Bancorp Rhode Island, Inc. (NASDAQ: BARI), the parent company of
Bank Rhode Island, today reported net income of $2.6 million, or
$0.55 diluted earnings per share (EPS), for the quarter ended
September 30, 2011. These results reflect expenses of $533,000
(after-tax), or $0.11 per diluted share, related to the pending
merger with Brookline Bancorp, Inc. Net income for the third
quarter 2011 compares to net income of $2.8 million, or $0.60
diluted EPS, for the third quarter 2010 and net income of $1.8
million, or $0.38 diluted EPS, for the second quarter 2011.
For the nine month period ended September 30, 2011, the Company
reported net income of $6.8 million, or $1.42 diluted EPS, compared
to net income of $7.7 million, or $1.65 diluted EPS, for the same
period in 2010. The nine month results for the period ended
September 30, 2011 reflect expenses of $2.0 million (after-tax), or
$0.43 per diluted share, related to the pending merger with
Brookline Bancorp, Inc.
The Company’s commercial loan and lease portfolio grew to $792.1
million as of September 30, 2011. This represented increases of
$11.9 million, or 1.5 percent, from year-end 2010 and $20.4
million, or 2.6 percent, from September 30, 2010. Consumer loans
were $204.1 million at September 30, 2011, down $6.2 million, or
3.0 percent, compared to December 31, 2010 and up $1.7 million, or
0.9 percent, from a year ago. Residential mortgage loans were
$151.4 million as of September 30, 2011, down $13.5 million, or 8.2
percent, from year-end 2010.
Core deposit (demand deposits, NOW, money market and savings
accounts) trends remain positive with growth of 6.5 percent from
year-end 2010 and 9.0 percent from a year ago. The growth over the
prior periods was driven primarily by money market and demand
deposit accounts, partly offset by a reduction in savings accounts
and certificates of deposit. At the end of the third quarter, core
deposits rose to 73.4 percent of total deposits compared to 69.0
percent at year-end 2010 and 67.7 percent a year ago. Total
deposits were $1.1 billion at September 30, 2011, up slightly from
year-end 2010 and from a year ago.
Net interest income for the third quarter 2011 increased to
$13.8 million from $13.5 million in the third quarter 2010 and
decreased compared to $14.0 million in the second quarter 2011. The
net interest margin for the third quarter 2011 was 3.66 percent,
representing an improvement of 5 basis points from the third
quarter 2010 and a decrease of 3 basis points from the second
quarter 2011. On a year-to-date basis, net interest income was
$41.3 million, an increase of $1.1 million, or 2.8 percent, from
the same period in 2010, and the net interest margin was 3.65
percent, an increase of 6 basis points from the same period in
2010.
Noninterest income was $2.2 million for the third quarter 2011,
down slightly from the third quarter 2010 and the second quarter
2011. On a year-to-date basis, noninterest income was $6.8 million,
relatively flat compared to the same period in 2010.
Noninterest expense was $9.9 million in the third quarter 2011,
down $417,000 compared to the third quarter 2010 due to a reduction
in FDIC insurance expense. The decrease in noninterest expense for
the third quarter 2011 of $2.7 million from the second quarter 2011
was primarily attributable to lower merger-related and FDIC
insurance expenses. On a year-to-date basis, noninterest expense
was $33.8 million, an increase of $2.6 million over the same period
in 2010. The increase in the year-to-date comparison was primarily
driven by merger-related expenses and an accrual related to a
judgment issued with respect to a previously disclosed jury verdict
against the Bank recorded in the first quarter 2011, partially
offset by a reduction in FDIC insurance expense.
Nonperforming assets at September 30, 2011 totaled $22.1 million
or 1.40 percent of total assets. This represented an increase from
$19.4 million, or 1.20 percent of total assets, at June 30, 2011.
Net charge-offs were $1.5 million, or 0.53 percent of average loans
and leases, for the third quarter 2011. Net charge-offs for the
third quarter 2010 were $459,000, or 0.16 percent of average loans
and leases, and were $989,000, or 0.34 percent of average loans and
leases, in the second quarter 2011. On a year-to-date basis, net
charge-offs were $4.1 million, or 0.47 percent of average loans and
leases, an increase of $1.3 million over the same period in
2010.
The provision for loan and lease losses was $1.6 million for the
third quarter 2011, compared to $1.3 million in the third quarter
2010 and $850,000 in the second quarter 2011. On a year-to-date
basis, the provision was $3.6 million, a decrease of $850,000 from
the same period in 2010.
The allowance for loan and lease losses was $18.1 million at
September 30, 2011 compared to $18.7 million at December 31, 2010.
The allowance for loan and lease losses as a percent of total loans
and leases was 1.58 percent at September 30, 2011 compared to 1.61
percent at December 31, 2010.
At September 30, 2011, the Company’s tier 1 capital ratio was
approximately 8.40 percent and its total risk-based capital ratio
was approximately 13.10 percent.
The Company’s Board of Directors approved a dividend of $0.19
per share. The dividend will be paid on November 14, 2011, to
shareholders of record on November 7, 2011.
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 17 branches and more than 60 ATMs throughout Providence,
Kent and Washington Counties. As of September 30, 2011, 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 Nine Months Ended September
30, September 30, 2011 2010 2011
2010 (In thousands, except per share data)
FINANCIAL DATA: Net interest income $ 13,807 $ 13,478 $
41,321 $ 40,192 Provision for loan and lease losses 1,600 1,275
3,575 4,425 Noninterest income 2,199 2,289 6,803 6,889 Noninterest
expense 9,933 10,350 33,820 31,268 Net income 2,643 2,808 6,769
7,708
FINANCIAL PERFORMANCE RATIOS: Return on assets
(3) (6) 0.66 % 0.71 % 0.57 % 0.66 % Return on equity (4) (6) 7.71 %
8.57 % 6.84 % 8.16 % Net interest margin (2) (6) 3.66 % 3.61 % 3.65
% 3.59 % Efficiency ratio (5) (6) 62.06 % 65.64 % 70.28 % 66.41 %
PER SHARE DATA: Earnings per share - basic $ 0.56 $
0.60 $ 1.44 $ 1.65 Earnings per share - diluted 0.55 0.60 1.42 1.65
Book value per share of common stock 29.58 27.98 29.58 27.98
Tangible book value per share of common stock 26.96 25.35 26.96
25.35 Market value (at period end) 42.39 27.93 42.39 27.93
Dividends per share 0.19 0.17 0.57 0.51
CAPITAL
RATIOS: Tier 1 capital ratio (7) 8.40 % 8.10 % Total risk-based
capital ratio (7) 13.10 % 12.52 % Tangible common equity ratio (1)
(6) 8.09 % 7.59 %
Three Months Ended
Sep 30, 2011 Jun 30, 2011 Mar 31, 2011 Dec
31, 2010 Sep 30, 2010 (In thousands)
BALANCE
SHEET: Total assets $ 1,575,216 $ 1,618,756 $ 1,606,508 $
1,603,759 $ 1,573,323 Total loans and leases 1,147,584 1,152,677
1,154,448 1,155,489 1,135,227 Total deposits 1,121,708 1,095,845
1,101,661 1,120,166 1,115,683 Shareholders' equity 138,643 133,531
130,192 128,678 130,769
ASSET QUALITY: Total
nonperforming assets $ 22,108 $ 19,447 $ 17,473 $ 17,643 $ 15,152
Nonperforming assets / total assets 1.40 % 1.20 % 1.09 % 1.10 %
0.96 % Allowance for loans and leases $ 18,149 $ 18,083 $ 18,222 $
18,654 $ 18,212 Allowance to total loans and leases 1.58 % 1.57 %
1.58 % 1.61 % 1.60 % Net charge-offs $ 1,534 $ 989 $ 1,557 $ 1,993
$ 459 Net charge-offs to average loans and leases 0.53 % 0.34 %
0.55 % 0.69 % 0.16 %
BANCORP RHODE ISLAND, INC. Selected
Financial Highlights (unaudited)
Sep 30, 2011 Jun 30, 2011 Mar 31,
