Form 8-K First Connecticut Bancor For: Oct 19

FARMINGTON, Conn., October 19, 2016 – First Connecticut Bancorp, Inc. (the "Company") (NASDAQ: FBNK), the holding company for Farmington Bank (the "Bank"), reported net income of $3.8 million, or $0.25 diluted earnings per share for the quarter ended September 30, 2016 compared to net income of $4.2 million, or $0.28 diluted earnings per share for the quarter ended September 30, 2015.

For the quarter ended September 30, 2015, diluted earnings per share were positively affected ($0.03) by a $557,000 gain on the sale of foreclosed real estate.

"Once again this quarter we achieved solid organic growth in deposits, commercial loans and mortgage banking. We continue to build and enhance the franchise, in central Connecticut and western Massachusetts while focusing on growing tangible book value in this historic low interest rate environment," stated John J. Patrick Jr., First Connecticut Bancorp's Chairman, President and CEO.

Financial Highlights

·	Core net interest income increased $253,000 to $17.8 million in the third quarter of 2016 compared to the linked quarter and increased $83,000 compared to the third quarter of 2015.

·	Core net interest rate margin was 2.74% in the third quarter of 2016 compared to 2.81% in the linked quarter and 2.79% in the prior year quarter.

·	Core noninterest expense to average assets was 2.22% in the third quarter of 2016 compared to 2.23% in the linked quarter and 2.26% in the prior year quarter.

·	Organic loan growth remained strong during the third quarter of 2016 as loans increased $52.2 million to $2.5 billion at September 30, 2016 and increased $138.1 million or 6% from a year ago.  Loan growth during the quarter was driven by the commercial and residential loan portfolios.

·	Overall deposits increased $196.4 million to $2.2 billion in the third quarter of 2016 compared to the linked quarter and increased $274.5 million or 14% from a year ago.

·	Loans to deposits were 110.16% in the third quarter of 2016 compared to 118.17% in the linked quarter and 118.49% in the third quarter of 2015.

·	Tangible book value per share increased to $16.17 for the quarter ended September 30, 2016 compared to $15.95 on a linked quarter basis and $15.30 at September 30, 2015.

·	Checking accounts grew by 3% or 1,624 net new accounts in the third quarter of 2016 and by 12% or 5,815 net new accounts from a year ago.

·

Loan delinquencies 30 days and greater represented 0.74% of total loans at September 30, 2016 compared to 0.50% at June 30, 2016 and 0.67% at September 30, 2015.  Non-accrual loans represented 0.72% of total loans compared to 0.56% of total loans on a linked quarter basis and 0.71% of total loans at September 30, 2015.  The increase in non-accruals and delinquencies is primarily the result of one commercial real estate loan with a current loan to value of 35%.

·	The allowance for loan losses represented 0.86% of total loans at September 30, 2016, June 30, 2016 and at September 30, 2015.

·	The Company paid a quarterly cash dividend of $0.08 per share during the third quarter, an increase of $0.01 compared to the linked quarter.

Third quarter 2016 compared with second quarter 2016

Net interest income

·	Core net interest income increased $253,000 to $17.8 million in the third quarter of 2016 compared to the linked quarter primarily due to a $42.6 million increase in the average loans balance.

·	Core net interest margin was 2.74% in the third quarter of 2016 compared to 2.81% in the linked quarter.  The decrease in net margin was primarily due to lower yields on new loans originated and securities and an increase in cost of interest-bearing liabilities.

·	The cost of interest-bearing liabilities increased 2 basis points to 79 basis points in the third quarter of 2016 compared to 77 basis points in the linked quarter.

Provision for loan losses

·	Provision for loan losses was $698,000 for the third quarter of 2016 compared to $801,000 for the linked quarter.

·	Net charge-offs in the quarter were $155,000 or 0.03% to average loans (annualized) compared to $255,000 or 0.04% to average loans (annualized) in the linked quarter.

·	The allowance for loan losses represented 0.86% of total loans at September 30, 2016 and June 30, 2016.

Noninterest income

·	Total noninterest income increased $1.1 million to $3.7 million in the third quarter of 2016 compared to the linked quarter primarily due to an $188,000 increase in net gain on loans sold and a $778,000 increase in other noninterest income.

