Salisbury Bancorp Inc., and Subsidiary | ||||||||||||||||
Proforma Condensed Consolidated Balance Sheets | ||||||||||||||||
Proforma September 30, 2014 and December 31, 2013 | ||||||||||||||||
(in 000's) | ||||||||||||||||
(unaudited) | ||||||||||||||||
September 30, 2014 | 1 | December 31, 2013 | Change | |||||||||||||
ASSETS | ||||||||||||||||
Cash and cash equivalents and certificates of deposit | $ | 59,883 | $ | 22,860 | $ | 37,023 | ||||||||||
Securities available for sale, at fair value | 100,054 | 114,797 | (14,743 | ) | ||||||||||||
Loans, net and loans held for sale | 656,440 | 617,116 | 39,324 | |||||||||||||
Premises and equipment, net | 14,506 | 13,286 | 1,220 | |||||||||||||
Goodwill | 12,553 | 12,553 | — | |||||||||||||
Identifiable intangible assets | 2,749 | 2,791 | (42 | ) | ||||||||||||
Cash surrender value of life insurance policies | 13,189 | 11,851 | 1,338 | |||||||||||||
Other assets | 12,260 | 14,484 | (2,224 | ) | ||||||||||||
Total assets | $ | 871,634 | $ | 809,738 | $ | 61,896 | ||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||
Deposits | $ | 726,359 | $ | 673,276 | $ | 53,083 | ||||||||||
Borrowings | 36,142 | 33,390 | 2,752 | |||||||||||||
Other liabilities | 5,413 | 4,489 | 924 | |||||||||||||
Total liabilities | 767,914 | 711,155 | 56,759 | |||||||||||||
Stockholders' equity | 103,720 | 2 | 98,583 | 3,597 | ||||||||||||
Total liabilities and stockholders' equity | $ | 871,634 | $ | 809,738 | $ | 61,896 | ||||||||||
Notes: | ||||||||||||||||
(1) | ||||||||||||||||
September 30, 2014 includes the SAL June 2014 acquisition of a branch from another financial institution. | ||||||||||||||||
As a result of this acquisition, cash and cash equivalents increased $16,969,000, loans increased $61,000, intangible assets increased $489,000, fixed assets increased $158,000, and deposits increased $17,678,000, at June 30, 2014. | ||||||||||||||||
(2) | ||||||||||||||||
Includes dividend adjustment of $0.28 per share per quarter on additional 1,007,000 shares, 1,001,000 of which were issued to Riverside shareholders and an additional 6,000 shares were awarded under the 2011 Long Term Incentive Plan. |
Salisbury Bancorp Inc., and Subsidiary | ||||||||||||||||||||||||||||
Proforma Condensed Consolidated Statements of Income | ||||||||||||||||||||||||||||
Proforma For the Three Months Ended September 30, 2014 and September 30, 2013 | ||||||||||||||||||||||||||||
Proforma For the Nine Months Ended September 30, 2014 and September 30, 2013 | ||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||
Three Months Ended1 | Nine Months Ended1 | |||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||
(in thousands except per share data) | ||||||||||||||||||||||||||||
Interest and dividend income: | ||||||||||||||||||||||||||||
Interest and fees on loans | $ | 8,111 | 2 | $ | 6,971 | 22,875 | 2 | $20,699 | ||||||||||||||||||||
Interest and dividends on securities | 851 | 3 | 945 | 2,595 | 3 | 2,952 | ||||||||||||||||||||||
Total interest and dividend income | 8,962 | 7,916 | 25,470 | 23,651 | ||||||||||||||||||||||||
Interest expense: | ||||||||||||||||||||||||||||
Interest on deposits | 521 | 4 | 745 | 1,549 | 4 | 2,424 | ||||||||||||||||||||||
Interest on borrowed funds | 311 | 313 | 926 | 939 | ||||||||||||||||||||||||
Total interest expense | 832 | 1,058 | 2,475 | 3,363 | ||||||||||||||||||||||||