2011 Dec 31, 2010 Sep 30, 2010 (In thousands)
LOAN AND LEASE PORTFOLIO: Commercial loans and
leases: Commercial real estate - non-owner occupied $ 219,147 $
210,888 $ 196,353 $ 200,809 $ 202,342 Commercial real estate -
owner occupied 170,913 176,059 183,111 179,766 177,526 Commercial
& industrial 170,783 159,512 161,004 157,879 156,042
Multifamily 89,750 86,387 84,772 79,934 73,375 Small business
59,166 60,141 62,233 62,841 59,756 Construction 19,046 27,071
28,273 30,349 31,035 Leases and other 66,753 70,777 72,156 73,054
76,417 Subtotal 795,558 790,835 787,902 784,632 776,493 Unearned
lease income (5,194) (5,828) (5,962) (6,159) (6,516) Net deferred
loan origination costs 1,750 1,697 1,756 1,791 1,777 Total
commercial loans and leases 792,114 786,704 783,696 780,264 771,754
Consumer loans 204,112 208,558 210,094 210,348 202,367
Residential mortgages 151,358 157,415 160,658 164,877
161,106 Total loans and
leases $ 1,147,584 $ 1,152,677 $ 1,154,448 $ 1,155,489 $ 1,135,227
(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) Tier
1 capital and total risk-based capital ratio are estimated for
September 30, 2011.
BANCORP RHODE ISLAND, INC. Consolidated
Balance Sheet (unaudited)
September 30,
December 31, 2011 2010 (In thousands)
ASSETS: Cash and due from banks $ 29,695 $ 14,384 Overnight
investments 599 395
Total cash and
cash equivalents 30,294 14,779 Available for sale
securities (amortized cost of $316,991 and $357,402, respectively)
327,060 360,025 Stock in Federal Home Loan Bank of Boston 16,274
16,274 Loans and leases receivable: Commercial loans and leases
792,114 780,264 Consumer and other loans 204,112 210,348
Residential mortgage loans 151,358 164,877
Total loans and leases receivable 1,147,584
1,155,489 Allowance for loan and lease losses (18,149
) (18,654 )
Net loans and leases receivable
1,129,435 1,136,835 Premises and equipment, net
11,208 11,889 Goodwill 12,262 12,262 Accrued interest receivable
4,181 4,842 Investment in bank-owned life insurance 32,193 31,277
Prepaid expenses and other assets 12,309
15,576
Total assets $ 1,575,216
$ 1,603,759 LIABILITIES:
Deposits: Demand deposit accounts $ 284,959 $ 264,274 NOW accounts
75,915 70,327 Money market accounts 132,305 96,285 Savings accounts
329,796 341,667 Certificates of deposit accounts 298,733
347,613
Total deposits 1,121,708
1,120,166 Overnight and short-term borrowings 38,501 40,997
Wholesale repurchase agreements 10,000 20,000 Federal Home Loan
Bank of Boston borrowings 231,870 260,889 Subordinated deferrable
interest debentures 13,403 13,403 Other liabilities 21,091
19,626
Total liabilities
1,436,573 1,475,081
SHAREHOLDERS’ EQUITY: Common stock, par value $0.01 per
share, authorized 11,000,000 shares: Issued: (5,083,991 shares and
5,047,942 shares, respectively) 50 50 Additional paid-in capital
75,771 73,866 Treasury stock, at cost (396,986 shares and 373,850
shares, respectively) (13,406 ) (12,527 ) Retained earnings 69,683
65,584 Accumulated other comprehensive income, net 6,545
1,705
Total shareholders’ equity
138,643 128,678 Total
liabilities and shareholders’ equity $ 1,575,216
$ 1,603,759 BANCORP RHODE ISLAND,
