Excluding the impact of branch closing costs totaling $510,000 ($302,000 net of tax benefit) and acquisition related expenses of $158,000 ($152,000 net of tax benefit), diluted earnings per share would have increased 32% compared to the first quarter of 2012.

Total loans increased $23.3 million, or 1.3%, to $1.84 billion at March 31, 2013.

Total core deposits increased $21.7 million, or 1.9%, during the first quarter of 2013 to $1.16 billion.

Credit quality remained very strong, as demonstrated by a non-performing loans to total loans ratio of 77 basis points at March 31, 2013 and an annualized net charge-offs to average loans ratio of 7 basis points in the first quarter of 2013.

Tangible book value per share was $13.16 at March 31, 2013. During the first quarter of 2013, the Company repurchased 204,400 shares at an average price of $14.91 per share. At March 31, 2013, the Company had approximately 537,288 shares remaining to be purchased under its current plan approved in October 2012.

Net interest income increased $7.4 million, or 56%, to $20.5 million for the first quarter of 2013 as a result of an increase in average interest-earning assets and net interest margin expansion. Total average interest-earning assets increased $691.8 million, or 45%, to $2.22 billion for the first quarter of 2013 driven by the acquisition of New England Bank and organic loan growth. The net interest margin increased by 27 basis points to 3.70% for the three months ended March 31, 2013 due in large part to a $1.4 million increase in the net accretion of acquisition accounting adjustments.

Provision for loan losses increased $300,000, or 46%, to $950,000 for the three months ended March 31, 2013 reflecting a higher level of impaired loan reserves as well as an increase in commercial loan originations.

Non-interest income increased $225,000, or 9%, to $2.8 million for the three months ended March 31, 2013 due to growth in deposit services charges, bank-owned life insurance income and other income in connection with the New England Bank acquisition.

Non-interest expense totaled $15.9 million in first quarter of 2013 compared to $11.3 million for the corresponding period last year. Excluding branch closing costs of $510,000 and acquisition-related expenses totaling $158,000, non-interest expenses would have increased $3.9 million, or 35%, to $15.2 million mainly due to additional costs incurred to operate our new Connecticut franchise.

Income tax expense was $1.8 million for the first quarter of 2013, $891,000 higher than the same period last year, driven by an increase in pre-tax income, and to a lesser extent, a higher effective tax rate.

Total assets increased $26.9 million, or 1%, to $2.43 billion at March 31, 2013 from $2.40 billion at December 31, 2012 primarily reflecting growth in loans and cash balances, offset in part by a decrease in the investment securities porfolio.

Total loans increased $23.3 million, or 1%, to $1.84 billion at March 31, 2013 due to growth in construction loans ($11.0 million), commercial mortgages ($10.0 million) and commercial and industrial loans ($7.3 million) as a result of successful business development efforts as well as competitive products and pricing. These items were partially reduced by runoff in the consumer segments.

Total investment securities decreased $18.3 million, or 5%, to $359.0 million at March 31, 2013 as cash flows from existing bonds were used to fund loan originations.

Total deposits increased $46.4 million, or 3%, to $1.89 billion at March 31, 2013 reflecting growth of $21.7 million, or 2%, in core account balances and an increase of $24.7 million, or 3%, in certificates of deposit. Core deposit balances were $1.16 billion, or 61% of total deposits, at March 31, 2013 compared to $1.14 billion, or 62% of total deposits, at December 31, 2012.

Total subordinated debentures decreased $4.0 million, or 41%, to $5.7 million at March 31, 2013 as a result of the full redemption of callable debt instruments previously issued by New England Bancshares, Inc.

Non-performing assets totaled $15.7 million, or 0.64% of total assets, at March 31, 2013 compared to $17.3 million, or 0.72% of total assets, at December 31, 2012. The $1.6 million decrease was due to sales of several OREO properties totaling $1.2 million and successful loan workout activities.

The ratio of the allowance for loan losses to total loans was 0.69% at March 31, 2013. Excluding the aggregate impact of loans acquired from Commonwealth National Bank in 2009 and New England Bank in 2012 totaling $616.2 million at March 31, 2013 and $664.6 million at December 31, 2012, the ratio of the allowance for loan losses to total loans would have been 1.04% at March 31, 2013 and 1.05% at December 31, 2012. Net charge-offs totaled $343,000, or 0.07% of average loans outstanding (annualized) for the quarter ended March 31, 2013 as compared to net charge-offs of $457,000, or 0.16% of average loans outstanding (annualized) for the quarter ended March 31, 2012.

At March 31, 2013, the Company was well capitalized with a tangible equity-to-tangible assets ratio of 11.00% and an equity-to-assets ratio of 12.61%.

At March 31, 2013, the Company continued to have considerable liquidity consisting of significant balances at the Federal Reserve Bank of Boston, a large amount of marketable loans and investment securities, substantial unused borrowing capacity at the Federal Home Loan Bank of Boston and the Federal Reserve Bank of Boston and access to funding through the repurchase agreement and brokered deposit markets.

Assets

Cash and cash equivalents

Investment securities

Loans held for sale

Loans:

Residential mortgages

Commercial mortgages

Construction loans

Commercial loans

Home equity loans

Consumer loans

Total loans

Net deferred loan costs and fees

Allowance for loan losses

Loans, net

Federal Home Loan Bank of Boston stock, at cost

Other real estate owned

Deferred tax asset, net

Premises and equipment, net

Bank-owned life insurance

Goodwill

Other intangible assets

Other assets

Total assets

Liabilities and Stockholders’ Equity

Deposits:

Demand

NOW

Savings

Money market

Certificates of deposit

Total deposits

Short-term borrowings

Long-term debt

Subordinated debentures

Escrow funds held for borrowers

Capitalized lease obligations

Accrued expenses and other liabilities

Total liabilities

Stockholders’ Equity:

Preferred stock, par value $0.01 per share, authorized 50,000,000 shares; none issued

Common stock, par value $0.01 per share; authorized 100,000,000 shares; shares issued: 24,266,428 at March 31, 2013 and December 31, 2012 and 18,706,933 at March 31, 2012

Additional paid-in capital

Retained earnings

Unearned compensation

Accumulated other comprehensive income, net of taxes

Treasury stock, at cost (4,324,279 shares at March 31, 2013, 4,114,310 shares at December 31, 2012 and 3,108,811 shares at March 31, 2012)

Total stockholders’ equity

Total liabilities and stockholders’ equity

Interest and dividend income:

Loans

Investments

Other interest-earning assets

Total interest and dividend income

Interest expense:

Deposits

Borrowings

Total interest expense

Net interest income before provision for loan losses

Provision for loan losses

Net interest income after provision for loan losses

Non-interest income:

Fee income on depositors’ accounts

Wealth management income

Income from bank-owned life insurance

Net gain on sales of loans

Net loss on sales of securities

Other income

Total non-interest income

Non-interest expense:

Salaries and benefits

Occupancy expenses

Marketing expenses

Data processing expenses

Professional fees

Acquisition related expenses

Branch closing expenses

FDIC insurance assessments

Low income housing tax credit fund

Other expenses

Total non-interest expense

Income before income taxes

Income tax expense

Net income

Earnings per share:

Basic

Diluted

Weighted average shares outstanding:

Basic

Diluted

Operating Results:

Net interest income (1)

Loan loss provision

Non-interest income

Non-interest expense

Net income (loss)

Performance Ratios (annualized):

Return (loss) on average assets

Return (loss) on average equity

Net interest margin (1)

Non-interest income to average total assets

Non-interest expense to average total assets

Efficiency ratio (7)

Per Share Data:

Diluted earnings (loss) per share

Book value per share

Tangible book value per share (8)

Market price at period end

Risk Profile

Equity as a percentage of assets

Tangible equity as a percentage of tangible assets (8)

Net charge-offs to average loans outstanding (annualized)

Non-performing assets as a percent of total assets

Non-performing loans as a percent of total loans

Allowance for loan losses as a percent of total loans (9)

Allowance for loan losses as a percent of non-performing loans

Average Balances

Loans

Securities

Total interest-earning assets

Total assets

Deposits

FHLBB advances

Stockholders’ equity

Average Yields/Rates (annualized)

Loans

Securities

Total interest-earning assets

Savings accounts

Money market/NOW accounts

Certificates of deposit

FHLBB advances

Total interest-bearing liabilities