FARMINGTON, Conn., July 20, 2016 (GLOBE NEWSWIRE) — First Connecticut Bancorp, Inc. (the “Company”) (NASDAQ:FBNK), the holding company for Farmington Bank (the “Bank”), reported net income of $3.6 million, or $0.24 diluted earnings per share for the quarter ended June 30, 2016 compared to net income of $3.5 million, or $0.23 diluted earnings per share for the quarter ended June 30, 2015.
Net income on a core earnings basis was $3.4 million, or $0.22 diluted core earnings per share for the quarter ended June 30, 2016 compared to $2.8 million, or $0.19 diluted core earnings per share for the quarter ended June 30, 2015. Core earnings exclude non-recurring items.
“We continue to build our franchise with solid year over year organic loan and deposit growth, while our operating expenses have been relatively flat. We remain focused on building tangible book value which has increased $0.94 year over year. During the quarter, we opened our 24th location in Vernon, CT which is off to a great start and is on target to achieve the same consistent success our other de novo offices have achieved over the past six years,” stated John J. Patrick Jr., First Connecticut Bancorp’s Chairman, President and CEO.
Financial Highlights
- Net interest income increased $366,000 to $17.9 million in the second quarter of 2016 compared to the linked quarter and increased $773,000 or 5% compared to the second quarter of 2015. Net interest income includes $370,000 in prepayment penalty fees in the second quarter of 2016 compared to $35,000 in the prior year quarter.
- Core net interest rate margin was 2.81% in the second quarter of 2016 compared to 2.82% in the linked quarter and 2.86% in the prior year quarter.
- Core noninterest expense to average assets was 2.23% in the second quarter of 2016 compared to 2.27% in the linked quarter and 2.39% in the prior year quarter.
- Strong organic loan growth during the quarter as loans increased $53.7 million to $2.4 billion at June 30, 2016 and increased $136.2 million or 6% from a year ago. Loan growth during the quarter was primarily driven by a $68.2 million increase in the commercial loan portfolio offset by a $13.8 million decrease in the residential loan portfolio.
- Overall deposits remained relatively flat at $2.1 billion in the second quarter of 2016 compared to the linked quarter and increased $173.4 million or 9% from a year ago.
- Tangible book value per share increased to $15.95 for the quarter ended June 30, 2016 compared to $15.72 on a linked quarter basis and $15.01 at June 30, 2015.
- Checking accounts grew by 2% or 1,061 net new accounts in the second quarter of 2016 and by 12% or 5,623 net new accounts from a year ago.
- Net gain on loans sold increased $261,000 to $751,000 in the second quarter of 2016 compared to the linked quarter primarily due to an increase in volume.
- Asset quality remained strong as loan delinquencies 30 days and greater represented 0.50% of total loans at June 30, 2016 compared to 0.55% at March 31, 2016 and 0.58% at June 30, 2015. Non-accrual loans represented 0.56% of total loans compared to 0.55% of total loans on a linked quarter basis and 0.57% of total loans at June 30, 2015.
- The allowance for loan losses represented 0.86% of total loans at June 30, 2016, 0.85% at March 31, 2016 and 0.86% at June 30, 2015.
- The Company paid a quarterly cash dividend of $0.07 per share during the second quarter.
Second quarter 2016 compared with first quarter 2016
Net interest income
- Net interest income increased $366,000 to $17.9 million in the second quarter of 2016 compared to the linked quarter primarily due to $370,000 in prepayment penalty fees.
- Net interest margin, excluding the prepayment penalty fees, was 2.81% in the second quarter of 2016 compared to 2.82% in the linked quarter.
- The cost of interest-bearing liabilities remained flat at 77 basis points for both quarters in 2016.
Provision for loan losses
- Provision for loan losses was $801,000 for the second quarter of 2016 compared to $217,000 for the linked quarter. The increase was primarily due to $53.7 million in loan growth during the quarter.
- Net charge-offs in the quarter were $255,000 or 0.04% to average loans (annualized) compared to $241,000 or 0.04% to average loans (annualized) in the linked quarter.
- The allowance for loan losses represented 0.86% of total loans at June 30, 2016 compared to 0.85% of total loans at March 31, 2016.
Noninterest income
- Total noninterest income decreased $283,000 to $2.6 million in the second quarter of 2016 compared to the linked quarter primarily due to a $483,000 decrease in other noninterest income offset by a $261,000 increase in net gain on loans sold.
- Other income decreased $483,000 primarily due to a $374,000 mortgage servicing rights impairment due to a decline in interest rates during the quarter and a $70,000 decrease in mortgage banking derivatives.
- Other income includes swap fees totaling $274,000 compared to $315,000 in the linked quarter.
- Net gain on loans sold increased $261,000 to $751,000 primarily due to an increase in volume.
Noninterest expense
- Noninterest expense decreased $633,000 in the second quarter of 2016 to $14.6 million compared to the linked quarter primarily due to a $163,000 decrease in salaries and employee benefits and a $499,000 decrease in other operating expenses.
- Other operating expenses decreased $499,000 on a linked quarter basis primarily due to a $417,000 decrease in the provision for off-balance sheet commitments as a result of a change in accounting estimate.
Income tax expense
- Income tax expense was $1.4 million in the second quarter of 2016 compared to $1.3 million in the linked quarter.
Second quarter 2016 compared with second quarter 2015
Net interest income
- Net interest income increased $773,000 to $17.9 million in the second quarter of 2016 compared to the prior year quarter due primarily to a $146.1 million increase in the average loan balance, a $335,000 increase in prepayment penalty fees offset by a $761,000 increase in interest expense.