INC. Consolidated Statements of Operations (unaudited)
Three Months Ended Nine Months
Ended September 30, September 30, 2011
2010 2011 2010 (In thousands, except
per share data) Interest and dividend income: Overnight investments
$ - $ 1 $ 1 $ 6 Mortgage-backed securities 2,508 2,764 7,739 9,034
Investment securities 399 462 1,167 1,502 Federal Home Loan Bank of
Boston stock dividends 11 - 36 - Loans and leases 14,243
14,927 43,298 44,600
Total
interest and dividend income 17,161
18,154 52,241 55,142
Interest expense: Deposits 1,271 1,910 3,978 6,352 Overnight
and short-term borrowings 10 16 29 53 Wholesale repurchase
agreements 10 139 291 421 Federal Home Loan Bank of Boston
borrowings 1,897 2,438 6,124 7,621 Subordinated deferrable interest
debentures 166 173 498 503
Total interest expense 3,354
4,676 10,920 14,950
Net interest income 13,807 13,478
41,321 40,192 Provision for loan and lease losses
1,600 1,275 3,575 4,425
Net interest income after provision for loan and lease
losses 12,207 12,203
37,746 35,767 Noninterest income: Total
other-than-temporary impairment losses on available for sale
securities - 5 - 54 Non-credit component of other-than-temporary
impairment losses recognized in other comprehensive income -
(422 ) - (1,086 ) Credit component of
other-than-temporary impairment losses on available for sale
securities - (417 ) - (1,032 ) Service charges on deposit accounts
1,177 1,337 3,532 3,949 Commissions on nondeposit investment
products 336 144 886 529 Income from bank-owned life insurance 307
320 916 953 Loan related fees 127 162 478 484 Net gain on lease
sales and commissions on loans originated for others 58 44 118 86
Gain on sale of available for sale securities - 465 212 1,043 Other
income 194 234 661 877
Total noninterest income 2,199
2,289 6,803 6,889
Noninterest expense: Salaries and employee benefits 5,769 5,829
18,358 17,418 Occupancy 815 827 2,568 2,517 Data processing 702 667
2,070 1,975 Professional services 558 549 3,296 1,718 Loan workout
and other real estate owned 392 196 759 869 Operating 370 461 1,252
1,390 Equipment 275 266 807 776 Marketing 267 333 998 974 Loan
servicing 155 133 434 480 FDIC insurance 72 475 991 1,425 Other
expenses 558 614 2,287 1,726
Total noninterest expense 9,933
10,350 33,820 31,268
Income before income taxes 4,473 4,142
10,729 11,388 Income tax expense 1,830
1,334 3,960 3,680
Net income
$ 2,643 $ 2,808 $
6,769 $ 7,708 Per share
data: Basic earnings per common share $ 0.56 $ 0.60 $ 1.44 $
1.65 Diluted earnings per common share $ 0.55 $ 0.60 $ 1.42 $ 1.65
Cash dividends declared per common share $ 0.19 $ 0.17 $ 0.57 $
0.51 Weighted average common shares outstanding – basic 4,685 4,674
4,685 4,653 Weighted average common shares outstanding – diluted
4,783 4,703 4,757 4,682
BANCORP RHODE ISLAND, INC. Asset
Quality Analysis (unaudited)
Three Months Ended Sep 30, 2011 Jun 30, 2011
Mar 31, 2011 Dec 31, 2010 Sep 30, 2010
(Dollars in thousands)
NONPERFORMING ASSETS:
Nonperforming loans & leases: Commercial real estate $ 6,195 $
5,432 $ 4,792 $ 5,273 $ 5,384 Commercial & industrial 3,807
2,362 2,255 2,462 1,455 Multifamily 2,664 1,568 1,050 717 - Small
