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First Connecticut Bancorp, Inc. Announces Second Quarter 2012
Earnings
GlobeNewswire
2012-07-30
FARMINGTON, Conn., July 30, 2012 (GLOBE NEWSWIRE) -- First Connecticut
Bancorp, Inc. (the "Company") (Nasdaq:FBNK) (the holding company for
Farmington Bank) (the "Bank"), today announced second quarter results
for the period ended June 30, 2012. Net income for the quarter ended
June 30, 2012 was $831,000, or $0.05 per diluted share, compared to
$991,000 or $0.06 per diluted share for the quarter ended March 31,
2012, and a net loss of $4.6 million or ($0.26) per diluted share for
the quarter ended June 30, 2011.
"We are pleased to celebrate our one year anniversary as a public
company. We continue to achieve significant organic loan and deposit
growth in central Connecticut and beyond. In May, we opened our 18th
branch location in Bloomfield, Connecticut and we anticipate opening
our 19th branch in South Windsor, Connecticut during the fourth
quarter. We continue to broaden our geographic footprint while
diversifying the balance sheet and improving overall asset quality,"
stated John J. Patrick, Jr., First Connecticut Bancorp's Chairman,
President & CEO.
Financial Highlights
-- Loan growth continued as total loans increased $89.5 million or 7% for
the second quarter of 2012 compared to the previous quarter. Loan
portfolios grew as follows: Residential Real Estate, $45.9 million or
9%, Commercial Real Estate $12.5 million or 3%, Commercial and
Industrial Loans, $20.5 million or 13% and Home Equity Lines of Credit,
$11.3 million or 10%.
-- Our focus continues to be on core deposit growth, specifically Demand
Deposit Accounts and Small Business Checking. Total core deposits grew
by 1,331 net new accounts during the quarter.
-- Asset quality continues to improve as non-performing loans decreased
$2.8 million to $13.5 million at June 30, 2012 from $16.3 million at
March 31, 2012 and loan delinquencies 30 days and greater decreased $3.0
million to $15.3 million at June 30, 2012 from $18.3 million at March
31, 2012.
-- We paid a cash dividend of $.03 per share on June 14, 2012. This marks
the third consecutive quarter we have paid a dividend since First
Connecticut Bancorp, Inc. became a public company on June 29, 2011.
-- On July 2, 2012, we received regulatory approval to repurchase up to
1,788,020 shares, or 10% of our current outstanding common stock.
Repurchased shares will be held as treasury stock and will be available
for general corporate purposes.
Earnings Summary
Second quarter 2012 compared with first quarter 2012
For the quarter ended June 30, 2012, net income decreased by $160,000
to $831,000 compared to net income of $991,000 for the quarter ended
March 31, 2012. The decrease in net income resulted from lower interest
income due to a lower rate environment, an increase in the provision
for loan losses and an increase in non-interest expense as we continue
to expand geographically, offset by an increase in non-interest income.
Net interest income for the quarter ended June 30, 2012 decreased
$155,000 to $12.8 million compared to $13.0 million for the quarter
ended March 31, 2012 as the overall yield on loans decreased 22 basis
points to 4.35%. In addition to adding new loans at lower rates to our
portfolio, the continuous decline in the current rate environment has
led our commercial and residential customers to refinance and modify
their current loans. The yield on average interest-earning assets
decreased 13 basis points to 3.93% from 4.06% for the quarter ended
March 31, 2012. The cost of deposits decreased 5 basis points to 0.65%,
reflecting the already low level of deposit pricing.
Provision for loan losses was $520,000 for the quarter ended June 30,
2012 compared to $330,000 for the quarter ended March 31, 2012. The
increase in the provision was in part due to growth in our residential
and commercial loan portfolios. The provision recorded was based upon
management's analysis of the allowance for loan losses as of June 30,
2012.
