ROCKVILLE, Conn., July 25, 2012 (GLOBE NEWSWIRE) -- Rockville Financial, Inc. ("Rockville Financial" or the "Company") (Nasdaq:RCKB), the holding company for Rockville Bank (the "Bank"), today announced second quarter net income of $2.9 million, or $0.11 per diluted share, for the quarter ended June 30, 2012. 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 (Non-GAAP), or $0.14 per diluted share.
"I am pleased to announce that Rockville Financial, Inc. delivered strong second quarter earnings driven by 24.4% year-over-year core operating revenue growth. We also significantly invested in our Company as evidenced by the 17.7% increase in core operating expenses to build infrastructure to support strategic growth, all while increasing core operating earnings by 46.0% year-over-year," stated William (Bill) H. W. Crawford, IV, President and Chief Executive Officer (CEO) of Rockville Financial, Inc. and Rockville Bank. "I would like to personally thank our investors for their confidence in our Company. Our total shareholder return year-over-year is 20.3% compared to the SNL thrift index of negative 2.2%."
Second Quarter Highlights (revenue and expense comparisons are to prior year second quarter results, unless noted otherwise)
- 22.7% net interest income growth due to average loan growth and decreased funding costs.
- 11.3% decrease in operating revenue on a GAAP basis. 24.4% 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% decrease in operating expense on a GAAP basis. 17.7% core operating expense increase Non-GAAP (excluding second quarter 2012 and 2011 quarterly events described below).
- Efficiency ratio decreased to 72.14% from 95.92% in the second quarter of 2011 and increased from 65.67% reported in the first quarter 2012, due to the stock award grant expense in the second quarter.
- 3.87% tax equivalent net interest margin, compared to 3.08% in the second quarter of 2011 and 3.83% in the first quarter 2012.
- 0.85% cost of interest bearing liabilities, decreased 69 basis points from prior year and 6 basis points from prior quarter.
- 0.73% total cost of funds, decreased 64 basis points from prior year and 5 basis points from the prior quarter.
- 2.8% linked quarter net commercial loan growth, after a $12.6 million commercial real estate loan payoff in the most recent quarter.
- 2.93% non-interest expense as a percentage of average assets, decreased from 4.44% in the prior year period and increased from 2.77% in the prior quarter, also due to the stock award grant expense in the second quarter.
- 263.6% 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, and an 86.0% increase in residential mortgage production from $43 million in the prior quarter.
Operating Results
The Company reported second quarter 2012 net income of $2.9 million, or $0.11 per diluted share, compared to the linked quarter net income of $3.9 million, or $0.13 per diluted share. Excluding the 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 (Non-GAAP), or $0.14 per diluted share. For the second quarter 2011, the Company recorded net income of $43,000, primarily as a result of the balance sheet restructure during that quarter. Excluding the debt extinguishment fee of $8.9 million (pre-tax), the net gains on the sales of securities of $6.2 million (pre-tax) and the contractual obligation expense from a retirement of $1.1 million (pre-tax), core operating earnings for the second quarter 2011 was $2.6 million, or $0.09 per diluted share. This 46.0% core operating earnings increase year-over-year, excluding the 2011 second quarter events, resulted from additional municipal bond purchases, and continued organic growth in both commercial loans and low cost core deposits during the second quarter 2012.
Net Interest Income Increases
Net interest income of $16.9 million for the second quarter of 2012 increased by $765,000, or 4.7%, from $16.1 million for the first quarter of 2012 and by $3.1 million, or 22.7%, from the comparable 2011 period. This increase is due to the continued reduction in the cost of funds, significantly enhanced by the second quarter 2011 balance sheet restructure. The tax equivalent net interest margin for the second quarter of 2012 was 3.87%, compared to 3.83% for the first quarter of 2012 and 3.08% for the comparable period in 2011.
The Company's tax equivalent yield on interest earning assets increased 2 basis points during the quarter ending June 30, 2012 to 4.51% from 4.49% during the first quarter 2012, and increased by 28 basis points from 4.23% during second quarter of 2011. The preservation of the average yield during the second quarter was attributable to the growth in the municipal bond portfolio and resulting tax benefit as compared to the first quarter of 2012. The increase in the average yield compared to the second quarter of 2011 was attributable to the reinvestment of the cash received in the second-step conversion from low-yielding short-term investments into higher-yielding loan and investment portfolios.