business 1,176 817 1,059 1,090 1,158 Construction - 45 232 469 469
Leases 758 1,713 591 581 1,115 Consumer 1,023 1,038 993 876 871
Residential mortgage 5,820 5,722
4,926 5,045 3,570 Total
nonperforming loans & leases 21,443 18,697 15,898 16,513 14,022
Other real estate owned 464 750 1,575 1,130 1,130 Non-real
estate foreclosed assets 201 - - - -
Total nonperforming assets $ 22,108 $ 19,447 $
17,473 $ 17,643 $ 15,152 Total
nonperforming loans & leases / total loans & leases 1.87 %
1.62 % 1.38 % 1.43 % 1.24 % Total nonperforming assets / total
assets 1.40 % 1.20 % 1.09 % 1.10 % 0.96 %
PROVISION AND ALLOWANCE FOR LOAN LOSSES: Balance at
beginning of period $ 18,083 $ 18,222 $ 18,654 $ 18,212 $ 17,396
Charged-off loans & leases (1,582 ) (1,137 ) (1,686 ) (2,154 )
(487 ) Recoveries on charged-off loans & leases 48
148 129 161
28 Net loans & leases charged-off (1,534 ) (989 ) (1,557
) (1,993 ) (459 ) Provision for loan and lease losses 1,600
850 1,125 2,435
1,275 Balance at end of period $ 18,149 $
18,083 $ 18,222 $ 18,654 $ 18,212
Allowance to nonperforming loans & leases 84.64 %
96.72 % 114.62 % 112.97 % 129.88 % Allowance to total loans &
leases 1.58 % 1.57 % 1.58 % 1.61 % 1.60 %
NET
CHARGE-OFFS: Commercial real estate $ 167 $ - $ 532 $
726 $ - Commercial & industrial 254 (47 ) - 487 (5 )
Construction - 62 237 - - Other commercial loans & leases 974
427 397 565 226 Consumer 4 32 12 74 149 Residential mortgages
135 515 379 141
89 Total net charge-offs $ 1,534 $ 989
$ 1,557 $ 1,993 $ 459 Net
charge-offs to average loans & leases 0.53 % 0.34 % 0.55 % 0.69
% 0.16 %
DELINQUENCIES AND NONACCRUING LOANS AND
LEASES AS % OF TOTAL LOANS: Loans & leases 30-59
days past due 0.83 % 0.37 % 0.83 % 0.56 % 0.47 % Loans & leases
60-89 days past due 0.08 % 0.16 % 0.28 % 0.21 % 0.22 % Loans &
leases 90+ days past due and still accruing 0.03 %
0.01 % 0.06 % - - Total accruing
past due loans & leases 0.94 % 0.54 % 1.17 % 0.77 % 0.69 %
Nonaccrual loans & leases 1.84 % 1.61 %
1.32 % 1.43 % 1.24 % Total delinquent
and nonaccrual loans & leases 2.78 % 2.15 %
2.49 % 2.20 % 1.93 %
BANCORP RHODE ISLAND,
INC. Consolidated Average Balances, Yields and Costs
(unaudited)
Three Months Ended September 30, (Dollars in
thousands)
2011 2010 Average
Interest Average Average Interest
Average Balance Earned/Paid Yield
Balance Earned/Paid Yield
ASSETS: Earning assets: Overnight investments $ 834 $ - 0.42
% $ 5,220 $ 1 0.08 % Available for sale securities 340,587 2,907
3.41 % 344,872 3,226 3.74 % Stock in the FHLB 16,274 11 0.27 %
16,274 - 0.00 % Loans and leases receivable: Commercial loans and
leases 788,877 10,522 5.30 % 760,236 10,788 5.64 % Consumer and
other loans 206,315 2,168 4.17 % 205,978 2,265 4.36 % Residential
mortgages loans 154,352 1,553 4.02 %
162,473 1,874 4.61 % Total earning assets
1,507,239 17,161 4.53 % 1,495,053
18,154 4.83 % Cash and due from banks 17,632 15,617
Allowance for loans and leases (18,150 ) (17,683 ) Premises and
equipment 11,371 12,136 Goodwill, net 12,262 12,262 Accrued
interest receivable 4,048 4,346 Bank-owned life insurance 31,992
30,761 Prepaid expenses and other assets 15,684
16,535 Total assets $ 1,582,078 $ 1,569,027
