This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Rockville Financial, Inc. Announces Record Annual Earnings

The Company's total revenue increased by 3% in the fourth quarter compared to the linked quarter, however core revenue decreased by 3%. The decrease in core revenue reflects the volatility in market spreads for sales of residential mortgages to the secondary market and the reduced volume sold to the secondary market on a linked quarter basis. As a result of the expansion of the Company's mortgage banking business in 2012, the Company achieved record originations during the quarter, however historically high margins recognized on sales in the third quarter declined to a more normalized level in the fourth quarter. The Company sold residential mortgage loans totaling $49 million in the fourth quarter 2012 at an average spread of 2.73% compared to $64 million at an average spread of 3.95% in the third quarter 2012 due to timing differences within the application process. This business line continues to evolve and will continue to be a key line of business for the Company.

Operating revenue increased from the linked quarter primarily due to a $1.0 million payment the Company received from its data processing vendor, Jack Henry & Associates. The payment was in relation to the service disruptions our customers experienced when the Jack Henry & Associates operations center located in Lyndhurst, New Jersey was impacted by Hurricane Sandy in the fourth quarter. Noninterest income was negatively impacted during the quarter by the waiving of $107,000 of NSF fees during the service disruption. The Company incurred $503,000 of additional expense directly related to the service disruption. The Company recorded higher salaries and employee benefits during the quarter of $461,000 in additional compensation costs paid to those customer service and back office representatives assisting our customers through the delay in their items processing, and also recorded approximately $42,000 of other additional expenses related to the service disruption.

2 of 9

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,279.74 +13.75 0.08%
S&P 500 2,010.40 -0.96 -0.05%
NASDAQ 4,579.7890 -13.6380 -0.30%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs