Bancorp Rhode Island, Inc. Announces Third Quarter Earnings of $1.8 Million; Total deposits cross $800 million mark.Business Editors 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.--(BUSINESS WIRE)--Oct. 21, 2003 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 third quarter of 2003 were $1.8 million, an 8 percent decrease from the third quarter last year. Total assets increased 6 percent to $1.1 billion since December December: see month. 30. 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 $0.44 for the third quarter of 2003, down 8 percent from $0.48 in 2002. The Bank's total deposits continued to climb in the third quarter, reaching $800.4 million at September September: see month. 30, up from $761.9 at the end of 2002. Core deposits (checking and savings) grew to $599.3 million this quarter, an 11 percent increase since the end of last year. The Bank's total commercial loans outstanding increased 13 percent this year, reaching $318.2 million as of September 30. Consumer loans outstanding have increased 14 percent from $91.9 million on December 31 to $104.7 million as of September 30. "We are pleased with the Bank's growth in key business lines," 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. . "Our commercial loan growth remains exceptional. The consumer loan growth underscores our ability to leverage off our market position." Sherman noted, "The Bank continues to experience downward pressure on its net interest margin, driven primarily by high prepayments Prepayments Payments made in excess of scheduled mortgage principal repayments. in its purchased mortgage portfolio. That pressure, coupled with the planned increase in expenses, has resulted in a decline in third quarter earnings when compared to the prior year." Sherman further commented, "The Bank's ability to generate quality loan business is key to attaining the Bank's long-term goals Long-term goals Financial goals expected to be accomplished in five years or longer. of reducing its dependence on purchasing secondary market mortgages and improving its margin." The Company's Board of Directors approved a dividend of $0.14 per share. The dividend will be paid on December 2 to shareholders of record on November November: see month. 11. Bancorp Rhode Island, Inc. will host a conference call at 10:00 a.m. Eastern Time tomorrow (Wednesday Wednesday: see week. , October October: see month. 22) to discuss its third quarter earnings for 2003. The conference call can be accessed by dialing toll free (877) 407-8037. 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 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
Sept. 30, Dec. 31,
2003 2002
---------- ----------
(Dollars in thousands, except per share data)
Total Assets $1,077,764 $1,012,877
Total Loans 789,536 670,658
Nonperforming Loans 3,647 736
Allowance for Loan Losses 10,808 10,096
Allowance to Nonperforming
Loans 296.35% 1371.74%
Allowance to Total Loans 1.37% 1.51%
Total Deposits 800,412 761,911
Total Shareholders' Equity 70,022 66,427
Book Value Per Share $18.02 $17.59
Tangible Book Value Per
Share $15.25 $14.73
Quarter Ended Nine Months Ended
September 30, September 30,
--------------------- ---------------------
2003 2002 2003 2002
---------- ---------- ---------- ----------
(Dollars in thousands, except per share data)
Interest Income $ 12,658 $ 13,577 $ 38,449 $ 40,213
Interest Expense 4,766 5,676 14,749 16,678
---------- ---------- ---------- ----------
Net Interest Income 7,892 7,901 23,700 23,535
Provision for Loan Losses 400 575 1,200 1,425
Noninterest Income 2,234 1,796 6,544 4,880
Noninterest Expense 7,037 6,234 21,255 18,337
---------- ---------- ---------- ----------
Income Before Taxes 2,689 2,888 7,789 8,653
Income Taxes 904 957 2,570 2,919
---------- ---------- ---------- ----------
Net Income $ 1,785 $ 1,931 $ 5,219 $ 5,734
========== ========== ========== ==========
Data Per Common Share:
--------------------------
Earnings Per Common
Share - Basic $ 0.47 $ 0.51 $ 1.37 $ 1.53
Earnings Per Common
Share - Diluted $ 0.44 $ 0.48 $ 1.29 $ 1.44
Average Common Shares
Outstanding - Basic 3,830,461 3,765,585 3,799,116 3,754,604
Average Common Shares
Outstanding - Diluted 4,084,174 3,988,321 4,052,699 3,993,256
Selected Operating Ratios:
--------------------------
Net Interest Margin 3.13% 3.42% 3.26% 3.57%
Return on Assets 0.67% 0.80% 0.68% 0.83%
Return on Equity 10.17% 12.75% 10.24% 12.77%
Efficiency Ratio 69.49% 64.29% 70.28% 64.53%
BANCORP RHODE ISLAND, INC.
