News Column

First Connecticut Bancorp, Inc. Announces First Quarter 2014 Earnings of $0.10 Per Share

April 24, 2014

FARMINGTON, Conn., April 24, 2014 (GLOBE NEWSWIRE) -- First Connecticut Bancorp, Inc. (the "Company") (Nasdaq:FBNK), the holding company for Farmington Bank (the "Bank"), reported net interest income of $14.8 million and net income of $1.5 million for the quarter ended March 31, 2014. Diluted earnings per share were $0.10 compared with $0.07 per diluted share for the fourth quarter of 2013 and $0.05 per diluted share for the first quarter of 2013.

"Our first quarter earnings of $0.10 per share reflects the significant investment made in people, technology and franchise over the past several years. Our continued focus toward organic growth, process improvement and expense reduction are strongly reflected in our first quarter results," stated John J. Patrick Jr., First Connecticut Bancorp's Chairman, President & CEO.

"Our net interest income continues to grow from core banking activities, while expenses have reduced over the prior year and linked quarter. Despite the extreme winter weather conditions in the Northeast, both loan and deposit growth remained strong during the quarter."

Financial Highlights

• Net interest income increased $419,000 to $14.8 million in the first quarter of 2014 compared to $14.3 million in the linked quarter and increased $2.1 million compared to first quarter of 2013.

 • Noninterest expense to average assets was 2.63% in the first quarter of 2014 compared to 2.80% in the linked quarter and 3.28% in the first quarter of 2013.

 • Strong organic loan growth continued during the quarter as total loans increased $52.5 million to $1.9 billion at March 31, 2014 and increased $310.1 million or 20% from a year ago. 

 • Tangible book value per share grew to $14.22 compared to $14.11 on a linked quarter basis and $13.78 at March 31, 2013.

 • Checking accounts grew by 3.2% or 1,266 net new accounts in the first quarter of 2014.

 • Net charge-offs were $1.2 million in the first quarter of 2014 compared to $24,000 in the linked quarter. One commercial loan relationship represented the majority of the charge-off which was fully reserved in prior years.

 • Asset quality remains stable as loan delinquencies 30 days and greater decreased slightly to 0.80% of total loans at March 31, 2014 compared to 0.85% of total loans at December 31, 2013. Non-accrual loans represented 0.69% of total loans compared to 0.81% of total loans on a linked quarter basis. 

 • During the first quarter of 2014, we repurchased 253,709 shares of common stock at an average price per share of $15.49 at a total cost of $3.9 million. Repurchased shares will be held as treasury stock and will be available for general corporate purposes.

 • We paid a cash dividend of $0.03 per share on March 17, 2014. This marks the tenth consecutive quarter we have paid a dividend since First Connecticut Bancorp, Inc. became a public company on June 29, 2011.

First quarter 2014 compared with fourth quarter 2013

Net interest income

• Net interest income increased $419,000 to $14.8 million in the first quarter of 2014 compared to the linked quarter due primarily to a $52.1 million increase in the average loan balance, lower cost of interest-bearing liabilities, higher yields in the loan and securities portfolios and a 7 basis point increase in the net interest rate spread to 2.86%.

 • Net interest margin increased 5 basis points to 2.99% in the first quarter of 2014 compared to 2.94% in the fourth quarter of 2013 primarily due to a decrease in cost of interest-bearing liabilities and higher yields in the loan and securities portfolios.

 • The cost of interest-bearing liabilities declined 5 basis points to 58 basis points in the first quarter of 2014 compared to 63 basis points in the fourth quarter of 2013.

Provision for loan losses

• Provision for loan losses was $505,000 for the first quarter of 2014 compared to $660,000 for the linked quarter.

 • Net charge-offs in the quarter were $1.2 million or 0.26% to average loans (annualized) compared to $24,000 or 0.01% to average loans (annualized) in the linked quarter.

 • The allowance for loan losses represented 0.94% of total loans at March 31, 2014 compared to 1.01% at December 31, 2013. 

Noninterest income

• Total noninterest income decreased $421,000 to $1.8 million for the first quarter of 2014 compared to the linked quarter primarily due to a $459,000 decrease in net gain on loans sold as a result of an overall decrease in volume and margins in our secondary market residential lending program.