The cost of interest bearing deposits decreased across all comparable periods as a result of the Company's continued focus on growing low cost core deposits and on reducing the cost of funds as well as the continued migration out of time deposits to other interest bearing deposit types. The cost of interest bearing deposits decreased 5 basis points to 0.74% in the second quarter of 2012 from 0.79% in the first quarter of 2012, and decreased by 31 basis points from 1.05% in the comparable 2011 period. The cost of interest bearing liabilities decreased 6 basis points to 0.85% in the second quarter of 2012 from 0.91% in the first quarter of 2012, and decreased by 69 basis points from 1.54% during the second quarter of 2011.
Provision For Loan Losses Increases
The provision for loan losses increased $427,000, or 56.6%, to $1.2 million for the three months ended June 30, 2012 compared to $754,000 for the comparable 2011 period due to growth in the loan portfolio and the retention of residential mortgages loan production during this time period. Net charge-offs for the second quarter were $405,000, or 0.03% of average loans outstanding, a decrease from $452,000, or 0.03% of average loans outstanding, in the prior year period. Provision expense continues to be assessed in correlation with the Company's loan growth and risk management enhancements.
Non-Interest Income
Non-interest income totaled $2.3 million for the second quarter 2012, down $411,000, or 15.4%, on a linked quarter basis and down $5.6 million, or 71.1%, from the second quarter 2011. The linked quarter change in non-interest income is primarily attributable to the varying levels of net gains from sales of loans which totaled $44,000 for the second quarter 2012, down $481,000, or 91.6%, from the first quarter 2012. There were no net gains from sales of loans in the second quarter 2011. The Company sold residential mortgages totaling $1.0 million in the second quarter 2012, $17.5 million in the first quarter 2012 and none in the second quarter 2011. The operating results for the second quarter of 2011 included the recognition of securities gains totaling $6.2 million (pre-tax) related to the Company's balance sheet restructure.
Service charges and fee income totaled $1.5 million for the second quarter 2012, a decrease of $288,000, or 15.8%, on a linked quarter basis and a decrease of $144,000, or 8.6%, from the same period in the prior year. The linked quarter change includes a $136,000 decrease in loan fee income attributable to fluctuations in interest rates producing an adverse effect on the mortgage servicing asset valuation. Increases in ATM fee income were offset by lower loan fee income generated by Federal Housing Administration ("FHA") originations.
Non-Interest Expense
Non-interest expense as a percentage of average assets increased to 2.93% in the second quarter of 2012 from 2.77% in the first quarter of 2012, and decreased from 4.44% in the second quarter 2011. Excluding the stock award grant, non-interest expense as a percentage of average assets in the second quarter 2012 was 2.68%.
Non-interest expense totaled $13.8 million for the second quarter of 2012, up $1.5 million, or 11.9%, on a linked quarter basis and down $6.9 million, or 33.3%, from the second quarter 2011. The linked quarter change in non-interest expense is primarily attributable to the inclusion of the Company's restricted stock, performance stock and stock options award grants to officers and directors following shareholder approval of the Rockville Financial, Inc. 2012 Stock Incentive Plan at the Company's annual meeting. Salaries and employee benefits costs increased $1.3 million, or 18.9%, on a linked quarter basis, of which stock award expense related to the officer grant was $1.1 million.
The operating results for the second quarter of 2011 included the Federal Home Loan Bank of Boston prepayment penalty of $8.9 million and the increase in salary and benefits expense related to contractual retirement obligations of $1.1 million, while the operating results for the second quarter of 2012 included the increase in salary and benefits and other expense related to stock award grants totaling $1.2 million. Excluding these second quarter events, non-interest expense increased year-over-year by $1.9 million, or 17.7%. The increase in non-interest expenses primarily reflects the increases in salaries and employee benefits costs related to the human capital and infrastructure investment, significantly in 2011 and continued to a lesser extent in 2012, as the Company prepared to prudently leverage capital and accelerate growth. Salaries and employee benefits costs increased $1.9 million, or 28.1%, compared to the second quarter of 2011. Full-time equivalent employees increased to 287 at June 30, 2012 from 252 at June 30, 2011.
Organic Loan and Deposit Growth Continues;
Securities, BOLI and Borrowings Increase
Rockville Financial's total assets increased $178.5 million, or 10.2%, to $1.9 billion for the six months ended June 30, 2012 from December 31, 2011. During the six month period, net loans grew by $87.9 million, or 6.0%, with an increase of $39.2 million, or 6.6%, in the commercial real estate portfolio, an increase of $26.6 million, or 18.6%, in the commercial business portfolio and an increase of $27.1 million, or 4.0%, in the residential mortgage portfolio.
