Tuesday October 30, 2007
Company Press Release
Source: Salisbury Bancorp, Inc.
Salisbury Contact: John F. Perotti - Chairman & CEO
860-435-9801 or jp@salisburybank.com
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FOR IMMEDIATE RELEASE
SALISBURY BANCORP, INC. ANNOUNCES THIRD QUARTER EARNINGS
Lakeville, Connecticut, October 30, 2007/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 2007 totaled
$916,666 which represents earnings per average share outstanding of $.54. This
compares to net income of $1,159,874 or $.69 per average share outstanding for
the third quarter of 2006. The decrease is primarily due to increased interest
expense and reduced gains on sales of investment securities for the period. In
addition, 2007 earnings reflect the non-recurring expenses associated with the
Bank's entry into New York State through the establishment of a branch office in
Dover Plains, New York which opened its doors for business on August 1, 2007.
Net income for the nine months ended September 30, 2007 totaled $2,799,632 or
$1.66 per average share outstanding as compared to net income of $3,312,775 or
$1.97 per average share outstanding for the same nine month period in 2006.
Chairman and Chief Executive Officer John F. Perotti commented "We continue our
focus on controlled growth, taking advantage of continuing consolidation within
the banking sector to strengthen and expand our market position. Our new full
service retail office in Dover Plains, New York is part of our plan to grow
market share along the Route 22 corridor in New York State to serve our current
and future customers in the tri-state area. The Bank is strongly capitalized and
in a position to sacrifice some short term profitability for an investment in
our strategic vision for enhanced long term growth and profitability. We are
confident of our ability to successfully execute this prudent strategy for
enhancing shareholder value over the long term."
The Company's assets at September 30, 2007 totaled $456,486,055 compared to
total assets of $427,429,204 at September 30, 2006. Total deposits have
increased from $307,907,802 to $313,088,487. Net loans have increased from
$231,316,899 to $262,310,191. The loan portfolio continues to consist of high
quality assets with non-performing assets amounting to only 0.66% of total loans
outstanding at September 30, 2007. The Bank's loan portfolio does not include
sub-prime loans. Similarly, the Bank's investment portfolio consists of very
high quality securities and does not include securities which are collateralized
by pools of sub-prime mortgages.
Mr. Perotti further commented that "We are maintaining our commitment to quality
earning assets despite challenging credit and market conditions during the past
several quarters, and we are proud of our continuing progress in growing our
core business. Recognizing our strong capital position, we are positioned well
to take advantage of in-market opportunities for further systemic growth."
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<page>
<table>
<caption>
Quarter Ended Nine Months Ended
September 30, September 30,
2007 2006 2007 2006
<s> <c> <c> <c> <c>
Total interest and dividend
income $ 6,602,455 $ 6,111,598 $19,398,999 $17,360,981
Total interest expense 3,167,716 2,753,930 9,235,485 7,451,694
Net interest and dividend
income 3,434,739 3,357,668 10,163,514 9,909,287
Trust/Investment services income 475,000 475,500 1,508,000 1,410,500
Gain on sales of available-for-sale
securities, net 41,942 232,950 222,289 293,632
Other noninterest income 543,383 504,205 1,569,441 1,534,566
Other noninterest expense 3,400,817 3,100,989 10,025,281 8,929,940
Income before income taxes 1,094,247 1,469,334 3,437,963 4,218,045
Income tax expense 177,581 309,460 638,331 905,270
Net income $ 916,666 $ 1,159,874 $ 2,799,632 $ 3,312,775
Earnings per average share
outstanding $ .54 $ .69 $ 1.66 $ 1.97
</table>
Salisbury Bancorp, Inc.'s sole subsidiary, Salisbury Bank and Trust Company, is
a Connecticut chartered commercial bank. The Company has assets in excess of
$450 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 four full service retail
branches in Canaan, Salisbury, Sharon and Lakeville, Connecticut. The Bank also
has two full service retail branches in the towns of Egremont and Sheffield,
Massachusetts, as well as a full service retail branch in Dover Plains, New
York.
Its trust and wealth advisory office is based in Lakeville, Connecticut. The
Bank offers a full complement of consumer and business banking products and
services as well as trust and wealth advisory 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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