Noninterest expense

• Noninterest expense decreased $438,000 or 3% to $14.0 million in the first quarter of 2014 compared to the linked quarter as a result of decreases in salaries and employee benefits and other operating expenses offset by an increase in occupancy expense due to our de novo branch in Rocky Hill, which opened in January 2014, and winter related expenses.

Income tax provision

• Income tax provision was $555,000 in the first quarter of 2014 compared to $322,000 in the linked quarter.

First quarter 2014 compared with first quarter 2013

Net interest income

• Net interest income increased $2.1 million or 17% to $14.8 million compared to $12.7 million in the first quarter of 2013 primarily due to a $296.8 million increase in the average loan balance despite a 23 basis point decrease in the yield on loans.

 • Net interest margin decreased 8 basis points to 2.99% in the first quarter of 2014 compared to 3.07% in the first quarter of 2013 primarily due to lower prepayment penalty fees and a $20.7 million decline in the average balance of the resort portfolio. Excluding resort and prepayment penalty fee income for both quarters, the net interest margin would have been 2.99% and 3.00% in the first quarters of 2014 and 2013, respectively.

 • The cost of interest-bearing liabilities declined 19 basis points to 58 basis points in the first quarter of 2014 compared to 77 basis points in the first quarter of 2013 due primarily to lower funding costs for municipal deposits and a decrease in Federal Home Loan Bank of Boston advance costs due to an increase in short-term advances which carry lower rates.

Provision for loan losses

• Provision for loan losses was $505,000 for the first quarter of 2014 compared to $399,000 for the prior year quarter.

 • Net charge-offs in the quarter were $1.2 million or 0.26% to average loans (annualized) compared to $296,000 or 0.08% to average loans (annualized) in the prior year quarter.

 • The allowance for loan losses represented 0.94% of total loans at March 31, 2014 compared to 1.11% at March 31, 2013. 

Noninterest income

• Total noninterest income decreased $1.9 million to $1.8 million compared to the prior year quarter primarily due to a $1.9 million decrease in net gain on loans sold as a result of an overall decrease in volume and margins in our secondary market residential lending program.

Noninterest expense

• Noninterest expense, excluding $633,000 in accelerated vesting of stock compensation due to the passing of a key executive in the prior year quarter, decreased $106,000 to $14.0 million in the first quarter of 2014 compared to the prior year quarter. 

 • Salaries and employee benefits, excluding $633,000 in accelerated vesting of stock compensation, decreased $113,000 to $8.3 million in the first quarter of 2014 compared to the prior year quarter.

 • Marketing expense decreased $216,000 or 37% compared to the prior year quarter primarily due to general expense control initiatives.

Income tax provision

• Income tax provision was $555,000 in the first quarter of 2014 compared to $316,000 in the prior year quarter.

Financial condition

• Total assets increased $382.1 million or 21% at March 31, 2014 to $2.2 billion compared to $1.8 billion at March 31, 2013 largely reflecting an increase in loans and securities.

 • Our investment portfolio totaled $176.1 million at March 31, 2014 compared to $111.8 million at March 31, 2013, an increase of $64.3 million.

 • Net loans increased $309.8 million at March 31, 2014 to $1.9 billion compared to $1.5 million at March 31, 2013 due to our continued focus on commercial and residential lending, which combined, increased $326.4 million.

 • Deposits increased $258.3 million at March 31, 2014 to $1.6 billion compared to $1.4 billion at March 31, 2013, due to increases in municipal deposits, noninterest-bearing deposits and de novo branch openings as we continue to develop and grow relationships in the geographical areas we serve.

 • Federal Home Loan Bank of Boston advances increased $130.0 million to $206.0 million at March 31, 2014 compared to $76.0 million at March 31, 2013. Advances were used to support loan and securities growth.

Asset Quality

• At March 31, 2014, the allowance for loan losses represented 0.94% of total loans and 135.89% of non-accrual loans, compared to 1.11% of total loans and 124.59% of non-accrual loans at March 31, 2013.

 • Non-accrual loans represented 0.69% of total loans at March 31, 2014 compared to 0.89% of total loans at March 31, 2013.

 • Loan delinquencies 30 days and greater decreased to 0.80% of total loans at March 31, 2014 compared to 0.97% of total loans at March 31, 2013.

Capital and Liquidity

• The Company remained well-capitalized with an estimated total capital to risk-weighted asset ratio of 15.05% at March 31, 2014. 

 • Tangible book value per share grew to $14.22 compared to $14.11 on a linked quarter basis and $13.78 at the quarter ended March 31, 2013.

 • At March 31, 2014, 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.

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 22 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.

Conference Call

First Connecticut will host a conference call on Thursday, April 24, 2014 at 10:30am Eastern Time to discuss first quarter results. Those wishing to participate in the call may dial-in to the call at 1-888-317-6016. The international dial-in number is 1-412-317-6016. 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 tabular form 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
 March 31,December 31,September 30,June 30,March 31,
(Dollars in thousands, except per share data) 2014 2013 2013 2013 2013
Selected Financial Condition Data:          
           
Total assets  $ 2,181,759  $ 2,110,028  $ 1,992,517  $ 1,845,440  $ 1,799,678
Cash and cash equivalents   44,110  38,799  50,323  36,650  34,946
Securities held-to-maturity, at amortized cost  12,872  12,983  3,002  3,003  3,003
Securities available-for-sale, at fair value  163,232  150,886  120,382  112,801  108,787
Federal Home Loan Bank of Boston stock, at cost  13,137  13,136  8,383  8,383  8,383
Loans, net  1,854,497  1,800,987  1,712,507  1,588,080  1,544,687
Deposits  1,634,400  1,513,501  1,550,627  1,452,319  1,376,092
Federal Home Loan Bank of Boston advances  206,000  259,000  104,000  51,250  76,000
Total stockholders' equity  230,488  232,209  227,864  231,541  243,214
Allowance for loan losses  17,631  18,314  17,678  17,505  17,332
Non-accrual loans  12,974  14,800  13,887  14,325  13,911
Impaired loans  41,782  39,623  42,587  39,159  39,210
Loan delinquencies 30 days and greater  14,882  15,511  15,032  15,191  15,167
           
Selected Operating Data:          
           
Interest income  $ 16,980  $ 16,697  $ 15,806  $ 15,336  $ 15,047
Interest expense  2,230  2,366  2,523  2,449  2,395
Net interest income  14,750  14,331  13,283  12,887  12,652
Provision for loan losses  505  660  215  256  399
Net interest income after provision for loan losses  14,245  13,671  13,068  12,631  12,253
Noninterest income  1,762  2,183  2,182  2,999  3,648
Noninterest expense  13,960  14,398  14,110  14,555  14,699
Income before income taxes  2,047  1,456  1,140  1,075  1,202
Provision for income taxes  555  322  275  256  316
           
Net income  $ 1,492  $ 1,134  $ 865  $ 819  $ 886
           
Performance Ratios (annualized):          
           
Return on average assets 0.28% 0.22% 0.18% 0.18% 0.20%
Return on average equity 2.56% 1.96% 1.49% 1.39% 1.45%
Interest rate spread (1)  2.86% 2.80% 2.77% 2.83% 2.89%
Net interest rate margin (2)  2.99% 2.94% 2.94% 3.01% 3.07%
Non-interest expense to average assets 2.63% 2.80% 2.95% 3.17% 3.28%
Efficiency ratio (3) 84.54% 87.19% 91.24% 91.62% 90.18%
Average interest-earning assets to average interest-bearing liabilities 128.59% 129.64% 130.77% 132.30% 132.02%
           
Asset Quality Ratios:          
           
Allowance for loan losses as a percent of total loans 0.94% 1.01% 1.02% 1.09% 1.11%
Allowance for loan losses as a percent of non-accrual loans 135.89% 123.74% 127.30% 122.20% 124.59%
Net charge-offs to average loans (annualized) 0.26% 0.01% 0.01% 0.02% 0.08%
Non-accrual loans as a percent of total loans 0.69% 0.81% 0.80% 0.89% 0.89%
Non-accrual loans as a percent of total assets 0.59% 0.70% 0.70% 0.78% 0.77%
Loan delinquencies 30 days and greater as a percent of total loans 0.80% 0.85% 0.87% 0.95% 0.97%
           
Per Share Related Data:          
           
Basic earnings per share  $ 0.10  $ 0.07  $ 0.06  $ 0.05  $ 0.05
Diluted earnings per share  $ 0.10  $ 0.07  $ 0.06  $ 0.05  $ 0.05
Dividends declared per share  $ 0.03  $ 0.03  $ 0.03  $ 0.03  $ 0.03
Tangible book value (4)  $ 14.22  $ 14.11  $ 13.88  $ 13.81  $ 13.78
Common stock shares outstanding 16,203,933 16,457,642 16,416,427 16,763,516 17,644,449
           
(1) Represents the difference between the weighted-average yield on average interest-earning assets and the weighted-average cost of 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, adjusted for non-recurring items. 
 See "Reconciliation of Non-GAAP Financial Measures" table.
(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. See "Reconciliation of Non-GAAP Financial Measures" table.
 
