BancorpRI Announces Net Income Growth of 27.5%

BancorpRI Announces Net Income Growth of 27.5%

Record diluted earnings of $0.60 per share

Non-performing assets down 10%

Dividend raised by 12%

Bancorp Rhode Island, Inc. (NASDAQ: BARI), the parent company of Bank Rhode Island, today reported record net income of $2.8 million for the quarter ended September 30, 2010, a 27.5 percent increase over the third quarter 2009 net income of $2.2 million and a 4.7 percent increase over net income of $2.7 million in the second quarter 2010. The Company’s diluted earnings per share (EPS) grew to $0.60 for the third quarter 2010 compared to $0.17 in the prior year period, after preferred stock dividends and discount accretion, and $0.57 for the second quarter 2010.

For the nine month period ended September 30, 2010, the Company reported net income of $7.7 million, or $1.65 diluted EPS, exceeding net income of $4.4 million, or $0.46 diluted EPS, after preferred stock dividends and discount accretion, for the same period in 2009.

“We are encouraged by our results again this quarter as we sustained the momentum of the record net income we produced last quarter,” commented President and CEO, Merrill W. Sherman. “While much uncertainty persists in the overall environment and banking industry in general, BancorpRI remains focused on our strategic initiatives and capitalizing on our competitive advantages. We are lending successfully, reducing non-performing assets, and maintaining expense discipline, thereby generating strong bottom-line results for our shareholders. This gave the Board of Directors the confidence to approve a healthy increase to our common dividend.”

“In addition, our customer outreach efforts continue to be successful; we have again become the top Small Business Administration (SBA) lender in Rhode Island for the second consecutive year,” added Sherman.

The Company’s commercial loan and lease portfolio continued its upward trend, growing to $771.8 million as of September 30, 2010. This represented an increase of $39.4 million or 5.4 percent from year-end 2009 and $7.4 million or 1.0 percent from June 30, 2010. Consumer loans were $202.4 million as of September 30, 2010, down from $207.4 million at June 30, 2010. Residential mortgage loans were $161.1 million, a decrease of $3.6 million from June 30, 2010.

Total deposits were $1.1 billion as of September 30, 2010, up $17.4 million from year-end 2009 and down by $58.3 million from June 30, 2010. The latter decline was expected and was due to the previously disclosed temporary inflow of demand deposits in June attributable to the settlement of personal injury litigation to which the Bank was not a party. Core deposits (demand deposits, NOW, money market and savings accounts) at September 30, 2010, have risen to 67.7 percent of total deposits, compared to 64.8 percent at year-end 2009.

Net interest income for the third quarter 2010 was $13.5 million, compared to $12.7 million in the third quarter 2009, and $13.6 million in the second quarter 2010. This increase from prior year was driven by the significant improvement in the net interest margin. Net interest margin for the third quarter 2010 was 3.61 percent, an increase of 23 basis points from the third quarter 2009 and a decrease of 6 basis points from the second quarter 2010. On a year-to-date basis, net interest income was $40.2 million, an increase of $4.9 million or 13.8 percent from 2009, and the net interest margin was 3.59 percent, an increase of 40 basis points from a year ago.

Noninterest income was $2.3 million for the third quarter 2010, above the $2.2 million in the third quarter 2009 and unchanged from the second quarter 2010. The increase in noninterest income from the prior year was primarily the result of a gain on the sale of two mortgage-backed securities offset by a charge of $417,000 incurred as the result of an investment security deemed to be other-than-temporarily impaired. On a year-to-date basis, noninterest income was $6.9 million, an increase of 1.1 percent from 2009.

Noninterest expense was $10.4 million in the third quarter 2010, compared to $9.8 million in the third quarter 2009, and down slightly from the second quarter 2010. On a year-to-date basis, noninterest expense was $31.3 million, an increase of $1.7 million over the same period in 2009. The increase in the year-to-date comparison was primarily driven by higher compensation and loan workout and other real estate owned related costs, partially offset by a reduction in FDIC insurance expense.