The available for sale securities portfolio increased $70.5 million, or 46.6%, to $221.7 million at June 30, 2012 from $151.2 million at December 31, 2011. The increase is a result of the Company's purchase of $68.8 million of AA or better rated municipal bonds and $11.8 million of A and AA rated floating rate corporate bonds. The municipal bonds represent a wide geographic diversification and consist of $23.2 million of general obligation bonds and $45.6 million of revenue bonds.
Bank Owned Life Insurance ("BOLI") increased $25.8 million during the six months ended June 30, 2012, primarily due to the purchase of $25.0 million of new life insurance policies during the first quarter. As a result of both the BOLI and municipal bond purchases during the year-to-date, the Company's effective tax rate has decreased to 30.8% from 32.5% during the prior quarter.
During the three months ended June 30, 2012, the Company entered into its first interest rate swap to hedge the variable cash flows associated with a forecasted adjustable rate wholesale funding. The Company's objectives in using interest rate derivatives are to manage its exposure to interest rate movements. To accomplish this objective, the Company intends to use interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. As of June 30, 2012, the Company had one outstanding interest rate derivative with a notional value of $50 million that was designated as a cash flow hedge of interest rate risk.
Deposits totaled $1.46 billion at June 30, 2012 and increased $128.9 million, or 9.7% from $1.33 billion at December 31, 2011, reflecting a $14.5 million, or 7.0%, increase in non-interest bearing deposits and a $114.4 million, or 10.2%, increase in interest bearing deposits. The increase in interest bearing deposits included the purchase of $40.5 million of brokered time deposits with terms of six months and a weighted average cost of 0.61%. Brokered deposits represented 2.8% of total deposits at June 30, 2012. Federal Home Loan Bank of Boston advances increased $60.0 million, or 91.1%, year-to-date to $125.9 million at June 30, 2012 due to the addition of advances with terms of three months or less with a cost ranging from 0.21% to 0.26%.
Average net loans increased $23.2 million to $1.50 billion for the quarter ended June 30, 2012 from $1.48 billion for the quarter ended March 31, 2012. Average available for sale securities increased $42.7 million to $218.7 million for the quarter ended June 30, 2012 from $176.0 million for the quarter ended March 31, 2012; while average other earning assets increased $15.8 million to $35.3 million during the same time period.
Average total deposits increased $88.8 million to $1.433 billion for the quarter ended June 30, 2012 from $1.344 billion for the quarter ended March 31, 2012. Average core deposits increased $71.2 million to $901.8 million for the quarter ended June 30, 2012 from $830.6 million for the quarter ended March 31, 2012, and average time deposits increased $17.5 million during the same time period.
Asset Quality
Non-performing assets increased $1.7 million to $17.3 million at June 30, 2012 from $15.6 million at December 31, 2011. The ratio of non-performing assets to total assets increased 1 basis point to 0.90% at June 30, 2012 from 0.89% at December 31, 2011. Loans on non-accrual increased $2.6 million to $15.2 million at June 30, 2012 from $12.6 million at December 31, 2011. Included in non-accrual loans are non-accruing troubled debt restructurings. Non-accruing troubled debt restructurings decreased $296,000 to $3.1 million at June 30, 2012 from $3.4 million at December 31, 2011. The ratio of non-performing loans to total loans increased 12 basis points to 0.98% at June 30, 2012 from 0.86% at December 31, 2011. At June 30, 2012, the allowance for loan losses as a percentage of non-performing loans and of total loans outstanding was 113.47% and 1.11%, compared to 127.08% and 1.09% at December 31, 2011, respectively.
Dividend
The Board of Directors declared a cash dividend on the Company's common stock of $0.09 per share to shareholders of record at the close of business on August 2, 2012 and payable on August 9, 2012. This dividend equates to a 3.14% annualized yield based on the $11.48 average closing price of the Company's common stock in the second quarter of 2012. The Company has paid dividends for 25 consecutive quarters. The dividend payout ratio for the quarter ended June 30, 2012 was 87%.
