BancorpRI Announces Increase to Loan Loss Provision
March 10 2010 - 4:30PM
Business Wire
Bancorp Rhode Island, Inc. (NASDAQ: BARI), the parent company of
Bank Rhode Island, announced today that, as a result of information
obtained after its January 28, 2010, announcement of year-end 2009
results and before filing its 2009 Annual Report on Form 10-K, it
will record, in the fourth quarter of 2009, an increase to the
provision for loan and lease losses totaling $1.5 million. The
Company also will recognize a charge-off in an equal amount.
The Company expects the increase to the provision will reduce
its previously reported earnings for the fourth quarter 2009 by a
net after-tax amount of $923,000, resulting in adjusted net income
of $1.1 million, or $0.24 diluted earnings per share (EPS). The
increase to the provision also will reduce net income for the year
ended December 31, 2009, resulting in adjusted net income of $5.5
million, or $0.70 diluted EPS, after preferred stock dividends and
discount accretion. Nonperforming assets as of December 31, 2009
will increase by $4.0 million to $20.0 million or 1.26% of total
assets.
The increases to the provision and nonperforming assets are
attributable to a commercial credit relationship totaling $5.4
million. As part of the credit management process, a field
examination commenced in February 2010, uncovered, among other
items, that the receivables collateralizing the credit were
overstated. Based on the information known today, at year-end 2009,
the Company would have downgraded this credit to nonperforming
status, increased the provision by $1.5 million and recognized a
charge-off in an equal amount.
About BancorpRI
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 and more than 60 ATMs throughout Providence,
Kent and Washington Counties. As of December 31, 2009, BankRI has
$1.6 billion in assets and $1.1 billion in deposits. For more
information, visit www.bankri.com.
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.
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