Monday July 31, 2006
Company Press Release
Source: Salisbury Bancorp, Inc.
Salisbury Contact: John F. Perotti - Chairman & CEO
860- 435-9801or jp@salisburybank.com
FOR IMMEDIATE RELEASE
SALISBURY BANCORP, INC. ANNOUNCES SECOND QUARTER EARNINGS
Lakeville, Connecticut, July 31, 2006/PRNewswire....Salisbury Bancorp, Inc. (the
"Company"), (AMEX:SAL) the holding company for Salisbury Bank and Trust Company
announced today that net income for the second quarter of 2006 totaled
$1,005,979 which represents earnings per average share outstanding of $.60. This
compares to net income of $1,308,371 or $.78 per average share outstanding for
the second quarter of 2005. For the six months period ended June 30, 2006, net
income totaled $2,152,901 or $1.28 per average share outstanding as compared to
net income of $2,636,937 or $1.57 per average share outstanding for the same six
month period in 2005. Among the factors impacting the quarter as well as the
first half of the year is reduced income from the gains in securities
transactions. The current interest rate environment of rising interest rates has
resulted in shorter term rates becoming higher than long term rates creating a
flat and sometimes inverted yield curve. This impacts the cost of deposits and
borrowed funds as these expenses are increasing at a faster pace than the
earnings yield on the loan and securities portfolios. The result is compression
pressures on net interest margins. Bank Management is encouraged that core
business continues to strengthen. New business development efforts have resulted
in growth of the net loan portfolio to $228,454,820. This is an increase of
$21,847,969 or 10.6% when compared to the period ending June 30, 2005. The Bank
constantly monitors the quality of the loan portfolio to ensure that loan
quality will not be sacrificed for growth or otherwise compromise the Company's
objectives. Total deposits have increased to $298,433,710 and compares to total
deposits of $287,492,118 last year at this time. As of June 30, 2006, the most
recent notification from the FDIC categorized the Bank as "well capitalized"
under the regulatory framework for prompt corrective action. The trust and
investment services division continues to grow. Income from trust and investment
services at June 30, 2006 totaled $935,000. This is an increase of 20.4% when
compared to the corresponding period in 2005. Management also continues its
efforts to control operating expenses which has resulted in a decrease in other
noninterest expenses of $162,915 or 2.7%. Overall, Management remains confident
that the Bank is well positioned to meet the goals and objectives that have been
established to enhance shareholder value as the Bank moves forward to the
challenges of the second half of 2006.
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Quarter Ended Six Months Ended
June 30, June 30,
2006 2005 2006 2005
Total interest and dividend
income $ 5,789,165 $ 5,069,012 $11,249,383 $10,103,119
Total interest expense 2,531,232 1,743,138 4,697,764 3,388,741
Net interest and dividend
income 3,257,933 3,325,874 6,551,619 6,714,378
Trust/Investment services income 450,000 388,365 935,000 776,730
(Loss)gain on sales of available-for-sale
securities, net (13,685) 350,560 60,682 836,522
Other noninterest income 563,907 486,887 1,030,361 1,001,860
Other noninterest expense 2,991,583 2,965,553 5,828,951 5,991,866
Income before income taxes 1,266,572 1,496,133 2,748,711 3,157,624
Income tax expense 260,593 187,762 595,810 520,687
Net income $ 1,005,979 $ 1,308,371 $ 2,152,901 $ 2,636,937
Earnings per average share
outstanding $ .60 $ .78 $ 1.28 $ 1.57
Previously, the Directors of Salisbury Bancorp, Inc. declared a second quarter
dividend of $.26 per common share outstanding. This compares to a $.25 per share
cash dividend that was declared during the second quarter of 2005. Year-to-date
dividends total $.52 per common share outstanding for the year 2006. This
compares to total year-to-date dividends of $.50 per common share one year ago.
Salisbury Bancorp, Inc.'s sole subsidiary, Salisbury Bank and Trust Company, is
a Connecticut chartered commercial bank. The Company has assets in excess of
$400 million and capital in excess of $40 million and serves the communities of
northwestern Connecticut and proximate communities in New York and Massachusetts
which it has done for approximately 150 years. Salisbury Bank and Trust Company
is headquartered in Lakeville, Connecticut and operates full service branches in
Canaan, Salisbury and Sharon as well as Lakeville, Connecticut and South
Egremont and Sheffield, Massachusetts. The Bank offers a full compliment of
consumer and business banking products and services as well as trust and
investment services.
Statements contained in this news release contain forward looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995.
These statements are based on the beliefs and expectations of management as well
as the assumptions made using information currently available to management.
Since these statements reflect the views of management concerning future events,
these statements involve risks, uncertainties and assumptions, including among
others: changes in market interest rates and general and regional economic
conditions; changes in government regulations; changes in accounting principles;
and the quality or composition of the loan and investment portfolios and other
factors that may be described in the Company's quarterly reports on Form 10-Q
and its annual report on Form 10-K, each filed with the Securities and Exchange
Commission, which are available at the Securities and Exchange Commission's
internet website (www.sec.gov) and to which reference is hereby made. Therefore,
actual future results may differ significantly from results discussed in the
forward looking statements.
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