Bancorp Rhode Island, Inc. Announces Second Quarter Earnings of $2.0 Million; Commercial Growth Jumps.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. , 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 parent company of Bank Rhode Island, today announced earnings for the second quarter of 2006 were $2.0 million, as compared to $2.5 million earned in 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. ) were $0.41 for the second quarter of 2006, down from $0.52 in the second quarter of 2005. The FHLB FHLB Federal Home Loan Bank of Boston Boston, town, England Boston, town (1991 pop. 26,495), E central England, on the Witham River. Boston's fame as a port dates from the 13th cent., when it was a Hanseatic port trading wool and wine. Having recovered from a decline in the 18th and 19th cent. 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. its dividend schedule and deferred the declaration of its normal quarterly dividend. As a result, the Bank was not able to recognize income related to its investment for the second quarter of 2006. The dividend recorded in first quarter of 2006 was $211,000 before taxes. Total commercial loans outstanding reached $486.1 million, up a strong 10.9 percent from $438.3 million as of December December: see month. 31, 2005. Consumer loans outstanding rose to $222.2 million at the end of the second quarter of 2006. This marks a 7.6 percent increase over the $206.5 million reported at December 31, 2005. The bank's total deposits were $992.5 million for the second quarter of 2006, up $11.5 million from $981.0 million at the end of 2005. "We are delighted our commercial lending efforts built our portfolio by better than $44 million this quarter," said 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. , president and chief executive officer. "The changes we have made over the past six months are clearly being well-received in the marketplace," she added. Sherman also noted, "Deposits rebounded nicely during the quarter, but the margin remains under significant pressure." Bancorp Rhode Island, Inc. will host a conference call at 10:00 a.m. Eastern Time tomorrow (Wednesday Wednesday: see week. , July July: see month. 19) to discuss its second quarter earnings for 2006. The conference call can be accessed by dialing toll-free 800-231-5571. 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, has 16 branches located in Providence, Kent and Washington counties Washington County is the name of 30 counties and one parish in the United States of America, all named for George Washington. It is the most common county name in the United States. . 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.
BANCORP RHODE ISLAND, INC.
Selected Financial Highlights
June 30, December 31,
2006 2005
-------------- ---------------
Balance Sheet Data: (Dollars in thousands, except
per share data)
--------------------------------------
Total Assets $ 1,466,587 $ 1,442,279
Total Loans 996,838 950,806
Nonperforming Loans 3,387 415
Allowance for Loan Losses 12,462 12,168
Allowance for Nonperforming Loans 367.94% 2932.05%
Allowance to Total Loans 1.25% 1.28%
Total Deposits 992,511 980,969
Total Shareholders' Equity 104,579 104,832
Book Value Per Share $ 21.92 $ 22.21
Tangible Book Value Per Share $ 19.55 $ 19.83
Quarter Ended Six Months Ended
June 30, June 30,
----------------- ----------------
2006 2005 2006 2005
---------- ------ ---------- -----
(Dollars in millions)
Average Balance Sheet Data:
----------------------------------
Average Total Assets $1,447 $ 1,337 $ 1,442 $ 1,296
Average Total Loans 972 913 964 899
Average Total Interest-bearing
Liabilities 1,147 1,056 1,144 1,028
Average Total Equity 105 98 105 89
Quarter Ended Six Months Ended
June 30, June 30,
------------------ -------------------
2006 2005 2006 2005
--------- -------- --------- ---------
(Dollars in thousands, except per share data)
Income Statement Data:
--------------------------------
Interest Income $ 19,762 $ 17,068 $ 39,157 $ 32,813
Interest Expense 9,433 6,298 17,778 11,672
---------- ---------- ---------- ----------
Net Interest
Income 10,329 10,770 21,379 21,141
Provision of Loan
Losses 440 354 740 654
Noninterest Income 2,815 2,445 5,120 4,520
Noninterest
Expense 9,720 9,125 20,511 17,637
---------- ---------- ---------- ----------
Income Before
Taxes 2,984 3,736 5,248 7,370
Income Taxes 978 1,276 1,717 2,503
---------- ---------- ---------- ----------
Net Income $ 2,006 $ 2,460 $ 3,531 $ 4,867
========== ========== ========== ==========
Data Per Common
Share:
------------------
Earnings Per
Common
Share - Basic $ 0.42 $ 0.55 $ 0.74 $ 1.14
Earnings Per
Common
Share - Diluted $ 0.41 $ 0.52 $ 0.72 $ 1.08
Average Common
Shares
Outstanding -
Basic 4,763,667 4,508,165 4,755,005 4,258,815
Average Common
Shares
Outstanding -
Diluted 4,905,424 4,737,503 4,896,086 4,497,435
Selected Operating
Ratios:
------------------
Net Interest
Margin 3.01% 3.40% 3.13% 3.46%
Return on Assets 0.56% 0.74% 0.50% 0.76%
Return on Equity 7.69% 10.09% 6.79% 11.09%
Efficiency
Ratio(1) 73.95% 69.05% 77.40% 68.73%
(1) Calculated by dividing total noninterest expenses by net interest
income plus noninterest income.
BANCORP RHODE ISLAND, INC.
