Bancorp Rhode Island, Inc. (NASDAQ: BARI), the parent company of Bank Rhode Island, today announced net income for the second quarter 2008 of $2.24 million, an increase of two percent from $2.19 million in the second quarter 2007. The company’s diluted earnings per share (EPS) were $0.48 for the second quarter 2008, up 9 percent from $0.44 in the second quarter 2007.
Total assets ended the second quarter 2008 at $1.49 billion, unchanged from the first quarter 2008, and up from $1.47 billion a year ago. The bank’s commercial loan portfolio ended the second quarter 2008 at $630.77 million, up 9 percent from $576.95 million in the prior quarter and up 16 percent from $542.71 million in the second quarter 2007. Residential mortgage and consumer loan balances declined compared to the prior quarter and year over year as the bank continued its strategic conversion to a more commercially oriented balance sheet.
Nonperforming loans at June 30, 2008 totaled $6.98 million, compared to $8.62 million in the prior quarter and $2.29 million a year ago. As a percentage of total assets, nonperforming loans ended the second quarter 2008 at 0.47 percent, compared to 0.58 percent in the first quarter 2008 and 0.16 percent in the second quarter 2007. The second quarter’s provision for loan and lease losses increased to $970 thousand compared to $285 thousand in the prior quarter and $100 thousand a year ago. Net charge offs for the second quarter 2008 were $402 thousand, as compared to $7 thousand in the second quarter 2007. The provision for loan losses was increased in the second quarter 2008 primarily due to growth in the commercial loan portfolio.
The company continues to be well capitalized with a Tier 1 capital ratio of 7.89 percent and a total risk-weighted capital ratio in excess of 12.50 percent.
Net interest margin for the second quarter of 2008 expanded to 3.24 percent, an increase of 27 basis points from both the first quarter of 2008 and the second quarter of 2007.
Total deposits were $1.04 billion at the end of the second quarter 2008, compared to $1.04 billion at the prior quarter end and $1.03 billion a year ago. The overall cost of interest bearing deposits was reduced by 73 basis points during the second quarter.
Noninterest expense was $9.61 million in the second quarter 2008, compared to $9.46 million in the prior quarter and $9.62 million in the second quarter 2007.
“Our second quarter results reflect the continued execution of our strategic plan,” said Bancorp Rhode Island, Inc. president and chief executive officer Merrill W. Sherman. “We are pleased with our commercial loan generation, and our disciplined pricing has enabled us to maintain our deposit base while significantly increasing our net interest margin. For the six months ending June 30, year over year, we have expanded revenues five percent while keeping expenses flat. We believe that our strong capital base should allow us to take advantage of opportunities in this environment.”
As a result of the Board of Directors’ confidence in the company’s long-term growth, the Board approved a $0.01, or six percent, increase in the Company’s dividend to $0.17 per share. This reflects the second time in the past four quarters that the dividend was increased. The dividend will be paid on September 3, 2008 to shareholders of record on August 13, 2008.
Bancorp Rhode Island, Inc. will host a conference call at 10:00 a.m. Eastern Daylight Time (EDT) on Thursday, July 24, to discuss its second quarter 2008 earnings. The conference call can be accessed by dialing toll free (800) 762-8779 or via webcast at the company's website, http://www.bankri.com/investorrelations.
There will be a playback of the call available until 11:59 p.m. EDT on Saturday, July 26, 2008. The replay dial-in number is (800) 406-7325. When prompted, enter the conference ID number 3894089. The webcast will be archived on the "Investor Relations" page of the company's website at http://www.bankri.com/investorrelations.
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, Rhode Island, operates 16 branches throughout Providence, Kent and Washington Counties.