 
First Connecticut Bancorp, Inc.
Selected Financial Data (Unaudited)
             
  At or for the Three Months Ended
 March 31,  December 31,September 30,June 30,March 31,
(Dollars in thousands) 2014   2013 2013 2013 2013
Capital Ratios:            
             
Equity to total assets at end of period 10.56%   11.01% 11.44% 12.55% 13.51%
Average equity to average assets 10.99%   11.23% 12.11% 12.84% 13.65%
Total capital to risk-weighted assets 15.05%* 15.50% 16.13% 17.49% 18.63%
Tier I capital to risk-weighted assets 13.97%* 14.36% 14.97% 16.26% 17.39%
Tier I capital to total average assets 11.02%* 11.47% 12.20% 12.93% 13.91%
Total equity to total average assets 10.85%   11.30% 11.90% 12.61% 13.58%
             
* Estimated            
             
Loans and Allowance for Loan Losses:            
             
Real estate            
Residential $ 716,836   $ 693,046 $ 674,804 $ 625,345 $ 619,741
Commercial  677,948    633,764  585,628  533,072  504,722
Construction  69,476    78,191  90,033  80,198  66,508
Installment  4,109    4,516  4,671  5,384  5,949
Commercial  244,075    252,032  213,103  199,328  200,610
Collateral  1,455    1,600  1,819  1,801  1,945
Home equity line of credit  153,619    151,606  147,026  144,548  143,992
Demand  124    85  --  --  --
Revolving credit  80    94  78  62  73
Resort  1,124    1,374  9,849  12,425  15,252
Total loans 1,868,846   1,816,308 1,727,011 1,602,163 1,558,792
Less:            
Allowance for loan losses   (17,631)    (18,314)  (17,678)  (17,505)  (17,332)
Net deferred loan costs   3,282    2,993  3,174  3,422  3,227
Loans, net  $ 1,854,497    $ 1,800,987  $ 1,712,507  $ 1,588,080  $ 1,544,687
             
Deposits:            
             
Noninterest-bearing demand deposits $ 303,966   $ 308,459 $ 278,275 $ 275,781 $ 245,912
Interest-bearing            
NOW accounts  368,700    285,392  339,350  280,462  234,450
Money market  427,535    387,225  386,682  349,621  352,759
Savings accounts  199,532    193,937  187,040  191,688  186,171
Time deposits  334,667    338,488  359,280  354,767  356,800
Total interest-bearing deposits  1,330,434    1,205,042  1,272,352  1,176,538  1,130,180
Total deposits $ 1,634,400   $ 1,513,501 $ 1,550,627 $ 1,452,319 $ 1,376,092
 
 
First Connecticut Bancorp, Inc.
Consolidated Statements of Condition (Unaudited)
       
 March 31,December 31,March 31,
  2014 2013 2013
(Dollars in thousands)      
Assets      
Cash and cash equivalents $ 44,110 $ 38,799 $ 34,946
Securities held-to-maturity, at amortized cost 12,872 12,983 3,003
Securities available-for-sale, at fair value 163,232 150,886 108,787
Loans held for sale 3,035 3,186 6,601
Loans, net 1,854,497 1,800,987 1,544,687
Premises and equipment, net 20,436 20,619 20,764
Federal Home Loan Bank of Boston stock, at cost 13,137 13,136 8,383
Accrued income receivable 4,973 4,917 4,346
Bank-owned life insurance 38,838 38,556 37,649
Deferred income taxes 14,603 14,884 15,632
Prepaid expenses and other assets 12,026 11,075 14,880
Total assets $ 2,181,759 $ 2,110,028 $ 1,799,678
       
Liabilities and Stockholders' Equity      
Deposits      
Interest-bearing $ 1,330,434 $ 1,205,042 $ 1,130,180
Noninterest-bearing 303,966 308,459 245,912
  1,634,400 1,513,501 1,376,092
Federal Home Loan Bank of Boston advances 206,000 259,000 76,000
Repurchase agreement borrowings 21,000 21,000 21,000
Repurchase liabilities 52,893 50,816 43,353
Accrued expenses and other liabilities 36,978 33,502 40,019
Total liabilities 1,951,271 1,877,819 1,556,464
       