Noninterest income increased $693,000 or 53% to $2.0 million for the
quarter ended June 30, 2012 compared to $1.3 million for the quarter
ended March 31, 2012 mainly due to a $333,000 increase in gain on sale
of fixed-rate residential mortgage loans and an increase of $267,000 in
other noninterest income.
Noninterest expense increased $532,000 or 4% to $13.2 million for the
quarter ended June 30, 2012 compared to $12.6 million for the quarter
ended March 31, 2012. Increases occurred primarily in salaries and
employee benefits, marketing and other operating expenses. We opened
our 18th branch in Bloomfield, Connecticut during the quarter to
support our continued growth and expansion.
Second quarter 2012 compared with second quarter 2011
For the quarter ended June 30, 2012, net income increased by $5.5
million to $831,000 compared to a net loss of $4.6 million for the
quarter ended June 30, 2011. The increase in net income resulted from
an increase in net interest income and noninterest income, a decrease
in noninterest expense due to incurring $851,000 in the phasing out the
Phantom Stock Plan and $6.9 million expense related to the funding of
Farmington Bank Community Foundation, Inc. during the second quarter of
2011, offset by an increase in the provision for loan losses.
Net interest income increased $885,000 or 7% to $12.8 million for the
quarter ended June 30, 2012 compared to $11.9 million for the quarter
ended June 30, 2011, driven by growth in average interest-earning
assets and lower funding costs. Total average interest-earning assets
increased $104.4 million or 7%, to $1.5 billion reflecting growth in
the loan portfolio. Loan yields were down 43 basis points to 4.35% and
yields on investments decreased 23 basis points to 1.13% compared to
the quarter ended June 30, 2011. The yield on average interest-earning
assets declined 15 basis points to 3.93% and the cost of
interest-bearing liabilities decreased 13 basis points to 81 basis
points. Net interest margin was 3.32% for the quarter ended June 30,
2012 compared to 3.31% for the quarter ended June 30, 2011.
Provision for loan losses was $520,000 for the quarter ended June 30,
2012 compared to $300,000 for the quarter ended June 30, 2011. The
increase in the provision was in part due to growth in our residential
and commercial loan portfolios. The provision recorded was based upon
management's analysis of the allowance for loan losses as of June 30,
2012.
Noninterest income increased $577,000 or 40% to $2.0 million for the
quarter ended June 30, 2012 compared to $1.4 million for the quarter
ended June 30, 2011. Gain on sale of fixed-rate residential mortgage
loans increased $232,000 or 117% to $431,000 compared to $199,000 for
the quarter ended June 30, 2011. Bank owned life insurance income
increased $147,000 reflecting the purchase of additional insurance
within the past twelve months and other noninterest income increased
$136,000.
Noninterest expense decreased $6.8 million to $13.2 million for the
quarter ended June 30, 2012 compared to $20.0 million for the quarter
ended June 30, 2011. As part of our initial public offering in June
2011, we incurred a $6.9 million expense related to the funding of the
Farmington Bank Community Foundation, Inc. Salaries and employee
benefits increased $146,000 to $7.6 million compared to $7.5 million
for the quarter ended June 30, 2011. Excluding the $851,000 incurred to
phase out the Phantom Stock Plan for the quarter ended June 30, 2011,
salaries and employee benefits increased $997,000 for the quarter ended
June 30, 2012. The increase was due to supporting our branch openings,
providing the resources to sustain our strategic growth and $297,000
related to our Employee Stock Ownership Plan (ESOP).
Balance Sheet Activity
Total assets at June 30, 2012 remained flat at $1.7 billion compared to
March 31, 2012. Our cash and cash equivalents decreased $94.6 million
to $36.7 million at June 30, 2012 compared to $131.3 million at March
31, 2012 primarily as a result of an $89.6 million increase in net
loans. Our Federal Home Loan Bank of Boston advances and repurchase
liabilities increased $39.8 million, offset by a $30.8 million decrease
in deposits.