Stock Repurchase Program
In accordance with State of Connecticut Department of Banking mutual conversion banking regulations the Company was eligible to adopt a stock repurchase program at the one year anniversary of its March 3, 2011 stock conversion. As such, the Company's Board of Directors approved a buyback plan on March 2, 2012 and commenced the plan upon receiving satisfactory response from the Company's regulator, the Federal Reserve Bank of Boston, on March 13, 2012. Under this plan, the Company may repurchase up to 2,951,250 shares, or 10% of the outstanding shares at the time the plan was approved. As of June 30, 2012, the Company had repurchased 1,328,379 shares at an average cost of $11.61 per share. The average closing price of the Company's common stock over this time period was $11.54 per share.
Management Comments
"Rockville has made significant progress decreasing funding costs, accelerating commercial loan growth and mortgage loan production, protecting asset quality, and efficiently returning capital to shareholders via increased dividends and our 10% stock buyback program," stated William (Bill) H. W. Crawford, IV, President and Chief Executive Officer (CEO). "At Rockville, we remain focused on creating prosperity for our customers, communities and shareholders."
About Rockville Financial, Inc.
Rockville Financial, Inc. is the parent of Rockville Bank, which is a 21-branch community bank serving Tolland, Hartford and New London counties in Connecticut. A New Haven County Commercial Banking Office is now open and located in Hamden, Connecticut to provide an array of commercial products and services for businesses located in New Haven County and surrounding areas. For more information about Rockville Bank's services and products, call (860) 291-3600 or visit www.rockvillebank.com. For more information about the Company visit www.rockvillebank.com and click on "About Us: Investor Relations."
The Rockville Financial logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=8558
Investor Call
Rockville Financial, Inc. is hosting a conference call on Thursday, July 26, 2012 at 10:00 a.m. Eastern Time (ET) to discuss the Company's second quarter financial results. Those wishing to participate in the call may dial toll-free 1-877-317-6789. A replay of the call will be available on July 26, 2012 by dialing 1-877-344-7529, Conference ID # 10016834, and will be available until 9:00 a.m. ET on August 10, 2012.
Forward Looking Statements
This press release may contain certain forward-looking statements about the Company. Forward-looking statements include statements regarding anticipated future events and can be identified by the fact that they do not relate strictly to historical or current facts. They often 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, by their nature, are subject to risks and uncertainties. Certain factors that could cause actual results to differ materially from expected results include increased competitive pressures, changes in the interest rate environment, general economic conditions or conditions within the securities markets, and legislative and regulatory changes that could adversely affect the business in which the Company and its subsidiaries are engaged.
| Rockville Financial, Inc. and Subsidiaries | ||
| Consolidated Statements of Condition | ||
| (In Thousands, Except Share Amounts) | ||
| (Unaudited) | ||
| ASSETS | June 30, 2012 | December 31, 2011 |
| CASH AND CASH EQUIVALENTS: | ||
| Cash and due from banks | $20,151 | $40,677 |
| Short-term investments | 13,739 | 308 |
| Total cash and cash equivalents | 33,890 | 40,985 |
| AVAILABLE FOR SALE SECURITIES-At fair value | 221,714 | 151,237 |
