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First Connecticut Bancorp, Inc. Announces First Quarter 2013 Results

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FARMINGTON, Conn., April 30, 2013 (GLOBE NEWSWIRE) -- First Connecticut Bancorp, Inc. (the "Company") (Nasdaq:FBNK), the holding company for Farmington Bank (the "Bank"), reported net income of $813,000 or $0.05 per diluted share for the quarter ended March 31, 2013 compared to net income of $991,000 or $0.06 per diluted share for the quarter ended March 31, 2012.

"I am pleased to report our results for the first quarter which reflect continued organic franchise growth, reduction of core expenses and continued execution of our strategic plan to exit non-core business," stated John J. Patrick Jr., First Connecticut Bancorp's Chairman, President & CEO.

"During the quarter, our Company lost one of the key members of our executive management team, David Blitz, EVP & Director of Commercial Banking, who lost his valiant battle with cancer. Despite the loss of Dave, and a true testament to his legacy, commercial loan outstandings increased $41.5 million in the quarter, which were offset by a strategic decline of $16.0 million in the resort finance portfolio."

"Dave's presence will truly be missed by fellow colleagues, directors and the community," added Patrick.

Financial Highlights

  • Strong organic loan originations totaled approximately $100 million during the quarter resulting in a $41.7 million increase in our commercial and residential portfolios.
  • Yield on average interest earning assets decreased 29 basis points to 3.66% for the quarter ended March 31, 2013 driven largely by a faster than anticipated decline in our resort portfolio and higher than normal prepayment penalty fee income in the linked quarter. Excluding resort and prepayment penalty income for both periods, the yield on average interest earning assets decreased 11 basis points.
  • Net interest income totaled $12.7 million in the first quarter of 2013 compared to $14.1 million in the linked quarter.
  • Resort loans decreased $16.0 million to $15.3 million in the first quarter of 2013 compared to the linked quarter and decreased $54.5 million compared to the same period in the prior year as we continue to gradually exit the resort financing market.
  • Overall deposits increased $45.6 million or 3% in the first quarter of 2013.
  • Checking accounts grew by 4% or 1,543 net new accounts in the first quarter of 2013.
  • Net gain on residential loans sold was $2.0 million for the quarter based on $61.8 million in loans sold compared to a net gain of $1.9 million on $57.9 million in loans sold during the linked quarter.
  • Asset quality remains strong as loan delinquencies 30 days and greater decreased $1.9 million to $15.2 million on a linked quarter basis and decreased $3.0 million from a year ago. Non-accrual loans remained stable at 0.89% of total loans compared to 0.90% of total loans on a linked quarter basis. Net charge-offs totaled $296,000 at March 31, 2013 and $1.0 million at December 31, 2012, a decrease of $710,000.
  • Our 20th branch opened in Newington, CT in February, 2013.
  • Our tangible book value was $13.76 compared to $13.63 on a linked quarter basis and $13.99 from a year ago.
  • We paid a cash dividend of $0.03 per share on March 18, 2013. This marks the sixth consecutive quarter we have paid a dividend since First Connecticut Bancorp, Inc. became a public company on June 29, 2011.

First quarter 2013 compared with fourth quarter 2012

Net interest income

  • Net interest income decreased $1.4 million to $12.7 million in the first quarter of 2013 compared to the linked quarter due primarily to a decrease in commercial borrowers' prepayment penalty fees, the planned decrease in the resort portfolio and lower yields on new loans originated during the quarter.
  • Net interest margin decreased 30 basis points to 3.07% in the first quarter of 2013 compared to the linked quarter due primarily to a faster than anticipated decline in our resort portfolio and higher than normal prepayment penalty fees received from commercial borrowers in the linked quarter. Excluding resort and prepayment penalty income for both periods, the net interest margin would have decreased 11 basis points.
  • The cost of interest-bearing deposits remained flat at 62 basis points on a linked quarter basis.