Our investment portfolio totaled $133.4 million or 8% of total assets
and $119.2 million or 7% of total assets at June 30, 2012 and March 31,
2012, respectively. Available-for-sale investment securities totaled
$130.4 million at June 30, 2012 compared to $116.0 million at March 31,
2012, an increase of $14.4 million primarily due to increases in U.S.
Treasury securities as a result of higher collateral requirements for
our commercial repurchase agreements. The Company purchases short term
U.S. Treasury securities in order to meet commercial repurchase
agreement collateral requirements and to minimize interest rate risk
during the sustained low interest rate environment.
Net loans increased $89.6 million or 7% at June 30, 2012 to $1.4
billion compared to $1.3 billion at March 31, 2012 due to our continued
focus on commercial and residential lending, despite a $5.0 million
decrease in resort loans as we are gradually exiting the resort
financing market.
Prepaid expenses and other assets increased $2.2 million or 15% to
$16.3 million at June 30, 2012 compared to $14.2 million at March 31,
2012 primarily due to an increase in an interest rate swap derivative
receivable.
Deposits increased $20.8 million compared to March 31, 2012, excluding
municipal deposits, with the majority coming from small business
accounts, savings accounts and accounts related to the opening of our
18th branch in Bloomfield, Connecticut in May 2012. Municipal deposits
were $97.5 million and $149.2 million at June 30, 2012 and March 31,
2012, respectively.
Federal Home Loan Bank of Boston advances increased $28.0 million or
44% to $91.0 million at June 30, 2012 compared to $63.0 million at
March 31, 2012. Our repurchase liabilities increased $11.8 million to
$67.5 million at June 30, 2012 from $55.7 million at March 31, 2012
primarily due to fluctuations in cash flows in business checking
customers using our repurchase agreement product where excess funds are
swept daily into a collateralized account.
Asset Quality
The allowance for loan losses had a slight increase to $17.9 million at
June 30, 2012 from $17.7 million at March 31, 2012. Impaired loans
increased 1% to $39.5 million as of June 30, 2012 from $39.1 million as
of March 31, 2012. Non-performing loans decreased $2.8 million to $13.5
million at June 30, 2012 from $16.3 million at March 31, 2012. At June
30, 2012, the allowance for loan losses represented 1.25% of total
loans and 133.01% of non-performing loans, compared to 1.32% of total
loans and 108.50% of non-performing loans at March 31, 2012. Net
charge-offs for the quarter ended were $320,000 or 0.09%, compared to
net charge-offs for the quarter ended March 31, 2012 of $136,000 or
0.04% of average loans outstanding. Loan delinquencies 30 days and
greater decreased $3.0 million at June 30, 2012 to $15.3 million
compared to $18.3 million at March 31, 2012. We take a proactive
approach in working with customers to help ensure that they remain
current on their loans. Past due loans are primarily in our residential
portfolio which is due to weak economic conditions leading to stress on
cash flows of our borrowers.
Capital and Liquidity
The Company remained well-capitalized with an estimated total capital
to risk weighted asset ratio of 20.43% at June 30, 2012.
At June 30, 2012, the Company continued to have adequate liquidity
including significant unused borrowing capacity at the Federal Home
Loan Bank and the Federal Reserve Bank as well as access to funding
through the repurchase agreement and brokered deposit markets.
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 18 branch locations
throughout central Connecticut. 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.
The First Connecticut Bancorp, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=11128
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.
Financial information contained in this release should be considered to
be an estimate pending the filing with the Securities and Exchange
Commission of the Company's Quarterly Report on Form 10-Q for the
quarter ended June 30, 2012. While the Company is not aware of any need
to revise the results disclosed in this release, accounting literature
may require adverse information received by management between the date
of this release and the filing of the 10-Q to be reflected in the
results of the period, even though the new information was received by
management subsequent to the date of this release.
First Connecticut Bancorp, Inc.
