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January 30, 2013

CEO: Rockville Bank’s ‘12 net may be hard to repeat

Photo/Steve Laschever Rockville Financial CEO William H. W. "Bill" Crawford

Vernon’s Rockville Financial Inc. closed books on a record 2012 for profitability, but its CEO acknowledged gathering clouds over the bank’s business model for 2013.

For three months ended Dec. 31, Rockville Bank’s parent said Wednesday it netted $4.3 million, or 16 cents a diluted share, up slightly from $4 million, or 14 cents a share, earned the same quarter in 2011.

For the year 2012, net income more than doubled to $15.8 million, or 56 cents a diluted share, from $7.1 million, or a quarter a share, netted a year earlier.

While CEO William H. W. “Bill’’ Crawford IV cheered his bank’s performance, he made clear tightening yield spreads means repeating its 2012 success won’t be easy.

Aside from loan and service fees, bank’s profitability sweet spot is the difference, or spread, between what they pay in interest to depositors and collect in interest from borrowers.

“During the quarter, yields on loans and securities and mortgage spreads declined due to the continued low interest rate environment and the actions by the Federal Reserve Board,” Crawford said in his earnings statement.

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