Consolidated Balance Sheets
Sept. 30, Dec. 31,
2003 2002
-------------------------
(Dollars in thousands)
ASSETS:
Cash and due from banks $22,919 $25,336
Overnight investments 37,842 17,623
-------------------------
Total cash and cash equivalents 60,761 42,959
Investment securities available for sale
(amortized cost of $77,103 and
$99,803 at September 30, 2003 and December
31, 2002, respectively) 78,658 101,329
Mortgage-backed securities available for sale
(amortized cost of $102,728
and $154,225 at June 30, 2003 and December
31, 2002, respectively) 102,875 156,114
Stock in Federal Home Loan Bank of Boston 8,934 7,683
Loans receivable:
Commercial loans 318,222 280,967
Residential mortgage loans 366,580 297,763
Consumer and other loans 104,734 91,928
-------------------------
Total loans 789,536 670,658
Less allowance for loan losses (10,808) (10,096)
-------------------------
Net loans 778,728 660,562
Premises and equipment, net 12,287 9,702
Other real estate owned -- 58
Goodwill, net 10,766 10,766
Accrued interest receivable 5,626 6,183
Investment in bank-owned life insurance 15,347 14,768
Prepaid expenses and other assets 3,782 2,753
-------------------------
Total assets $1,077,764 $1,012,877
=========================
LIABILITIES:
Deposits:
Demand deposit accounts $153,329 $137,920
NOW accounts 123,519 100,476
Money market accounts 13,157 10,660
Savings accounts 309,274 290,981
Certificate of deposit accounts 201,133 221,874
-------------------------
Total deposits 800,412 761,911
Overnight and short-term borrowings 12,693 27,364
Federal Home Loan Bank of Boston borrowings 176,732 143,941
Company-obligated mandatorily redeemable
capital securities 13,000 8,000
Other liabilities 4,905 5,234
-------------------------
Total liabilities 1,007,742 946,450
-------------------------
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:
Voting:Issued and outstanding 3,885,080
shares in 2003 and
3,777,450 in 2002 39 38
Additional paid-in capital 41,237 40,134
Retained earnings 27,623 24,002
Accumulated other comprehensive income, net 1,123 2,253
-------------------------
Total shareholders' equity 70,022 66,427
-------------------------
Total liabilities and shareholders'
equity $1,077,764 $1,012,877
=========================
BANCORP RHODE ISLAND, INC.
Consolidated Statements of Operations
Three Months Ended Nine Months Ended
September 30, September 30,
----------------------------------------
2003 2002 2003 2002
----------------------------------------
(Dollars in thousands, except per share data)
Interest and dividend income:
Commercial loans $4,975 $4,833 $14,488 $13,564
Residential mortgage loans 4,444 4,555 12,941 14,327
Consumer and other loans 1,284 988 3,909 2,886
Mortgage-backed securities 973 2,188 3,785 6,636
Investment securities 854 863 2,985 2,392
Overnight investments 59 82 143 198
Federal Home Loan Bank of
Boston stock dividends 69 68 198 210
----------------------------------------
Total interest and
dividend income 12,658 13,577 38,449 40,213
----------------------------------------
Interest expense:
NOW accounts 333 240 1,003 368
Money market accounts 27 36 79 102
Savings accounts 922 1,286 3,136 3,785
Certificate of deposit
accounts 1,458 1,975 4,578 6,365
Overnight and short-term
borrowings 20 114 109 226
Federal Home Loan Bank of
Boston borrowings 1,803 1,880 5,364 5,530
Company-obligated
mandatorily redeemable
capital securities 203 145 480 302
----------------------------------------
Total interest expense 4,766 5,676 14,749 16,678
----------------------------------------
Net interest income 7,892 7,901 23,700 23,535
Provision for loan losses 400 575 1,200 1,425
----------------------------------------
Net interest income after
provision for loan
losses loan losses 7,492 7,326 22,500 22,110
----------------------------------------
Noninterest income:
Service charges on deposit
accounts 957 993 2,952 2,760
Commissions on nondeposit
investment products 220 349 626 771
Income from bank-owned life
insurance 171 143 579 380
Loan related fees 127 78 570 251
Commissions on loans
originated for others 128 78 331 230
Gain on sale of mortgage-
backed securities -- -- 104 23
Gain on sale of investment
securities 348 -- 681 --
Other income 283 155 701 465
----------------------------------------
Total noninterest income 2,234 1,796 6,544 4,880
----------------------------------------
Noninterest expense:
Salaries and employee
benefits 3,697 3,376 10,741 9,630
Occupancy 595 485 1,785 1,448
Equipment 389 288 1,102 783
Data processing 599 500 2,245 1,425
Marketing 235 215 830 896
Professional services 289 330 951 1,128
Loan servicing 270 216 708 675
Other real estate owned
expense 33 (3) 34 4
Other expenses 930 827 2,859 2,348
----------------------------------------
Total noninterest expense 7,037 6,234 21,255 18,337
----------------------------------------
Income before income
taxes 2,689 2,888 7,789 8,653
Income tax expense 904 957 2,570 2,919
----------------------------------------
Net income $1,785 $1,931 $5,219 $5,734
========================================
Per share data:
Basic earnings per common
share $0.47 $0.51 $1.37 $1.53
Diluted earnings per common
share $0.44 $0.48 $1.29 $1.44
Average common shares
outstanding - basic 3,830,461 3,765,585 3,799,116 3,754,604
Average common shares
outstanding - diluted 4,084,174 3,988,321 4,052,699 3,993,256
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