Rockville Financial Inc., the parent company of Rockville Bank, announced late Wednesday that it has posted record second quarter core operating earnings.
The bank also paid out its 25th consecutive dividend, according to a news release.
Rockville Bank posted a second quarter net income of $2.9 million, or 11 cents per diluted share, for the quarter ended June 30. Adjusted by $1.2 million (pre-tax) for stock award grant expense following shareholder approval of the company's stock incentive plan, core operating earnings for the second quarter of 2012 were a record $3.8 million, or 14 cents per diluted share.
President and Chief Executive Officer William Crawford said that the strong second quarter earnings driven by 24.4 percent year-over-year core operating revenue growth.
"We also significantly invested in our company as evidenced by the 17.7 percent increase in core operating expenses to build infrastructure to support strategic growth, all while increasing core operating earnings by 46.0 percent year-over-year," Crawford said. "I would like to personally thank our investors for their confidence in our company."
Total shareholder return year-over-year is 20.3 percent, compared to the SNL thrift index of negative 2.2 percent, Crawford said.
Here are some second quarter highlights. Revenue and expense comparisons are to prior year second quarter results, unless noted otherwise:
• 22.7 percent net interest income growth due to average loan growth and decreased funding costs.
• 11.3 percent decrease in operating revenue on generally accepted accounting principals, or GAAP, basis.
• 24.4 percent core operating revenue growth, non-GAAP (net interest income plus non-interest income excluding second quarter 2012 and 2011 quarterly events described below).
• 33.3 percent decrease in operating expense on a GAAP basis.
• 17.7 percent core operating expense increase, non-GAAP.
• Efficiency ratio decreased to 72.14 percent from 95.92 percent in the second quarter of 2011 and increased from 65.67 percent reported in the first quarter 2012, due to the stock award grant expense in the second quarter.
• 2.8 percent linked quarter net commercial loan growth, after a $12.6 million commercial real estate loan payoff in the most recent quarter.
• An 263.6 percent increase in residential mortgage production year-over-year to $80 million in the second quarter of 2012 from $22 million in the second quarter of 2011.
• An 86.0% increase in residential mortgage production from $43 million in the prior quarter.