This release may contain "forward-looking statements" 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 (unaudited) | ||||||||
| June 30, | December 31, | |||||||
| 2008 | 2007 | |||||||
| Balance Sheet Data: | (Dollars in thousands, except per share data) | |||||||
| Total Assets | $ | 1,490,054 | $ | 1,477,119 | ||||
| Total Loans and Leases | 1,060,304 | 1,038,132 | ||||||
| Nonperforming Loans | 6,983 | 4,149 | ||||||
| Allowance for Loan and Lease Losses | 13,161 | 12,619 | ||||||
| Allowance to Nonperforming Loans and Leases | 188.47% | 304.15% | ||||||
| Allowance to Total Loans and Leases | 1.24% | 1.22% | ||||||
| Total Deposits | $ | 1,040,514 | $ | 1,014,780 | ||||
| Total Shareholders' Equity | 113,094 | 113,108 | ||||||
| Book Value Per Share | $ | 24.75 | $ | 24.79 | ||||
| Tangible Book Value Per Share | $ | 22.12 | $ | 22.21 | ||||
| Quarter Ended | Six Months Ended | |||||||||||
| June 30, | June 30, | |||||||||||
| 2008 | 2007 | 2008 | 2007 | |||||||||
| (Dollars in millions) | ||||||||||||
| Average Balance Sheet Data: | ||||||||||||
| Average Total Assets | $ | 1,483 | $ | 1,462 | $ | 1,474 | $ | 1,461 | ||||
| Average Total Loans and Leases | 1,044 | 1,009 | 1,038 | 1,005 | ||||||||
| Average Total Interest-bearing Liabilities | 1,174 | 1,145 | 1,169 | 1,147 | ||||||||
| Average Total Equity | 114 | 115 | 114 | 114 | ||||||||
| Quarter Ended | Six Months Ended | |||||||||||
| June 30, | June 30, | |||||||||||
| 2008 | 2007 | 2008 | 2007 | |||||||||
| Statement of Operations Data: | (Dollars in thousands, except per share data) | |||||||||||
| Interest and Dividend Income | $ | 19,981 | $ | 21,315 | $ | 40,513 | $ | 42,417 | ||||
| Interest Expense | 8,553 | 11,023 | 18,781 | 21,897 | ||||||||
| Net Interest Income | 11,428 | 10,292 | 21,732 | 20,520 | ||||||||
| Provision for Loan and Lease Losses | 970 | 100 | 1,255 | 200 | ||||||||
| Noninterest Income | 2,492 | 2,664 | 5,395 | 5,226 | ||||||||
| Noninterest Expense | 9,612 | 9,624 | 19,072 | 19,135 | ||||||||
| Income Before Income Taxes | 3,338 | 3,232 | 6,800 | 6,411 | ||||||||
| Income Taxes | 1,097 | 1,038 | 2,233 | 2,039 | ||||||||
| Net Income | $ | 2,241 | $ | 2,194 | $ | 4,567 | $ | 4,372 | ||||
| BANCORP RHODE ISLAND, INC. | ||||||||||||
| Selected Financial Highlights (unaudited) | ||||||||||||
| (continued) | ||||||||||||
| Quarter Ended | Six Months Ended | |||||||||||
| June 30, | June 30, | |||||||||||
| 2008 | 2007 | 2008 | 2007 | |||||||||
| Data Per Common Share: | ||||||||||||
| Earnings Per Common Share - Basic | $ | 0.49 | $ | 0.45 | $ | 1.00 | $ | 0.91 | ||||
| Earnings Per Common Share - Diluted | $ | 0.48 | $ | 0.44 | $ | 0.99 | $ | 0.88 | ||||
| Average Common Shares Outstanding- Basic | 4,562,652 | 4,839,355 | 4,559,928 | 4,827,331 | ||||||||
| Average Common Shares Outstanding- Diluted | 4,633,910 | 4,958,234 | 4,636,299 | 4,959,929 | ||||||||
| Selected Operating Ratios: | ||||||||||||
| Net Interest Margin | 3.24% | 2.97% | 3.11% | 2.97% | ||||||||
| Return on Assets | 0.61% | 0.60% | 0.62% | 0.60% | ||||||||
| Return on Equity | 7.90% | 7.63% | 8.07% | 7.72% | ||||||||
| Efficiency Ratio (1) | 69.05% | 74.28% | 70.31% | 74.32% | ||||||||
| (1) Calculated by dividing total noninterest expenses by net interest income plus noninterest income. | ||||||||||||
| BANCORP RHODE ISLAND, INC. | |||||||||
| Consolidated Balance Sheets (unaudited) | |||||||||
| June 30, | December 31, | ||||||||