Selected Financial Data (Unaudited)
-----------------------------------------------------------------------------------------------------------
At or for the Three Months Ended
(Dollars in thousands, except per June 30, March 31, December 31, September June 30,
share data) 2012 2012 2011 30, 2011 2011
------------ ------------ ------------ ------------ ------------
Selected Financial Condition Data:
Total assets $ 1,687,431 $ 1,677,229 $ 1,617,650 $ 1,696,576 $ 1,632,269
Cash and cash equivalents 36,727 131,280 90,296 240,554 238,662
Held to maturity securities 3,007 3,216 3,216 3,621 3,621
Available for sale securities 130,386 115,956 135,170 160,743 135,823
Federal Home Loan Bank of Boston
stock, at cost 7,137 7,137 7,449 7,449 7,449
Loans receivable, net 1,415,732 1,326,107 1,295,177 1,211,514 1,177,571
Deposits 1,218,743 1,249,583 1,176,682 1,248,236 1,187,707
Federal Home Loan Bank of Boston
advances 91,000 63,000 63,000 63,000 68,000
Total stockholders' equity 248,105 250,196 251,980 257,912 263,047
Allowance for loan losses 17,927 17,727 17,533 16,094 15,912
Non-performing loans 13,478 16,338 15,501 18,442 18,699
Selected Operating Data:
Interest income $ 15,146 $ 15,427 $ 14,961 $ 14,659 $ 14,674
Interest expense 2,347 2,473 2,614 2,672 2,760
------------ ------------ ------------ ------------ ------------
Net Interest Income 12,799 12,954 12,347 11,987 11,914
Provision for allowance for loan
losses 520 330 3,190 300 300
------------ ------------ ------------ ------------ ------------
Net interest income after provision
for loan losses 12,279 12,624 9,157 11,687 11,614
Noninterest income 2,006 1,313 1,250 1,728 1,429
Noninterest expense, excluding
contribution to
charitable foundation (*) 13,161 12,629 12,779 11,945 13,050
Contribution to charitable foundation
(*) -- -- -- -- 6,877
------------ ------------ ------------ ------------ ------------
Total noninterest expense 13,161 12,629 12,779 11,945 19,927
Income (loss) before income taxes 1,124 1,308 (2,372) 1,470 (6,884)
Provision (benefit) for income taxes 293 317 (918) 427 (2,239)
------------ ------------ ------------ ------------ ------------
Net income (loss) 831 $ 991 $ (1,454) $ 1,043 $ (4,645)
============ ============ ============ ============ ============
Performance Ratios (annualized):
Return on average assets 0.20% 0.24% -0.35% 0.25% -1.22%
Return average equity 1.32% 1.57% -2.24% 1.60% -18.26%
Interest rate spread (1) 3.12% 3.20% 2.93% 2.78% 3.14%
Net interest rate margin (2) 3.32% 3.41% 3.15% 2.99% 3.31%
Non-interest expense to average
assets 3.16% 3.08% 3.08% 2.85% 3.44%
Efficiency ratio (3) 88.90% 88.52% 93.98% 87.09% 149.34%
Efficiency ratio, excluding
foundation contribution (4) 88.90% 88.52% 93.98% 87.09% 97.80%
Average interest-earning assets to
average
interest-bearing liabilities 132.88% 132.04% 132.19% 130.83% 122.40%
(*) In connection with the Conversion and Reorganization on June 29, 2011, the Company established
Farmington Bank Community Foundation, Inc., a non-profit charitable organization, which was funded with a
contribution of 687,000 shares of the Company's common stock.
(1) Represents the difference between the weighted-average yield on average interest-earning
assets and the weighted-average cost of the interest-bearing liabilities.
(2) Represents net interest income as a percent of average interest-earning assets.
(3) Represents noninterest expense
divided by the sum of net interest
income and noninterest income.
(4) Represents noninterest expense (excluding $6.9 million contribution to Farmington Bank Community
Foundation, Inc. in June 2011) divided by the sum of net interest income and noninterest income.