·	Net gain on loans sold increased $188,000 to $939,000 primarily due to an increase in volume.

·	Other income increased $778,000 primarily due to a $91,000 recovery in fair value in mortgage servicing rights compared to a $374,000 mortgage servicing rights impairment during the linked quarter and a $418,000 increase in swap fees offset by a $172,000 impairment on a SBIC fund.

·	Other noninterest income includes swap fees totaling $692,000 compared to $274,000 in the linked quarter.

Noninterest expense

·	Noninterest expense increased $840,000 in the third quarter of 2016 to $15.5 million compared to the linked quarter primarily due to a $138,000 increase in marketing expenses and a $537,000 increase in other operating expenses.

·	Other operating expenses increased $537,000 on a linked quarter basis primarily due to a $436,000 decrease in the provision for off-balance sheet commitments as a result of a change in accounting estimate in the linked quarter.

Income tax expense

·	Income tax expense was $1.5 million in the third quarter of 2016 compared to $1.4 million in the linked quarter.

Third quarter 2016 compared with third quarter 2015

Net interest income

·	Net interest income increased $83,000 to $17.8 million in the third quarter of 2016 compared to the prior year quarter due primarily to a $70.8 million increase in the average loan balance offset by a $628,000 increase in interest expense.

·	Net interest margin decreased 5 basis points to 2.74% in the third quarter of 2016 compared to 2.79% in the prior year quarter primarily due to an increase in the cost of interest-bearing liabilities.

·	The cost of interest-bearing liabilities increased 13 basis points to 79 basis points in the third quarter of 2016 compared to 66 basis points in the prior year quarter due to money market and certificate of deposit promotions.

Provision for loan losses

·	Provision for loan losses was $698,000 for the third quarter of 2016 compared to $386,000 for the prior year quarter.

·	Net charge-offs (recoveries) in the quarter were $155,000 or 0.03% to average loans (annualized) compared to ($43,000) or (0.01%) to average loans (annualized) in the prior year quarter.

·	The allowance for loan losses represented 0.86% of total loans at September 30, 2016 and 2015.

Noninterest income

·	Total noninterest income increased $444,000 to $3.7 million in the third quarter of 2016 compared to the prior year quarter primarily due to a $444,000 increase in other noninterest income.

·	Other noninterest income increased $444,000 in the third quarter of 2016 compared to the prior year quarter primarily due to an $180,000 increase in mortgage banking derivatives and a $302,000 increase in swap fees offset by a $141,000 increase in impairment on a SBIC fund.

Noninterest expense

·

Noninterest expense increased $766,000 in the third quarter of 2016 to $15.5 million compared to the prior year quarter primarily due to a $239,000 increase in marketing expenses and a $527,000 increase in other operating expenses.  Noninterest expense on a core basis increased $209,000 compared to the prior year quarter.

·	Other operating expenses increased $527,000 primarily due to a $557,000 gain on foreclosed real estate in the prior year quarter.

Income tax expense

·	Income tax expense was $1.5 million in the third quarter of 2016 compared to $1.6 million in the prior year quarter.

September 30, 2016 compared to September 30, 2015

Financial Condition

·	Total assets increased $123.5 million or 5% at September 30, 2016 to $2.8 billion compared to $2.7 billion at September 30, 2015, largely reflecting an increase in net loans.

·	Our investment portfolio totaled $141.4 million at September 30, 2016 compared to $196.9 million at September 30, 2015, a decrease of $55.4 million due to a reduction in collateral requirements.

·	Net loans increased $136.8 million or 6% at September 30, 2016 to $2.5 billion compared to $2.3 billion at September 30, 2015 due to our continued focus on commercial and residential lending.

·

Deposits increased $274.5 million or 14% to $2.2 billion at September 30, 2016 compared to $2.0 billion at September 30, 2015 primarily due to increases in money markets, demand deposits and certificates of deposit as we continue to develop and grow relationships in the geographical areas we serve.  We had brokered deposit balances totaling $43.2 million and $55.5 million at September 30, 2016 and 2015, respectively.

