Rockville Financial, Inc., the parent company for Rockville Bank, announced on Thursday record earnings for the third quarter.
Net income was reported at $4.7 million, or 17 cents per diluted share, for the three-month period ended Sept. 30.
It was the highest quarterly earnings recorded in the bank's 154-year history, President and Chief Executive Officer William H.W. Crawford IV said.
“The quarter’s results were, in part, driven by the recognition of $2.5 million of gains on sales of loans due to the expansion of our mortgage banking business," Crawford said. "This is a 101 percent increase over our next highest quarter. Asset quality remains strong and Rockville continues to enjoy organic growth.”
Crawford continued, “The company's organic growth strategy is positively reflected in its increase in deposit market share. During the 12 months ending June 30, Rockville moved up in rank in the State of Connecticut to 12th position from 14th position and increased market share in all but one of its branch locations. I Would like to personally thank our employees for their continued focus on superior customer service.”
The $4.7 million and 17 cents per share figures are an increase from the linked quarter net income of $2.9 million, or $0.11 per diluted share, the bank reported.
The 14.3 percent operating earnings increase year-over-year was attributable to "strong mortgage banking revenue as a result of especially favorable market spreads and the expansion of the residential mortgage business program, and continued organic growth in both commercial loans and low cost core deposits during the third quarter 2012," the bank declared.
Operating revenue of $21.6 million in the third quarter of 2012 represents an increase from $19.2 million in the second quarter and from $17.6 million in the prior year period, the bank declared.
The bank declared that net interest income of $17 million for the third quarter of 2012 increased by $73,000, or 0.4 percent, from $16.9 million for the second quarter of 2012 and by $1.6 million, or 10.4 percent from the comparable 2011 period.
The increase was a result of both the growth in average earning assets and "the continued reduction in the cost of funds," the bank stated.
The tax equivalent net interest margin for the third quarter of 2012 was 3.8 percent, compared to 3.87 percent for the second quarter of 2012 and 3.7 percent for the comparable period in 2011, the bank declared.
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