At or for the Three Months Ended
June 30, March 31, December 31, September June 30,
2012 2012 2011 30, 2011 2011
------------ ------------ ------------ ------------ ------------
Asset Quality Ratios:
Allowance for loan losses as a
percent of total loans 1.25% 1.32% 1.34% 1.31% 1.33%
Allowance for loan losses as a
percent of
non-performing loans 133.01% 108.50% 113.11% 87.27% 85.10%
Net charge-offs to average loans
(annualized) 0.09% 0.04% 0.56% 0.04% 1.67%
Non-performing loans as a percent of
total loans 0.94% 1.22% 1.18% 1.50% 1.57%
Non-performing loans as a percent of
total assets 0.80% 0.97% 0.96% 1.09% 1.15%
Per Share Related Data:
Basic and diluted earnings per share $ 0.05 $ 0.06 $ (0.09) $ 0.06 $ (0.26)
Dividends declared per share $ 0.03 $ 0.03 $ 0.03 $ -- $ --
Capital Ratios:
Equity to total assets at end of
period 14.70% 14.92% 15.58% 15.20% 16.12%
Average equity to average assets 15.09% 15.36% 15.65% 15.60% 6.70%
Total capital to risk-weighted assets 20.43%* 21.84% 22.38% 24.21% 25.46%
Tier I capital to risk-weighted
assets 19.18%* 20.59% 21.13% 22.96% 24.20%
Tier I capital to total average
assets 15.21%* 15.58% 15.51% 15.55% 17.48%
Total equity to total average assets 14.90% 15.27% 15.20% 15.40% 17.32%
* Estimated
First Connecticut Bancorp, Inc.
Consolidated Statements of Condition
---------------------------------------------------------------------
December
June 30, March 31, 31,
2012 2012 2011
----------- ----------- -----------
(Dollars in thousands) (Unaudited) (Unaudited) (Audited)
Assets
Cash and due from banks $ 36,727 $ 38,280 $ 40,296
Federal funds sold -- 93,000 50,000
----------- ----------- -----------
Cash and cash equivalents 36,727 131,280 90,296
Securities held-to-maturity,
at amortized cost 3,007 3,216 3,216
Securities available-for-sale,
at fair value 130,386 115,956 135,170
Loans held for sale 1,667 3,408 1,039
Loans, net 1,415,732 1,326,107 1,295,177
Premises and equipment, net 21,514 21,293 21,379
Federal Home Loan Bank of
Boston stock, at cost 7,137 7,137 7,449
Accrued income receivable 4,174 4,304 4,185
Bank-owned life insurance 37,022 36,701 30,382
Deferred income taxes 13,735 13,672 13,907
Prepaid expenses and other
assets 16,330 14,155 15,450
----------- ----------- -----------
Total assets $ 1,687,431 $ 1,677,229 $ 1,617,650
=========== =========== ===========
Liabilities and Stockholders'
Equity
Deposits
Interest-bearing $ 994,923 $ 1,033,981 $ 981,057
Noninterest-bearing 223,820 215,602 195,625
----------- ----------- -----------
1,218,743 1,249,583 1,176,682
Federal Home Loan Bank of
Boston advances 91,000 63,000 63,000
Repurchase agreement
borrowings 21,000 21,000 21,000
Repurchase liabilities 67,534 55,713 64,466
Accrued expenses and other
liabilities 41,049 37,737 40,522
----------- ----------- -----------
Total liabilities 1,439,326 1,427,033 1,365,670
----------- ----------- -----------
Commitments and contingencies -- -- --
Stockholders' Equity
Common stock 179 179 179
Additional paid-in-capital 174,929 174,884 174,836
Unallocated common stock held
by ESOP (15,340) (13,031) (10,490)
Retained earnings 93,687 93,392 92,937
Accumulated other
comprehensive loss (5,350) (5,228) (5,482)
----------- ----------- -----------
Total stockholders'
equity 248,105 250,196 251,980
----------- ----------- -----------
Total liabilities and
stockholders' equity $ 1,687,431 $ 1,677,229 $ 1,617,650
=========== =========== ===========
First Connecticut Bancorp, Inc.