Provision for loan losses

  • Provision for loan losses was $399,000 for the quarter compared to $315,000 for the linked quarter. The increase in the provision was primarily due to growth in our residential and commercial loan portfolios.
  • Net charge-offs in the quarter were $296,000 or 0.08% to average loans (annualized) compared to $1.0 million or 0.27% to average loans (annualized) in the linked quarter.

Noninterest income

  • Total noninterest income decreased $516,000 to $3.5 million compared to the linked quarter primarily due to decreases in mortgage banking derivatives of $349,000 and bank-owned life insurance proceeds of $141,000.

Noninterest expense

  • Noninterest expense increased $1.3 million to $14.7 million in the first quarter of 2013 compared to the linked quarter. Excluding one-time costs, total core noninterest expense decreased $832,000 compared to the linked quarter. These costs were $633,000 in accelerated vesting of stock compensation due to the passing of a key executive in the current quarter and a $1.5 million reduction in employee benefits related to the freezing of our non-contributory defined benefit and other post-retirement benefit plans in the linked quarter.
  • Salaries and employee benefits on a core basis decreased $641,000 compared to the linked quarter primarily due to a decrease in incentive compensation and other salary related costs.
  • Occupancy expense increased $145,000 or 13%, mainly due to our strategic de novo branch growth.

Financial condition

  • Total assets decreased $23.6 million or 1% at March 31, 2013 to $1.8 billion compared to December 31, 2012 reflecting decreases in cash and cash equivalents and securities available for sale offset by an increase in loans.
  • Our investment portfolio totaled $111.8 million at March 31, 2013 compared to $141.2 million at December 31, 2012, a decrease of $29.5 million.
  • Net loans increased $24.5 million at March 31, 2013 to $1.6 billion compared to December 31, 2012 due to our continued focus on commercial and residential lending which, combined, increased $41.7 million, offset by a $16.0 million decrease in resort loans as we exit the resort financing market.
  • Deposits increased $45.6 million at March 31, 2013 compared to December 31, 2012, primarily due to continued growth in checking accounts and de novo branches.
  • Federal Home Loan Bank of Boston advances decreased $52.0 million to $76.0 million, primarily due to a decrease in overnight borrowings at March 31, 2013 compared to December 31, 2012.

Asset Quality

  • Loan delinquencies 30 days and greater decreased $1.9 million to $15.2 million at March 31, 2013 compared to December 31, 2012 driven largely by decreases in delinquencies in the residential portfolio.
  • Non-accrual loans increased slightly to $13.9 million at March 31, 2013 compared to $13.8 million at December 31, 2012 and remained stable at 0.89% of total loans.
  • Impaired loans increased 6% to $39.2 million at March 31, 2013 from $36.9 million at December 31, 2012 due primarily to one commercial loan, which is current and accruing.
  • At March 31, 2013, the allowance for loan losses represented 1.11% of total loans and 124.59% of non-accrual loans, compared to 1.12% of total loans and 125.01% of non-accrual loans at December 31, 2012.

Capital and Liquidity

  • The Company remained well-capitalized with an estimated total capital to risk-weighted asset ratio of 18.61% at March 31, 2013.
  • At March 31, 2013, 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 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 20 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.