Nonperforming assets at September 30, 2010, were $15.2 million, or 0.96 percent of total assets, down 9.6 percent from $16.8 million, or 1.04 percent at June 30, 2010, and down 24.3 percent from $20.0 million, or 1.26 percent at December 31, 2009. Net charge-offs were $459,000 or 0.16 percent of average loans and leases for the third quarter 2010, down from $2.3 million or 0.81 percent in the third quarter 2009 and $779,000 or 0.28 percent in the second quarter 2010. On a year-to-date basis, the net charge-offs were $2.7 million or 0.33 percent of average loans and leases, a decrease of $1.5 million over the same period in 2009.

The provision for loan and lease losses was $1.3 million for the third quarter 2010 compared to $1.9 million in the third quarter 2009, and $1.6 million on a linked quarter basis. On a year-to-date basis, the provision was $4.4 million, a decrease of $1.7 million from the same period in 2009. The allowance for loan and lease losses as a percent of total loans and leases was 1.60 percent at September 30, 2010, up from 1.53 percent at June 30, 2010.

Total assets at September 30, 2010, were $1.6 billion, down 1.0 percent from year-end 2009 and a decrease of 2.5 percent from June 30, 2010.

At September 30, 2010, the Company’s tier 1 capital ratio was approximately 8.00 percent and its total risk-based capital ratio was approximately 12.50 percent.

The Company’s Board of Directors approved a dividend of $0.19 per share, an increase of $0.02 per share. The dividend will be paid on December 8, 2010, to shareholders of record on November 17, 2010.

Company executives will host a conference call Thursday, October 28, at 10 a.m. Eastern Time (ET) to discuss the Company’s third quarter 2010 results. Access to the conference call is available by dialing toll free (877) 317-6789, or via webcast in the Investor Relations section of the website at www.bankri.com. International callers can join by dialing (412) 317-6789. 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 9:00 a.m. ET on Wednesday, November 3, 2010. The replay dial-in number is (877) 344-7529; when prompted, enter conference ID number 444716. 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 September 30, 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								Nine Months Ended
		September 30,								September 30,
			2010				2009				2010				2009
		(In thousands, except per share data)
FINANCIAL DATA:
Net interest income		$	13,478			$	12,666			$	40,192			$	35,321
Provision for loan and lease losses			1,275				1,900				4,425				6,110
Noninterest income			2,289				2,241				6,889				6,812
Noninterest expense			10,350				9,812				31,268				29,580
Net income			2,808				2,203				7,708				4,406
Net income applicable to common shares			2,808				779				7,708				2,109
FINANCIAL PERFORMANCE RATIOS:
Return on assets (3) (6)			0.71	%			0.56	%			0.66	%			0.38	%
Return on equity (4) (6)			8.57	%			2.56	%			8.16	%			2.33	%
Net interest margin (2) (6)			3.61	%			3.38	%			3.59	%			3.19	%
Efficiency ratio (5) (6)			65.64	%			65.82	%			66.41	%			70.21	%
PER SHARE DATA:
Earnings per share - basic		$	0.60			$	0.17			$	1.65			$	0.46
Earnings per share - diluted			0.60				0.17				1.65				0.46
Book value per share of common stock			27.98				26.46				27.98				26.46
Tangible book value per share of common stock			25.35				23.85				25.35				23.85
Market value (at period end)			27.93				24.98				27.93				24.98
Dividends per share			0.17				0.17				0.51				0.51
CAPITAL RATIOS:
Tier 1 capital ratio (7)			8.00	%			7.80	%
Total risk-based capital ratio (7)			12.50	%			12.07	%
Tangible common equity ratio (1) (6)			7.59	%			7.06	%

		Three Months Ended
		Sep 30, 2010				Jun 30, 2010				Mar 31, 2010				Dec 31, 2009				Sep 30, 2009
		(In thousands)
BALANCE SHEET:
Total assets		$	1,573,323			$	1,613,520			$	1,586,778			$	1,589,946			$	1,569,084
Total loans and leases			1,135,227				1,136,524				1,123,838				1,111,847				1,116,627
Total deposits			1,115,683				1,174,020				1,107,071				1,098,284				1,091,931
Shareholders' equity			130,769				129,127				123,679				120,661				121,961
ASSET QUALITY:
Total nonperforming assets		$	15,152			$	16,759			$	16,392			$	20,015			$	16,894
Nonperforming assets / total assets			0.96	%			1.04	%			1.03	%			1.26	%			1.08	%
Allowance for loans and leases		$	18,212			$	17,396			$	16,625			$	16,536			$	16,537
Allowance to total loans and leases			1.60	%			1.53	%			1.48	%			1.49	%			1.48	%
Net charge-offs		$	459			$	779			$	1,511			$	3,808			$	2,268
Net charge-offs to average loans			0.16	%			0.28	%			0.55	%			1.35	%			0.81	%

