Bancorp Rhode Island Inc., the parent company of Bank Rhode Island, reported that net income dipped to $2.1 million for the quarter ended Dec. 31 from net income of $2.3 million for the fourth quarter 2008.

Earnings in 2009 fell to $6.5 million from net income of $9.1 million in 2008. The company noted that during the third quarter 2009, it repurchased its preferred stock and the warrant to purchase its common stock previously issued to the U.S. Treasury Department. The repurchase of the preferred stock and the discount accretion associated with its issuance had a negative impact on the company’s earnings per share of $0.49 per share for 2009 and $0.01 per share for 2008.

"Despite a difficult environment in 2009, we remained profitable with improvement in key fundamentals, continued to maintain a strong capital position and concluded our participation in the government’s Capital Purchase Program," said President and CEO, Merrill W. Sherman. "Although we see some signs for a potential economic recovery, we continue to believe that 2010 will be another challenging year in the banking industry. However, BancorpRI remains well-positioned for the long term."

Net interest income for the fourth quarter 2009 was $13.0 million compared to $11.7 million in the fourth quarter 2008, and $12.7 million in the third quarter 2009. Net interest income for 2009 was $48.3 million, an increase of $2.9 million, or 6.5 percent, from $45.4 million in 2008.