BARI Bancorp Rhode Island, Inc. (MM)

NAPERVILLE, Ill., May 16 /PRNewswire/ -- On May 15, 2008, Bancorp Rhode Island, Inc. (NASDAQ:BARI) announced that RiskMetrics Group, Inc. (formerly Institutional Shareholder Services) (ISS) recommended that Bancorp Rhode Island shareholders vote for all of Bancorp Rhode Island's nominees at the company's upcoming Annual Meeting of Shareholders on May 21, 2008. As part of ISS' decision to support Bancorp Rhode Island's nominees, the report stated "Management informed ISS that it expects BARI's efficiency ratio to decline to 65 percent in the short-term, closer to its peer group average of 61 percent." This material non-public information, selectively disclosed to ISS by Bancorp Rhode Island, runs contrary to Bancorp Rhode Island's publicly disclosed earnings guidance of earnings per share of $1.94 to $1.99 for fiscal 2008, and is omitted from Bancorp Rhode Island's proxy materials. PL Capital estimates that a 65% efficiency ratio achieved through a reduction in expenses would equate to earnings per share of $2.51 for fiscal 2008. To arrive at a 65% efficiency ratio through an increase in revenues would equate to earnings per share of $2.78 for fiscal 2008. This range is materially above Bancorp Rhode Island's publicly disclosed earnings guidance of earnings per share of $1.94 to $1.99 for fiscal 2008. As PL Capital previously stated in its definitive proxy materials, Bancorp Rhode Island's publicly disclosed earnings guidance suggests that Bancorp Rhode Island has "hit a wall" at an 8% return on equity and an efficiency ratio consistently stuck above 70%, which is in sharp contrast to Bancorp Rhode Island's selectively disclosed statement to ISS that it expects its efficiency ratio to decline to 65% in the short-term. John Palmer of PL Capital, the second largest shareholder in Bancorp Rhode Island, stated "we believe that Bancorp Rhode Island's selective disclosures to ISS are material and significant, and that Bancorp Rhode Island has a duty to incorporate the revised efficiency ratio into their 2008 earnings guidance and proxy materials. PL Capital has notified the Securities and Exchange Commission of Bancorp Rhode Island's selective disclosure to ISS and the need for Bancorp Rhode Island to update its 2008 public earnings guidance and provide in its proxy materials its basis for achieving an efficiency ratio of 65% in the short-term. While we are skeptical of Bancorp Rhode Island's ability to achieve a 65% efficiency ratio in the short-term, we would welcome this improvement in Bancorp Rhode Island's performance. We plan to hold CEO Merrill Sherman and the Board of Directors accountable to achieve this revised guidance." DATASOURCE: PL Capital CONTACT: Richard Lashley, +1-973-360-1666, , or John W. Palmer, +1-630-848-1340,

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