BANCORP RHODE ISLAND, INC.
Selected Financial Highlights (unaudited)
			Sep 30, 2010				Jun 30, 2010				Mar 31, 2010				Dec 31, 2009				Sep 30, 2009
		(in thousands)
LOAN AND LEASE PORTFOLIO:
Commercial loans and leases:
Commercial real estate - non-owner occupied		$	202,342			$	191,345			$	193,868			$	180,416			$	174,039
Commercial real estate - owner occupied			177,526				179,109				172,174				168,425				168,099
Commercial & industrial			156,042				163,088				164,448				167,968				173,011
Multi-family			73,375				67,588				66,716				66,350				58,622
Small business			59,756				59,833				57,911				56,148				55,442
Construction			31,035				30,675				30,105				23,405				23,380
Leases and other			76,417				77,688				72,969				75,057				78,506
Subtotal			776,493				769,326				758,191				737,769				731,099
Unearned lease income			(6,516	)			(6,777	)			(7,039	)			(7,693	)			(9,218	)
Net deferred loan origination costs			1,777				1,825				1,041				2,321				2,540
Total commercial loans and leases			771,754				764,374				752,193				732,397				724,421
Residential mortgages			161,106				164,750				170,200				173,294				182,303
Consumer loans			202,367				207,400				201,445				206,156				209,903
Total loans and leases		$	1,135,227			$	1,136,524			$	1,123,838			$	1,111,847			$	1,116,627
(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, 2010.

BANCORP RHODE ISLAND, INC.
Consolidated Balance Sheet (unaudited)
		September 30,				December 31,
			2010				2009
		(In thousands)
ASSETS:
Cash and due from banks		$	15,828			$	18,866
Overnight investments			451				1,964
Total cash and cash equivalents			16,279				20,830
Available for sale securities (amortized cost of $334,074 and $380,108, respectively)			342,080				381,839
Stock in Federal Home Loan Bank of Boston			16,274				16,274
Loans and leases receivable:
Commercial loans and leases			771,754				732,397
Residential mortgage loans			161,106				173,294
Consumer and other loans			202,367				206,156
Total loans and leases receivable			1,135,227				1,111,847
Allowance for loan and lease losses			(18,212	)			(16,536	)
Net loans and leases receivable			1,117,015				1,095,311
Premises and equipment, net			12,072				12,378
Goodwill			12,262				12,239
Accrued interest receivable			4,648				4,964
Investment in bank-owned life insurance			30,964				30,010
Prepaid expenses and other assets			21,729				16,101
Total assets		$	1,573,323			$	1,589,946
LIABILITIES:
Deposits:
Demand deposit accounts		$	242,628			$	204,281
NOW accounts			66,166				74,558
Money market accounts			82,151				65,076
Savings accounts			364,160				367,225
Certificates of deposit accounts			360,578				387,144
Total deposits			1,115,683				1,098,284
Overnight and short-term borrowings			36,028				40,171
Wholesale repurchase agreements			20,000				20,000
Federal Home Loan Bank of Boston borrowings			232,024				277,183
Subordinated deferrable interest debentures			13,403				13,403
Other liabilities			25,416				20,244
Total liabilities			1,442,554				1,469,285
SHAREHOLDERS’ EQUITY:
Common stock, par value $0.01 per share, authorized 11,000,000 shares:
Issued: (5,047,942 shares and 4,969,444 shares, respectively)			50				50
Additional paid-in capital			73,697				72,783
Treasury stock, at cost (373,850 shares and 364,750 shares, respectively)			(12,527	)			(12,309	)
Retained earnings			64,345				59,012
Accumulated other comprehensive income, net			5,204				1,125
Total shareholders’ equity			130,769				120,661
Total liabilities and shareholders’ equity		$	1,573,323			$	1,589,946

