Bancorp Rhode Island, Inc. (NASDAQ: BARI), the parent company of
Bank Rhode Island, today reported net income of $2.2 million for
the quarter ended March 31, 2010, an increase of 51.7 percent
compared to net income of $1.5 million for the first quarter 2009.
The Company’s diluted earnings per share (EPS) were $0.48 for the
first quarter 2010, an increase of 118.2 percent compared to
diluted EPS of $0.22, after preferred stock dividends and discount
accretion, for the first quarter 2009.
Net interest income for the first quarter 2010 was $13.1
million, compared to $11.1 million in the first quarter 2009, and
$13.0 million in the fourth quarter 2009. The increase in net
interest income was driven by improvement in net interest margin.
Net interest margin for the first quarter 2010 rose to 3.52
percent, an increase of 44 basis points from the first quarter
2009, and an increase of 10 basis points from fourth quarter
2009.
At March 31, 2010, the Company’s tier 1 capital ratio was
approximately 7.7 percent and its total risk-based capital ratio
was approximately 12.0 percent.
“While many expect 2010 to remain a challenging year, we got off
to a great start and are pleased with our strong financial results
in the first quarter,” commented President and CEO, Merrill W.
Sherman. “At BancorpRI, our capital strength, credit quality and
earnings capacity enhance our competitive position and enable us to
capitalize on marketplace opportunities to grow our franchise.”
Noninterest income was $2.3 million for the first quarter 2010,
compared to $2.4 million in both the first quarter 2009 and the
fourth quarter 2009. Noninterest income for the first quarter 2010
reflects a charge of $571,000 incurred as the result of an
investment security deemed to be other-than-temporarily impaired,
offset by a $475,000 gain on the sale of mortgage-backed
securities.
Noninterest expense was $10.5 million in the first quarter 2010,
compared to $9.6 million in the first quarter 2009, and $9.9
million in the fourth quarter 2009. The expense increase from first
quarter 2009 was primarily driven by increases in compensation and
expenses related to loan workout and other real estate owned.
The provision for loan and lease losses remained unchanged at
$1.6 million for the first quarter 2010, compared to the first
quarter 2009. Net charge-offs were $1.5 million for the first
quarter 2010, compared to $851,000 in the first quarter 2009. The
allowance for loan and lease losses as a percent of total loans and
leases was 1.48 percent at March 31, 2010, down slightly from 1.49
percent at December 31, 2009.
As of March 31, 2010, the Company’s commercial loan and lease
portfolio totaled $752.2 million, an increase of $19.8 million or
2.7 percent from year-end 2009, and up $65.5 million or 9.5 percent
from March 31, 2009. Consumer loans were $201.4 million as of March
31, 2010, down slightly from $206.2 million at year-end 2009.
Residential mortgage loans were $170.2 million, a decrease of $3.1
million or 1.8 percent from December 31, 2009.
Total deposits were $1.1 billion as of March 31, 2010, up $8.8
million or 0.8 percent from year-end 2009. The increase from
year-end 2009 reflects an increase of $17.8 million in core
deposits (demand deposits, NOW, money markets and savings accounts)
offset by a decrease of $9.0 million in certificates of deposit.
The increase in core deposits from year-end 2009 was primarily
driven by money market and savings accounts. Core deposits at March
31, 2010, represented 65.8 percent of total deposits compared to
64.8 percent at year-end 2009.
“Our commercial loan portfolio has grown for the past 13
quarters. The growth reflects the ongoing execution of our
strategic plan to shift our balance sheet to a more commercial
profile,” said Sherman. She added, “Our ability to grow the
commercial loan portfolio through a difficult economic environment
is a testament to our team’s proactive management of credit quality
and also contributes to our success in expanding our checking and
savings deposits.”
Nonperforming assets at March 31, 2010, totaled $16.4 million,
or 1.03 percent of total assets, down from $20.0 million, or 1.26
percent of total assets, at December 31, 2009, and down from $17.4
million, or 1.13 percent of total assets, at March 31, 2009.
Total assets at March 31, 2010, were $1.6 billion, a slight
decrease of $3.2 million or 0.2 percent from year-end 2009. The
decrease was primarily due to the reduction in available for sale
securities and the residential mortgage portfolio offset by the
growth in the commercial loan and lease portfolio.