Consolidated Statements of Operations (Unaudited)
-----------------------------------------------------------------------------------------
Three Months Ended Six Months Ended
---------------------------------- ---------------------
June 30, March 31, June 30, June 30,
(Dollars in thousands, except
per share data) 2012 2012 2011 2012 2011
---------- ---------- ---------- ---------- ---------
Interest income
Interest and fees on loans
Mortgage $ 10,882 $ 11,110 $ 10,595 $ 21,992 $ 21,143
Other 3,859 3,889 3,536 7,748 7,148
Interest and dividends on investments
United States Government and
agency obligations 249 266 360 515 795
Other bonds 60 58 54 118 106
Corporate stocks 70 70 71 140 138
Other interest income 26 34 58 60 75
---------- ---------- ---------- ---------- ---------
Total interest income 15,146 15,427 14,674 30,573 29,405
---------- ---------- ---------- ---------- ---------
Interest expense .
Deposits 1,643 1,755 1,954 3,398 3,906
Interest on borrowed funds 462 481 531 943 1,056
Interest on repo borrowings 181 180 179 361 358
Interest on repurchase
liabilities 61 57 96 118 220
---------- ---------- ---------- ---------- ---------
Total interest expense 2,347 2,473 2,760 4,820 5,540
---------- ---------- ---------- ---------- ---------
Net interest income 12,799 12,954 11,914 25,753 23,865
Provision for allowance for
loan losses 520 330 300 850 600
---------- ---------- ---------- ---------- ---------
Net interest income
after provision for loan
losses 12,279 12,624 11,614 24,903 23,265
---------- ---------- ---------- ---------- ---------
Noninterest income
Fees for customer services 900 816 860 1,716 1,647
Net gain on loans sold 431 98 199 529 345
Brokerage and insurance fee
income 32 25 10 57 134
Bank owned life insurance
income 321 319 174 640 348
Other 322 55 186 377 236
---------- ---------- ---------- ---------- ---------
Total noninterest income 2,006 1,313 1,429 3,319 2,710
---------- ---------- ---------- ---------- ---------
Noninterest expense
Salaries and employee benefits 7,619 7,424 7,473 15,043 14,041
Occupancy expense 1,098 1,190 1,094 2,288 2,331
Furniture and equipment
expense 1,112 1,099 990 2,211 1,965
FDIC assessment 294 279 529 573 1,070
Marketing 753 606 658 1,359 1,131
Contribution to Farmington Bank
Community Foundation, Inc. -- -- 6,877 -- 6,877
Other operating expenses 2,285 2,031 2,306 4,316 4,173
---------- ---------- ---------- ---------- ---------
Total noninterest expense 13,161 12,629 19,927 25,790 31,588
---------- ---------- ---------- ---------- ---------
Income before income
taxes 1,124 1,308 (6,884) 2,432 (5,613)
---------- ---------- ---------- ---------- ---------
Provision for (benefit from)
income taxes 293 317 (2,239) 610 (1,984)
---------- ---------- ---------- ---------- ---------
Net income (loss) $ 831 $ 991 $ (4,645) $ 1,822 $ (3,629)
========== ========== ========== ========== =========
Net income per share:
Basic and Diluted (1) $ 0.05 $ 0.06 $ (0.26) $ 0.11 N/A
Weighted average shares outstanding:
Basic and Diluted 16,686,810 16,784,974 17,581,225 16,735,892 N/A
Pro forma net loss per share (2):
Basic and Diluted N/A N/A $ (0.26) N/A $ (0.21)
(1)= Net loss per share reflects earnings for the period from June 29, 2011, the date the
Company completed a Plan of Conversion and Reorganization to June 30, 2011.