Consolidated Balance Sheets
June 30, December 31,
2006 2005
---------- ------------
(In thousands)
ASSETS:
Cash and due from banks $ 31,497 $ 30,177
Overnight investments 5,349 10,370
---------- ------------
Total cash and cash equivalents 36,846 40,547
Investment securities available for sale
(amortized cost of $160,243 and $153,328 at
June 30, 2005 and December 31, 2005,
respectively) 156,896 150,959
Mortgage-backed securities available for sale
(amortized cost of $214,178 and $237,449 at
June 30, 2006 and December 31, 2005,
respectively) 206,812 234,858
---------- ------------
Total available for sale securities 363,708 385,817
Stock in Federal Home Loan Bank of Boston 16,530 16,062
Loans and leases receivable:
Commercial loans and leases 486,147 438,309
Residential mortgage loans 288,489 306,016
Consumer and other loans 222,202 206,481
---------- ------------
Total loans and leases receivable 996,838 950,806
Less allowance for loan and lease losses (12,462) (12,168)
---------- ------------
Net loans and leases receivable 984,376 938,638
Premises and equipment, net 15,496 14,858
Goodwill 11,317 11,234
Accrued interest receivable 6,871 6,965
Investment in bank-owned life insurance 20,737 18,824
Prepaid expenses and other assets 10,706 9,334
---------- ------------
Total assets $1,466,587 $ 1,442,279
========== ============
LIABILITIES:
Deposits:
Demand deposit accounts $ 185,050 $ 185,089
NOW accounts 87,400 89,594
Money market accounts 7,952 12,122
Savings accounts 351,702 341,115
Certificate of deposit accounts 360,407 353,049
---------- ------------
Total deposits 992,511 980,969
Overnight and short-term borrowings 43,120 26,238
Wholesale repurchase agreements 20,000 20,000
Federal Home Loan Bank of Boston borrowings 277,512 279,973
Subordinated deferrable interest debentures 18,558 18,558
Other liabilities 10,307 11,709
---------- ------------
Total liabilities 1,362,008 1,337,447
---------- ------------
SHAREHOLDERS' EQUITY:
Preferred stock, par value $0.01 per share,
authorized 1,000,000 shares:
Issued and outstanding: none -- --
Common stock, par value $0.01 per share,
authorized 11,000,000 shares:
Issued and outstanding 4,770,221 shares and
4,719,126 shares, respectively 48 47
Additional paid-in capital 67,150 65,768
Retained earnings 44,345 42,241
Accumulated other comprehensive (loss)
income, net (6,964) (3,224)
---------- ------------
Total shareholders' equity 104,579 104,832
---------- ------------
Total liabilities and shareholders'
equity $1,466,587 $ 1,442,279
========== ============
BANCORP RHODE ISLAND, INC.
Consolidated Statements of Operations
Three Months Ended Six Months Ended
June 30, June 30,
----------------- -----------------
2006 2005 2006 2005
------ ------ ------ ------
(In thousands, except per share data)
Interest and dividend
income:
Commercial loans and
leases $ 8,280 $ 6,806 $ 15,965 $ 13,176
Residential mortgage
loans 3,897 4,026 7,979 7,995
Consumer and other loans 3,291 2,371 6,353 4,557
Mortgage-backed
securities 2,523 2,294 5,177 4,091
Investment securities 1,724 1,373 3,395 2,610
Overnight investments 47 44 77 100
Federal Home Loan Bank
of Boston
stock dividends -- 154 211 284
---------- ---------- ---------- ----------
Total interest and
dividend income 19,762 17,068 39,157 32,813
---------- ---------- ---------- ----------
Interest expense:
NOW accounts 91 154 194 331
Money market accounts 38 58 76 113
Savings accounts 1,802 1,072 3,179 2,084
Certificate of deposit
accounts 3,338 2,077 6,306 3,799
Overnight and short-term
borrowings 498 133 813 248
Wholesale repurchase
agreements 223 92 412 100
Federal Home Loan Bank
of Boston
borrowings 3,081 2,399 6,088 4,387
Subordinated deferrable
interest
debentures 362 313 710 610
---------- ---------- ---------- ----------
Total interest expense 9,433 6,298 17,778 11,672
---------- ---------- ---------- ----------
Net interest income 10,329 10,770 21,379 21,141
Provision for loan and
lease losses 440 354 740 654
---------- ---------- ---------- ----------
Net interest
income after
provision for
loan and lease
losses 9,889 10,416 20,639 20,487
---------- ---------- ---------- ----------
Noninterest income:
Service charges on
deposit accounts 1,262 1,152 2,449 2,235
Commissions on
nondeposit investment
products 251 198 563 398
Loan related fees 274 156 418 439
Income from bank-owned
life
insurance 195 168 374 340
Commissions on loans
originated for
others 29 62 52 86
Gain (loss) on sale of
mortgage-
backed securities -- 104 -- 96
Other income 804 605 1,264 926
---------- ---------- ---------- ----------
Total noninterest
income 2,815 2,445 5,120 4,520
---------- ---------- ---------- ----------
Noninterest expense:
Salaries and employee
benefits 5,201 4,848 10,708 9,471
Occupancy 873 771 1,746 1,503
Data processing 742 745 1,479 1,497
Marketing 619 469 959 790
Professional services 513 523 929 1,011
Equipment 362 410 741 809
Loan servicing 208 239 406 466
Loan workout and other
real estate
owned expense 16 23 159 34
Loss on note receivable -- -- 868 --
Other expenses 1,186 1,097 2,516 2,056
---------- ---------- ---------- ----------
Total noninterest
expense 9,720 9,125 20,511 17,637
---------- ---------- ---------- ----------
Income before income
taxes 2,984 3,736 5,248 7,370
Income tax expense 978 1,276 1,717 2,503
---------- ---------- ---------- ----------
Net income $ 2,006 $ 2,460 $ 3,531 $ 4,867
========== ========== ========== ==========
Per share data:
Basic earnings per
common share $ 0.42 $ 0.55 $ 0.74 $ 1.14
Diluted earnings per
common share $ 0.41 $ 0.52 $ 0.72 $ 1.08
Average common shares
outstanding - basic 4,763,667 4,508,165 4,755,005 4,258,815
Average common shares
outstanding - diluted 4,905,424 4,737,503 4,896,086 4,497,435
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