The Company’s Board of Directors approved a dividend of $0.17
per share. The dividend will be paid on June 9, 2010, to
shareholders of record on May 19, 2010.
Company executives will host a conference call Thursday, April
29, at 10 a.m. Eastern Time (ET) to discuss the Company’s first
quarter 2010 results. Access to the conference call is available by
dialing toll free (800) 860-2442, or via webcast in the Investor
Relations section of the website at www.bankri.com. International callers can
join by dialing 412-858-4600. Please dial in at least 10 minutes
prior to the start of the call to ensure a timely connection.
There will be a replay of the call available the same day
beginning at approximately 12:00 p.m. ET that can be accessed
through 9 a.m. ET on Wednesday, May 5, 2010. The replay dial-in
number is (877) 344-7529; when prompted, enter conference ID number
439280. The webcast will be archived in the Investor Relations
section of the website at www.bankri.com.
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 March 31, 2010, BankRI had $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.
BANCORP RHODE ISLAND, INC. Selected Financial Highlights
(unaudited)
Three Months Ended March 31, 2010 2009
(In thousands, except per share data)
FINANCIAL DATA:
Net interest income $ 13,088 $ 11,082 Provision for loan and lease
losses 1,600 1,610 Noninterest income 2,315 2,357 Noninterest
expense 10,488 9,623 Net income 2,219 1,463 Net income applicable
to common shares 2,219 1,027
FINANCIAL PERFORMANCE
RATIOS: Return on assets (3) (6) 0.57 % 0.39 % Return on equity
(4) (6) 7.32 % 3.48 % Net interest margin (2) (6) 3.52 % 3.08 %
Efficiency ratio (5) (6) 68.09 % 71.60 %
PER SHARE
DATA: Earnings per share - basic $ 0.48 $ 0.22 Earnings per
share - diluted 0.48 0.22 Book value per share of common stock
26.69 26.15 Tangible book value per share of common stock 24.05
23.53 Market value (at period end) 27.35 18.07 Dividends per share
0.17 0.17
CAPITAL RATIOS: Tier 1 capital ratio (8)
7.70 % 9.99 % Total risk-based capital ratio (8) 11.99 % 14.95 %
Tangible common equity ratio (1) (6) 7.08 % 7.05 %
Three Months Ended Mar 31, 2010 Dec 31,
2009 Sep 30, 2009 Jun 30, 2009 Mar 31,
2009 (In thousands)
BALANCE SHEET: Total assets $
1,586,778 $ 1,589,946 $ 1,569,084 $ 1,583,686 $ 1,548,067 Total
loans and leases 1,123,838 1,111,847 1,116,627 1,117,655 1,105,298
Total deposits 1,107,071 1,098,284 1,091,931 1,084,673 1,055,861
Shareholders' equity 123,679 120,661 121,961 148,674 150,447
ASSET QUALITY: Total nonperforming assets $ 16,392 $ 20,015
$ 16,894 $ 18,796 $ 17,443 Nonperforming assets / total assets 1.03
% 1.26 % 1.08 % 1.19 % 1.13 % Allowance for loans and leases $
16,625 $ 16,536 $ 16,537 $ 16,905 $ 15,423 Allowance to total loans
and leases 1.48 % 1.49 % 1.48 % 1.51 % 1.40 % Net charge-offs $
1,511 $ 3,808 $ 2,268 $ 1,118 $ 851 Net charge-offs to average
loans 0.55 % 1.35 % 0.81 % 0.40 % 0.32 %
BANCORP RHODE ISLAND,
INC. Selected Financial Highlights (unaudited)
Mar 31, 2010 Dec 31,
2009 Sep 30, 2009 Jun 30, 2009 Mar 31,
2009 (in thousands)
Loan and lease portfolio:
Commercial loans
Commercial real estate - owner occupied $ 167,603 $ 167,853 $
167,222 $ 163,461 $ 173,691 Commercial & industrial 174,649
178,808 183,911 188,570 177,810 Commercial real estate - non-owner
occupied 187,988 170,148 163,766 159,576 147,517 Small business
57,911 56,148 55,442 53,660 51,200 Multi-family 66,716 66,350
58,622 58,596 51,625 Construction 30,355 23,405 23,630 21,573
22,405
Leases and other
72,969 75,057 78,506 72,587 68,202
Subtotal 758,191 737,769 731,099 718,023 692,450 Unearned
lease income (7,039 ) (7,693 ) (9,218 ) (8,702 ) (7,833 ) Net
deferred loan origination costs 1,041 2,321 2,540
2,318 2,045 Total commercial loans and leases
752,193 732,397 724,421 711,639 686,662 Residential
mortgages 170,200 173,294 182,303 191,271 203,800 Consumer
loans 201,445 206,156 209,903 214,745 214,836
Total loans and leases $ 1,123,838 $
1,111,847 $ 1,116,627 $ 1,117,655 $ 1,105,298
Reconciliation of Non-GAAP Earnings per
Common Share – Diluted (7): Three
Months Ended March 31, 2010 2009
Earnings per common share – diluted $ 0.48 $ 0.22 Effect of
preferred shares dividend - 0.08 Effect of preferred shares
discount - 0.01 Non-GAAP earnings per common share -
diluted $ 0.48 $ 0.31
(1)
Calculated by dividing common shareholders’ equity less goodwill by
total assets less goodwill.
