Bancorp Rhode Island Inc., the parent company of Bank Rhode Island, announced that its earnings for the third quarter of 2003 were $1.8 million, an 8 percent decrease from the third quarter last year. Total assets increased 6 percent to $1.1 billion since Dec. 30, 2002.
The company’s diluted earnings per share were 44 cents for the third quarter of 2003, down 8 percent from 48 cents in 2002.
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The bank’s total deposits continued to climb in the third quarter, reaching $800.4 million at Sept. 30, up from $761.9 million at the end of 2002. Core deposits (checking and savings) grew to $599.3 million this quarter, an 11 percent increase since the end of last year.
The bank’s total commercial loans outstanding increased 13 percent this year, reaching $318.2 million as of Sept. 30. Consumer loans outstanding have increased 14 percent from $91.9 million on Dec. 31 to $104.7 million as of Sept. 30.
“We are pleased with the bank’s growth in key business lines,” said President and CEO Merrill W. Sherman. “Our commercial loan growth remains exceptional. The consumer loan growth underscores our ability to leverage off our market position.”
Sherman noted: “The bank continues to experience downward pressure on its net interest margin, driven primarily by high pre-payments in its purchased mortgage portfolio. That pressure, coupled with the planned increase in expenses, has resulted in a decline in third-quarter earnings when compared to the prior year.”
Sherman further commented, “The bank’s ability to generate quality loan business is key to attaining the bank’s long-term goals of reducing its dependence on purchasing secondary market mortgages and improving its margin.”
The company’s board of directors approved a dividend of 14 cents per share. The dividend will be paid on Dec. 2 to shareholders of record on Nov. 11.
The bank, headquartered in Providence, has 13 branches located in Providence and Kent counties.
