SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 27, 2001
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SALISBURY BANCORP, INC.
(Exact name of registrant as specified in charter)
Connecticut 06-1514263
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(State or other jurisdiction of incorporation) (IRS Employer Identification No.)
5 Bissell Street, Lakeville, Connecticut 06039-1868
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(Address of principal executive offices) (zip code)
Registrant's telephone number, including area code: (860) 435-9801
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Form 8-K, Current Report
Salisbury Bancorp, Inc.
Item 5. Other Matters.
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Salisbury Bancorp, Inc. Announces First Quarter Earnings. Salisbury
Bancorp, Inc. announced today that net income for the first quarter of
2001 was $642,000 or $.44 per diluted share as compared to $713,000 or
$.48 per diluted shares for the first quarter of 2000. The decrease in
earnings is primarily the reflection of additional operating costs
associated with the installment of a new "Core Account Processing"
system during the first quarter that should enable Salisbury Bank and
Trust Company to better meet the financial needs of customers. See
Press Release attached as an Exhibit hereto.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
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c. Exhibits.
99. Press Release dated April 27, 2001
Item 9. Regulation FD Disclosure
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The following information is "furnished" not "filed" in accordance
with Regulation FD of the Rules and Regulations of the Securities and
Exchange Commission pursuant to Item 9 of Form 8-K:
Outline of Remarks of John F. Perotti, President, Salisbury Bancorp,
Inc. to the Annual Meeting of Shareholders, April 28, 2001.
The year 2000 financial highlights were anchored by an 11.2% increase
in net loans, a 7.8% increase in deposits, a 15.6% increase in total
assets, and a 12.9% increase in shareholders' equity over 1999 year
end numbers. The quality of the loan portfolio continues to improve
with non-performing assets/net loans ratio at less than 1/2 of 1% at
year end and less than 1/4 of 1% today! The Company's net interest
margin shrunk by .14% in 2000, reflecting continued aggressive
competition for good loans and deposits among the area bankers and
financial entities, and our arbitrage positions which have longer
spreads, but because of volume, add significantly to the bottom line.
Under current regulatory definitions, the Company continues to be
"well capitalized", the highest rating defined under the Federal
Deposit Insurance Corporation Improvement Act.
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We continue to move the Bank forward technologically. In mid-January
of this year, we converted to NCR's new PROFILE .... microprocessor
based, on-line, real-time banking system for transaction processing.
As with all data processing conversions, the first few weeks proved
challenging both to our staff and customers ..... but I am pleased to
report that operations are moving along much more smoothly now that
our employees are becoming accustomed to the new system. We believe
our "partnership" with the NCR Corporation is currently the best
option to provide our staff with the tools they need to excel in
customer service by accessing customer information efficiently ....
and most importantly, to aid us in providing a relationship banking
solution.
In early May, we intend to implement our "on-line banking solution."
This will enable customers with a personal computer to access their
accounts and pay bills whenever they want, 24 hours a day, 7 days a
week. Account holders will be able to: check account balances,
transfer funds between accounts, see if a check has cleared, make loan
payments, and reconcile their accounts. Account access will not be
limited to a specific PC or software. Any internet accessible computer
will do the job with a 4.0 or higher version of Netscape Navigator or
Microsfolt Internet Explorer secure-capable web site browser.
Last month we signed a definitive agreement with People's Bank to
purchase their Canaan branch. This branch traces its history back to
the early 1900's and many local folks still think of this bank as the
Canaan Savings Bank, the oldest bank in Canaan. The necessary
regulatory applications have been filed and we expect to close the
transaction during the third quarter. We already service several
business and retail accounts in that market, so this purchase will be
a convenience for them. We feel this is a great opportunity to expand
the customer base in a market that we know, and further enhance
shareholder value.
Net earnings for the first quarter were $642,000 compared to $713,000
during the first quarter of 2000. The decrease is due primarily to
additional operating costs associated with the data processing
conversion mentioned earlier.
Your dividend check was mailed yesterday. The Board has decided to
increase the Company's regular quarterly dividends in lieu of the
declaration of an annual special dividend. The amount paid this
quarter is 21 cents per share.
I anticipate a challenging 2001, earnings wise. We will have some one
time, non-recurring expenses associated with the Canaan transaction
and we will be hiring at least one senior officer to replace Craig in
the Trust Department. The recent decrease in the "Prime" lending rate
will have an effect on loan income as well. I'll take this opportunity
to remind the gathering that we shouldn't let short term expenses take
our focus off of long term goals.
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Looking to the future, we are more cognizant than ever that revenue
from traditional lending practices will be harder to come by as
margins shrink due to increased competitive pressures, and the
commoditization and securitization of loans continues. We know that we
must increase fee income. We must provide top notch service in order
that our customers will want to bank with us and no one else.
I feel that we are extremely fortunate to have a "forward looking"
team of employees and board members, as well as the recently enhanced
SBT advisory board. These folks form a diverse group with much
knowledge, wisdom, and experience ..... a strong work ethic, and
respect for one another as well as a strong knowledge of our market
and the communities that the Bank serves. They are dedicated to the
Bank. They realize that we can not be all things to all people and
that customer service is our most important product. They understand
that we need to look to expand our list of products and services,
focusing on what we can do extremely well and profitably. They know
that we need to make it easier for our customers by having more
financial services available on a one stop basis. They realize that
goals such as sheer size and its apparent prestige, for instance -
will not necessarily lead to good outcomes. They realize that a good
community bank serves the day to day needs of its customers and their
hometowns ... and that it is important for the Bank as well as
themselves to participate in the civic and cultural life of the
communities that the Bank serves.
As I've said before, these are exceptional, if not extraordinary times
for the banking industry. I continue to believe that Salisbury Bank &
Trust Company is positioned well going ahead, no matter what the
future may bring. I'd like to take this opportunity to recognize the
entire team for their efforts this past year, and to thank them at
this meeting for their cooperation, dedication, and hard work on
behalf of the Bank. As a result of their effort, the Bank continues to
perform well and our communities continue to be better places to live.
Exhibit Index Page
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99. Press Release dated April 27, 2001 5
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereto duly authorized.
Dated: April 27, 2001 SALISBURY BANCORP, INC.
By: /s/ John F. Perotti
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John F. Perotti, President and
Chief Executive Officer
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