- Net interest margin, excluding the prepayment fees decreased 5 basis points to 2.81% in the second quarter of 2016 compared to 2.86% in the prior year quarter.
Provision for loan losses
- Provision for loan losses was $801,000 for the second quarter of 2016 compared to $663,000 for the prior year quarter.
- Net charge-offs in the quarter were $255,000 or 0.04% to average loans (annualized) compared to $314,000 or 0.06% to average loans (annualized) in the prior year quarter.
- The allowance for loan losses represented 0.86% of total loans at June 30, 2016 and 2015.
Noninterest income
- Total noninterest income decreased $1.5 million to $2.6 million in the second quarter of 2016 compared to the prior year quarter primarily due to a $1.3 million decrease in gain on sale of investments, $553,000 decrease in other noninterest income offset by a $339,000 increase in net gain on loans sold.
- There was no gain on sale of investments in the second quarter of 2016 compared to $1.3 million gain on sale of investments in the prior year quarter.
- Other income decreased $553,000 in the second quarter of 2016 compared to the prior year quarter primarily due to a $374,000 mortgage servicing rights impairment due to a decline in interest rates during the quarter and a $211,000 decrease in swap fees.
Noninterest expense
- Noninterest expense decreased $953,000 in the second quarter of 2016 to $14.6 million compared to the prior year quarter primarily due to a $980,000 decrease in other operating expenses.
- Other operating expenses decreased $980,000 primarily due to a $408,000 decrease in the provision for off-balance sheet commitments, in addition to prior year quarter $258,000 in non-recurring stock compensation costs related to two directors retiring in the quarter and a $149,000 loss on a credit sharing arrangement on a sold loan.
Income tax expense
- Income tax expense was $1.4 million in the second quarters of 2016 and 2015.
June 30, 2016 compared to June 30, 2015
Financial Condition
- Total assets increased $153.0 million or 6% at June 30, 2016 to $2.8 billion compared to $2.6 billion at June 30, 2015, largely reflecting an increase in net loans.
- Our investment portfolio totaled $157.0 million at June 30, 2016 compared to $178.2 million at June 30, 2015, a decrease of $21.1 million due to reduction in collateral requirements.
- Net loans increased $135.0 million or 6% at June 30, 2016 to $2.4 billion compared to $2.3 billion at June 30, 2015 due to our continued focus on commercial and residential lending.
- Deposits increased $173.4 million to $2.1 billion at June 30, 2016 compared to $1.9 billion at June 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 $52.2 million at June 30, 2016 and 2015, respectively.
- Federal Home Loan Bank of Boston advances decreased $60.1 million to $340.6 million at June 30, 2016 compared to $400.7 million at June 30, 2015. Advances are used to support loan and securities growth.
Asset Quality
- At June 30, 2016 the allowance for loan losses represented 0.86% of total loans and 153.22% of non-accrual loans, compared to 0.85% of total loans and 154.08% of non-accrual loans at March 31, 2016 and 0.86% of total loans and 150.94% of non-accrual loans at June 30, 2015.
- Loan delinquencies 30 days and greater represented 0.50% of total loans at June 30, 2016 compared to 0.55% of total loans at March 31, 2016 and 0.58% of total loans at June 30, 2015.
- Non-accrual loans represented 0.56% of total loans at June 30, 2016 compared to 0.55% of total loans at March 31, 2016 and 0.57% of total loans at June 30, 2015.
- Net charge-offs in the quarter were $255,000 or 0.04% to average loans (annualized) compared to $241,000 or 0.04% to average loans (annualized) in the linked quarter and $314,000 or 0.06% 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 12.63% at June 30, 2016.
- Tangible book value per share is $15.95 compared to $15.72 on a linked quarter basis and $15.01 at June 30, 2015.
- During the second quarter of 2016, the Company repurchased 9,700 shares of common stock at an average price per share of $15.90 at a total cost of $154,000. Repurchased shares are held as treasury stock and will be available for general corporate purposes. The Company had 600,945 shares remaining to repurchase at June 30, 2016 from prior regulatory approval.
- At June 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, July 21, 2016 at 10:30am Eastern Time to discuss second 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) | ||||||||||||||||||||
| At or for the Three Months Ended | ||||||||||||||||||||
| June, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||
| (Dollars in thousands, except per share data) | 2016 | 2016 | 2015 | 2015 | 2015 | |||||||||||||||
| Selected Financial Condition Data: | ||||||||||||||||||||
| Total assets | $ | 2,779,224 | $ | 2,701,614 | $ | 2,708,546 | $ | 2,708,454 | $ | 2,626,217 | ||||||||||
| Cash and cash equivalents | 66,743 | 59,166 | 59,139 | 47,447 | 42,992 | |||||||||||||||
| Securities held-to-maturity, at amortized cost | 7,640 | 19,964 | 32,246 | 25,486 | 34,366 | |||||||||||||||
| Securities available-for-sale, at fair value | 149,396 | 128,681 | 132,424 | 171,390 | 143,799 | |||||||||||||||
| Federal Home Loan Bank of Boston stock, at cost | 18,240 | 15,688 | 21,729 | 23,038 | 21,496 | |||||||||||||||
| Loans, net | 2,403,420 | 2,350,245 | 2,341,598 | 2,318,257 | 2,268,385 | |||||||||||||||
| Deposits | 2,051,438 | 2,097,832 | 1,991,358 | 1,973,355 | 1,878,040 | |||||||||||||||
| Federal Home Loan Bank of Boston advances | 340,600 | 259,600 | 377,600 | 373,600 | 400,700 | |||||||||||||||
| Total stockholders’ equity | 252,242 | 248,013 | 245,721 | 243,195 | 239,082 | |||||||||||||||
| Allowance for loan losses | 20,720 | 20,174 | 20,198 | 20,010 | 19,581 | |||||||||||||||
| Non-accrual loans | 13,523 | 13,093 | 14,913 | 16,668 | 12,973 | |||||||||||||||
| Impaired loans | 38,216 | 38,588 | 41,017 | 42,664 | 39,975 | |||||||||||||||
| Loan delinquencies 30 days and greater | 12,206 | 13,095 | 14,945 | 15,598 | 13,244 | |||||||||||||||
| Selected Operating Data: | ||||||||||||||||||||
| Interest income | $ | 21,698 | $ | 21,323 | $ | 21,094 | $ | 21,094 | $ | 20,164 | ||||||||||
| Interest expense | 3,826 | 3,817 | 3,731 | 3,422 | 3,065 | |||||||||||||||
| Net interest income | 17,872 | 17,506 | 17,363 | 17,672 | 17,099 | |||||||||||||||
| Provision for loan losses | 801 | 217 | 776 | 386 | 663 | |||||||||||||||
| Net interest income after provision for loan losses | 17,071 | 17,289 | 16,587 | 17,286 | 16,436 | |||||||||||||||
| Noninterest income | 2,617 | 2,900 | 3,468 | 3,241 | 4,074 | |||||||||||||||
| Noninterest expense | 14,644 | 15,277 | 15,958 | 14,718 | 15,597 | |||||||||||||||
| Income before income taxes | 5,044 | 4,912 | 4,097 | 5,809 | 4,913 | |||||||||||||||
| Income tax expense | 1,401 | 1,299 | 1,716 | 1,594 | 1,441 | |||||||||||||||
| Net income | $ | 3,643 | $ | 3,613 | $ | 2,381 | $ | 4,215 | $ | 3,472 | ||||||||||
| Performance Ratios (annualized): | ||||||||||||||||||||
| Return on average assets | 0.54 | % | 0.54 | % | 0.35 | % | 0.62 | % | 0.54 | % | ||||||||||
| Return on average equity | 5.77 | % | 5.82 | % | 3.86 | % | 6.92 | % | 5.77 | % | ||||||||||
| Net interest rate spread (1) | 2.70 | % | 2.65 | % | 2.61 | % | 2.65 | % | 2.72 | % | ||||||||||
| Net interest rate margin (2) | 2.87 | % | 2.82 | % | 2.76 | % | 2.79 | % | 2.86 | % | ||||||||||
| Non-interest expense to average assets (3) | 2.23 | % | 2.27 | % | 2.37 | % | 2.26 | % | 2.39 | % | ||||||||||
| Efficiency ratio (4) | 73.52 | % | 75.19 | % | 78.19 | % | 73.04 | % | 77.13 | % | ||||||||||
| Average interest-earning assets to average | ||||||||||||||||||||
| interest-bearing liabilities | 129.54 | % | 128.45 | % | 127.48 | % | 126.44 | % | 126.98 | % | ||||||||||
| Loans to deposits | 118.17 | % | 112.99 | % | 118.60 | % | 118.49 | % | 121.83 | % | ||||||||||
| Asset Quality Ratios: | ||||||||||||||||||||
| Allowance for loan losses as a percent of total loans | 0.86 | % | 0.85 | % | 0.86 | % | 0.86 | % | 0.86 | % | ||||||||||
| Allowance for loan losses as a percent of | ||||||||||||||||||||
| non-accrual loans | 153.22 | % | 154.08 | % | 135.44 | % | 120.05 | % | 150.94 | % | ||||||||||
| Net charge-offs (recoveries) to average loans (annualized) | 0.04 | % | 0.04 | % | 0.10 | % | (0.01 | %) | 0.06 | % | ||||||||||
| Non-accrual loans as a percent of total loans | 0.56 | % | 0.55 | % | 0.63 | % | 0.71 | % | 0.57 | % | ||||||||||
| Non-accrual loans as a percent of total assets | 0.49 | % | 0.48 | % | 0.55 | % | 0.62 | % | 0.49 | % | ||||||||||
| Loan delinquencies 30 days and greater as a | ||||||||||||||||||||