| 2008 | 2007 | ||||||||
| ASSETS: | (In thousands) | ||||||||
| Cash and due from banks | $ | 27,810 | $ | 20,465 | |||||
| Overnight investments | 1,750 | 17,097 | |||||||
| Total cash and cash equivalents | 29,560 | 37,562 | |||||||
| Investment securities available for sale | 60,785 | 76,986 | |||||||
| Mortgage-backed securities available for sale | 273,027 | 258,195 | |||||||
| Total available for sale securities | 333,812 | 335,181 | |||||||
| Stock in Federal Home Loan Bank of Boston | 15,671 | 15,671 | |||||||
| Loans and leases receivable: | |||||||||
| Commercial loans and leases | 630,773 | 573,668 | |||||||
| Residential mortgage loans | 223,801 | 248,728 | |||||||
| Consumer and other loans | 205,730 | 215,736 | |||||||
| Total loans and leases receivable | 1,060,304 | 1,038,132 | |||||||
| Less allowance for loan and lease losses | (13,161) | (12,619) | |||||||
| Net loans and leases receivable | 1,047,143 | 1,025,513 | |||||||
| Premises and equipment, net | 13,097 | 13,721 | |||||||
| Goodwill | 12,019 | 11,772 | |||||||
| Accrued interest receivable | 5,627 | 6,557 | |||||||
| Investment in bank-owned life insurance | 24,703 | 24,186 | |||||||
| Prepaid expenses and other assets | 8,422 | 6,956 | |||||||
| Total assets | $ | 1,490,054 | $ | 1,477,119 | |||||
| LIABILITIES: | |||||||||
| Deposits: | |||||||||
| Demand deposit accounts | $ | 190,084 | $ | 172,634 | |||||
| NOW accounts | 59,937 | 65,191 | |||||||
| Money market accounts | 5,197 | 6,054 | |||||||
| Savings accounts | 407,670 | 396,838 | |||||||
| Certificates of deposit accounts | 377,626 | 374,063 | |||||||
| Total deposits | 1,040,514 | 1,014,780 | |||||||
| Overnight and short-term borrowings | 50,494 | 66,795 | |||||||
| Wholesale repurchase agreements | 10,000 | 10,000 | |||||||
| Federal Home Loan Bank of Boston borrowings | 247,731 | 241,505 | |||||||
| Subordinated deferrable interest debentures | 13,403 | 13,403 | |||||||
| Other liabilities | 14,818 | 17,528 | |||||||
| Total liabilities | 1,376,960 | 1,364,011 | |||||||
| SHAREHOLDERS EQUITY: | |||||||||
| Preferred stock, par value $0.01, authorized 1,000,000 shares | - | - | |||||||
| Common stock, par value $0.01 per share, authorized 11,000,000 shares | 49 | 49 | |||||||
| Additional paid-in-capital | 71,616 | 70,123 | |||||||
| Treasury stock, at cost | (12,055) | (10,189) | |||||||
| Retained earnings | 56,314 | 53,194 | |||||||
| Accumulated other comprehensive income loss, net | (2,830) | (69) | |||||||
| Total shareholders' equity | 113,094 | 113,108 | |||||||
| Total liabilities and shareholders' equity | $ | 1,490,054 | $ | 1,477,119 | |||||
| Amortized cost | |||||||||
| Investment securities | $ | 61,963 | $ | 77,193 | |||||
| Mortgage-backed securities | 276,202 | 258,094 | |||||||
| Shares of stock | |||||||||
| Preferred stock, issued and outstanding | - | - | |||||||
| Common stock, issued and outstanding | 4,921,170 | 4,867,121 | |||||||
| Treasury stock | 352,250 | 305,200 | |||||||
| BANCORP RHODE ISLAND, INC. | |||||||||||||
| Consolidated Statements of Operations (unaudited) | |||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||
| June 30, | June 30, | ||||||||||||
| 2008 | 2007 | 2008 | 2007 | ||||||||||
| (In thousands, except per share data) | |||||||||||||
| Interest and dividend income: | |||||||||||||
| Commercial loans and leases | $ | 9,742 | $ | 9,761 | $ | 19,548 | $ | 19,240 | |||||
