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Rockville Financial, Inc. Announces Record Annual Earnings

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 December 31, 2012, the Company had repurchased 1,806,476 shares at an average cost of $11.97 per share. The average closing price of the Company's common stock over this time period was $12.09 per share.

The Company repurchased 450,097 shares during the quarter ended December 31, 2012, at an average price of $13.05, which was 115% of the Company's tangible book value of $11.33. The average closing price during the fourth quarter was $12.98, or 115% of the Company's tangible book value.

Management Comments

"Rockville significantly returned capital to its shareholders in 2012 by increasing its quarterly dividend, paying a special cash dividend and buying back 61% of its share repurchase plan. When including both dividends and the stock buyback program, the Company returned to its shareholders 231% of its net income for the year ended December 31, 2012. Our total shareholder return year-over-year is 30% compared to the SNL thrift index of 22%," stated William (Bill) H. W. Crawford, IV, President and Chief Executive Officer (CEO). "Rockville Financial will continue to look for opportunities to hire revenue producing team members in the commercial and mortgage banking divisions and financial advisors in its subsidiary, Rockville Financial Services. The Company did contract with an efficiency consultant in the fourth quarter with the goal to benchmark itself against other high performers in order to fine tune processes and position the Company for success in the future."

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