| percent of total loans | 0.50 | % | 0.55 | % | 0.63 | % | 0.67 | % | 0.58 | % | ||||||||||
| Per Share Related Data: | ||||||||||||||||||||
| Basic earnings per share | $ | 0.24 | $ | 0.24 | $ | 0.16 | $ | 0.28 | $ | 0.23 | ||||||||||
| Diluted earnings per share | $ | 0.24 | $ | 0.24 | $ | 0.16 | $ | 0.28 | $ | 0.23 | ||||||||||
| Dividends declared per share | $ | 0.07 | $ | 0.07 | $ | 0.06 | $ | 0.06 | $ | 0.05 | ||||||||||
| Tangible book value (5) | $ | 15.95 | $ | 15.72 | $ | 15.47 | $ | 15.30 | $ | 15.01 | ||||||||||
| Common stock shares outstanding | 15,818,494 | 15,780,657 | 15,881,663 | 15,893,263 | 15,922,888 | |||||||||||||||
| Weighted-average basic shares outstanding | 14,765,452 | 14,720,892 | 14,785,058 | 14,632,951 | 14,694,472 | |||||||||||||||
| Weighted-average diluted shares outstanding | 15,077,291 | 15,012,540 | 15,146,365 | 14,887,461 | 14,839,454 | |||||||||||||||
| (1) Represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities on a tax-equivalent basis. | ||||||||||||||||||||
| (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 | ||||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||
| (Dollars in thousands) | 2016 | 2016 | 2015 | 2015 | 2015 | |||||||||||||||
| Capital Ratios: | ||||||||||||||||||||
| Equity to total assets at end of period | 9.08 | % | 9.18 | % | 9.07 | % | 8.98 | % | 9.10 | % | ||||||||||
| Average equity to average assets | 9.34 | % | 9.22 | % | 9.17 | % | 9.00 | % | 9.36 | % | ||||||||||
| Total Capital (to Risk Weighted Assets) | 12.63 | % | * | 12.88 | % | 12.88 | % | 12.72 | % | 13.11 | % | |||||||||
| Tier I Capital (to Risk Weighted Assets) | 11.69 | % | * | 11.92 | % | 11.91 | % | 11.76 | % | 12.12 | % | |||||||||
| Common Equity Tier I Capital | 11.69 | % | * | 11.92 | % | 11.91 | % | 11.76 | % | 12.12 | % | |||||||||
| Tier I Leverage Capital (to Average Assets) | 9.55 | % | * | 9.44 | % | 9.39 | % | 9.24 | % | 9.57 | % | |||||||||
| Total equity to total average assets | 9.32 | % | 9.20 | % | 9.13 | % | 8.98 | % | 9.29 | % | ||||||||||
| * Estimated | ||||||||||||||||||||
| Loans and Allowance for Loan Losses: | ||||||||||||||||||||
| Real estate | ||||||||||||||||||||
| Residential | $ | 842,427 | $ | 855,148 | $ | 849,722 | $ | 851,784 | $ | 888,376 | ||||||||||
| Commercial | 922,643 | 893,477 | 887,431 | 862,367 | 817,955 | |||||||||||||||
| Construction | 41,466 | 36,557 | 30,895 | 29,244 | 42,858 | |||||||||||||||
| Installment | 3,267 | 3,338 | 2,970 | 3,007 | 3,103 | |||||||||||||||
| Commercial | 437,046 | 402,960 | 409,550 | 410,704 | 359,537 | |||||||||||||||
| Collateral | 1,689 | 1,668 | 1,668 | 1,632 | 1,551 | |||||||||||||||
| Home equity line of credit | 171,212 | 172,325 | 174,701 | 174,579 | 169,507 | |||||||||||||||
| Revolving credit | 79 | 77 | 91 | 96 | 77 | |||||||||||||||
| Resort | 535 | 759 | 784 | 807 | 837 | |||||||||||||||
| Total loans | 2,420,364 | 2,366,309 | 2,357,812 | 2,334,220 | 2,283,801 | |||||||||||||||
| Net deferred loan costs | 3,776 | 4,110 | 3,984 | 4,047 | 4,165 | |||||||||||||||
| Loans | 2,424,140 | 2,370,419 | 2,361,796 | 2,338,267 | 2,287,966 | |||||||||||||||
| Allowance for loan losses | (20,720 | ) | (20,174 | ) | (20,198 | ) | (20,010 | ) | (19,581 | ) | ||||||||||
| Loans, net | $ | 2,403,420 | $ | 2,350,245 | $ | 2,341,598 | $ | 2,318,257 | $ | 2,268,385 | ||||||||||
| Deposits: | ||||||||||||||||||||
| Noninterest-bearing demand deposits | $ | 415,562 | $ | 396,356 | $ | 401,388 | $ | 359,757 | $ | 377,092 | ||||||||||
| Interest-bearing | ||||||||||||||||||||
| NOW accounts | 429,973 | 529,267 | 468,054 | 527,128 | 425,789 | |||||||||||||||
| Money market | 498,847 | 488,497 | 460,737 | 440,249 | 430,558 | |||||||||||||||
| Savings accounts | 229,868 | 223,188 | 220,389 | 211,170 | 220,154 | |||||||||||||||
| Time deposits | 477,188 | 460,524 | 440,790 | 435,051 | 424,447 | |||||||||||||||
| Total interest-bearing deposits | 1,635,876 | 1,701,476 | 1,589,970 | 1,613,598 | 1,500,948 | |||||||||||||||
| Total deposits | $ | 2,051,438 | $ | 2,097,832 | $ | 1,991,358 | $ | 1,973,355 | $ | 1,878,040 | ||||||||||
| First Connecticut Bancorp, Inc. | ||||||||||||||||||
| Consolidated Statements of Condition (Unaudited) | ||||||||||||||||||
| June 30, | March 31, | June 30, | ||||||||||||||||
| 2016 | 2016 | 2015 | ||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||
| Assets | ||||||||||||||||||
| Cash and due from banks | $ | 37,455 | $ | 36,418 | $ | 35,595 | ||||||||||||
