Financial Industry Landscape
2008 to Present
Bear Stearns, Countrywide Mortgage, IndyMac
Bank, Lehman Brothers, Wamu
Fannie Mae and Freddie Mac in receivership
FDIC insurance raised to $250,000
Troubled Asset Relief Program (TARP)
Federal Reserve releases the results of stress tests.
Salisbury Bancorp
2008 Financial Highlights
Net Income:
$1.11 million
$ .66 per share
Assets:
$ 496 million
Net Loans:
$ 297 million
Deposits:
$ 345 million
Increased dividend for 17th consecutive year.
Salisbury Bancorp
March 31, 2009 – Financial Highlights
Net Income:
$1.08 million
$ .63 per share
Total Assets:
$ 506 million
Net Loans:
$ 298 million
Deposits:
$ 367 million
Salisbury Bancorp
March 31, 2009 – Financial Highlights
Annualized
Return on Average Earning Assets
.91%
Annualized
Return on Average Equity
10.34%
Net Interest Margin
3.84%
Salisbury Bancorp
March 31, 2009 – Financial Highlights
> 5.00%
9.54%
7.52%
Leverage ratio
> 6.00%
13.66%
10.83%
Tier 1 risk
based capital
>10.00%
14.55%
11.74%
Total risk
based capital
Well
Capitalized
Consolidated
Salisbury Bank
Salisbury Bancorp
March 31, 2009 – Financial Highlights
NPAs
1.24% of total assets
Net Charge-Offs
$148,885
ALL
1.00% of Total Loans
47.89% of NPAs
Securities Portfolio March 31, 2009
Investments (at fair market value)
$155 million
Municipal Issues
37.65%
CMOs
20.06%
ARM MBS
19.45%
Agency Issues
16.29%
Fixed Rate MBS
4.80%
Corporate Issues
1.75%
Stock Purchase and Dividend
Reinvestment Plan
Reinvest dividends automatically.
Buy additional shares through the plan.
Certificate safekeeping.
Visit www.salisburybank.com and click on
shareholder relations.
Capital Purchase Program Overview
$8,816,000 capital
Increased TIER 1 Capital at relatively low
cost
Cushion for greater than anticipated losses
Today’s Economic Facts of Life
Consumers spending less and saving more.
States and municipalities doing the same.
Businesses investing less as sales flatten/decline.
Unprecedented government intervention.
Bank margins tighter than ever.
Mark-to-Market accounting rules.
Other than Temporary Impairment Rules.
FDIC insurance premiums.
Community Enrichment Program
Enhanced Lending
Enriching Fund
Salisbury Bank University
Scholarship Program
Please tell us what you think.
Shareholder Survey
www.salisburybank.com
click on shareholder relations
Forward Looking Statements
These materials presented by the Company and the Bank, and oral statements made by executive
officers of the Company and the Bank, may include forward-looking statements relating to such
matters as:
(a) assumptions concerning future economic and business conditions and their effect on the economy
in general and on the markets in which the Company and the Bank do business; and
(b) expectations for revenues and earnings for the Company and Bank.
Such forward-looking statements are based on assumptions rather than historical or current facts and,
therefore, are inherently uncertain and subject to risk. For those statements, the Company claims the
protection of the safe harbor for forward-looking statements contained in the Private Securities
Litigation Act of 1995. The Company notes that a variety of factors could cause the actual results or
experience to differ materially from the anticipated results or other expectations described or implied
by such forward-looking statements. The risks and uncertainties that may effect the operation,
performance, development and results of the Company's and Bank's business include the following:
(a) the risk of adverse changes in business conditions in the banking industry generally and in the
specific markets in which the Bank operates;
(b) changes in the legislative and regulatory environment that negatively impacts the Company and
Bank through increased operating expenses;
(c) increased competition from other financial and non-financial institutions;
(d) the impact of technological advances; and
(e) other risks detailed from time to time in the Company's filings with the Securities and Exchange
Commission.
Such developments could have an adverse impact on the Company's and the Bank's financial
position and results of operations.