Bancorp Rhode Island, Inc. Announces Accelerated Vesting of Unvested Employee Stock Options.PROVIDENCE, R.I. -- Bancorp Rhode Island Rhode Island, island, United States Rhode Island, island, 15 mi (24 km) long and 5 mi (8 km) wide, S R.I., at the entrance to Narragansett Bay. It is the largest island in the state, with steep cliffs and excellent beaches. , Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : BARI) (the "Company"), the parent company of Bank Rhode Island (the "Bank"), today announced that on December 29, 2005, its Compensation Committee, with the concurrence CONCURRENCE, French law. The equality of rights, or privilege which several persons-have over the same thing; as, for example, the right which two judgment creditors, Whose judgments were rendered at the same time, have to be paid out of the proceeds of real estate bound by them. Dict. de Jur. h.t. of its Executive Committee, voted to accelerate the vesting Vesting The process by which employees accrue non-forfeitable rights over employer contributions that are made to the employee's qualified retirement plan account. Notes: of all outstanding unvested stock options awarded to Bank employees under the Company's stock option plans. These options were immediately vested as of December 30, 2005. No other changes were made to the terms and conditions of the options. The accelerated vesting was undertaken in an attempt to reduce the non-cash compensation expense that the Company would otherwise be required to recognize upon adopting Financial Accounting Standards Board Financial Accounting Standards Board (FASB) Board composed of independent members who create and interpret Generally Accepted Accounting Principles (GAAP). Statement No. 123 (Revised 2004), "Share-Based Payment" ("SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System 123R"). SFAS 123R, which became effective for the Company on January 1, 2006, requires companies to recognize compensation expense over a stock option's vesting period. A total of 89,586 options vested on December 30, 2005 as a result of the acceleration. The Company anticipates that the accelerated vesting of these options will eliminate potential pre-tax compensation expense recognition in future periods of approximately $715,000, of which approximately $375,000 would have been incurred during the year ending December 31, 2006. The Company will book a one-time charge of approximately $50,000 in 2005 as a result of this acceleration. Bancorp Rhode Island, Inc. is the parent company of Bank Rhode Island, a full-service, FDIC-insured, state-chartered financial institution. The Bank, headquartered in Providence, has 16 branches located in Providence, Kent and Washington counties. This release may contain "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements represent the company's present expectations or beliefs concerning future events. The company cautions that such statements are necessarily based on certain assumptions which are subject to risks and uncertainties, including, but not limited to, changes in general economic conditions and changing competition which could cause actual future results to differ materially from those indicated herein. Further information on these risk factors is included in the company's filings with the Securities and Exchange Commission. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion