Wednesday, August 5, 2009
Company Press Release
Source: Salisbury Bancorp, Inc.
Salisbury Contact: Richard J. Cantele, Jr., President and Chief Executive
Officer 860-435-9801or rick@salisburybank.com
FOR IMMEDIATE RELEASE
SALISBURY BANCORP, INC. ANNOUNCES RESULTS FOR THE SECOND QUARTER ENDED JUNE 30,
2009
Lakeville, Connecticut, August 5, 2009/PR Newswire.....Salisbury Bancorp, Inc.
(the "Company"), NYSE AMEX: "SAL", the holding company for Salisbury Bank and
Trust Company (the "Bank"), announced the Company's results for the quarter and
six months ended June 30, 2009. The Company reported a second quarter loss of
($183,360) or ($.19) per average share outstanding as compared to earnings of
$983,552 or $.58 per average share outstanding in the second quarter of 2008.
For the six months ending June 30, 2009, earnings totaled $897,815 or $.45 per
average share outstanding as compared to $2,064,486 or $1.23 per average share
outstanding for the period ending June 30, 2008. The second quarter loss is
attributable primarily to accounting adjustments involving a few investments
within the Bank's investment portfolio to reflect the Other Than Temporary
Impairment (OTTI) as well as an increased provision for loan loss, and the
special assessment imposed by the Federal Deposit Insurance Corporation (FDIC)
upon the banking industry. The additional expenses related to these items were
$1,127,889, $315,000 and $244,000 respectively. President and Chief Executive
Officer Richard J. Cantele, Jr. stated, "While I am disappointed in our second
quarter results, I am encouraged by the fact that absent these `extraordinary'
charges, income from core operations remains strong. The challenges presented by
current economic conditions constitute significant earnings pressures in the
short term, but I remain optimistic about the strength of our business model in
the long term."
Results of Continuing Operations
Net interest and dividend income through June 30, 2009 totaled $8,280,778 as
compared to $7,541,387 through June 30, 2008, an increase of $739,391 or 9.8%.
Net interest and dividend income for the second quarter totaled $4,077,946 as
compared to $3,881,881 for the second quarter of 2008. Net interest and dividend
income increased $196,065 or 5.05% on a year over year quarterly comparison.
Non-interest income, not including the net gains/losses in the investment
portfolio, totaled $1,315,339 for the quarter ending June 30, 2009, as compared
to $1,116,821 for the same period in 2008, represented an increase of $198,518
or 17.8%. Year-to-date 2009, non-interest income, not including the net
gains/losses in the investment portfolio, was $2,593,385 as compared to
$2,231,503 through June of 2008, represented an increase of $361,882 or 16.2%.
Non-interest expense for the quarter ending June 30, 2009 was $4,490,982 as
compared to $3,696,944 for the second quarter of 2008. The increase of $794,038
or 21.5% was primarily the result of increased FDIC insurance premiums and an
increase in salary expenses related to increased loan production from our
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mortgage originators during the quarter. The increased salary expense was offset
by increased income in the gain on sales of loans, which was $339,819 for the
quarter ending June 30, 2009 as compared to $86,201 during the same period last
year. The provision for loan loss for the quarter ending June 30, 2009, was
$315,000 as compared to $110,000 for the second quarter of 2008. Through June
30, 2009, the provision for loan loss expense was $745,000 as compared to a 2008
year-to-date provision of $170,000. Net charged off loans through June 30, 2009,
totaled $160,406 as compared to $20,087 for the corresponding period in 2008.
Total non-performing loans, which consist of other real estate owned and
non-accrual loans amounted to $6,707,477 or 2.25% of total loans at June 30,
2009. This compares to non-performing loans of $2,265,149 or .78% of total loans
at June 30, 2008. Included in these totals is a loan relationship in the amount
of $3,022,958 that is considered to be well secured by a first mortgage
position, but is currently in litigation. While non-performing assets have
increased, the vast majority of the non-performing assets are considered to be
fully collateralized with real estate. The Company believes that the allowance
for loan losses is adequate to provide for possible loan losses inherent within
the loan portfolio.
The Company's investment portfolio is analyzed for impairment on a quarterly
basis. At June 30, 2009, Management determined that five securities exhibited
varying levels of impairment, which in the aggregate totaled $1,127,889. This
determination necessitated a write-down of that amount, which after taxes netted
out to approximately $740,000.
At June 30, 2009, total assets amounted to $542,180,789 as compared to
$495,754,160 in assets at December 31, 2008. This growth of $46,426,629 or 9.4%
is primarily attributable to the significant inflow of deposits. At June 30,
2009, deposits stood at $402,032,606 as compared to $344,925,232 at December 31,
2008, representing an increase of $57,107,374 or 16.6%. This significant growth
in deposits reflected the preference of customers for the safety of deposits
versus the uncertainty in the equity markets, an increase in the savings rate
from a consumer standpoint, and a concerted effort by the Bank's staff to expand
deposit relationships with customers.
The loan portfolio declined slightly as net loans (including loans
held-for-sale) stood at $294,575,033 on June 30, 2009 as compared to
$299,681,684 at December 31, 2008, which represents a decrease of $5,106,651 or
1.7%.
The capital levels of the Bank and the Company continue to exceed all regulatory
requirements to be "well capitalized". The Company's capital was increased by
$8,816,000 in March 2009 by the issuance of preferred stock pursuant to the U.S.
