Bancorp Rhode Island, Inc. (NASDAQ: BARI), the parent company of Bank Rhode Island, today announced earnings for the second quarter of 2006 were $2.0 million, as compared to $2.5 million earned in the second quarter of last year. The company's diluted earnings per share (EPS) were $0.41 for the second quarter of 2006, down from $0.52 in the second quarter of 2005.
The FHLB of Boston amended its dividend schedule and deferred the declaration of its normal quarterly dividend. As a result, the Bank was not able to recognize income related to its investment for the second quarter of 2006. The dividend recorded in first quarter of 2006 was $211,000 before taxes.
Total commercial loans outstanding reached $486.1 million, up a strong 10.9 percent from $438.3 million as of December 31, 2005.
Consumer loans outstanding rose to $222.2 million at the end of the second quarter of 2006. This marks a 7.6 percent increase over the $206.5 million reported at December 31, 2005.
The bank's total deposits were $992.5 million for the second quarter of 2006, up $11.5 million from $981.0 million at the end of 2005.
"We are delighted our commercial lending efforts built our portfolio by better than $44 million this quarter," said Merrill W. Sherman, president and chief executive officer. "The changes we have made over the past six months are clearly being well-received in the marketplace," she added.
Sherman also noted, "Deposits rebounded nicely during the quarter, but the margin remains under significant pressure."
Bancorp Rhode Island, Inc. will host a conference call at 10:00 a.m. Eastern Time tomorrow (Wednesday, July 19) to discuss its second quarter earnings for 2006. The conference call can be accessed by dialing toll-free 800-231-5571.
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, has 16 branches located in 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
June 30, December 31,
2006 2005
-------------- ---------------
Balance Sheet Data: (Dollars in thousands, except
per share data)
--------------------------------------
Total Assets $ 1,466,587 $ 1,442,279
Total Loans 996,838 950,806
Nonperforming Loans 3,387 415
Allowance for Loan Losses 12,462 12,168
Allowance for Nonperforming Loans 367.94% 2932.05%
Allowance to Total Loans 1.25% 1.28%
Total Deposits 992,511 980,969
Total Shareholders' Equity 104,579 104,832
Book Value Per Share $ 21.92 $ 22.21
Tangible Book Value Per Share $ 19.55 $ 19.83
Quarter Ended Six Months Ended
June 30, June 30,
----------------- ----------------
2006 2005 2006 2005
---------- ------ ---------- -----
(Dollars in millions)
Average Balance Sheet Data:
----------------------------------
Average Total Assets $1,447 $ 1,337 $ 1,442 $ 1,296
Average Total Loans 972 913 964 899
Average Total Interest-bearing
Liabilities 1,147 1,056 1,144 1,028
Average Total Equity 105 98 105 89
Quarter Ended Six Months Ended
June 30, June 30,
------------------ -------------------
2006 2005 2006 2005
--------- -------- --------- ---------
(Dollars in thousands, except per share data)
Income Statement Data:
--------------------------------
Interest Income $ 19,762 $ 17,068 $ 39,157 $ 32,813
Interest Expense 9,433 6,298 17,778 11,672
---------- ---------- ---------- ----------
Net Interest
Income 10,329 10,770 21,379 21,141
Provision of Loan
Losses 440 354 740 654
Noninterest Income 2,815 2,445 5,120 4,520
Noninterest
Expense 9,720 9,125 20,511 17,637
---------- ---------- ---------- ----------
Income Before
Taxes 2,984 3,736 5,248 7,370
Income Taxes 978 1,276 1,717 2,503
---------- ---------- ---------- ----------
Net Income $ 2,006 $ 2,460 $ 3,531 $ 4,867
========== ========== ========== ==========
Data Per Common
Share:
------------------
Earnings Per
Common
Share - Basic $ 0.42 $ 0.55 $ 0.74 $ 1.14
Earnings Per
Common
Share - Diluted $ 0.41 $ 0.52 $ 0.72 $ 1.08
Average Common
Shares
Outstanding -
Basic 4,763,667 4,508,165 4,755,005 4,258,815
Average Common
Shares
Outstanding -
Diluted 4,905,424 4,737,503 4,896,086 4,497,435
Selected Operating
Ratios:
------------------
Net Interest
Margin 3.01% 3.40% 3.13% 3.46%
Return on Assets 0.56% 0.74% 0.50% 0.76%
Return on Equity 7.69% 10.09% 6.79% 11.09%
Efficiency
Ratio(1) 73.95% 69.05% 77.40% 68.73%
(1) Calculated by dividing total noninterest expenses by net interest
income plus noninterest income.
BANCORP RHODE ISLAND, INC.
Consolidated Balance Sheets
June 30, December 31,
2006 2005
---------- ------------
(In thousands)
ASSETS:
Cash and due from banks $ 31,497 $ 30,177
Overnight investments 5,349 10,370
---------- ------------
Total cash and cash equivalents 36,846 40,547
Investment securities available for sale
(amortized cost of $160,243 and $153,328 at
June 30, 2005 and December 31, 2005,
respectively) 156,896 150,959
Mortgage-backed securities available for sale
(amortized cost of $214,178 and $237,449 at
June 30, 2006 and December 31, 2005,
respectively) 206,812 234,858
---------- ------------
Total available for sale securities 363,708 385,817
Stock in Federal Home Loan Bank of Boston 16,530 16,062
Loans and leases receivable:
Commercial loans and leases 486,147 438,309
Residential mortgage loans 288,489 306,016
Consumer and other loans 222,202 206,481
---------- ------------
Total loans and leases receivable 996,838 950,806
Less allowance for loan and lease losses (12,462) (12,168)
---------- ------------
Net loans and leases receivable 984,376 938,638
Premises and equipment, net 15,496 14,858
Goodwill 11,317 11,234
Accrued interest receivable 6,871 6,965
Investment in bank-owned life insurance 20,737 18,824
Prepaid expenses and other assets 10,706 9,334
---------- ------------
Total assets $1,466,587 $ 1,442,279
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LIABILITIES:
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