(2)
Calculated by dividing annualized net interest income by average
interest-earning assets.
(3)
Calculated by dividing annualized net income by average total
assets.
(4)
Calculated by dividing annualized net income applicable to common
shares by average common shareholders’ equity.
(5)
Calculated by dividing noninterest expense by net interest income
plus noninterest income.
(6)
Non-GAAP performance measure.
(7)
Reconciliation of Non-GAAP
Earnings per Common Share – Diluted table included to provide the
investor useful information in comparing the Company's operating
results to the prior year. Reconciliation excludes the effect of
preferred stock discount amounts from diluted earnings per
share.
(8)
Tier 1 capital and total risk-based capital ratio are estimated for
March 31, 2010.
BANCORP RHODE ISLAND, INC. Consolidated
Balance Sheet (unaudited)
March 31,
December 31, 2010 2009 (In thousands)
ASSETS: Cash and due from banks $ 16,845 $ 18,866 Overnight
investments 600 1,964
Total cash and cash
equivalents 17,445 20,830 Available for sale
securities (amortized cost of $361,410 and $380,108, respectively)
365,110 381,839 Stock in Federal Home Loan Bank of Boston 16,274
16,274 Loans and leases receivable: Commercial loans and leases
752,193 732,397 Residential mortgage loans 170,200 173,294 Consumer
and other loans 201,445 206,156
Total loans and
leases receivable 1,123,838 1,111,847 Allowance
for loan and lease losses (16,625 ) (16,536 )
Net loans and
leases receivable 1,107,213 1,095,311 Premises
and equipment, net 12,230 12,378 Goodwill 12,262 12,239 Accrued
interest receivable 4,863 4,964 Investment in bank-owned life
insurance 30,325 30,010 Prepaid expenses and other assets 21,056
16,101
Total assets $
1,586,778
$
1,589,946 LIABILITIES: Deposits:
Demand deposit accounts $ 203,193 $ 204,281 NOW accounts 68,724
74,558 Money market accounts 78,824 65,076 Savings accounts 378,228
367,225 Certificates of deposit accounts 378,102 387,144
Total deposits 1,107,071 1,098,284
Overnight and short-term borrowings 37,851 40,171 Wholesale
repurchase agreements 20,000 20,000 Federal Home Loan Bank of
Boston borrowings 270,090 277,183 Subordinated deferrable interest
debentures 13,403 13,403 Other liabilities 14,684 20,244
Total liabilities 1,463,099
1,469,285 SHAREHOLDERS’ EQUITY: Common stock,
par value $0.01 per share, authorized 11,000,000 shares: Issued:
(5,007,190 shares and 4,969,444 shares, respectively) 50 50
Additional paid-in capital 73,306 72,783 Treasury stock, at cost
(373,850 shares and 364,750 shares, respectively) (12,527 ) (12,309
) Retained earnings 60,445 59,012 Accumulated other comprehensive
income, net 2,405 1,125
Total shareholders’
equity 123,679 120,661 Total
liabilities and shareholders’ equity $
1,586,778
$
1,589,946 BANCORP RHODE ISLAND, INC.