| HELD TO MATURITY SECURITIES-At amortized cost | 7,692 | 9,506 |
| TOTAL LOANS HELD FOR SALE | 598 | – |
| LOANS RECEIVABLE (Net of allowance for loan losses of | ||
| $17,303 at June 30, 2012, $16,025 at December 31, 2011) | 1,545,250 | 1,457,398 |
| FEDERAL HOME LOAN BANK STOCK, at cost | 15,867 | 17,007 |
| ACCRUED INTEREST RECEIVABLE | 5,070 | 4,089 |
| DEFERRED TAX ASSET-Net | 10,492 | 10,368 |
| PREMISES AND EQUIPMENT-Net | 17,331 | 15,502 |
| GOODWILL | 1,070 | 1,149 |
| CASH SURRENDER VALUE OF BANK-OWNED LIFE INSURANCE | 56,912 | 31,082 |
| OTHER REAL ESTATE OWNED | 2,084 | 3,008 |
| PREPAID FDIC ASSESSMENTS | 2,569 | 3,034 |
| CURRENT INCOME TAX RECEIVABLE | 3,121 | 2,848 |
| OTHER ASSETS | 4,739 | 2,659 |
| $1,928,399 | $1,749,872 | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| LIABILITIES: | ||
| DEPOSITS: | ||
| Non-interest-bearing | $220,924 | $206,416 |
| Interest-bearing | 1,234,750 | 1,120,350 |
| Total deposits | 1,455,674 | 1,326,766 |
| MORTGAGORS' AND INVESTORS' ESCROW ACCOUNTS | 6,556 | 5,852 |
| ADVANCES FROM THE FEDERAL HOME LOAN BANK | 125,871 | 65,882 |
| ACCRUED EXPENSES AND OTHER LIABILITIES | 17,593 | 17,901 |
| TOTAL LIABILITIES | 1,605,694 | 1,416,401 |
| COMMITMENTS AND CONTINGENCIES | ||
| STOCKHOLDERS' EQUITY: | ||
| Preferred stock (no par value; 2,000,000 shares authorized; no shares issued or | ||
| outstanding at June 30, 2012 and December 31, 2011, respectively.) | – | – |
| Common stock (no par value; 60,000,000 shares authorized; 29,509,304 | 243,776 | 243,776 |
| and 29,514,468, shares issued and 28,602,777 and 29,514,468 shares | ||
| outstanding at June 30, 2012 and December 31, 2011, respectively) | ||
| Additional paid-in capital | 11,825 | 15,189 |
| Unearned compensation - ESOP | (8,880) | (9,453) |
| Treasury stock, at cost (906,527 shares at June 30, 2012 | ||
| and 0 shares at December 31, 2011) | (10,474) | – |
| Retained earnings | 92,574 | 90,707 |
| Accumulated other comprehensive loss, net of tax | (6,116) | (6,748) |
| TOTAL STOCKHOLDERS' EQUITY | 322,705 | 333,471 |
| $1,928,399 | $1,749,872 | |
| Rockville Financial, Inc. and Subsidiaries | ||||
| Consolidated Statements of Operations | ||||
| (In Thousands, Except Share Data) | ||||
| (Unaudited) | ||||
| For the Three Months Ended June, | For the Six Months Ended June, | |||
| 2012 | 2011 | 2012 | 2011 | |
| INTEREST AND DIVIDEND INCOME: | ||||
| Loans | $ 17,930 | $ 17,481 | $ 35,494 | $ 35,016 |
| Securities-interest | 1,703 | 1,286 | 3,009 | 2,335 |
| Securities-dividends | 41 | 149 | 85 | 279 |
| Interest-bearing deposits | 26 | 16 | 37 | 31 |
| Total interest and dividend income | 19,700 | 18,932 | 38,625 | 37,661 |
| INTEREST EXPENSE: | ||||
| Deposits | 2,246 | 2,897 | 4,497 | 5,808 |
| Borrowed funds | 563 | 2,265 | 1,111 | 4,688 |
| Total interest expense | 2,809 | 5,162 | 5,608 | 10,496 |
| Net interest income | 16,891 | 13,770 | 33,017 | 27,165 |
| PROVISION FOR LOAN LOSSES | 1,181 | 754 | 1,885 | 1,506 |
| Net interest income after provision | ||||
| for loan losses | 15,710 | 13,016 | 31,132 | 25,659 |
| NON-INTEREST INCOME: | ||||
| Total other-than-temporary impairment | ||||
| losses on equity securities | – | – | – | (29) |
| Service charges and fees | 1,538 | 1,682 | 3,364 | 3,278 |
| Net gain from sales of securities | 118 | 6,201 | 121 | 6,201 |
| Net gain from sales of loans | 44 | – | 569 | 59 |
| Other income (loss) | 559 | (64) | 875 | (2) |
| Total non-interest income | 2,259 | 7,819 | 4,929 | 9,507 |
| NON-INTEREST EXPENSE: | ||||
| Salaries and employee benefits | 8,468 | 6,613 | 15,591 | 12,284 |
| Service bureau fees | 1,231 | 1,128 | 2,288 | 2,187 |
| Occupancy and equipment | 1,036 | 1,100 | 2,101 | 2,266 |
| Professional fees | 828 | 498 | 1,546 | 1,182 |