(2)= Pro forma net loss per share assumes the Company's shares are outstanding for all
periods prior to the completion of the Plan of Conversion and Reorganization on June 29,
2011.
First Connecticut Bancorp, Inc.
Consolidated Average Balances, Yields and Rates (Unaudited)
----------------------------------------------------------------------------------------------------------------------
Three Months Ended Three Months Ended Three Months Ended
June 30, 2012 March 31, 2012 June 30, 2011
----------------------------------- ----------------------------------- -----------------------------------
Interest Interest Interest
Average and Average and Average and
Balance Dividends Yield/Cost Balance Dividends Yield/Cost Balance Dividends Yield/Cost
------------ --------- ---------- ------------ --------- ---------- ------------ --------- ----------
(Dollar
s in
thousa
nds)
Interes
t-earni
ng
assets
:
Loans
receiv
able $ 1,360,401 $ 14,741 4.35% $ 1,315,786 $ 14,999 4.57% $ 1,186,674 $ 14,131 4.78%
Securit
ies 131,309 370 1.13% 132,561 385 1.16% 143,277 485 1.36%
Federal
Home
Loan
Bank
of
Boston
stock 7,137 9 0.51% 7,370 9 0.49% 7,449 -- 0.00%
Fed
Funds
and
other
earnin
g
assets 48,049 26 66,714 34 105,095 58
------------ --------- 0.22% ------------ --------- 0.20% ------------ --------- 0.22%
Total
inter
est-ea
rning
asset
s 1,546,896 15,146 3.93% 1,522,431 15,427 4.06% 1,442,495 14,674 4.08%
Noninte
rest-ea
rning
assets 117,486 116,374 76,585
------------ ------------ ------------
Total
asset
s $ 1,664,382 $ 1,638,805 $ 1,519,080
============ ============ ============
Interes
t-beari
ng
liabil
ities:
NOW
accoun
ts $ 204,611 $ 83 0.16% $ 204,932 $ 89 0.17% $ 245,649 $ 178 0.29%
Money
market 270,157 488 0.72% 262,320 544 0.83% 204,711 543 1.06%
Savings
accoun
ts 174,321 64 0.15% 161,626 61 0.15% 153,806 76 0.20%
Certifi
cates
of
deposi
t 368,006 1,008 381,985 1,061 421,766 1,157
------------ --------- 1.10% ------------ --------- 1.11% ------------ --------- 1.10%
Total
inter
est-be
aring
depos
its 1,017,095 1,643 0.65% 1,010,863 1,755 0.70% 1,025,932 1,954 0.76%
Advance
s from
the
Federa
l Home
Loan
Bank 62,869 462 2.95% 63,042 481 3.06% 68,005 531 3.13%
Repurch
ase
Agreem
ent
Borrow
ing 21,000 181 3.46% 21,000 180 3.44% 21,000 179 3.42%
Repurch
ase
liabil
ities 63,166 61 58,067 57 63,577 96
------------ --------- 0.39% ------------ --------- 0.39% ------------ --------- 0.61%
Total
inter
est-be
aring
liabi
lities 1,164,130 2,347 1,152,972 2,473 1,178,514 2,760
------------ --------- 0.81% ------------ --------- 0.86% ------------ --------- 0.94%
Noninte
rest-be
aring
deposi
ts 210,874 195,192 210,582
Other
nonint
erest-b
earing
liabil
ities 38,273
------------ 38,932 28,213
Total
liabi
lities 1,413,277 1,417,309
------------ 1,387,096 ------------
Capital 251,105 251,709 101,771
------------ ------------ ------------
Tota
l
lia
bili
ties
and
cap
ital $ 1,664,382 $ 1,638,805 $ 1,519,080
============ ============ ============
Net
intere
st
income $ 12,799 $ 12,954 $ 11,914
========= ========= =========
Net
intere
st rate
spread
(1) 3.12% 3.20% 3.14%
Net
intere
st-earn
ing
assets
(2) $ 382,766 $ 369,459 $ 263,981
============ ============ ============
Net
intere
st
margin
(3) 3.32% 3.41% 3.31%
Averag
e
inter
est-ea
rning
asset
s to
avera
ge
inter
est-be
aring
liabi
lities
132.88% 132.04% 122.40%
(1) Net interest rate spread represents the difference between the yield on average interest-earning assets and the
cost of average interest-bearing liabilities.
