
|
226
|
0.11%
|
200,948
|
205
|
0.10%
|
|
|
Certificates of deposit
|
407,071
|
4,203
|
1.03%
|
338,590
|
3,076
|
0.91%
|
|
|
Total interest-bearing deposits
|
1,546,115
|
9,372
|
0.61%
|
1,340,930
|
7,369
|
0.55%
|
|
|
Federal Home Loan Bank of Boston Advances
|
356,539
|
3,449
|
0.97%
|
260,432
|
1,841
|
0.71%
|
|
|
Repurchase agreement borrowings
|
12,629
|
448
|
3.55%
|
21,000
|
719
|
3.42%
|
|
|
Repurchase liabilities
|
54,600
|
106
|
0.19%
|
60,082
|
151
|
0.25%
|
|
|
Total interest-bearing liabilities
|
1,969,883
|
13,375
|
0.68%
|
1,682,444
|
10,080
|
0.60%
|
|
|
Noninterest-bearing deposits
|
357,156
|
315,177
|
|||||
|
Other noninterest-bearing liabilities
|
51,312
|
37,909
|
|||||
|
Total liabilities
|
2,378,351
|
2,035,530
|
|||||
|
Stockholders' equity
|
242,062
|
234,358
|
|||||
|
Total liabilities and stockholders' equity
|
$ 2,620,413
|
$ 2,269,888
|
|||||
|
Tax-equivalent net interest income
|
$ 70,182
|
$ 63,539
|
|||||
|
Less: tax-equivalent adjustment
|
(1,673)
|
(845)
|
|||||
|
Net interest income
|
$ 68,509
|
$ 62,694
|
|||||
|
Net interest rate spread (2)
|
2.66%
|
2.80%
|
|||||
|
Net interest-earning assets (3)
|
$ 530,673
|
$ 481,970
|
|||||
|
Net interest margin (4)
|
2.81%
|
2.94%
|
|||||
|
Average interest-earning assets to average interest-bearing liabilities
|
126.94%
|
128.65%
|
|||||
|
(1) On a fully-tax equivalent basis.
|
|||||||
|
(2) Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost
|
|||||||
|
of average interest-bearing liabilities.
|
|||||||
|
(3) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
|
|||||||
|
(4) Net interest margin represents tax-equivalent net interest income divided by average total interest-earning assets.
|
|||||||
First Connecticut Bancorp, Inc.
Reconcilliation of Non-GAAP Financial Measures (Unaudited)
The table below presents a reconciliation of non-GAAP financial measures with financial measures defined by GAAP for the three months ended December 31, 2015, September 30, 2015, June 30, 2015, March 31, 2015 and December 31, 2014. The Company believes the use of these non-GAAP financial measures provides additional clarity in assessing the results of the Company.
|
At or for the Three Months Ended
|
|||||||||||
|
December 31,
|
September 30,
|
June 30,
|
March 31,
|
December 31,
|
|||||||
|
(Dollars in thousands, except per share data)
|
2015
|
2015
|
2015
|
2015
|
2014
|
||||||
|
Net Income
|
$ 2,381
|
$ 4,215
|
$ 3,472
|
$ 2,511
|
$ 3,147
|
||||||
|
Adjustments:
|
|||||||||||
|
Plus: Accelerated vesting of stock compensation
|
-
|
-
|
258
|
140
|
-
|
||||||
|
Plus: Employee severance
|
-
|
-
|
-
|
93
|
-
|
||||||
|
Less: Prepayment penalty fees
|
(43)
|
-
|
(35)
|
-
|
-
|
||||||
|
Less: Non-recurring payment related to a loan participation
|
-
|
-
|
-
|
-
|
(250)
|
||||||
|
Less: Gain on sale of foreclosed real estate
|
-
|
(557)
|
-
|
-
|
-
|
||||||
|
Less: Bank-owned life insurance proceeds
|
(379)
|
-
|
-
|
-
|
-
|
||||||
|
Less: Net gain on sales of investments