| Residential mortgage loans | 3,037 | 3,446 | 6,333 | 6,947 | |||||||||
| Consumer and other loans | 2,774 | 3,390 | 5,837 | 6,742 | |||||||||
| Mortgage-backed securities | 3,455 | 2,734 | 6,687 | 5,603 | |||||||||
| Investment securities | 759 | 1,534 | 1,460 | 2,867 | |||||||||
| Federal Home Loan Bank of Boston stock dividends | 156 | 265 | 393 | 546 | |||||||||
| Overnight investments | 58 | 185 | 255 | 472 | |||||||||
| Total interest and dividend income | 19,981 | 21,315 | 40,513 | 42,417 | |||||||||
| Interest expense: | |||||||||||||
| NOW accounts | 37 | 100 | 105 | 201 | |||||||||
| Money market accounts | 19 | 25 | 48 | 63 | |||||||||
| Savings accounts | 1,691 | 2,667 | 4,178 | 5,139 | |||||||||
| Certificate of deposit accounts | 3,584 | 4,450 | 7,692 | 8,890 | |||||||||
| Overnight and short-term borrowings | 213 | 636 | 644 | 1,303 | |||||||||
| Wholesale repurchase agreements | 133 | 134 | 268 | 330 | |||||||||
| Federal Home Loan Bank of Boston borrowings | 2,650 | 2,640 | 5,370 | 5,231 | |||||||||
| Subordinated deferrable interest debentures | 226 | 371 | 476 | 740 | |||||||||
| Total interest expense | 8,553 | 11,023 | 18,781 | 21,897 | |||||||||
| Net interest income | 11,428 | 10,292 | 21,732 | 20,520 | |||||||||
| Provision for loan and lease losses | 970 | 100 | 1,255 | 200 | |||||||||
| Net interest income after provision for loan and lease losses | 10,458 | 10,192 | 20,477 | 20,320 | |||||||||
| Noninterest income: | |||||||||||||
| Service charges on deposit accounts | 1,448 | 1,388 | 2,883 | 2,704 | |||||||||
| Income from bank-owned life insurance | 262 | 260 | 517 | 511 | |||||||||
| Gain on sale of available for sale securities | - | - | 242 | - | |||||||||
| Net gains on lease sales and commissions on loans originated for others | 100 | 336 | 319 | 723 | |||||||||
| Commissions on nondeposit investment products | 245 | 171 | 455 | 291 | |||||||||
| Loan related fees | 144 | 194 | 307 | 349 | |||||||||
| Other income | 293 | 315 | 672 | 648 | |||||||||
| Total noninterest income | 2,492 | 2,664 | 5,395 | 5,226 | |||||||||
| Noninterest expense: | |||||||||||||
| Salaries and employee benefits | 5,000 | 5,285 | 10,139 | 10,547 | |||||||||
| Occupancy | 864 | 896 | 1,729 | 1,802 | |||||||||
| Data processing | 708 | 734 | 1,427 | 1,438 | |||||||||
| Professional services | 854 | 600 | 1,489 | 1,252 | |||||||||
| Marketing | 369 | 427 | 733 | 800 | |||||||||
| Equipment | 266 | 334 | 574 | 667 | |||||||||
| Loan servicing | 151 | 193 | 318 | 386 | |||||||||
| Loan workout and other real estate owned | 80 | (5) | 236 | 4 | |||||||||
| Other expenses | 1,320 | 1,160 | 2,427 | 2,239 | |||||||||
| Total noninterest expense | 9,612 | 9,624 | 19,072 | 19,135 | |||||||||
| Income before income taxes | 3,338 | 3,232 | 6,800 | 6,411 | |||||||||
| Income tax expense | 1,097 | 1,038 | 2,233 | 2,039 | |||||||||
| Net income | $ | 2,241 | $ | 2,194 | $ | 4,567 | $ | 4,372 | |||||
| Per share data: | |||||||||||||
| Basic earnings per common share | $ | 0.49 | $ | 0.45 | $ | 1.00 | $ | 0.91 | |||||
| Diluted earnings per common share | $ | 0.48 | $ | 0.44 | $ | 0.99 | $ | 0.88 | |||||
| Average common shares outstanding-basic | 4,562,652 | 4,839,355 | 4,559,928 | 4,827,331 | |||||||||
| Average common shares outstanding-diluted | 4,633,910 | 4,958,234 | 4,636,299 | 4,959,929 | |||||||||
Contacts:
Linda H. Simmons, 401-574-1652
Chief
Financial Officer
or
William C. DeWitt, 401-574-1541
Corporate
Communications