(2) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(3) Net interest margin represents net interest income divided by average total interest-earning assets.
First Connecticut Bancorp, Inc.
Consolidated Average Balances, Yields and Rates (Unaudited)
------------------------------------------------------------------------------------------------------------
Six Months Ended June 30,
------------------------------------------------------------------------
2012 2011
----------------------------------- -----------------------------------
Interest Interest
Average and Average and
Balance Dividends Yield/Cost Balance Dividends Yield/Cost
------------ --------- ---------- ------------ --------- ----------
(Dollars in thousands)
Interest-earning assets:
Loans receivable, net $ 1,338,093 $ 29,740 4.46% $ 1,184,335 $ 28,291 4.82%
Securities 131,935 755 1.15% 152,052 1,033 1.37%
Federal Home Loan Bank of Boston
stock 7,253 18 0.50% 7,449 6 0.16%
Fed Funds and other earning assets 57,381 60 69,775 75
------------ --------- 0.21% ------------ --------- 0.22%
Total interest-earning assets 1,534,662 30,573 4.00% 1,413,611 29,405 4.19%
Noninterest-earning assets 116,931 72,482
------------ ------------
Total assets $ 1,651,593 $ 1,486,093
============ ============
Interest-bearing liabilities:
NOW accounts $ 204,771 $ 172 0.17% $ 242,804 $ 361 0.30%
Money market 266,238 1,032 0.78% 192,225 955 1.00%
Savings accounts 167,973 125 0.15% 146,967 145 0.20%
Certificates of deposit 374,996 2,069 431,628 2,445
------------ --------- 1.11% ------------ --------- 1.14%
Total interest-bearing deposits 1,013,978 3,398 0.67% 1,013,624 3,906 0.78%
Advances from the Federal Home
Loan Bank 62,955 943 3.00% 68,052 1,056 3.13%
Repurchase Agreement Borrowing 21,000 361 3.45% 21,000 358 3.44%
Repurchase liabilities 60,617 118 72,798 220
------------ --------- 0.39% ------------ --------- 0.61%
Total interest-bearing
liabilities 1,158,550 4,820 1,175,474 5,540
------------ --------- 0.83% ------------ --------- 0.95%
Noninterest-bearing deposits 203,033 183,484
Other noninterest-bearing
liabilities 38,603
------------ 27,719
Total liabilities 1,400,186 1,386,677
------------
Stockholders' equity 251,407 99,416
------------ ------------
Total liabilities and
stockholders' equity $ 1,651,593 $ 1,486,093
============ ============
Net interest income $ 25,753 $ 23,865
========= =========
Net interest rate spread (1) 3.17% 3.24%
Net interest-earning assets (2) $ 376,112 $ 238,137
============ ============
Net interest margin (3) 3.37% 3.39%
Average interest-earning assets
to average interest-bearing
liabilities
132.46% 120.26%
(1) Net interest rate spread represents the difference between the yield on average interest-earning assets
and the cost of average interest-bearing liabilities.
(2) Net interest-earning assets represent total interest-earning assets less total interest-bearing
liabilities.
(3) Net interest margin represents net interest income divided by average total interest-earning assets.
CONTACT: Jennifer H. Daukas
Investor Relations Officer
One Farm Glen Boulevard, Farmington, CT 06032
P 860-284-6359
F 860-409-3316
jdaukas@farmingtonbankct.com
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