|
-
|
-
|
(1,250)
|
(273)
|
-
|
||||||
|
Total core adjustments before taxes
|
(422)
|
(557)
|
(1,027)
|
(40)
|
(250)
|
||||||
|
Tax benefit on core adjustments
|
15
|
195
|
359
|
14
|
88
|
||||||
|
Deferred tax asset valuation allowance (1)
|
768
|
-
|
-
|
-
|
-
|
||||||
|
Tax rate adjustment (2)
|
-
|
-
|
-
|
-
|
(441)
|
||||||
|
Total core adjustments after taxes
|
361
|
(362)
|
(668)
|
(26)
|
(603)
|
||||||
|
Total core net income
|
$ 2,742
|
$ 3,853
|
$ 2,804
|
$ 2,485
|
$ 2,544
|
||||||
|
Total net interest income
|
$ 17,363
|
$ 17,672
|
$ 17,099
|
$ 16,375
|
$ 16,395
|
||||||
|
Less: Prepayment penalty fees
|
(43)
|
-
|
(35)
|
-
|
-
|
||||||
|
Less: Non-recurring payment related to a loan participation
|
-
|
-
|
-
|
-
|
(250)
|
||||||
|
Total core net interest income
|
$ 17,320
|
$ 17,672
|
$ 17,064
|
$ 16,375
|
$ 16,145
|
||||||
|
Total noninterest income
|
$ 3,468
|
$ 3,241
|
$ 4,074
|
$ 2,664
|
$ 2,498
|
||||||
|
Less: Bank-owned life insurance proceeds
|
(379)
|
-
|
-
|
-
|
-
|
||||||
|
Less: Net gain on sales of investments
|
-
|
-
|
(1,250)
|
(273)
|
-
|
||||||
|
Total core noninterest income
|
$ 3,089
|
$ 3,241
|
$ 2,824
|
$ 2,391
|
$ 2,498
|
||||||
|
Total noninterest expense
|
$ 15,958
|
$ 14,718
|
$ 15,597
|
$ 14,937
|
$ 14,615
|
||||||
|
Less: Accelerated vesting of stock compensation
|
-
|
-
|
(258)
|
(140)
|
-
|
||||||
|
Less: Employee severances
|
-
|
-
|
-
|
(93)
|
-
|
||||||
|
Less: Gain on sale of foreclosed real estate
|
-
|
557
|
-
|
-
|
-
|
||||||
|
Total core noninterest expense
|
$ 15,958
|
$ 15,275
|
$ 15,339
|
$ 14,704
|
$ 14,615
|
||||||
|
Core earnings per common share, diluted
|
$ 0.18
|
$ 0.25
|
$ 0.19
|
$ 0.16
|
$ 0.17
|
||||||
|
Core return on average assets (annualized)
|
0.41%
|
0.57%
|
0.44%
|
0.40%
|
0.42%
|
||||||
|
Core return on average equity (annualized)
|
4.45%
|
6.33%
|
4.66%
|
4.19%
|
4.29%
|
||||||
|
Core non-interest expense to average assets (annualized)
|
2.37%
|
2.26%
|
2.39%
|
2.34%
|
2.39%
|
||||||
|
Efficiency ratio (3)
|
78.19%
|
73.04%
|
77.13%
|
78.35%
|
78.39%
|
||||||
|
Tangible book value (4)
|
$ 15.47
|
$ 15.30
|
$ 15.01
|
$ 14.82
|
$ 14.64
|
||||||
|
(1) Represents a valuation allowance related to a deferred tax asset associated with the establishment of the Bank's foundation in 2011.
|
|||||||||||
|
(2) Represents the tax benefit derived from adjusting the tax rate on the Company's deferred tax assets from 34% to 35%. The Company's taxable income placed it in
|
|||||||||||
|
the 35% corporate tax bracket.
|
|||||||||||
|
(3) Represents core noninterest expense divided by the sum of core net interest income and core noninterest income.
|
|||||||||||
|
(4) Represents ending stockholders' equity less goodwill and intangible assets (excluding mortgage servicing rights) divided by ending common shares outstanding.
|
|||||||||||
|
The Company does not have goodwill and intangible assets for any of the periods presented.
|
|||||||||||
First Connecticut Bancorp, Inc.