BANCORP RHODE ISLAND, INC.
Consolidated Statements of Operations (unaudited)
			Three Months Ended								Nine Months Ended
			September 30,								September 30,
			2010				2009				2010				2009
			(In thousands, except per share data)
Interest and dividend income:
Overnight investments		$	1			$	1			$	6			$	10
Mortgage-backed securities			2,764				3,336				9,034				10,099
Investment securities			462				540				1,502				1,527
Loans and leases			14,927				15,123				44,600				44,716
Total interest and dividend income			18,154				19,000				55,142				56,352
Interest expense:
Deposits			1,910				3,308				6,352				12,026
Overnight and short-term borrowings			16				19				53				67
Wholesale repurchase agreements			139				141				421				408
Federal Home Loan Bank of Boston borrowings			2,438				2,691				7,621				7,966
Subordinated deferrable interest debentures			173				175				503				564
Total interest expense			4,676				6,334				14,950				21,031
Net interest income			13,478				12,666				40,192				35,321
Provision for loan and lease losses			1,275				1,900				4,425				6,110
Net interest income after provision for loan and lease losses			12,203				10,766				35,767				29,211
Noninterest income:
Total other-than-temporary impairment losses on available for sale securities			5				(696	)			54				(696	)
Non-credit component of other-than-temporary impairment losses recognized in other comprehensive income			(422	)			626				(1,086	)			626
Credit component of other-than-temporary impairment losses on available for sale securities			(417	)			(70	)			(1,032	)			(70	)
Service charges on deposit accounts			1,337				1,396				3,949				3,973
Gain on sale of available for sale securities			465				-				1,043				61
Income from bank-owned life insurance			320				313				953				906
Loan related fees			162				75				484				703
Commissions on nondeposit investment products			144				322				529				589
Net gains on lease sales and commissions on loans originated for others			44				13				86				61
Other income			234				192				877				589
Total noninterest income			2,289				2,241				6,889				6,812
Noninterest expense:
Salaries and employee benefits			5,829				5,224				17,418				15,303
Occupancy			827				864				2,517				2,652
Data processing			667				659				1,975				1,949
Professional services			549				609				1,718				1,953
FDIC insurance			475				502				1,425				2,065
Marketing			333				327				974				974
Equipment			266				226				776				709
Loan workout and other real estate owned			196				219				869				496
Loan servicing			133				174				480				522
Other expenses			1,075				1,008				3,116				2,957
Total noninterest expense			10,350				9,812				31,268				29,580
Income before income taxes			4,142				3,195				11,388				6,443
Income tax expense			1,334				992				3,680				2,037
Net income			2,808				2,203				7,708				4,406
Preferred stock dividends			-				(142	)			-				(892	)
Prepayment charges and accretion of preferred stock discount			-				(1,282	)			-				(1,405	)
Net income applicable to common shares		$	2,808			$	779			$	7,708			$	2,109
Per share data:
Basic earnings per common share		$	0.60			$	0.17			$	1.65			$	0.46
Diluted earnings per common share		$	0.60			$	0.17			$	1.65			$	0.46
Cash dividends declared per common share		$	0.17			$	0.17			$	0.51			$	0.51
Weighted average common shares outstanding – basic			4,674				4,606				4,653				4,599
Weighted average common shares outstanding – diluted			4,703				4,634				4,682				4,620

