Bancorp Rhode Island Inc., parent of Bank Rhode Island, reported Tuesday that its third-quarter 2004 earnings were a record $2.2 million, up 22 percent from the same period last year, and slightly higher than last quarter. Diluted earnings per share were 52 cents, up 18 percent from 44 cents in the third quarter of 2003.
The bank’s earnings were boosted by a rapid growth in its loan portfolio – and the accompanying interest income. BankRI added $21.8 million worth of commercial loans in the third quarter, for a total of $392 million, and generated nearly $5.9 million in interest income from commercial loans, up from $5 million a year before. In the first nine months of 2004, commercial loans have grown by 18 percent, or $59.8 million.
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Consumer loans are also up dramatically, by $19.7 million, or 14 percent, in the last quarter alone, for a total of $160.3 million. Year-to-date growth is 38 percent. Interest income from these loans was up 46.6 percent from the third quarter of 2003.
BankRI’s mortgage portfolio, meanwhile, continued to decline sharply. Total loans dropped by $12.4 million in the third quarter, to $316.7 million. So far this year, mortgages have declined by 13.5 percent. The quarter ended, however, just as interest rates were beginning to rise, with an accompanying decline in adjustable-rate loans’ appeal to consumers.
Total deposits declined slightly during the quarter, from $887.8 million on June 30 to $886 million on Sept. 30. Checking, money market and CD deposits all followed this pattern, while NOW accounts dropped more substantially, by 12.4 percent. Savings deposits, however, more than covered the NOW drop, rising by $21.8 million, or 6.5 percent, to $357.1 million as of Sept. 30.
Year-to-date, BankRI is still well ahead of where it started, up 9 percent from $811.3 million at the end of 2003, and with $667.2 million in core deposits (checking and savings) up 11 percent from $598.5 million at the end of 2003.
