The fourth quarter provision for loan losses increased $148,000, or 19%, to $909,000 for the three months ended December 31, 2012 compared to $761,000 for the comparable 2011 period due to strong growth in the loan portfolio during this time period. Net charge-offs for the fourth quarter were $511,000, or 0.13% annualized as a percentage of average loans outstanding, an increase from $263,000, or 0.07% annualized as a percentage of average loans outstanding, in the prior year period. Provision expense continues to be assessed in correlation to the Company's loan growth and risk profile.On a linked quarter basis, non-interest expense increased $518,000 to $15.0 million in the fourth quarter 2012, while core operating expense basically remained level, increasing by only $15,000 to $14.5 million. The aforementioned $503,000 in compensation and other expenses related to the Jack Henry & Associates service disruption were not included in fourth quarter core operating expense. Core salaries and employee benefits expense increased $506,000, or 6%, over the linked quarter due to both the increase in FTE ($328,000) and the increase in commissions and incentive expense related to record loan originations ($272,000). One significant driver to controlling expense over the linked quarter was the decrease of $324,000 in professional fees. The fourth quarter 2012 non-interest expense as a percentage of average assets and the efficiency ratio on a core basis were 2.96% and 70.10%, respectively.
Rockville Financial, Inc. Announces Record Annual Earnings
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