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 results presented in accordance with GAAP, this press release contains certain non-GAAP financial measures. A reconciliation of net income and other performance ratios, as adjusted, is included in the accompanying reconciliation of Non-GAAP 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. We utilize these measures for internal planning and forecasting purposes. These non-GAAP 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
(Dollars in thousands, except per share data) March 31, 2013 December 31,
2012
September 30,
2012
June 30,
2012
March 31,
2012
Selected Financial Condition Data:
Total assets $ 1,799,392 $ 1,822,946 $ 1,756,133 $ 1,687,431 $ 1,677,229
Cash and cash equivalents 34,946 50,641 33,021 36,727 131,280
Held to maturity securities 3,003 3,006 3,007 3,007 3,216
Available for sale securities 108,787 138,241 125,614 130,146 115,716
Federal Home Loan Bank of Boston stock, at cost 8,383 8,939 8,056 7,137 7,137
Loans receivable, net $ 1,544,687 $ 1,520,170 1,485,275 1,415,732 1,326,107
Deposits 1,376,092 1,330,455 1,257,987 1,218,743 1,249,583
Federal Home Loan Bank of Boston advances 76,000 128,000 125,200 91,000 63,000
Total stockholders' equity 242,869 241,522 242,199 248,105 250,196
Allowance for loan losses 17,332 17,229 17,920 17,927 17,727
Non-accrual loans 13,911 13,782 13,240 13,478 16,338
Impaired loans 39,210 36,857 37,863 39,521 39,054
Selected Operating Data:
Interest income $ 15,047 $ 16,507 $ 15,780 $ 15,146 $ 15,427
Interest expense 2,395 2,415 2,393 2,347 2,473
Net Interest Income 12,652 14,092 13,387 12,799 12,954
Provision for allowance for loan losses 399 315 215 520 330
Net interest income after provision for loan losses 12,253 13,777 13,172 12,279 12,624
Noninterest income 3,538 4,054 2,145 1,978 1,313
Noninterest expense 14,699 13,411 16,905 13,133 12,629
Income (loss) before income taxes 1,092 4,420 (1,588) 1,124 1,308
Provision (benefit) for income taxes 279 1,250 (519) 293 317
Net income (loss) $ 813 $ 3,170 $ (1,069) $ 831 $ 991
Performance Ratios (annualized):
Return on average assets 0.18% 0.77% -0.25% 0.20% 0.24%
Return average equity 1.33% 5.62% -1.74% 1.32% 1.57%
Interest rate spread (1) 2.89% 3.19% 3.09% 3.12% 3.21%
Net interest rate margin (2) 3.07% 3.37% 3.28% 3.32% 3.41%
Non-interest expense to average assets 3.28% 3.01% 3.89% 3.16% 3.08%
Efficiency ratio (3) 90.71% 73.91% 108.84% 88.87% 88.52%
Average interest-earning assets to average interest-bearing liabilities 132.04% 131.80% 131.75% 131.86% 132.02%
Asset Quality Ratios:
Allowance for loan losses as a percent of total loans 1.11% 1.12% 1.19% 1.25% 1.32%
Allowance for loan losses as a percent of non-accrual loans 124.59% 125.01% 135.35% 133.01% 108.50%
Net charge-offs to average loans (annualized) 0.08% 0.27% 0.06% 0.09% 0.04%
Non-accrual loans as a percent of total loans 0.89% 0.90% 0.88% 0.94% 1.22%
Non-accrual loans as a percent of total assets 0.77% 0.76% 0.75% 0.80% 0.97%
Per Share Related Data:
Basic earnings (loss) per share $ 0.05 $ 0.19 $ (0.07) $ 0.05 $ 0.06
Diluted earnings (loss) per share $ 0.05 $ 0.19 $ (0.07) $ 0.05 $ 0.06
Dividends declared per share $ 0.03 $ 0.03 $ 0.03 $ 0.03 $ 0.03
(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.