| Interest bearing deposits with other institutions | 29,288 | 22,748 | 7,397 | |||||||||||||||
| Total cash and cash equivalents | 66,743 | 59,166 | 42,992 | |||||||||||||||
| Securities held-to-maturity, at amortized cost | 7,640 | 19,964 | 34,366 | |||||||||||||||
| Securities available-for-sale, at fair value | 149,396 | 128,681 | 143,799 | |||||||||||||||
| Loans held for sale | 6,912 | 6,145 | 7,550 | |||||||||||||||
| Loans (1) | 2,424,140 | 2,370,419 | 2,287,966 | |||||||||||||||
| Allowance for loan losses | (20,720 | ) | (20,174 | ) | (19,581 | ) | ||||||||||||
| Loans, net | 2,403,420 | 2,350,245 | 2,268,385 | |||||||||||||||
| Premises and equipment, net | 18,917 | 18,210 | 17,964 | |||||||||||||||
| Federal Home Loan Bank of Boston stock, at cost | 18,240 | 15,688 | 21,496 | |||||||||||||||
| Accrued income receivable | 6,736 | 6,346 | 6,425 | |||||||||||||||
| Bank-owned life insurance | 51,029 | 50,725 | 50,283 | |||||||||||||||
| Deferred income taxes | 15,405 | 15,506 | 16,450 | |||||||||||||||
| Prepaid expenses and other assets | 34,786 | 30,938 | 16,507 | |||||||||||||||
| Total assets | $ | 2,779,224 | $ | 2,701,614 | $ | 2,626,217 | ||||||||||||
| Liabilities and Stockholders’ Equity | ||||||||||||||||||
| Deposits | ||||||||||||||||||
| Interest-bearing | $ | 1,635,876 | $ | 1,701,476 | $ | 1,500,948 | ||||||||||||
| Noninterest-bearing | 415,562 | 396,356 | 377,092 | |||||||||||||||
| 2,051,438 | 2,097,832 | 1,878,040 | ||||||||||||||||
| Federal Home Loan Bank of Boston advances | 340,600 | 259,600 | 400,700 | |||||||||||||||
| Repurchase agreement borrowings | 10,500 | 10,500 | 10,500 | |||||||||||||||
| Repurchase liabilities | 63,027 | 31,118 | 56,041 | |||||||||||||||
| Accrued expenses and other liabilities | 61,417 | 54,551 | 41,854 | |||||||||||||||
| Total liabilities | 2,526,982 | 2,453,601 | 2,387,135 | |||||||||||||||
| Stockholders’ Equity | ||||||||||||||||||
| Common stock | 181 | 181 | 181 | |||||||||||||||
| Additional paid-in-capital | 183,504 | 182,747 | 180,764 | |||||||||||||||
| Unallocated common stock held by ESOP | (11,100 | ) | (11,363 | ) | (12,160 | ) | ||||||||||||
| Treasury stock, at cost | (31,868 | ) | (32,355 | ) | (30,389 | ) | ||||||||||||
| Retained earnings | 117,980 | 115,444 | 108,014 | |||||||||||||||
| Accumulated other comprehensive loss | (6,455 | ) | (6,641 | ) | (7,328 | ) | ||||||||||||
| Total stockholders’ equity | 252,242 | 248,013 | 239,082 | |||||||||||||||
| Total liabilities and stockholders’ equity | $ | 2,779,224 | $ | 2,701,614 | $ | 2,626,217 | ||||||||||||
| (1) Loans include net deferred fees and unamortized premiums of $3.8 million, $4.1 million and $4.2 million at June 30, 2016, March 31, 2016 and June 30, 2015, respectively. | ||||||||||||||||||
| First Connecticut Bancorp, Inc. | ||||||||||||||||||||||||||
| Consolidated Statements of Income (Unaudited) | ||||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
| June 30, | March 31, | June 30, | June 30, | |||||||||||||||||||||||
| (Dollars in thousands, except per share data) | 2016 | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||||||
| Interest income | ||||||||||||||||||||||||||
| Interest and fees on loans | ||||||||||||||||||||||||||
| Mortgage | $ | 16,120 | $ | 15,907 | $ | 15,331 | $ | 32,027 | $ | 30,389 | ||||||||||||||||
| Other | 4,858 | 4,714 | 4,264 | 9,572 | 8,259 | |||||||||||||||||||||
| Interest and dividends on investments | ||||||||||||||||||||||||||
| United States Government and agency obligations | 448 | 418 | 385 | 866 | 708 | |||||||||||||||||||||
| Other bonds | 14 | 13 | 35 | 27 | 53 | |||||||||||||||||||||
| Corporate stocks | 232 | 239 | 145 | 471 | 276 | |||||||||||||||||||||
| Other interest income | 26 | 32 | 4 | 58 | 11 | |||||||||||||||||||||
| Total interest income | 21,698 | 21,323 | 20,164 | 43,021 | 39,696 | |||||||||||||||||||||
| Interest expense | ||||||||||||||||||||||||||
| Deposits | 2,735 | 2,736 | 2,140 | 5,471 | 4,349 | |||||||||||||||||||||
| Interest on borrowed funds | 980 | 967 | 804 | 1,947 | 1,555 | |||||||||||||||||||||
| Interest on repo borrowings | 96 | 95 | 92 | 191 | 255 | |||||||||||||||||||||
| Interest on repurchase liabilities | 15 | 19 | 29 | 34 | 63 | |||||||||||||||||||||
| Total interest expense | 3,826 | 3,817 | 3,065 | 7,643 | 6,222 | |||||||||||||||||||||