·	Federal Home Loan Bank of Boston advances decreased $153.0 million to $220.6 million at September 30, 2016 compared to $373.6 million at September 30, 2015.  Advances are used to support loan and securities growth.

Asset Quality

·	At September 30, 2016 the allowance for loan losses represented 0.86% of total loans and 119.26% of non-accrual loans, compared to 0.86% of total loans and 153.22% of non-accrual loans at June 30, 2016 and 0.86% of total loans and 120.05% of non-accrual loans at September 30, 2015.

·	Loan delinquencies 30 days and greater represented 0.74% of total loans at September 30, 2016 compared to 0.50% of total loans at June 30, 2016 and 0.67% of total loans at September 30, 2015.

·	Non-accrual loans represented 0.72% of total loans at September 30, 2016 compared to 0.56% of total loans at June 30, 2016 and 0.71% of total loans at September 30, 2015.

·	Net charge-offs (recoveries) in the quarter were $155,000 or 0.03% to average loans (annualized) compared to $255,000 or 0.04% to average loans (annualized) in the linked quarter and ($43,000) or (0.01%) to average loans (annualized) in the prior year quarter.

Capital and Liquidity

·	The Company remained well-capitalized with an estimated total capital to risk-weighted asset ratio of 12.57% at September 30, 2016.

·	Tangible book value per share is $16.17 compared to $15.95 on a linked quarter basis and $15.30 at September 30, 2015.

·	The Company had 600,945 shares remaining to repurchase at September 30, 2016 from prior regulatory approval. Repurchased shares are held as treasury stock and will be available for general corporate purposes.

·	At September 30, 2016, 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.

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 24 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, October 20, 2016 at 10:30am Eastern Time to discuss third 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
	September 30,		June 30,		March 31,		December 31,		September 30,
(Dollars in thousands, except per share data)	2016		2016		2016		2015		2015
Selected Financial Condition Data:
Total assets	$    2,831,960		$    2,779,224		$    2,701,614		$    2,708,546		$    2,708,454
Cash and cash equivalents	89,940		66,743		59,166		59,139		47,447
Securities held-to-maturity, at amortized cost	7,338		7,640		19,964		32,246		25,486
Securities available-for-sale, at fair value	134,094		149,396		128,681		132,424		171,390
Federal Home Loan Bank of Boston stock, at cost	15,139		18,240		15,688		21,729		23,038
Loans, net	2,455,101		2,403,420		2,350,245		2,341,598		2,318,257
Deposits	2,247,873		2,051,438		2,097,832		1,991,358		1,973,355
Federal Home Loan Bank of Boston advances	220,600		340,600		259,600		377,600		373,600
Total stockholders' equity	255,615		252,242		248,013		245,721		243,195
Allowance for loan losses	21,263		20,720		20,174		20,198		20,010
Non-accrual loans	17,829		13,523		13,093		14,913		16,668
Impaired loans	37,599		38,216		38,588		41,017		42,664
Loan delinquencies 30 days and greater	18,238		12,206		13,095		14,945		15,598
Selected Operating Data:
Interest income	$        21,805		$        21,698		$        21,323		$        21,094		$        21,094
Interest expense	4,050		3,826		3,817		3,731		3,422
Net interest income	17,755		17,872		17,506		17,363		17,672
Provision for loan losses	698		801		217		776		386
Net interest income after provision for loan losses	17,057		17,071		17,289		16,587		17,286
Noninterest income	3,685		2,617		2,900		3,468		3,241
Noninterest expense	15,484		14,644		15,277		15,958		14,718
Income before income taxes	5,258		5,044		4,912		4,097		5,809
Income tax expense	1,485		1,401		1,299		1,716		1,594
Net income	$          3,773		$          3,643		$          3,613		$          2,381		$          4,215
Performance Ratios (annualized):
Return on average assets	0.54%		0.54%		0.54%		0.35%		0.62%
Return on average equity	5.89%		5.77%		5.82%		3.86%		6.92%
Net interest rate spread (1)	2.56%		2.70%		2.65%		2.61%		2.65%
Net interest rate margin (2)	2.74%		2.87%		2.82%		2.76%		2.79%
Non-interest expense to average assets (3)	2.22%		2.23%		2.27%		2.37%		2.26%
Efficiency ratio (4)	72.53%		73.52%		75.19%		78.19%		73.04%
Average interest-earning assets to average
interest-bearing liabilities	129.42%		129.54%		128.45%		127.48%		126.44%
Loans to deposits	110.16%		118.17%		112.99%		118.60%		118.49%
Asset Quality Ratios:
Allowance for loan losses as a percent of total loans	0.86%		0.86%		0.85%		0.86%		0.86%
Allowance for loan losses as a percent of
non-accrual loans	119.26%		153.22%		154.08%		135.44%		120.05%
Net charge-offs (recoveries) to average loans (annualized)	0.03%		0.04%		0.04%		0.10%		(0.01%)
Non-accrual loans as a percent of total loans	0.72%		0.56%		0.55%		0.63%		0.71%
Non-accrual loans as a percent of total assets	0.63%		0.49%		0.48%		0.55%		0.62%
Loan delinquencies 30 days and greater as a
percent of total loans	0.74%		0.50%		0.55%		0.63%		0.67%
Per Share Related Data:
Basic earnings per share	$            0.25		$            0.24		$0.24		$            0.16		$            0.28
Diluted earnings per share	$            0.25		$            0.24		$0.24		$            0.16		$            0.28
Dividends declared per share	$            0.08		$            0.07		$0.07		$            0.06		$            0.06
Tangible book value (5)	$          16.17		$          15.95		$15.72		$          15.47		$          15.30
Common stock shares outstanding	15,805,748		15,818,494		15,780,657		15,881,663		15,893,263
Weighted-average basic shares outstanding	14,823,914		14,765,452		14,720,892		14,785,058		14,632,951
Weighted-average diluted shares outstanding	15,192,006		15,077,291		15,012,540		15,146,365		14,887,461