First Connecticut Bancorp, Inc.
Selected Financial Data (Unaudited)
At or for the Three Months Ended
(Dollars in thousands) March 31, 2013 December 31, 2012 September 30, 2012 June 30, 2012 March 31, 2012
Capital Ratios:
Equity to total assets at end of period 13.50% 13.25% 13.79% 14.70% 14.92%
Average equity to average assets 13.62% 13.68% 14.19% 15.09% 15.36%
Total capital to risk-weighted assets 18.61% * 18.85% 19.15% 20.43% 21.84%
Tier I capital to risk-weighted assets 17.37% * 17.60% 17.90% 19.18% 20.59%
Tier I capital to total average assets 13.84% * 13.94% 14.24% 15.21% 15.58%
Total equity to total average assets 13.56% 13.56% 13.95% 14.90% 15.27%
* Estimated
Loans and Allowance for Loan Losses:
Real estate
Residential $ 619,741 $ 620,991 $ 605,794 $ 576,228 $ 530,368
Commercial 504,722 473,788 448,684 423,939 411,450
Construction 66,508 64,362 54,909 48,084 42,310
Installment 5,949 6,719 7,372 8,121 9,095
Commercial 200,610 192,210 196,813 180,653 160,179
Collateral 1,945 2,086 2,161 2,165 2,549
Home equity line of credit 143,992 142,543 134,314 126,377 115,081
Demand -- 25 25 25 25
Revolving credit 73 65 86 89 73
Resort 15,252 31,232 49,760 64,755 69,773
Total loans 1,558,792 1,534,021 1,499,918 1,430,436 1,340,903
Less:
Allowance for loan losses (17,332) (17,229) (17,920) (17,927) (17,727)
Net deferred loan costs 3,227 3,378 3,277 3,223 2,931
Loans, net 1,544,687 1,520,170 $ 1,485,275 $ 1,415,732 $ 1,326,107
Deposits:
Noninterest-bearing demand deposits $ 245,912 $ 247,586 $ 221,464 $ 223,820 $ 215,602
Interest-bearing
NOW accounts 234,450 227,205 220,490 181,464 221,204
Money market 352,759 317,030 285,540 272,287 272,876
Savings accounts 186,171 179,290 171,516 178,378 166,530
Time deposits 356,800 359,344 358,977 362,794 373,371
Total interest-bearing deposits 1,130,180 1,082,869 1,036,523 994,923 1,033,981
Total deposits $ 1,376,092 $ 1,330,455 $ 1,257,987 $ 1,218,743 $ 1,249,583
First Connecticut Bancorp, Inc.
Consolidated Statements of Condition
March 31,
2013
December 31,
2012
March 31,
2012
(Dollars in thousands) (Unaudited) (Unaudited)
Assets
Cash and due from banks $ 34,946 $ 50,641 $ 38,280
Federal funds sold -- -- 93,000
Cash and cash equivalents 34,946 50,641 131,280
Securities held-to-maturity, at amortized cost 3,003 3,006 3,216
Securities available-for-sale, at fair value 108,787 138,241 115,716
Loans held for sale 6,601 9,626 3,408
Loans, net 1,544,687 1,520,170 1,326,107
Premises and equipment, net 20,764 19,967 21,293
Federal Home Loan Bank of Boston stock, at cost 8,383 8,939 7,137
Accrued income receivable 4,346 4,415 4,304
Bank-owned life insurance 37,649 37,449 36,701
Deferred income taxes 15,810 15,682 13,672
Prepaid expenses and other assets 14,416 14,810 14,395
Total assets $ 1,799,392 $ 1,822,946 $ 1,677,229
Liabilities and Stockholders' Equity
Deposits
Interest-bearing $ 1,130,180 $ 1,082,869 $ 1,033,981
Noninterest-bearing 245,912 247,586 215,602
1,376,092 1,330,455 1,249,583
Federal Home Loan Bank of Boston advances 76,000 128,000 63,000
Repurchase agreement borrowings 21,000 21,000 21,000
Repurchase liabilities 43,353 54,187 55,713
Accrued expenses and other liabilities 40,078 47,782 37,737
Total liabilities 1,556,523 1,581,424 1,427,033
Commitments and contingencies -- -- --
Stockholders' Equity