| Net interest income | 17,872 | 17,506 | 17,099 | 35,378 | 33,474 | |||||||||||||||||||||
| Provision for loan losses | 801 | 217 | 663 | 1,018 | 1,278 | |||||||||||||||||||||
| Net interest income | ||||||||||||||||||||||||||
| after provision for loan losses | 17,071 | 17,289 | 16,436 | 34,360 | 32,196 | |||||||||||||||||||||
| Noninterest income | ||||||||||||||||||||||||||
| Fees for customer services | 1,530 | 1,484 | 1,500 | 3,014 | 2,873 | |||||||||||||||||||||
| Gain on sale of investments | – | – | 1,250 | – | 1,523 | |||||||||||||||||||||
| Net gain on loans sold | 751 | 490 | 412 | 1,241 | 932 | |||||||||||||||||||||
| Brokerage and insurance fee income | 54 | 54 | 60 | 108 | 109 | |||||||||||||||||||||
| Bank owned life insurance income | 307 | 414 | 324 | 721 | 597 | |||||||||||||||||||||
| Other | (25 | ) | 458 | 528 | 433 | 704 | ||||||||||||||||||||
| Total noninterest income | 2,617 | 2,900 | 4,074 | 5,517 | 6,738 | |||||||||||||||||||||
| Noninterest expense | ||||||||||||||||||||||||||
| Salaries and employee benefits | 9,213 | 9,376 | 9,035 | 18,589 | 17,825 | |||||||||||||||||||||
| Occupancy expense | 1,189 | 1,219 | 1,272 | 2,408 | 2,639 | |||||||||||||||||||||
| Furniture and equipment expense | 1,018 | 1,061 | 1,077 | 2,079 | 2,113 | |||||||||||||||||||||
| FDIC assessment | 383 | 404 | 402 | 787 | 814 | |||||||||||||||||||||
| Marketing | 544 | 421 | 534 | 965 | 943 | |||||||||||||||||||||
| Other operating expenses | 2,297 | 2,796 | 3,277 | 5,093 | 6,200 | |||||||||||||||||||||
| Total noninterest expense | 14,644 | 15,277 | 15,597 | 29,921 | 30,534 | |||||||||||||||||||||
| Income before income taxes | 5,044 | 4,912 | 4,913 | 9,956 | 8,400 | |||||||||||||||||||||
| Income tax expense | 1,401 | 1,299 | 1,441 | 2,700 | 2,417 | |||||||||||||||||||||
| Net income | $ | 3,643 | $ | 3,613 | $ | 3,472 | $ | 7,256 | $ | 5,983 | ||||||||||||||||
| Earnings per share: | ||||||||||||||||||||||||||
| Basic | $ | 0.24 | $ | 0.24 | $ | 0.23 | $ | 0.49 | $ | 0.40 | ||||||||||||||||
| Diluted | 0.24 | 0.24 | 0.23 | 0.48 | 0.40 | |||||||||||||||||||||
| Weighted average shares outstanding: | ||||||||||||||||||||||||||
| Basic | 14,765,452 | 14,720,892 | 14,694,472 | 14,743,172 | 14,708,215 | |||||||||||||||||||||
| Diluted | 15,077,291 | 15,012,540 | 14,839,454 | 15,043,555 | 14,844,994 | |||||||||||||||||||||
| First Connecticut Bancorp, Inc. | ||||||||||||||||||||||||||||||
| Consolidated Average Balances, Yields and Rates (Unaudited) | ||||||||||||||||||||||||||||||
| For The Three Months Ended | ||||||||||||||||||||||||||||||
| June 30, 2016 | March 31, 2016 | June 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 | $ | 2,387,538 | $ | 21,499 | 3.62 | % | $ | 2,366,935 | $ | 21,132 | 3.59 | % | $ | 2,241,447 | $ | 19,949 | 3.57 | % | ||||||||||||
| Securities | 150,257 | 515 | 1.38 | % | 154,534 | 483 | 1.26 | % | 178,780 | 478 | 1.07 | % | ||||||||||||||||||
| Federal Home Loan Bank of Boston stock | 17,763 | 179 | 4.05 | % | 19,804 | 187 | 3.80 | % | 20,310 | 86 | 1.70 | % | ||||||||||||||||||
| Federal funds and other earning assets | 22,607 | 26 | 0.46 | % | 27,148 | 32 | 0.47 | % | 10,032 | 5 | 0.20 | % | ||||||||||||||||||
| Total interest-earning assets | 2,578,165 | 22,219 | 3.47 | % | 2,568,421 | 21,834 | 3.42 | % | 2,450,569 | 20,518 | 3.36 | % | ||||||||||||||||||
| Noninterest-earning assets | 127,656 | 127,192 | 121,820 | |||||||||||||||||||||||||||
| Total assets | $ | 2,705,821 | $ | 2,695,613 | $ | 2,572,389 | ||||||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||||||||
| NOW accounts | $ | 470,835 | $ | 336 | 0.29 | % | $ | 522,876 | $ | 380 | 0.29 | % | $ | 454,532 | $ | 310 | 0.27 | % | ||||||||||||
| Money market | 486,826 | 930 | 0.77 | % | 478,954 | 995 | 0.84 | % | 435,749 | 798 | 0.73 | % | ||||||||||||||||||
| Savings accounts | 226,820 | 59 | 0.10 | % | 216,102 | 58 | 0.11 | % | 217,651 | 57 | 0.11 | % | ||||||||||||||||||
| Certificates of deposit | 473,976 | 1,410 | 1.20 | % | 450,917 | 1,303 | 1.16 | % | 392,941 | 975 | 1.00 | % | ||||||||||||||||||
| Total interest-bearing deposits | 1,658,457 | 2,735 | 0.66 | % | 1,668,849 | 2,736 | 0.66 | % | 1,500,873 | 2,140 | 0.57 | % | ||||||||||||||||||
| Federal Home Loan Bank of Boston Advances | 279,601 | 980 | 1.41 | % | 272,610 | 967 | 1.43 | % | 366,460 | 804 | 0.88 | % | ||||||||||||||||||
| Repurchase agreement borrowings | 10,500 | 96 | 3.68 | % | 10,500 | 95 | 3.64 | % | 10,500 | 92 | 3.51 | % | ||||||||||||||||||