BANCORP RHODE ISLAND, INC.
Asset Quality Analysis (unaudited)
		Three Months Ended
			Sep 30, 2010				Jun 30, 2010				Mar 31, 2010				Dec 31, 2009				Sep 30, 2009
		(Dollars in thousands)
NON-PERFORMING ASSETS:
Nonperforming loans & leases:
Commercial real estate		$	5,384			$	5,131			$	4,952			$	6,909			$	3,159
Commercial & industrial			1,455				1,155				1,544				2,919				3,263
Multifamily			-				-				-				205				205
Small business			1,158				986				957				1,147				585
Construction			469				469				710				469				469
Leases			1,115				2,252				1,415				1,878				1,059
Residential mortgage			3,570				3,737				4,349				4,124				5,175
Consumer			871				1,081				442				664				984
Total nonperforming loans & leases			14,022				14,811				14,369				18,315				14,899
Other real estate owned			1,130				1,948				2,023				1,700				1,995
Total nonperforming assets		$	15,152			$	16,759			$	16,392			$	20,015			$	16,894
Total nonperforming loans & leases / total loans & leases			1.24	%			1.30	%			1.28	%			1.65	%			1.33	%
Total nonperforming assets / total assets			0.96	%			1.04	%			1.03	%			1.26	%			1.08	%
PROVISION AND ALLOWANCE FOR LOAN LOSSES:
Balance at beginning of period		$	17,396			$	16,625			$	16,536			$	16,537			$	16,905
Charged-off loans & leases			(487	)			(909	)			(1,612	)			(3,893	)			(2,285	)
Recoveries on charged-off loans & leases			28				130				101				85				17
Net loans & leases charged-off			(459	)			(779	)			(1,511	)			(3,808	)			(2,268	)
Provision for loan and lease losses			1,275				1,550				1,600				3,807				1,900
Balance at end of period		$	18,212			$	17,396			$	16,625			$	16,536			$	16,537
Allowance to nonperforming loans & leases			129.88	%			117.45	%			115.70	%			90.29	%			110.99	%
Allowance to total loans & leases			1.60	%			1.53	%			1.48	%			1.49	%			1.48	%
NET CHARGE-OFFS:
Commercial real estate		$	-			$	(100	)		$	549			$	322			$	50
Commercial & industrial			(5	)			(4	)			(11	)			1,807				1,412
Other commercial loans & leases			226				387				529				238				227
Residential mortgages			89				490				347				852				556
Consumer			149				6				97				589				23
Total net charge-offs		$	459			$	779			$	1,511			$	3,808			$	2,268
Net charge-offs to average loans & leases			0.16	%			0.28	%			0.55	%			1.35	%			0.81	%
DELINQUENCIES AND NON-ACCRUING LOANS AND LEASES AS % OF TOTAL LOANS:
Loans & leases 30-59 days past due			0.47	%			0.90	%			0.90	%			0.95	%			0.97	%
Loans & leases 60-89 days past due			0.22	%			0.21	%			0.22	%			0.19	%			0.16	%
Loans & leases 90+ days past due and still accruing			-				0.08	%			-				0.07	%			0.02	%
Total accruing past due loans & leases			0.69	%			1.19	%			1.12	%			1.21	%			1.15	%
Non-accrual loans & leases			1.24	%			1.22	%			1.28	%			1.57	%			1.31	%
Total delinquent and nonaccrual loans & leases			1.93	%			2.41	%			2.40	%			2.78	%			2.46	%

BANCORP RHODE ISLAND, INC.
Consolidated Average Balances, Yields and Costs (unaudited)
					Three Months Ended September 30,
(Dollars in thousands)					2010										2009
					Average Balance				Interest Earned/Paid			Average Yield			Average Balance				Interest Earned/Paid			Average Yield
ASSETS:
Earning assets:
	Overnight investments				$	5,220			$	1		0.08	%		$	851			$	1		0.06	%
	Available for sale securities					344,872				3,226		3.74	%			360,586				3,876		4.26	%
	Stock in the FHLB					16,274				-		0.00	%			16,024				-		0.00	%
	Loans and leases receivable:
		Commercial loans and leases				760,236				10,788		5.64	%			718,175				10,437		5.78	%
		Residential mortgages loans				162,473				1,874		4.61	%			187,041				2,302		4.92	%
		Consumer and other loans				205,978				2,265		4.36	%			212,109				2,384		4.46	%
			Total earning assets			1,495,053				18,154		4.83	%			1,494,786				19,000		5.06	%
Cash and due from banks						15,617										16,828
Allowance for loans and leases						(17,683	)									(17,088	)
Premises and equipment						12,136										12,604
Goodwill, net						12,262										12,051
Accrued interest receivable						4,346										4,355
Bank-owned life insurance						30,761										29,465
Prepaid expenses and other assets						16,535										9,069
	Total assets				$	1,569,027									$	1,562,070
LIABILITIES AND SHAREHOLDERS' EQUITY:
Interest-bearing liabilities:
	Deposits:
		NOW accounts			$	71,493			$	10		0.06	%		$	65,365			$	13		0.08	%
		Money market accounts				81,539				138		0.68	%			43,543				140		1.27	%
		Savings accounts				366,125				395		0.43	%			369,019				707		0.76	%
		Certificate of deposit accounts				364,245				1,367		1.49	%			398,923				2,448		2.43	%
	Overnight and short-term borrowings					39,675				16		0.16	%			41,566				19		0.19	%
	Wholesale repurchase agreements					13,804				139		3.94	%			15,326				141		3.63	%
	FHLB borrowings					233,124				2,438		4.09	%			276,722				2,691		3.81	%
	Subordinated deferrable interest debentures					13,403				173		5.08	%			13,403				175		5.18	%
		Total interest-bearing liabilities				1,183,408				4,676		1.57	%			1,223,867				6,334		2.05	%
Noninterest-bearing deposits						242,389										197,313
Other liabilities						13,223										5,585
	Total liabilities					1,439,020										1,426,765
Shareholders' equity:						130,007										135,305
	Total liabilities and shareholders' equity				$	1,569,027									$	1,562,070
Net interest income									$	13,478									$	12,666
Net interest spread												3.26	%									3.01	%
Net interest margin												3.61	%									3.38	%