LIABILITIES AND SHAREHOLDERS' EQUITY:
Interest-bearing liabilities: Deposits: NOW accounts $ 67,085 $ 11
0.06 % $ 71,493 $ 10 0.06 % Money market accounts 130,253 226 0.69
% 81,539 138 0.68 % Savings accounts 330,208 273 0.33 % 366,125 395
0.43 % Certificate of deposit accounts 305,751 761 0.99 % 364,245
1,367 1.49 % Overnight and short-term borrowings 37,292 10 0.10 %
39,675 16 0.16 % Wholesale repurchase agreements 12,717 10 0.32 %
13,804 139 3.94 % FHLB borrowings 255,761 1,897 2.90 % 233,124
2,438 4.09 % Subordinated deferrable interest debentures
13,403 166 4.90 % 13,403 173
5.08 % Total interest-bearing liabilities 1,152,470
3,354 1.15 % 1,183,408 4,676 1.57 %
Noninterest-bearing deposits 277,591 242,389 Other
liabilities 16,051 13,223 Total
liabilities 1,446,112 1,439,020 Shareholders' equity:
135,966 130,007 Total liabilities and
shareholders' equity $ 1,582,078 $ 1,569,027
Net interest income $ 13,807 $ 13,478 Net
interest spread 3.38 % 3.26 % Net interest margin 3.66 %
3.61 %
BANCORP RHODE ISLAND, INC. Consolidated Average
Balances, Yields and Costs (unaudited)
Nine Months Ended September
30, (Dollars in thousands)
2011 2010
Average Interest Average Average
Interest Average Balance Earned/Paid
Yield Balance Earned/Paid Yield
ASSETS: Earning assets: Overnight investments $ 765 $ 1 0.26
% $ 3,174 $ 6 0.27 % Available for sale securities 348,742 8,906
3.41 % 354,663 10,536 3.96 % Stock in the FHLB 16,274 36 0.29 %
16,274 - 0.00 % Loans and leases receivable: Commercial loans and
leases 783,659 31,730 5.41 % 750,035 32,042 5.71 % Consumer and
other loans 208,235 6,573 4.22 % 204,692 6,716 4.39 % Residential
mortgages loans 159,407 4,995 4.18 %
167,354 5,842 4.65 % Total earning assets
1,517,082 52,241 4.60 % 1,496,192
55,142 4.92 % Cash and due from banks 16,910 15,963
Allowance for loans and leases (18,381 ) (17,316 ) Premises and
equipment 11,592 12,246 Goodwill, net 12,262 12,235 Accrued
interest receivable 4,103 4,323 Bank-owned life insurance 31,691
30,440 Prepaid expenses and other assets 15,389
16,103 Total assets $ 1,590,648 $ 1,570,186
LIABILITIES AND SHAREHOLDERS' EQUITY:
Interest-bearing liabilities: Deposits: NOW accounts $ 67,935 $ 66
0.13 % $ 69,857 $ 37 0.07 % Money market accounts 118,677 599 0.67
% 78,103 452 0.77 % Savings accounts 337,199 807 0.32 % 369,686
1,432 0.52 % Certificate of deposit accounts 318,197 2,506 1.05 %
374,848 4,431 1.58 % Overnight and short-term borrowings 37,706 29
0.10 % 38,617 53 0.18 % Wholesale repurchase agreements 17,414 291
2.21 % 17,326 421 3.20 % FHLB borrowings 268,389 6,124 3.01 %
250,721 7,621 4.01 % Subordinated deferrable interest debentures
13,403 498 4.92 % 13,403
503 4.98 % Total interest-bearing liabilities 1,178,920
10,920 1.22 % 1,212,561 14,950
1.65 % Noninterest-bearing deposits 264,663 220,576 Other
liabilities 14,712 10,742 Total
liabilities 1,458,295 1,443,879 Shareholders' equity:
132,353 126,307 Total liabilities and
shareholders' equity $ 1,590,648 $ 1,570,186
Net interest income $ 41,321 $ 40,192 Net
interest spread 3.38 % 3.27 % Net interest margin 3.65 %
3.59 %
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