| Repurchase liabilities | 41,757 | 15 | 0.14 | % | 47,543 | 19 | 0.16 | % | 52,043 | 29 | 0.22 | % | ||||||||||||||||||
| Total interest-bearing liabilities | 1,990,315 | 3,826 | 0.77 | % | 1,999,502 | 3,817 | 0.77 | % | 1,929,876 | 3,065 | 0.64 | % | ||||||||||||||||||
| Noninterest-bearing deposits | 404,809 | 390,926 | 348,857 | |||||||||||||||||||||||||||
| Other noninterest-bearing liabilities | 58,085 | 56,765 | 52,831 | |||||||||||||||||||||||||||
| Total liabilities | 2,453,209 | 2,447,193 | 2,331,564 | |||||||||||||||||||||||||||
| Stockholders’ equity | 252,612 | 248,420 | 240,825 | |||||||||||||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 2,705,821 | $ | 2,695,613 | $ | 2,572,389 | ||||||||||||||||||||||||
| Tax-equivalent net interest income | $ | 18,393 | $ | 18,017 | $ | 17,453 | ||||||||||||||||||||||||
| Less: tax-equivalent adjustment | (521 | ) | (511 | ) | (354 | ) | ||||||||||||||||||||||||
| Net interest income | $ | 17,872 | $ | 17,506 | $ | 17,099 | ||||||||||||||||||||||||
| Net interest rate spread (2) | 2.70 | % | 2.65 | % | 2.72 | % | ||||||||||||||||||||||||
| Net interest-earning assets (3) | $ | 587,850 | $ | 568,919 | $ | 520,693 | ||||||||||||||||||||||||
| Net interest margin (4) | 2.87 | % | 2.82 | % | 2.86 | % | ||||||||||||||||||||||||
| Average interest-earning assets to average interest-bearing liabilities | 129.54 | % | 128.45 | % | 126.98 | % | ||||||||||||||||||||||||
| (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 on a tax-equivalent basis. | ||||||||||||||||||||||||||||||
| (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 Six Months Ended June 30, | ||||||||||||||||||||
| 2016 | 2015 | |||||||||||||||||||
| Average Balance |
Interest and Dividends (1) |
Yield/ Cost |
Average Balance |
Interest and Dividends (1) |
Yield/ Cost |
|||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||
| Loans | $ | 2,377,236 | $ | 42,631 | 3.61 | % | $ | 2,204,867 | $ | 39,322 | 3.60 | % | ||||||||
| Securities | 152,395 | 998 | 1.32 | % | 187,385 | 872 | 0.94 | % | ||||||||||||
| Federal Home Loan Bank of Boston stock | 18,783 | 366 | 3.92 | % | 20,049 | 165 | 1.66 | % | ||||||||||||
| Federal funds and other earning assets | 24,753 | 58 | 0.47 | % | 11,206 | 11 | 0.20 | % | ||||||||||||
| Total interest-earning assets | 2,573,167 | 44,053 | 3.44 | % | 2,423,507 | 40,370 | 3.36 | % | ||||||||||||
| Noninterest-earning assets | 127,550 | 117,203 | ||||||||||||||||||
| Total assets | $ | 2,700,717 | $ | 2,540,710 | ||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||
| NOW accounts | $ | 496,856 | $ | 716 | 0.29 | % | $ | 452,227 | $ | 631 | 0.28 | % | ||||||||
| Money market | 482,890 | 1,925 | 0.80 | % | 458,094 | 1,768 | 0.78 | % | ||||||||||||
| Savings accounts | 221,461 | 117 | 0.11 | % | 213,163 | 114 | 0.11 | % | ||||||||||||
| Certificates of deposit | 462,446 | 2,713 | 1.18 | % | 380,291 | 1,836 | 0.97 | % | ||||||||||||
| Total interest-bearing deposits | 1,663,653 | 5,471 | 0.66 | % | 1,503,775 | 4,349 | 0.58 | % | ||||||||||||
| Federal Home Loan Bank of Boston Advances | 276,156 | 1,947 | 1.42 | % | 335,607 | 1,555 | 0.93 | % | ||||||||||||
| Repurchase agreement borrowings | 10,500 | 191 | 3.66 | % | 14,793 | 255 | 3.48 | % | ||||||||||||
| Repurchase liabilities | 44,650 | 34 | 0.15 | % | 55,257 | 63 | 0.23 | % | ||||||||||||
| Total interest-bearing liabilities | 1,994,959 | 7,643 | 0.77 | % | 1,909,432 | 6,222 | 0.66 | % | ||||||||||||
| Noninterest-bearing deposits | 397,868 | 339,911 | ||||||||||||||||||
| Other noninterest-bearing liabilities | 57,374 | 52,464 | ||||||||||||||||||
| Total liabilities | 2,450,201 | 2,301,807 | ||||||||||||||||||
| Stockholders’ equity | 250,516 | 238,903 | ||||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 2,700,717 | $ | 2,540,710 | ||||||||||||||||
| Tax-equivalent net interest income | $ | 36,410 | $ | 34,148 | ||||||||||||||||
| Less: tax-equivalent adjustment | (1,032 | ) | (674 | ) | ||||||||||||||||
| Net interest income | $ | 35,378 | $ | 33,474 | ||||||||||||||||
| Net interest rate spread (2) | 2.67 | % | 2.70 | % | ||||||||||||||||
| Net interest-earning assets (3) | $ | 578,208 | $ | 514,075 | ||||||||||||||||
| Net interest margin (4) | 2.85 | % | 2.84 | % | ||||||||||||||||
| Average interest-earning assets to average interest-bearing liabilities | 128.98 | % | 126.92 | % | ||||||||||||||||