Commitments and contingencies -- -- --
       
Stockholders' Equity      
Common stock 181 181 181
Additional paid-in-capital 176,602 175,766 173,723
Unallocated common stock held by ESOP (13,485) (13,747) (14,545)
Treasury stock, at cost (26,543) (22,599) (5,713)
Retained earnings 97,830 96,832 95,361
Accumulated other comprehensive loss (4,097) (4,224) (5,793)
Total stockholders' equity 230,488 232,209 243,214
Total liabilities and stockholders' equity $ 2,181,759 $ 2,110,028 $ 1,799,678
 
 
First Connecticut Bancorp, Inc.
Consolidated Statements of Income (Unaudited)
       
  Three Months Ended
  March 31,  December 31,  March 31, 
(Dollars in thousands, except per share data) 2014 2013 2013
Interest income      
Interest and fees on loans      
Mortgage $ 13,428 $ 13,007 $ 11,468
Other 3,208 3,437 3,314
Interest and dividends on investments      
United States Government and agency obligations 189 134 139
Other bonds 58 53 59
Corporate stocks 93 64 62
Other interest income 4 2 5
Total interest income 16,980 16,697 15,047
Interest expense      
Deposits 1,694 1,736 1,705
Interest on borrowed funds 319 398 469
Interest on repo borrowings 177 181 171
Interest on repurchase liabilities 40 51 50
Total interest expense 2,230 2,366 2,395
Net interest income 14,750 14,331 12,652
Provision for allowance for loan losses 505 660 399
Net interest income after provision for loan losses 14,245 13,671 12,253
Noninterest income      
Fees for customer services 1,191 1,251 982
Net gain on loans sold 122 581 2,030
Brokerage and insurance fee income 44 40 32
Bank owned life insurance income 282 301 409
Other 123 10 195
Total noninterest income 1,762 2,183 3,648
Noninterest expense      
Salaries and employee benefits 8,288 8,691 9,034
Occupancy expense 1,349 1,181 1,240
Furniture and equipment expense 1,018 964 1,018
FDIC assessment 328 329 291
Marketing 378 368 594
Other operating expenses 2,599 2,865 2,522
Total noninterest expense 13,960 14,398 14,699
Income before income taxes 2,047 1,456 1,202
Provision for income taxes 555 322 316
Net income $ 1,492 $ 1,134 $ 886
       
Earnings per share:       
Basic  $ 0.10  $ 0.07  $ 0.05
Diluted  0.10  0.07  0.05
Weighted average shares outstanding:      
Basic 14,820,700 14,880,971 15,940,377
Diluted 14,920,837 14,897,762 15,940,377
 
 
First Connecticut Bancorp, Inc.
Consolidated Average Balances, Yields and Rates (Unaudited)
                   
                   
  For The Three Months Ended
 March 31, 2014December 31, 2013March 31, 2013
  Average Balance Interest and Dividends

Yield/Cost
Average Balance Interest and Dividends

Yield/Cost
Average Balance Interest and Dividends

Yield/Cost
(Dollars in thousands)                  
Interest-earning assets:                  
Loans, net  $ 1,819,567  $ 16,636 3.71%  $ 1,767,468  $ 16,444 3.69%  $1,522,812  $ 14,782 3.94%
Securities   160,663 302 0.76%  148,653 243 0.65%  126,347 252 0.81%
Federal Home Loan Bank of Boston stock  13,136 38 1.17%  10,338 8 0.31%  8,809 8 0.37%
Federal funds and other earning assets   5,858 4 0.28%  5,093 2 0.16%  11,015 5 0.18%
Total interest-earning assets   1,999,224 16,980 3.44%  1,931,552 16,697 3.43%  1,668,983 15,047 3.66%
Noninterest-earning assets   125,272      123,891      121,571    
Total assets   $ 2,124,496      $ 2,055,443      $1,790,554    
                   