BANCORP RHODE ISLAND, INC.
Consolidated Average Balances, Yields and Costs (unaudited)
					Nine Months Ended September 30,
(Dollars in thousands)					2010										2009
					Average Balance				Interest Earned/Paid			Average Yield			Average Balance				Interest Earned/Paid			Average Yield
ASSETS:
Earning assets:
	Overnight investments				$	3,174			$	6		0.27	%		$	1,607			$	10		0.80	%
	Available for sale securities					354,663				10,536		3.96	%			358,019				11,626		4.34	%
	Stock in the FHLB					16,274				-		0.00	%			15,790				-		0.00	%
	Loans and leases receivable:
		Commercial loans and leases				750,035				32,042		5.71	%			695,368				30,184		5.80	%
		Residential mortgages loans				167,354				5,842		4.65	%			197,588				7,422		5.01	%
		Consumer and other loans				204,692				6,716		4.39	%			211,613				7,110		4.49	%
			Total earning assets			1,496,192				55,142		4.92	%			1,479,985				56,352		5.08	%
Cash and due from banks						15,963										19,122
Allowance for loans and leases						(17,316	)									(15,852	)
Premises and equipment						12,246										12,528
Goodwill, net						12,235										12,056
Accrued interest receivable						4,323										4,286
Bank-owned life insurance						30,440										29,164
Prepaid expenses and other assets						16,103										8,991
	Total assets				$	1,570,186									$	1,550,280
LIABILITIES AND SHAREHOLDERS' EQUITY:
Interest-bearing liabilities:
	Deposits:
		NOW accounts			$	69,857			$	37		0.07	%		$	64,576			$	45		0.09	%
		Money market accounts				78,103				452		0.77	%			21,602				192		1.19	%
		Savings accounts				369,686				1,432		0.52	%			380,308				2,720		0.96	%
		Certificate of deposit accounts				374,848				4,431		1.58	%			414,011				9,069		2.93	%
	Overnight and short-term borrowings					38,617				53		0.18	%			46,253				67		0.20	%
	Wholesale repurchase agreements					17,326				421		3.20	%			11,795				408		4.62	%
	FHLB borrowings					250,721				7,621		4.01	%			258,189				7,966		4.07	%
	Subordinated deferrable interest debentures					13,403				503		4.98	%			13,403				564		5.61	%
		Total interest-bearing liabilities				1,212,561				14,950		1.65	%			1,210,137				21,031		2.32	%
Noninterest-bearing deposits						220,576										184,747
Other liabilities						10,742										11,258
	Total liabilities					1,443,879										1,406,142
Shareholders' equity:						126,307										144,138
	Total liabilities and shareholders' equity				$	1,570,186									$	1,550,280
Net interest income									$	40,192									$	35,321
Net interest spread												3.27	%									2.76	%
Net interest margin												3.59	%									3.19	%

Bancorp Rhode Island, Inc.
Linda H. Simmons, 401-574-1652
Chief Financial Officer
lsimmons@bankri.com
or
Debbie Mandeville, 401-574-1547
Investor Relations Officer
dmandeville@bankri.com