Net interest and dividend income | 8,130 | 6,858 | 22,995 | 20,288 | ||||||||||||||||||||||||
Provision for loan losses | 318 | 5 | 450 | 969 | 5 | 1,626 | ||||||||||||||||||||||
Net interest income, after provision for loan losses | 7,812 | 6,408 | 22,026 | 18,662 | ||||||||||||||||||||||||
Non-interest income: | ||||||||||||||||||||||||||||
Service charges on deposits | 760 | 734 | 2,173 | 2,101 | ||||||||||||||||||||||||
Income from fiduciary activities | 791 | 750 | 2,509 | 2,299 | ||||||||||||||||||||||||
Other operating income | 229 | 201 | 535 | 886 | ||||||||||||||||||||||||
Total non-interest income | 1,780 | 1,685 | 5,217 | 5,286 | ||||||||||||||||||||||||
Non-interest expense: | 9 | 9 | ||||||||||||||||||||||||||
Salaries and employee benefits | 3,447 | 8 | 3,492 | 10,259 | 8 | 10,284 | ||||||||||||||||||||||
Occupancy and equipment expenses | 877 | 6 | 802 | 2,565 | 6 | 2,321 | ||||||||||||||||||||||
Other operating expense | 2,167 | 7 | 1,721 | 6,738 | 7 | 5,565 | ||||||||||||||||||||||
Total non-interest expense | 6,491 | 6,015 | 19,562 | 18,170 | ||||||||||||||||||||||||
Income before income taxes | 3,101 | 2,078 | 7,681 | 5,778 | ||||||||||||||||||||||||
Provision for income taxes | 898 | 10 | 544 | 2,272 | 10 | 1,431 | ||||||||||||||||||||||
Net income | $ | 2,203 | $ | 1,534 | $ | 5,409 | $4,347 | |||||||||||||||||||||
Net income available to common shareholders | $ | 2,163 | $ | 1,494 | $ | 5,289 | $4,227 | |||||||||||||||||||||
Shares: | ||||||||||||||||||||||||||||
Basic | 2,692 | 2,698 | 2,691 | 2,699 | ||||||||||||||||||||||||
Diluted | 2,712 | 2,698 | 2,711 | 2,699 | ||||||||||||||||||||||||
Earnings per share: | ||||||||||||||||||||||||||||
Basic | $ | 0.80 | $ | 0.55 | $ | 1.97 | $1.57 | |||||||||||||||||||||
Diluted | $ | 0.80 | $ | 0.55 | $ | 1.95 | $1.57 |
1 | September 30, 2014 includes the SAL June 2014 acquisition of a branch from another financial institution. |
Impacts from this transaction included in the proforma condensed statements of income for the nine months ending September 30, 2014 are (in whole dollars): | |
2 | No adjustment for incremental PCI accretion is included. Totals reflect historically reported income adjusted for impact of ASC 310-20 loans |
3 | Adjusted to reflect estimated yield change as a result of fair value adjustments |
4 | Adjustment for interest rate mark on time deposits |
5 | Riverside's historical provision expense reversed as required under purchase accounting |
6 | Reflects adjustment to depreciation expense resulting from fair value of real estate |
7 | Reflects amortization of core deposit intangible created through assumption of Riverside's core deposits |
8 | Reflects adjustment related to certain employee benefits due to Riverside acquisition |
9 | Reflects estimated net operations cost saves of $142 for the three month period and $426 for the nine month period |
10 | Reflects a change in taxes from adjustments at an assumed tax rate of 34% |
11 | Projected adjustment to Interest and fees on loans as a result of ASC 310-20 |
ASC 310-20 | ||||||
Year 1 | 2,012 | |||||
Year 2 | 1,010 | |||||
Year 3 | 877 | |||||
Year 4 | 702 | |||||
Year 5 | 381 | |||||
Total | 4,982 | |||||
12 | Projected total interest recognized on PCI loans as a result of fair value adjustments | |||||
PCI | ||||||
Year 1 | 1,295 | |||||
Year 2 | 783 | |||||
Year 3 | 293 | |||||
Year 4 | 129 | |||||
Year 5 | 67 | |||||
Total | 2,567 |