 

 

	At or for the Three Months Ended
	September 30,		June 30,		March 31,		December 31,		September 30,
(Dollars in thousands)	2016		2016		2016		2015		2015
Capital Ratios:
Equity to total assets at end of period	9.03%		9.08%		9.18%		9.07%		8.98%
Average equity to average assets	9.20%		9.34%		9.22%		9.17%		9.00%
Total Capital (to Risk Weighted Assets)	12.57%	*	12.63%		12.88%		12.88%		12.72%
Tier I Capital (to Risk Weighted Assets)	11.62%	*	11.69%		11.92%		11.91%		11.76%
Common Equity Tier I Capital	11.62%	*	11.69%		11.92%		11.91%		11.76%
Tier I Leverage Capital (to Average Assets)	9.40%	*	9.55%		9.44%		9.39%		9.24%
Total equity to total average assets	9.17%		9.32%		9.20%		9.13%		8.98%
* Estimated
Loans and Allowance for Loan Losses:
Real estate
Residential	$       864,054		$         842,427		$       855,148		$       849,722		$       851,784
Commercial	931,703		922,643		893,477		887,431		862,367
Construction	50,083		41,466		36,557		30,895		29,244
Installment	3,211		3,267		3,338		2,970		3,007
Commercial	449,008		437,046		402,960		409,550		410,704
Collateral	1,621		1,689		1,668		1,668		1,632
Home equity line of credit	172,148		171,212		172,325		174,701		174,579
Revolving credit	82		79		77		91		96
Resort	512		535		759		784		807
Total loans	2,472,422		2,420,364		2,366,309		2,357,812		2,334,220
Net deferred loan costs	3,942		3,776		4,110		3,984		4,047
Loans	2,476,364		2,424,140		2,370,419		2,361,796		2,338,267
Allowance for loan losses	(21,263)		(20,720)		(20,174)		(20,198)		(20,010)
Loans, net	$    2,455,101		$     2,403,420		$    2,350,245		$    2,341,598		$    2,318,257
Deposits:
Noninterest-bearing demand deposits	$       419,664		$         415,562		$       396,356		$       401,388		$       359,757
Interest-bearing
NOW accounts	590,213		429,973		529,267		468,054		527,128
Money market	536,979		498,847		488,497		460,737		440,249
Savings accounts	223,848		229,868		223,188		220,389		211,170
Time deposits	477,169		477,188		460,524		440,790		435,051
Total interest-bearing deposits	1,828,209		1,635,876		1,701,476		1,589,970		1,613,598
Total deposits	$     2,247,873		$      2,051,438		$     2,097,832		$     1,991,358		$     1,973,355