Consolidated Statements of Operations (unaudited)
Three Months Ended March 31, 2010 2009
(In thousands, except per share data) Interest and dividend income:
Overnight investments $ 5 $ 9 Mortgage-backed securities 3,225
3,403 Investment securities 554 451 Federal Home Loan Bank of
Boston stock dividends - - Loans and leases 14,568 14,697
Total interest and dividend income 18,352
18,560 Interest expense: Deposits 2,278 4,494
Overnight and short-term borrowings 18 27 Wholesale repurchase
agreements 139 133 Federal Home Loan Bank of Boston borrowings
2,665 2,625 Subordinated deferrable interest debentures 164
199
Total interest expense 5,264
7,478 Net interest income 13,088
11,082 Provision for loan and lease losses 1,600
1,610
Net interest income after provision for loan and
lease losses 11,488 9,472
Noninterest income: Total other-than-temporary impairment losses on
available for sale securities (1,592 ) -
Non-credit component of
other-than-temporary impairment losses recognized in other
comprehensive income
1,021 - Credit component of other-than-temporary
impairment losses on available for sale securities (571 ) - Service
charges on deposit accounts 1,264 1,210 Gain on sale of available
for sale securities 475 61 Income from bank-owned life insurance
315 289 Commissions on nondeposit investment products 237 156 Loan
related fees 189 399 Net gains on lease sales and commissions on
loans originated for others 36 29 Other income 370 213
Total noninterest income 2,315
2,357 Noninterest expense: Salaries and employee
benefits 5,843 5,153 Occupancy 861 956 Data processing 654 620
Professional services 632 698 FDIC insurance 475 387 Loan workout
and other real estate owned 336 128 Marketing 258 315 Equipment 255
241 Loan servicing 176 159 Other expenses 998 966
Total noninterest expense 10,488 9,623
Income before income taxes 3,315 2,206
Income tax expense 1,096 743 Net income
2,219
1,463 Preferred stock dividends - (375 )
Prepayment charges and accretion of preferred stock discount -
(61 ) Net income applicable to common shares $
2,219
$ 1,027 Per share data: Basic
earnings per common share $ 0.48
$ 0.22 Diluted earnings per
common share $ 0.48
$ 0.22 Cash dividends declared per
common share 0.17 0.17 Weighted average common shares outstanding –
basic 4,622 4,590 Weighted average common shares outstanding –
diluted 4,650 4,610
BANCORP RHODE ISLAND, INC. Asset Quality
Analysis
Three Months
Ended Mar 31, 2010 Dec 31, 2009 Sep 30,
2009 Jun 30, 2009 Mar 31, 2009 (Dollars in
thousands)
NON-PERFORMING ASSETS Nonperforming loans
& leases: Commercial real estate $ 4,952 $ 6,909 $ 3,159 $
4,801 $ 5,549
Commercial & industrial
1,544 2,919 3,263 4,360 5,269 Small business 957 1,147 585 542 595
Multifamily - 205 205 - - Construction 710 469 469 1,000 1,000
Leases 1,415 1,878 1,059 833 251 Residential mortgage 4,349 4,124
5,175 5,933 3,910 Consumer 442 664 984 284
167 Total nonperforming loans & leases 14,369
18,315 14,899 17,753 16,740 Other real estate owned 2,023
1,700 1,995 921 703 Non-real estate foreclosed assets - - - 122 -
Total nonperforming assets $
16,392 $ 20,015 $ 16,894 $ 18,796 $
17,443 Total nonperforming loans & leases
/ total loans & leases 1.28 % 1.65 % 1.33 % 1.59 % 1.51 % Total
nonperforming assets / total assets 1.03 % 1.26 % 1.08 % 1.19 %
1.13 %
PROVISION AND ALLOWANCE FOR LOAN LOSSES
Balance at beginning of period $ 16,536 $ 16,537 $ 16,905 $