Common stock 181 181 179
Additional paid-in-capital 173,584 172,247 174,884
Unallocated common stock held by ESOP (14,545) (14,806) (13,031)
Treasury stock, at cost (5,713) (4,860) --
Retained earnings 95,172 94,890 93,392
Accumulated other comprehensive loss (5,810) (6,130) (5,228)
Total stockholders' equity 242,869 241,522 250,196
Total liabilities and stockholders' equity $ 1,799,392 $ 1,822,946 $ 1,677,229
First Connecticut Bancorp, Inc.
Consolidated Statements of Income
Three Months Ended
March 31, December 31, March 31,
(Dollars in thousands, except per share data) 2013 2012 2012
Interest income
Interest and fees on loans
Mortgage $ 11,468 $ 12,415 $ 11,110
Other 3,314 3,770 3,889
Interest and dividends on investments
United States Government and agency obligations 139 190 266
Other bonds 59 61 58
Corporate stocks 62 66 70
Other interest income 5 5 34
Total interest income 15,047 16,507 15,427
Interest expense
Deposits 1,705 1,649 1,755
Interest on borrowed funds 469 511 481
Interest on repo borrowings 171 187 180
Interest on repurchase liabilities 50 68 57
Total interest expense 2,395 2,415 2,473
Net interest income 12,652 14,092 12,954
Provision for allowance for loan losses 399 315 330
Net interest income after provision for loan losses 12,253 13,777 12,624
Noninterest income
Fees for customer services 982 1,048 816
Net gain on loans sold 2,030 1,935 98
Brokerage and insurance fee income 32 32 25
Bank owned life insurance income 409 571 319
Other 85 468 55
Total noninterest income 3,538 4,054 1,313
Noninterest expense
Salaries and employee benefits 9,034 7,542 7,424
Occupancy expense 1,240 1,095 1,190
Furniture and equipment expense 1,018 1,050 1,099
FDIC assessment 291 342 279
Marketing 594 587 606
Other operating expenses 2,522 2,795 2,031
Total noninterest expense 14,699 13,411 12,629
Income before income taxes 1,092 4,420 1,308
Provision for income taxes 279 1,250 317
Net income $ 813 $ 3,170 $ 991
Earnings per share:
Basic and Diluted $ 0.05 $ 0.19 $ 0.06
Weighted average shares outstanding:
Basic and Diluted 16,476,277 16,632,586 16,784,974
First Connecticut Bancorp, Inc.
Consolidated Average Balances, Yields and Rates (Unaudited)
For The Three Months Ended
March 31, 2013 December 31, 2012 March 31, 2012
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 $ 1,522,812 $ 14,782 3.94% $ 1,504,834 $ 16,185 4.28% $1,315,786 $ 14,999 4.57%
Securities 126,585 252 0.81% 139,396 308 0.88% 132,321 385 1.17%
Federal Home Loan Bank of Boston stock 8,809 8 0.37% 8,670 9 0.41% 7,370 9 0.49%
Federal funds and other earning assets 11,015 5 0.18% 10,598 5 0.19% 66,714 34 0.20%
Total interest-earning assets 1,669,221 15,047 3.66% 1,663,498 16,507 3.95% 1,522,191 15,427 4.07%
Noninterest-earning assets 121,634 118,273 116,614
Total assets $ 1,790,855 $ 1,781,771 $1,638,805
Interest-bearing liabilities:
NOW accounts $ 233,891 $ 135 0.23% $ 215,266 $ 117 0.22% $ 204,932 $ 89 0.17%
Money market 336,400 586 0.71% 299,408 487 0.65% 262,320 544 0.83%
Savings accounts 180,440 85 0.19% 178,959 99 0.22% 161,626 61 0.15%
Certificates of deposit 356,422 899 1.02% 358,047 946 1.05% 381,985 1,061 1.11%
Total interest-bearing deposits 1,107,153 1,705 0.62% 1,051,680 1,649 0.62% 1,010,863 1,755 0.70%
Advances from the Federal Home Loan Bank 80,468 469 2.36% 118,339 511 1.72% 63,042 481 3.06%