Treasury's TARP CPP.
Salisbury Bancorp, Inc.'s sole subsidiary, Salisbury Bank and Trust Company, is
a Connecticut chartered commercial bank. The Company has assets in excess of
$500 million and capital in excess of $46 million and serves the communities of
northwestern Connecticut and proximate communities in New York and
Massachusetts, which it has done for approximately 160 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, South Egremont and Sheffield, Massachusetts and Dover Plains, New
York. The Bank offers a full complement of consumer and business banking
products and services as well as trust and wealth advisory services.
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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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SALISBURY BANCORP, INC. AND SUBSIDIARY
--------------------------------------
CONDENSED CONSOLIDATED BALANCE SHEETS
-------------------------------------
June 30, 2009 and December 31, 2008
June 30, December 31,
2009 2008
---- ----
ASSETS (unaudited)
- ------
Cash and cash equivalents $ 45,659,354 $ 9,659,803
Interest-bearing time deposit with other banks 5,000,000 0
Investments 158,966,464 150,593,407
Federal Home Loan Bank stock, at cost 5,742,800 5,323,000
Loans held-for-sale 211,000 2,314,250
Loans, less allowance for loan losses of $3,308,619 as of June 30, 2009
and $2,724,024 as of December 31, 2008 294,364,033 297,367,434
Other real estate owned 493,024 279,534
Premises and equipment 8,259,290 7,123,671
Goodwill 9,828,712 9,828,712
Core deposit intangible 1,082,960 1,165,068
Accrued interest receivable 2,341,363 2,704,385
Cash surrender value of life insurance policies 3,994,980 3,824,653
Other assets 6,236,809 5,570,243
------------- -------------
Total assets $ 542,180,789 $ 495,754,160
============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY
- ------------------------------------
Total deposits $ 402,032,606 $ 344,925,232
Securities sold under agreements to repurchase 10,325,843 11,203,289
Federal Home Loan Bank advances 77,174,189 87,913,667
Other liabilities 4,653,255 12,772,640
------------- -------------
Total liabilities 494,185,893 456,814,828
------------- -------------
Shareholders' equity:
Preferred stock, par value$.01 per share, authorized 25,000 shares; issued
and outstanding 8,816 shares at June 30, 2009 and 0 shares at
December 31, 2008. 88 0
Common stock, par value $.10 per share; authorized 3,000,000 shares; issued
and outstanding, 1,686,701 shares at June 30, 2009 and 1,685,861 shares at
December 31, 2008 168,670 168,586
Unused common stock warrants outstanding 111,998 0
Paid-in capital 21,883,898 13,157,883
Retained earnings 34,864,904 34,518,331
Accumulated other comprehensive loss (9,034,662) (8,905,468)
------------- -------------
Total shareholders' equity 47,994,896 38,939,332
------------- -------------
Total liabilities and shareholders' equity $ 542,180,789 $ 495,754,160
============= =============
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SALISBURY BANCORP, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
June 30, 2009 and 2008
(unaudited)
Six Months Ended Three Months Ended
June 30, June 30,
2009 2008 2009 2008
------------ ------------ ------------ ------------
Total interest and dividend income $ 12,873,125 $ 13,259,215 $ 6,386,167 $ 6,591,319
Total interest expense 4,592,347 5,717,828 2,308,221 2,709,438
------------ ------------ ------------ ------------
Net interest and dividend income 8,280,778 7,541,387 4,077,946 3,881,881
Provision for Loan Losses 745,000 170,000 315,000 110,000
------------ ------------ ------------ ------------
Net interest and dividend income
after provision for loan losses 7,535,778 7,371,387 3,762,946 3,771,881
------------ ------------ ------------ ------------
Noninterest income:
Trust/Wealth Advisory Services income 970,000 1,140,736 430,000 540,735
Service charges on deposit accounts 415,528 401,404 207,282 203,245
Gain on sales of available-for-sale securities, net (691,679) 354,405 (1,119,017) 36,435
Other income 1,207,857 689,363 678,057 372,841
------------ ------------ ------------ ------------
Total noninterest income 1,901,706 2,585,908 196,322 1,153,256
------------ ------------ ------------ ------------
Noninterest expense:
Salaries and employee benefits 4,547,153 4,077,370 2,282,050 2,001,197
Occupancy expense 502,082 462,702 244,963 232,175
Equipment expense 440,018 431,302 213,301 220,215
Data processing 713,600 695,154 330,164 390,539
FDIC Insurance 533,204 19,607 419,702 10,700
Printing and stationery 167,183 134,509 101,214 75,001
Professional fees 524,628 433,444 263,287 199,234
Legal expense 207,953 166,236 112,594 104,809
Other expense 988,951 926,616 523,707 463,074
------------ ------------ ------------ ------------
Total noninterest expense 8,624,772 7,346,940 4,490,982 3,696,944
------------ ------------ ------------ ------------
Income before income taxes 812,712 2,610,355 (531,714) 1,228,193
Income taxes (85,103) 545,869 (348,354) 244,641
------------ ------------ ------------ ------------
Net income $ 897,815 $ 2,064,486 $ (183,360) $ 983,552
============ ============ ============ ============
Net income available to shareholders $ 763,061 $ 2,064,486 $ (318,114) $ 983,552
============ ============ ============ ============
Earnings per common share $ .45 $ 1.23 $ (.19) $ .58
============ ============ ============ ============
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