15,423 $ 14,664 Charged-off loans & leases (1,612 ) (3,893 )
(2,285 ) (1,138 ) (873 ) Recoveries on charged-off loans &
leases 101 85 17 20 22 Net loans
& leases charged-off (1,511 ) (3,808 ) (2,268 ) (1,118 ) (851 )
Provision for loan and lease losses 1,600 3,807 1,900
2,600 1,610 Balance at end of period $ 16,625
$ 16,536 $ 16,537 $ 16,905 $ 15,423
Allowance to nonperforming loans & leases
115.70 % 90.29 % 110.99 % 95.22 % 92.13 % Allowance to total loans
& leases 1.48 % 1.49 % 1.48 % 1.51 % 1.40 %
NET CHARGE-OFFS Commercial real estate $ 549 $ 322 $
50 $ - $ - Commercial & industrial (11 ) 1,807 1,412 249 98
Commercial loans, leases & other 529 238 227 244 443
Residential mortgages 347 852 556 619 309 Consumer 97 589
23 6 1 Total net charge-offs $ 1,511
$ 3,808 $ 2,268 $ 1,118 $ 851
Net charge-offs to average loans & leases 0.55 %
1.35 % 0.81 % 0.40 % 0.32 %
DELINQUENCIES AND
NON-ACCRUING LOANS AND LEASES AS % OF TOTAL LOANS Loans
& leases 30-59 days past due 0.90 % 0.95 % 0.97 % 0.68 % 0.97 %
Loans & leases 60-89 days past due 0.22 % 0.19 % 0.16 % 0.19 %
0.46 % Loans & leases 90+ days past due and still accruing -
0.07 % 0.02 % - - Total accruing past due
loans & leases 1.12 % 1.21 % 1.15 % 0.87 % 1.43 %
Non-accrual loans & leases 1.28 % 1.57 % 1.31 % 1.59 % 1.51 %
Total delinquent and nonaccrual loans & leases 2.40 %
2.78 % 2.46 % 2.46 % 2.94 %
BANCORP RHODE ISLAND, INC.
Consolidated Average Balances, Yields and Costs (unaudited)
Three Months Ended March 31, 2010 2009
AverageBalance
InterestEarned/Paid
AverageYield
AverageBalance
InterestEarned/Paid
AverageYield
ASSETS
Earning assets:
Overnight investments $ 2,292 $ 5 0.87 % $ 820 $ 9 4.36 % Available
for sale securities 372,516 3,779 4.06 % 342,587 3,854 4.50 % Stock
in the FHLB 16,274 - 0.00 % 15,671 - 0.00 % Loans and leases
receivable: Commercial loans and leases 730,907 10,311 5.71 %
672,873 9,707 5.83 % Residential mortgages loans 172,408 2,029 4.71
% 207,807 2,660 5.12 % Consumer and other loans 203,840
2,228 4.43 % 207,754 2,330
4.55 % Total earning assets 1,498,237
18,352 4.94 % 1,447,512 18,560 5.17 %
Cash and due from banks 13,451 28,329 Allowance for loans and
leases (17,225 ) (14,653 ) Premises and equipment 12,359 12,556
Goodwill, net 12,179 12,064 Accrued interest receivable 4,372 4,289
Bank-owned life insurance 30,118 28,862 Prepaid expenses and other
assets 18,579 8,798 Total assets $
1,572,070 $ 1,527,757
LIABILITIES
AND SHAREHOLDERS' EQUITY Interest-bearing liabilities:
Deposits: NOW accounts 68,669 15 0.08 % 61,249 18 0.12 % Money
market accounts 71,387 149 0.85 % 4,607 1 0.13 % Savings accounts
369,750 531 0.58 % 386,208 1,083 1.14 % Certificate of deposit
accounts 385,599 1,583 1.67 % 418,627 3,392 3.29 % Overnight and
short-term borrowings 39,161 18 0.19 % 52,245 27 0.20 % Wholesale
repurchase agreements 18,222 139 3.06 % 10,000 133 5.39 % FHLB
borrowings 271,742 2,665 3.92 % 247,674 2,625 4.30 % Subordinated
deferrable interest debentures 13,403 164 4.90
% 13,403 199 6.00 % Total
interest-bearing liabilities 1,237,933 5,264
1.72 % 1,194,013 7,478 2.54 %
Noninterest-bearing deposits 199,735 171,449 Other liabilities
11,427 12,489 Total liabilities
1,449,095 1,377,951 Shareholders' equity: 122,975
149,806 Total liabilities and shareholders'
equity $ 1,572,070 $ 1,527,757
Net interest income $ 13,088 $ 11,082 Net interest
spread 3.22 % 2.63 % Net interest margin 3.52 % 3.08 %
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