Exhibit 99.1
Monday October 30, 2006
Company Press Release
Source: Salisbury Bancorp, Inc.
Salisbury Contact: John F. Perotti - Chairman & CEO
860-435-9801 or jp@salisburybank.com
FOR IMMEDIATE RELEASE
SALISBURY BANCORP, INC. ANNOUNCES THIRD QUARTER EARNINGS
Lakeville, Connecticut, Monday, October 30, 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 third quarter of 2006
was $1,159,874 or $.69 per average share outstanding. This compares to 2005
third quarter net income of $1,131,211 or $.67 per average share outstanding.
For the nine months ended September 30, 2006, net income totaled $3,312,775 or
$1.97 per average share outstanding as compared to net income of $3,768,148 or
$2.24 per average share outstanding for the same nine month period in 2005.
Among the factors impacting the quarter as well as year-to-date is reduced
income from gains in securities transactions. Interest rates continued to
increase until the later part of the third quarter when the Federal Reserve Bank
ceased their tightening strategy. The yield curve however remains flat, the
result being continuing 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 net loans to
$231,316,899. This is an increase of $23,773,173 or 11.46% when compared to the
period ending September 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 $307,907,802 and compares to total deposits of $284,407,778 last year at this
time. As of September 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 perform, posting revenues of $1,410,500. This is a 26% increase when compared
to revenues of $1,119,129 for the first nine months of 2005. Management also
continues its efforts to control operating expenses which has resulted in a
decrease in other noninterest expenses of $129,425 for the first nine months of
2006. 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 final quarter of 2006.
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Quarter Ended Nine Months Ended
September 30 September 30
2006 2005 2006 2005
---- ----- ---- ----
(unaudited) (unaudited)
Total interest and dividend
income $ 6,111,598 $ 5,272,728 $17,360,981 $15,375,847
Total interest expense 2,753,930 1,906,522 7,451,694 5,295,263
Net interest and dividend
income 3,357,668 3,366,206 9,909,287 10,080,584
Provision for loan losses 0 90,000 0 270,000
Trust/Investment services income 475,500 342,399 1,410,500 1,119,129
Gain on sales of available-for-sale
Securities, net 232,950 390,914 293,632 1,227,436
Other noninterest income 504,205 541,628 1,534,566 1,543,488
Other noninterest expense 3,100,989 3,067,499 8,929,940 9,059,365
Income before income taxes 1,469,334 1,483,648 4,218,045 4,641,272
Income tax expense 309,460 352,437 905,270 873,124
Net income $ 1,159,874 $ 1,131,211 $ 3,312,775 $ 3,768,148
Earnings per common
share $ .69 $ .67 $ 1.97 $ 2.24
The Company previously announced a third quarter dividend of $.26 per common
share that is payable on October 31, 2006 to shareholders of record as of
September 29, 2006. This compares to a $.25 per common share dividend that was
paid to shareholders for the third quarter of 2005. Year-to-date dividends total
$.78 per common share for the year 2006. This compares to total year-to-date
dividends of $.75 per common share one year ago and represents an increase of
4.0%.
Salisbury Bancorp, Inc.'s sole subsidiary, Salisbury Bank and Trust Company, is
a community bank. The Company has assets in excess of $400 million and continues
to serve 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
presently operates full service branches in Canaan, Salisbury and Sharon,
Connecticut and South Egremont and Sheffield, Massachusetts. The Bank offers a
full complement of consumer and business banking products and services as well
as trust 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 of 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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