Interest-bearing liabilities:                  
NOW accounts  $ 352,428  $ 197 0.23%  $ 305,045  $ 172 0.22%  $ 233,891  $ 135 0.23%
Money market  409,161  684 0.68%  388,503  732 0.75%  336,400  586 0.71%
Savings accounts   193,142 55 0.12%  190,258 51 0.11%  180,440 85 0.19%
Certificates of deposit   336,286 758 0.91%  346,977 781 0.89%  356,422 899 1.02%
Total interest-bearing deposits   1,291,017 1,694 0.53%  1,230,783 1,736 0.56%  1,107,153 1,705 0.62%
Advances from the Federal Home Loan Bank   181,522 319 0.71%  170,000 398 0.93%  80,468 469 2.36%
Repurchase agreement borrowings  21,000 177 3.42%  21,000 181 3.42%  21,000 171 3.30%
Repurchase liabilities   61,187 40 0.27%  68,122 51 0.30%  55,573 50 0.36%
Total interest-bearing liabilities   1,554,726 2,230 0.58%  1,489,905 2,366 0.63%  1,264,194 2,395 0.77%
Noninterest-bearing deposits  299,620      294,071      239,840    
Other noninterest-bearing liabilities   36,625      40,543      42,140    
Total liabilities   1,890,971      1,824,519      1,546,174    
Stockholders' equity  233,525      230,924      244,380    
Total liabilities and stockholders' equity  $ 2,124,496      $ 2,055,443      $1,790,554    
                   
Net interest income     $ 14,750      $ 14,331      $ 12,652  
Net interest rate spread (1)     2.86%     2.80%     2.89%
Net interest-earning assets (2)  $ 444,498      $ 441,647      $ 404,789    
Net interest margin (3)     2.99%     2.94%     3.07%
Average interest-earning assets to average interest-bearing liabilities    128.59%     129.64%     132.02%  
                   
(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.
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 March 31, 2014, December 31, 2013, September 30, 2013, June 30, 2013 and March 31, 2013. 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
           
  March 31, December 31,September 30,June 30,March 31,
(Dollars in thousands, except per share data) 2014 2013 2013 2013 2013
Net Income  $ 1,492  $ 1,134  $ 865  $ 819  $ 886
Adjustments:          
Less: Prepayment penalty fees -- (144) --  (20)  (127)
Less: Net gain on sales of investments -- --  (304)  (36) --
Less: Bank-owned life insurance proceeds (1) -- -- -- --  (108)
Plus: Accelerated vesting of stock compensation (1) -- -- -- --  633
Total core adjustments before taxes -- (144) (304)  (56)  398
Tax benefit (provision) - 34% rate  -- 49 103  19  (135)
Total core adjustments after taxes -- (95) (201)  (37)  263
Total core net income  $ 1,492  $ 1,039  $ 664  $ 782  $ 1,149
           
           
Total net interest income  $ 14,750  $ 14,331  $ 13,283  $ 12,887  $ 12,652
Less: Prepayment penalty fees -- (144) --  (20)  (127)
Total core net interest income  $ 14,750  $ 14,187  $ 13,283  $ 12,867  $ 12,525
           
           
Total noninterest income  $ 1,762  $ 2,183  $ 2,182  $ 2,999  $ 3,648
Less: Net gain on sales of investments -- --  (304)  (36) --
Less: Bank-owned life insurance proceeds (1) -- -- -- --  (108)
Total core noninterest income  $ 1,762  $ 2,183  $ 1,878  $ 2,963  $ 3,540
           
           
Total noninterest expense  $ 13,960  $ 14,398  $ 14,110  $ 14,555  $ 14,699
Less: Accelerated vesting of stock compensation (1) -- -- -- --  (633)
Total core noninterest expense  $ 13,960  $ 14,398  $ 14,110  $ 14,555  $ 14,066
           
Core earnings per common share, diluted  $ 0.10  $ 0.07  $ 0.04  $ 0.05  $ 0.07
           
Core return on assets (annualized) 0.28% 0.20% 0.14% 0.17% 0.26%
Core return on equity (annualized) 2.56% 1.80% 1.14% 1.33% 1.88%
Efficiency ratio (2)  84.54% 87.95% 93.07% 91.95% 87.56%
           
Tangible book value (3)   $ 14.22  $ 14.11  $ 13.88  $ 13.81  $ 13.78
           
(1) Represents the accelerated vesting of stock compensation and insurance proceeds due to the passing of a key executive in the first quarter of 2013.
(2) Represents core noninterest expense divided by the sum of net core interest income and core noninterest income.   
(3) 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 jdaukas@farmingtonbankct.com



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Source: First Connecticut Bancorp, Inc.


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