Reconcilliation of Non-GAAP Financial Measures (Unaudited)
The table below presents a reconciliation of non-GAAP financial measures with financial measures defined by GAAP for the years ended December 31, 2015 and 2014. The Company believes the use of these non-GAAP financial measures provides additional clarity in assessing the results of the Company.
|
At or for the Years Ended December 31,
|
||||||||
|
(Dollars in thousands, except per share data)
|
2015
|
2014
|
||||||
|
Net Income
|
$
|
12,579
|
$
|
9,335
|
||||
|
Adjustments:
|
||||||||
|
Plus: Accelerated vesting of stock compensation
|
398
|
-
|
||||||
|
Plus: Employee severance
|
93
|
-
|
||||||
|
Less: Prepayment penalty fees
|
(78
|
)
|
(185
|
)
|
||||
|
Less: Non-recurring payment related to a loan participation
|
-
|
(250
|
)
|
|||||
|
Less: Gain on sale of foreclosed real estate
|
(557
|
)
|
-
|
|||||
|
Less: Bank-owned life insurance proceeds
|
(379
|
)
|
-
|
|||||
|
Less: Net gain on sales of investments
|
(1,523
|
)
|
-
|
|||||
|
Total core adjustments before taxes
|
(2,046
|
)
|
(435
|
)
|
||||
|
Tax benefit on core adjustments
|
583
|
151
|
||||||
|
Deferred tax asset valuation allowance (1)
|
768
|
-
|
||||||
|
Tax rate adjustment (2)
|
-
|
(441
|
)
|
|||||
|
Total core adjustments after taxes
|
(695
|
)
|
(725
|
)
|
||||
|
Total core net income
|
$
|
11,884
|
$
|
8,610
|
||||
|
Total net interest income
|
$
|
68,509
|
$
|
62,694
|
||||
|
Less: Prepayment penalty fees
|
(78
|
)
|
(185
|
)
|
||||
|
Less: Non-recurring payment related to a loan participation
|
-
|
(250
|
)
|
|||||
|
Total core net interest income
|
$
|
68,431
|
$
|
62,259
|
||||
|
.
|
||||||||
|
Total noninterest income
|
$
|
13,447
|
$
|
9,104
|
||||
|
Less: Bank-owned life insurance proceeds
|
(379
|
)
|
-
|
|||||
|
Less: Net gain on sales of investments
|
(1,523
|
)
|
-
|
|||||
|
Total core noninterest income
|
$
|
11,545
|
$
|
9,104
|
||||
|
Total noninterest expense
|
$
|
61,210
|
$
|
57,048
|
||||
|
Less: Accelerated vesting of stock compensation
|
(398
|
)
|
-
|
|||||
|
Less: Employee severances
|
(93
|
)
|
-
|
|||||
|
Less: Gain on sale of foreclosed real estate
|
557
|
-
|
||||||
|
Total core noninterest expense
|
$
|
61,276
|
$
|
57,048
|
||||
|
Core earnings per common share, diluted
|
$
|
0.78
|
$
|
0.57
|
||||
|
Core return on average assets (annualized)
|
0.45
|
%
|
0.38
|
%
|
||||
|
Core return on average equity (annualized)
|
4.91
|
%
|
3.67
|
%
|
||||
|
Core non-interest expense to average assets (annualized)
|
2.34
|
%
|
2.51
|
%
|
||||
|
Efficiency ratio (3)
|
76.62
|
%
|
79.94
|
%
|
||||
|
Tangible book value (4)
|
$
|
15.47
|
$
|
15.30
|
||||
|
(1) Represents a valuation allowance related to a deferred tax asset associated with the establishment of the Bank's foundation in 2011.
|
||||||||
|
(2) Represents the tax benefit derived from adjusting the tax rate on the Company's deferred tax assets from 34% to 35%.
|
||||||||
|
The Company's taxable income placed it in the 35% corporate tax bracket.
|
||||||||
|
(3) Represents core noninterest expense divided by the sum of core net interest income and core noninterest income.
|
||||||||
|
(4) Represents ending stockholders' equity less goodwill and intangible assets (excluding mortgage servicing rights) divided
|
||||||||
|
by ending common shares outstanding. The Company does not have goodwill and intangible assets for any of the periods presented.
|
||||||||
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