| (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 on a tax-equivalent basis. | ||||||||||||||||||||
| (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. |
| Reconciliation 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 June 30, 2016, March 31, 2016, December 31, 2015, September 30, 2015 and June 30, 2015. 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 | |||||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||||
| (Dollars in thousands, except per share data) | 2016 | 2016 | 2015 | 2015 | 2015 | ||||||||||||||||
| Net Income | $ | 3,643 | $ | 3,613 | $ | 2,381 | $ | 4,215 | $ | 3,472 | |||||||||||
| Adjustments: | |||||||||||||||||||||
| Plus: Accelerated vesting of stock compensation | – | – | – | – | 258 | ||||||||||||||||
| Plus: Mortgage servicing rights impairment | 374 | – | – | – | – | ||||||||||||||||
| Less: Prepayment penalty fees | (370 | ) | (10 | ) | (43 | ) | – | (35 | ) | ||||||||||||
| Less: Off-balance sheet commitments change in accounting estimate | (423 | ) | – | – | – | – | |||||||||||||||
| Less: Gain on sale of foreclosed real estate | – | – | – | (557 | ) | – | |||||||||||||||
| Less: Bank-owned life insurance proceeds | – | (77 | ) | (379 | ) | – | – | ||||||||||||||
| Less: Net gain on sales of investments | – | – | – | – | (1,250 | ) | |||||||||||||||
| Total core adjustments before taxes | (419 | ) | (87 | ) | (422 | ) | (557 | ) | (1,027 | ) | |||||||||||
| Tax benefit on core adjustments | 147 | 4 | 15 | 195 | 359 | ||||||||||||||||
| Deferred tax asset valuation allowance (1) | – | – | 768 | – | – | ||||||||||||||||
| Total core adjustments after taxes | (272 | ) | (83 | ) | 361 | (362 | ) | (668 | ) | ||||||||||||
| Total core net income | $ | 3,371 | $ | 3,530 | $ | 2,742 | $ | 3,853 | $ | 2,804 | |||||||||||
| Total net interest income | $ | 17,872 | $ | 17,506 | $ | 17,363 | $ | 17,672 | $ | 17,099 | |||||||||||
| Less: Prepayment penalty fees | (370 | ) | (10 | ) | (43 | ) | – | (35 | ) | ||||||||||||
| Total core net interest income | $ | 17,502 | $ | 17,496 | $ | 17,320 | $ | 17,672 | $ | 17,064 | |||||||||||
| Total noninterest income | $ | 2,617 | $ | 2,900 | $ | 3,468 | $ | 3,241 | $ | 4,074 | |||||||||||
| Plus: Mortgage servicing rights impairment | 374 | – | – | – | – | ||||||||||||||||
| Less: Bank-owned life insurance proceeds | – | (77 | ) | (379 | ) | – | – | ||||||||||||||
| Less: Net gain on sales of investments | – | – | – | – | (1,250 | ) | |||||||||||||||
| Total core noninterest income | $ | 2,991 | $ | 2,823 | $ | 3,089 | $ | 3,241 | $ | 2,824 | |||||||||||
| Total noninterest expense | $ | 14,644 | $ | 15,277 | $ | 15,958 | $ | 14,718 | $ | 15,597 | |||||||||||
| Plus: Off-balance sheet commitments change in accounting estimate | 423 | – | – | – | – | ||||||||||||||||
| Less: Accelerated vesting of stock compensation | – | – | – | – | (258 | ) | |||||||||||||||
| Less: Gain on sale of foreclosed real estate | – | – | – | 557 | – | ||||||||||||||||
| Total core noninterest expense | $ | 15,067 | $ | 15,277 | $ | 15,958 | $ | 15,275 | $ | 15,339 | |||||||||||
| Core earnings per common share, diluted | $ | 0.22 | $ | 0.23 | $ | 0.18 | $ | 0.25 | $ | 0.19 | |||||||||||
| Core net interest rate margin (2) | 2.81 | % | 2.82 | % | 2.76 | % | 2.79 | % | 2.86 | % | |||||||||||
| Core return on average assets (annualized) | 0.50 | % | 0.52 | % | 0.41 | % | 0.57 | % | 0.44 | % | |||||||||||
| Core return on average equity (annualized) | 5.34 | % | 5.68 | % | 4.45 | % | 6.33 | % | 4.66 | % | |||||||||||
| Core non-interest expense to average assets (annualized) | 2.23 | % | 2.27 | % | 2.37 | % | 2.26 | % | 2.39 | % | |||||||||||
| Efficiency ratio (3) | 73.52 | % | 75.19 | % | 78.19 | % | 73.04 | % | 77.13 | % | |||||||||||
| Tangible book value (4) | $ | 15.95 | $ | 15.72 | $ | 15.47 | $ | 15.30 | $ | 15.01 | |||||||||||
| (1) Represents a valuation allowance related to a deferred tax asset associated with the establishment of the Bank’s foundation in 2011. | |||||||||||||||||||||
| (2) Represents tax-equivalent core net interest income as a percent of average interest-earning assets. | |||||||||||||||||||||
| (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. | |||||||||||||||||||||
CONTACT: Jennifer H. Daukas Investor Relations Officer One Farm Glen Boulevard, Farmington, CT 06032 P 860-284-6359 F 860-409-3316 [email protected]