Repurchase agreement borrowings 21,000 171 3.30% 21,000 187 3.54% 21,000 180 3.44%
Repurchase liabilities 55,573 50 0.36% 71,115 68 0.38% 58,067 57 0.39%
Total interest-bearing liabilities 1,264,194 2,395 0.77% 1,262,134 2,415 0.76% 1,152,972 2,473 0.86%
Noninterest-bearing deposits 240,105 232,286 195,192
Other noninterest-bearing liabilities 42,651 43,663 38,932
Total liabilities 1,546,950 1,538,083 1,387,096
Stockholders' equity 243,905 243,688 251,709
Total liabilities and stockholders' equity $ 1,790,855 $ 1,781,771 $1,638,805
Net interest income $ 12,652 $ 14,092 $ 12,954
Net interest rate spread (1) 2.89% 3.19% 3.21%
Net interest-earning assets (2) $ 405,027 $ 401,364 $ 369,219
Net interest margin (3) 3.07% 3.37% 3.41%
Average interest-earning assets to average interest-bearing liabilities 132.04% 131.80% 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)
At or for the Three Months Ended
(Dollars in thousands, except per share data) March 31, 2013 December 31, 2012 September 30, 2012 June 30, 2012 March 31, 2012
Net Income (loss) $ 813 $ 3,170 $ (1,069) $ 831 $ 991
Adjustments:
Less: Prepayment penalty fees (127) (771) (11) -- (122)
Less: Bank-owned life insurance proceeds (108) (249) -- -- --
Less: Pension prior service cost (1) -- (1,208) -- -- --
Less: Post retirement service cost (1) -- (279) -- -- --
Plus: Accelerated vesting of stock compensation (2) 633 -- 3,047 -- --
Total core adjustments before taxes 398 (2,507) 3,036 -- (122)
Tax benefit (provision) - 34% rate (135) 852 (1,032) -- 41
Total core adjustments after taxes 263 (1,655) 2,004 -- (81)
Total core net income (loss) $ 1,076 $ 1,515 $ 935 $ 831 $ 910
Total net interest income $ 12,652 $ 14,092 $ 13,387 $ 12,799 $ 12,954
Less: Prepayment penalty fees (127) (771) (11) -- (122)
Total core net interest income $ 12,525 $ 13,321 $ 13,376 $ 12,799 $ 12,832
Total noninterest income $ 3,538 $ 4,054 $ 2,145 $ 1,978 $ 1,313
Less: Bank-owned life insurance proceeds (108) (249) -- -- --
Total core noninterest income $ 3,430 $ 3,805 $ 2,145 $ 1,978 $ 1,313
Total noninterest expense $ 14,699 $ 13,411 $ 16,905 $ 13,133 $ 12,629
Plus: Pension prior service cost (1) -- 1,208 -- -- --
Plus: Post retirement service cost (1) -- 279 -- -- --
Plus: Loss on sale of non-strategic properties -- -- 394 -- --
Less: Accelerated vesting of stock compensation (2) (633) -- (3,047) -- --
Total core noninterest expense $ 14,066 $ 14,898 $ 14,252 $ 13,133 $ 12,629
Core earnings per common share, diluted $ 0.07 $ 0.09 $ 0.06 $ 0.05 $ 0.06
Core return on assets (annualized) 0.24% 0.34% 0.22% 0.20% 0.22%
Core return on equity (annualized) 1.76% 2.45% 1.52% 1.32% 1.45%
Efficiency ratio (3) 87.97% 87.03% 91.82% 89.03% 89.28%
(1) Represents recognizing the unrecognized prior service cost as a result of the freeze of the Company's non-contributory defined benefit and other post-retirement plans.
(2) Represents the passing of a key executive in the first quarter of 2013 and 20% vesting of the 2012 Stock Incentive Plan in the third quarter of 2012.
(3) Represents core noninterest expense divided by the sum of core net interest income and core noninterest income.

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

Source:First Connecticut Bancorp, Inc.