 

 

 

							September 30		June 30,		September 30
							2016		2016		2015
(Dollars in thousands)
Assets
Cash and due from banks							$            33,206		$            37,455		$            33,564
Interest bearing deposits with other institutions							56,734		29,288		13,883
		Total cash and cash equivalents					89,940		66,743		47,447
Securities held-to-maturity, at amortized cost							7,338		7,640		25,486
Securities available-for-sale, at fair value							134,094		149,396		171,390
Loans held for sale							5,462		6,912		8,416
Loans (1)							2,476,364		2,424,140		2,338,267
	Allowance for loan losses						(21,263)		(20,720)		(20,010)
		Loans, net					2,455,101		2,403,420		2,318,257
Premises and equipment, net							18,383		18,917		17,870
Federal Home Loan Bank of Boston stock, at cost							15,139		18,240		23,038
Accrued income receivable							6,413		6,736		6,305
Bank-owned life insurance							51,364		51,029		50,633
Deferred income taxes							15,136		15,405		15,935
Prepaid expenses and other assets							33,590		34,786		23,677
					Total assets		$       2,831,960		$       2,779,224		$       2,708,454
Liabilities and Stockholders' Equity
Deposits
	Interest-bearing						$       1,828,209		$       1,635,876		$       1,613,598
	Noninterest-bearing						419,664		415,562		359,757
							2,247,873		2,051,438		1,973,355
Federal Home Loan Bank of Boston advances							220,600		340,600		373,600
Repurchase agreement borrowings							10,500		10,500		10,500
Repurchase liabilities							35,036		63,027		58,084
Accrued expenses and other liabilities							62,336		61,417		49,720
					Total liabilities		2,576,345		2,526,982		2,465,259
Stockholders' Equity
	Common stock						181		181		181
	Additional paid-in-capital						183,769		183,504		181,195
	Unallocated common stock held by ESOP						(10,833)		(11,100)		(11,893)
	Treasury stock, at cost						(31,645)		(31,868)		(30,411)
	Retained earnings						120,487		117,980		111,274
	Accumulated other comprehensive loss						(6,344)		(6,455)		(7,151)
					Total stockholders' equity		255,615		252,242		243,195
					Total liabilities and stockholders' equity		$       2,831,960		$       2,779,224		$       2,708,454

 

First Connecticut Bancorp, Inc.

Consolidated Statements of Income (Unaudited)

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							Three Months Ended						Nine Months Ended
							September 30		June 30,		September 30		September 30
(Dollars in thousands, except per share data)							2016		2016		2015		2016		2015
Interest income
Interest and fees on loans
	Mortgage						$        16,134		$        16,120		$        15,861		$      48,161		$      46,250
	Other						4,983		4,858		4,594		14,555		12,853
Interest and dividends on investments
	United States Government and agency obligations						419		448		401		1,285		1,109
	Other bonds						13		14		13		40		66
	Corporate stocks						210		232		217		681		493
Other interest income							46		26		8		104		19
					Total interest income		21,805		21,698		21,094		64,826		60,790
Interest expense
Deposits							2,975		2,735		2,412		8,446		6,761
Interest on borrowed funds							955		980		890		2,902		2,445
Interest on repo borrowings							98		96		96		289		351
Interest on repurchase liabilities							22		15		24		56		87
					Total interest expense		4,050		3,826		3,422		11,693		9,644
					Net interest income		17,755		17,872		17,672		53,133		51,146
Provision for loan losses							698		801		386		1,716		1,664
					Net interest income
						after provision for loan losses	17,057		17,071		17,286		51,417		49,482
Noninterest income
Fees for customer services							1,600		1,530		1,536		4,614		4,409
Gain on sale of investments							-		-		-		-		1,523
Net gain on loans sold							939		751		993		2,180		1,925
Brokerage and insurance fee income							58		54		54		166		163
Bank owned life insurance income							335		307		349		1,056		946
Other							753		(25)		309		1,186		1,013
					Total noninterest income		3,685		2,617		3,241		9,202		9,979
Noninterest expense
Salaries and employee benefits							9,285		9,213		9,302		27,874		27,127
Occupancy expense							1,271		1,189		1,219		3,679		3,858
Furniture and equipment expense							1,020		1,018		1,034		3,099		3,147
FDIC assessment							392		383		413		1,179		1,227
Marketing							682		544		443		1,647		1,386
Other operating expenses							2,834		2,297		2,307		7,927		8,507
					Total noninterest expense		15,484		14,644		14,718		45,405		45,252
					Income before income taxes		5,258		5,044		5,809		15,214		14,209
Income tax expense							1,485		1,401		1,594		4,185		4,011
					Net income		$          3,773		$          3,643		$          4,215		$      11,029		$      10,198
Earnings per share:
	Basic						$           0.25		$           0.24		$           0.28		$        0.74		$        0.68
	Diluted						0.25		0.24		0.28		0.73		0.67
Weighted average shares outstanding:
	Basic						14,823,914		14,765,452		14,632,951		14,770,282		14,706,908
	Diluted						15,192,006		15,077,291		14,887,461		15,093,109		14,883,362

