Rockville Bank CEO: "A Remarkably Successful Year"

By Chris Dehnel

The following remarks were delivered by William H.W. Crawford IV, president and CEO of Rockville Bank and Rockville Financial Inc., at the company's annual shareholders meeting last week at Maneeley’s in South Windsor: 

"I am pleased to report that 2012 was a remarkably successful year for Rockville Financial. The Company had record earnings in 2012. Profits increased by 123 percent, core revenues grew by 20 percent and the Company grew core earnings per share by 33 precut. Rockville’s Return on Average Assets was 84 basis points in 2012, far exceeding the average 17 basis points for all other Connecticut banks.

"At Rockville we remain focused on creating prosperity for our customers, communities, and shareholders. Rockville’s market cap increased by $57 million in 2012, that is a 19 percent increase in the value of our outstanding shares. Our total shareholder return for 2012 was 30 percent compared to the SNL thrift index of 22 percent and Connecticut banks of negative 10 percent, during the same time period. Capital management is a top priority for the Company and we view efficiently returning capital to shareholders via increased dividends and our stock buyback program as important tools in that regard. We are delighted to report a 54 percent dividend increase since our conversion, providing most recently, a 3.10 percent annualized dividend yield to our shareholders based on the average closing price in the first quarter.

"We talked about our 30 percent total shareholder return for 2012. Over the 3 year period, the Company’s total shareholder return was 104 percent, far exceeding the Index at 7 percent during this timeframe."Rockville Bank has added 100 new jobs in the last two years, increasing employment opportunities by 40 percent. The Bank also supported our communities by lending a record $294 million to homeowners in our markets in 2012, assisting about 1,500 members of our communities in purchasing new homes and lowering payments on their existing homes. Connecticut businesses and commercial customers benefitted in 2012 by receiving $131 million of loans to support their financial needs.

"Our commitment to our communities is strong.  In 2012, Rockville supported over 420 organizations through employee volunteerism or financial support from our Foundation.  The Foundation contributed significantly to Rockville Public Library, Rockville General Hospital and Manchester Memorial Hospital with pledges of $250,000 and $157,500. We donated $25,000 to the Red Cross to assist the victims of Hurricane Sandy, and I personally was honored to chair Manchester Community College’s Evening of Fine Wines and Channel 3 Kids Camp’s Golf Committee. Both organizations received record donations at the events that I was involved in. MCC received an extraordinary $490,000 in donations to support their scholarships and programs.

"I would like to personally thank our shareholders for their overwhelming support of Rockville Financial and Rockville Bank. It is a pleasure serving this community.

* * * 

Here are some balance sheet highlights: 

(in thousands)

Total assets 

• Dec. 31, 2012 - $1,998,9799
• Dec. 31, 2011 - $1,749,872
• Percent change - 14.2 

Loans

• Dec. 31, 2012 - $1,586,985
• Dec. 31, 2011 - $1,457,398
• Percent chance - 8.9 

Deposits

• Dec. 31, 2012 - $1,504,680
• Dec. 31, 2011 - $1,326,766
• Percent change - 13.4 

Stockholders Equity 

• Dec. 31, 2012 - $320,611
• Dec. 31, 2011 - $333,471
• Percent change - (-3.9)

Community Involvement Highlights 

• Rockville Bank and the Rockville Bank Foundation support more than 420 organizations through donations and employee volunteerism

• $250,000 pledge to Rockville Public Library to support the construction of a new wing

• $157,500 pledge for Rockville General Hospital cafeteria and Manchester Memorial Hospital lobby renovations

• $25,000 donation to the Connecticut Chapter of the American Red Cross in support of the victims of Hurricane Sandy

• Bill Crawford personally chaired the Manchester Community College Evening of Fine Wines event which raised a record $490,000 supporting scholarships and programs. He chaired the Channel 3 Kids Camp Golf Committee which also achieved record donations under his leadership.