Bancorp Rhode Island, Inc. Announces Earnings of $1.7 Million; Company Posts Nine Percent Increase Over Second Quarter of 2001.Business Editors 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 parent company of Bank Rhode Island, announced that its earnings for the second quarter of 2002 reached $1.7 million, a nine percent increase over the second quarter of last year. The Company's diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of (EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. ) reached $0.43, up from $0.40 in the second quarter of 2001. On a cash basis, excluding amortization of intangibles Property that is a "right" such as a patent, Copyright, or trademark, or one that is lacking physical existence, such as good will. , net of taxes, EPS reached $0.48 per share, compared to $0.45 per share for the second quarter of the previous year. For the six months ended June June: see month. 30, earnings reached $3.4 million, a nine percent increase over the first six months of 2001. Diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. EPS for the six-month period increased six percent, climbing to $0.86. The Company's Board of Directors also declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. a cash dividend of $0.13 a share. The dividend will be paid on August 27 to shareholders of record on August 6. "This quarter we posted solid earnings and continue to grow the institution much the way we've we've Contraction of we have. we've have done over the last six years," said President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Merrill Mer·rill , James 1926-1995. American poet whose works include Divine Comedies (1976), which won a Pulitzer Prize. W. Sherman Sherman, city (1990 pop. 31,601), seat of Grayson co., N Tex., near the Red River; inc. 1858. Originally on a stagecoach route, it is a highway and railroad junction. Manufactures include electronic equipment, processed foods, military equipment, and metal products. . "We are particularly pleased with our commercial loan growth. We had one of our best quarters ever, adding more than $17 million in outstandings." Total commercial loan outstandings reached $259.5 million at the end of the second quarter. Over the last 12 months, commercial loan outstandings have climbed 19 percent. Total deposits topped the $700-million mark, reaching $701.2 million at June 30. Total deposits have increased $30.8 million since December December: see month. 31, 2001. The Company also has added more than $81 million in assets in 2002. Late in the second quarter, the Company participated in a trust preferred securities pool that provided it with $5 million in additional regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. capital. The proceeds from the trust preferred offering together with the overall growth of the Bank helped push assets to $944.0 million at June 30. Bancorp Rhode Island will host a conference call at 10:00 a.m. Eastern Time tomorrow (Wednesday Wednesday: see week. , July July: see month. 17) to discuss its second quarter earnings. The conference call can be accessed by dialing toll free (888) 881-4892. Bancorp Rhode Island, Inc., is the parent company of Bank Rhode Island, a full-service full-ser·vice adj. Associated with or offering complete service: full-service gasoline pumps; full-service banks. , FDIC-insured, state-chartered financial institution. The Bank, headquartered in Providence Providence, city (1990 pop. 160,728), state capital and seat of Providence co., NE R.I., a port at the head of Providence Bay; founded by Roger Williams 1636, inc. as a city 1832. , has 13 branches located in Providence and Kent 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 a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. . 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.
Bancorp Rhode Island, Inc.
Selected Financial Highlights
June 30, December 31,
2002 2001
(Dollars in thousands, except per share data)
Total Assets $943,994 $862,250
Total Loans 615,578 610,964
Nonperforming Loans 902 753
Allowance for Loan Losses 9,266 8,524
Allowance to Nonperforming Loans 1027.27% 1132.01%
Allowance to Total Loans 1.51% 1.40%
Total Deposits 701,189 670,413
Total Shareholders' Equity 61,926 59,097
Book Value Per Share $ 16.46 $ 15.74
Tangible Book Value Per Share $ 13.75 $ 12.88
Quarter Ended Six Months Ended
June 30, June 30,
2002 2001 2002 2001
(Dollars in thousands, except per share data)
Interest Income $ 13,539 $ 14,203 $ 26,636 $ 28,360
Interest Expense 5,522 7,105 11,002 14,056
Net Interest Income 8,017 7,098 15,634 14,304
Provision for
Loan Losses 450 352 850 840
Noninterest Income 1,518 1,306 3,084 2,408
Noninterest Expense 6,537 5,648 12,685 11,037
Income Before Taxes 2,548 2,404 5,183 4,835
Income Taxes 834 832 1,764 1,703
Net Income $ 1,714 $ 1,572 $ 3,419 $ 3,132
Data Per Common Share:
Earnings Per Common
Share - Basic $ 0.46 $ 0.42 $ 0.91 $ 0.84
Earnings Per Common
Share - Diluted $ 0.43 $ 0.40 $ 0.86 $ 0.81
Cash Earnings Per
Common Share - Basic $ 0.51 $ 0.47 $ 1.01 $ 0.94
Cash Earnings Per
Common Share - Diluted $ 0.48 $ 0.45 $ 0.95 $ 0.91
Average Common Shares
Outstanding - Basic 3,751,054 3,729,879 3,749,113 3,729,415
Average Common Shares
Outstanding - Diluted 4,012,159 3,888,868 3,995,352 3,874,452
Selected Operating Ratios:
Net Interest Margin 3.66% 3.64% 3.64% 3.81%
Return on Assets 0.74% 0.77% 0.76% 0.80%
Return on Assets
- Cash basis (a) 0.84% 0.88% 0.85% 0.91%
Return on Equity 11.37% 11.40% 11.43% 11.58%
Return on Equity
- Cash basis (a) 12.67% 12.78% 12.71% 12.97%
Efficiency Ratio 68.56% 67.21% 67.77% 66.04%
Efficiency Ratio
- Cash basis (a) 65.51% 63.74% 64.66% 62.56%
(a) Cash basis ratios exclude amortization of intangibles, net of
taxes where applicable.