| Marketing and promotions | 103 | 441 | 217 | 765 |
| FDIC assessments | 201 | 506 | 506 | 1,020 |
| Other real estate owned | 53 | 15 | 334 | 74 |
| Contribution to Rockville Bank Foundation, Inc. | – | – | – | 5,043 |
| Loss on extinguishment of debt | – | 8,914 | – | 8,914 |
| Other | 1,895 | 1,493 | 3,575 | 2,917 |
| Total non-interest expense | 13,815 | 20,708 | 26,158 | 36,652 |
| INCOME (LOSS) BEFORE INCOME TAXES | 4,154 | 127 | 9,903 | (1,486) |
| INCOME TAX PROVISION (BENEFIT) | 1,205 | 84 | 3,099 | (507) |
| NET INCOME (LOSS) | $ 2,949 | $ 43 | $ 6,804 | $ (979) |
| Rockville Financial, Inc. and Subsidiaries | ||||
| Consolidated Statements of Operations - Concluded | ||||
| (In Thousands, Except Share Data) | ||||
| (Unaudited) | ||||
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||
| 2012 | 2011 | 2012 | 2011 | |
| Net income (loss) per share: | ||||
| Basic | $0.11 | $0.00 | $0.24 | (0.03) |
| Diluted | $0.11 | $0.00 | $0.24 | (0.03) |
| Weighted-average shares outstanding: | ||||
| Basic | 27,606,313 | 28,803,416 | 28,032,306 | 28,941,501 |
| Diluted | 27,773,365 | 28,931,099 | 28,200,158 | 28,941,501 |
| Rockville Financial, Inc. and Subsidiaries | ||||
| Selected Financial Highlights | ||||
| (In Thousands, Except Share Data) | ||||
| (Unaudited) | ||||
| For the Three Months Ended | ||||
| June 30, 2012 | March 31, 2012 | December 31, 2011 | June 30, 2011 | |
| Share Data: | ||||
| Basic net income per share common | $ 0.11 | $ 0.13 | $ 0.14 | $0.00 |
| Diluted net income per share common | 0.11 | 0.13 | 0.14 | 0.00 |
| Dividends declared per share | 0.09 | 0.08 | 0.075 | 0.065 |
| Key Ratios: | ||||
| Return on average assets | 0.63% | 0.86% | 0.92% | 0.01% |
| Return on average equity | 3.63% | 4.62% | 4.73% | 0.05% |
| Tax-equivalent net interest margin | 3.87% | 3.83% | 3.77% | 3.08% |
| Non-performing Assets: | ||||
| Residential real estate | $ 8,087 | $ 6,730 | $ 6,332 | $ 5,665 |
| Commercial real estate | 1,624 | 1,274 | 750 | 2,250 |
| Construction | 1,235 | 1,006 | 1,099 | 2,171 |
| Commercial business | 1,200 | 1,445 | 1,033 | 422 |
| Installment and collateral | 33 | 34 | 29 | 27 |
| Total non-accrual loans | 12,179 | 10,489 | 9,243 | 10,535 |
| Troubled debt restructured - non-accruing | 3,071 | 3,166 | 3,367 | 2,327 |
| Total non-performing loans | 15,250 | 13,655 | 12,610 | 12,862 |
| Other real estate owned | 2,074 | 2,746 | 3,008 | 148 |
| Total non-performing assets | $ 17,324 | $ 16,401 | $ 15,618 | $ 13,010 |
| Non-performing loans to total loans | 0.98% | 0.90% | 0.86% | 0.89% |
| Non-performing assets to total assets | 0.90% | 0.88% | 0.89% | 0.74% |
| Allowance for loan losses to non-performing loans | 113.47% | 121.03% | 127.08% | 119.18% |
| Allowance for loan losses to total loans | 1.11% | 1.09% | 1.09% | 1.06% |
| Non GAAP Ratios: | ||||
| Non-interest expense to average assets | 2.93% | 2.77% | 2.70% | 4.44% |
| Efficiency ratio | 72.14% | 65.67% | 63.20% | 95.92% |
| Cost of interest-bearing deposits | 0.74% | 0.79% | 1.02% | 1.05% |
| Rockville Financial, Inc. and Subsidiaries | |||||
| Reconciliation of Non-GAAP Financial Measures | |||||
| (In thousands) | |||||
| June 30, 2012 | March 31, 2012 | December 31, 2011 | September 30, 2011 | June 30, 2011 | |
| Net income | $ 2,949 | $ 3,855 | $ 3,988 | $ 4,083 | $ 43 |
| Gain on sale of securities, net | -- | -- | -- | -- | (6,201) |
| Retirement obligations | -- | -- | -- | -- | 1,100 |
| Loss on extinguishment of debt | -- | -- | -- | -- | 8,914 |
| Stock-based compensation | 1,167 | -- | -- | -- | -- |
| Income tax impact of non-core items | (365) | 0 | 0 | 0 | (1,297) |
| Core operating earnings | $ 3,751 | $ 3,855 | $ 3,988 | $ 4,083 | $ 2,559 |