 

First Connecticut Bancorp, Inc.

Consolidated Average Balances, Yields and Rates (Unaudited)

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	For The Three Months Ended
	September 30, 2016				June 30, 2016				September 30, 2015
	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	$       2,430,114	$      21,650	3.54%		$ 2,387,538	$      21,499	3.62%		$ 2,359,293	$      20,937	3.52%
Securities	165,738	481	1.15%		150,257	515	1.38%		191,530	465	0.96%
Federal Home Loan Bank of Boston stock	18,206	161	3.52%		17,763	179	4.05%		22,883	166	2.88%
Federal funds and other earning assets	36,439	46	0.50%		22,607	26	0.46%		11,089	8	0.29%
Total interest-earning assets	2,650,497	22,338	3.35%		2,578,165	22,219	3.47%		2,584,795	21,576	3.31%
Noninterest-earning assets	135,828				127,656				122,438
Total assets	$       2,786,325				$ 2,705,821				$ 2,707,233
Interest-bearing liabilities:
NOW accounts	$          506,509	$           385	0.30%		$    470,835	$           336	0.29%		$    486,798	$           357	0.29%
Money market	525,301	1,085	0.82%		486,826	930	0.77%		437,000	867	0.79%
Savings accounts	221,981	60	0.11%		226,820	59	0.10%		210,978	58	0.11%
Certificates of deposit	481,901	1,445	1.19%		473,976	1,410	1.20%		430,152	1,130	1.04%
Total interest-bearing deposits	1,735,692	2,975	0.68%		1,658,457	2,735	0.66%		1,564,928	2,412	0.61%
Federal Home Loan Bank of Boston Advances	250,459	955	1.52%		279,601	980	1.41%		411,236	890	0.86%
Repurchase agreement borrowings	10,500	98	3.71%		10,500	96	3.68%		10,500	96	3.63%
Repurchase liabilities	51,297	22	0.17%		41,757	15	0.14%		57,644	24	0.17%
Total interest-bearing liabilities	2,047,948	4,050	0.79%		1,990,315	3,826	0.77%		2,044,308	3,422	0.66%
Noninterest-bearing deposits	417,917				404,809				368,200
Other noninterest-bearing liabilities	64,201				58,085				51,089
Total liabilities	2,530,066				2,453,209				2,463,597
Stockholders' equity	256,259				252,612				243,636
Total liabilities and stockholders' equity	$       2,786,325				$ 2,705,821				$ 2,707,233
Tax-equivalent net interest income		$      18,288				$      18,393				$      18,154
Less: tax-equivalent adjustment		(533)				(521)				(482)
Net interest income		$      17,755				$      17,872				$      17,672
Net interest rate spread (2)			2.56%				2.70%				2.65%
Net interest-earning assets (3)	$          602,549				$    587,850				$    540,487
Net interest margin (4)			2.74%				2.87%				2.79%
Average interest-earning assets to average interest-bearing liabilities
		129.42%				129.54%				126.44%