BANCORP RHODE ISLAND, INC.
Consolidated Balance Sheets
June 30, December 31,
2002 2001
(Dollars in thousands)
ASSETS:
Cash and due from banks $ 22,094 $ 24,261
Federal funds sold 9,377 4,913
Investment securities
available for sale
(amortized cost of $71,249
and $49,193 at
June 30, 2002 and
December 31, 2001,
respectively) 71,800 49,453
Mortgage-backed
securities available
for sale (amortized
cost of $188,288
and $149,549 at
June 30, 2002 and
December 31, 2001,
respectively) 189,464 150,650
Stock in Federal Home
Loan Bank of Boston 7,683 5,668
Loans receivable:
Residential mortgage loans 291,495 310,212
Commercial loans 259,502 239,364
Consumer and other loans 64,581 61,388
Total loans 615,578 610,964
Less allowance for loan losses (9,266) (8,524)
Net loans 606,312 602,440
Premises and equipment, net 7,717 7,184
Other real estate owned -- 264
Excess of cost over net
assets acquired, net 10,184 10,766
Accrued interest receivable 6,059 5,803
Investment in bank-owned
life insurance 10,237 --
Prepaid expenses and
other assets 3,067 848
Total assets $ 943,994 $ 862,250
LIABILITIES:
Deposits:
Demand deposit accounts $ 116,377 $ 112,925
NOW accounts 64,482 44,445
Money market accounts 9,956 9,914
Savings accounts 268,747 254,861
Certificate of deposit accounts 241,627 248,268
Total deposits 701,189 670,413
Overnight and short-term
borrowings 18,003 13,033
Federal Home Loan Bank
of Boston borrowings 150,802 113,365
Company-obligated mandatorily
redeemable capital securities 8,000 3,000
Other liabilities 4,074 3,342
Total liabilities 882,068 803,153
SHAREHOLDERS' EQUITY:
Common stock, par value
$0.01 per share,
authorized 11,000,000 shares:
Voting: Issued and
outstanding 3,762,850
shares in 2002 and
3,753,550 in 2001 38 37
Additional paid-in capital 39,970 39,826
Retained earnings 20,778 18,336
Accumulated other comprehensive
income (loss), net 1,140 898
Total shareholders' equity 61,926 59,097
Total liabilities and
shareholders' equity $ 943,994 $ 862,250
BANCORP RHODE ISLAND, INC.
Consolidated Statements of Operations
Three Months Ended Six Months Ended
June 30, June 30,
2002 2001 2002 2001
(Dollars in thousands, except per share data)
Interest and
dividend income:
Residential
mortgage loans $ 4,845 $ 5,485 $ 9,772 $ 10,699
Commercial loans 4,443 4,568 8,731 9,281
Consumer and
other loans 959 1,199 1,898 2,469
Mortgage-backed
securities 2,348 1,954 4,448 3,957
Investment securities 821 705 1,529 1,447
Federal funds
sold and other 43 215 116 356
Federal Home Loan
Bank of Boston
stock dividends 80 77 142 151
Total interest
and dividend
income 13,539 14,203 26,636 28,360
Interest expense:
NOW accounts 86 58 128 108
Money market accounts 31 60 66 138
Savings accounts 1,282 1,785 2,499 3,654
Certificate of
deposit accounts 2,101 3,566 4,390 7,274
Overnight and
short-term
borrowings 53 116 112 308
Federal Home Loan
Bank of Boston
borrowings 1,888 1,373 3,650 2,323
Other borrowings -- 68 -- 138
Company-obligated
mandatorily
redeemable capital
securities 81 79 157 113
Total interest
expense 5,522 7,105 11,002 14,056
Net interest income 8,017 7,098 15,634 14,304
Provision for
loan losses 450 352 850 840
Net interest income
after provision
for loan losses 7,567 6,746 14,784 13,464
Noninterest income:
Service charges on
deposit accounts 912 894 1,767 1,660
Loan related fees 82 51 173 100
Commissions on loans
originated for others 58 71 152 130
Commissions on
nondeposit
investment products 173 73 422 146
Gain on sale of
mortgage-backed
securities -- 4 23 4
Income from
bank-owned
life insurance 142 -- 237 --
Other income 151 213 310 368
Total noninterest
income 1,518 1,306 3,084 2,408
Noninterest expense:
Salaries and
employee benefits 3,207 2,665 6,254 5,315
Occupancy 496 438 963 868
Equipment 246 208 495 439
Data processing 485 463 925 882
Marketing 385 369 681 557
Professional services 416 185 798 400
Loan servicing 236 242 459 451
Other real estate
owned expense 16 21 7 64
Amortization of
excess of cost
over net assets
acquired 291 291 582 582
Other 759 766 1,521 1,479
Total noninterest
expense 6,537 5,648 12,685 11,037
Income before
income taxes 2,548 2,404 5,183 4,835
Income tax expense 834 832 1,764 1,703
Net income $ 1,714 $ 1,572 $ 3,419 $ 3,132
Per share data:
Basic earnings
per common share $ 0.46 $ 0.42 $ 0.91 $ 0.84
Diluted earnings
per common share $ 0.43 $ 0.40 $ 0.86 $ 0.81
Average common shares
outstanding - basic 3,751,054 3,729,879 3,749,113 3,729,415
Average common shares
outstanding - diluted 4,012,159 3,888,868 3,995,352 3,874,452
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