U.S. markets closed
  • S&P Futures

    4,567.25
    -8.50 (-0.19%)
     
  • Dow Futures

    34,604.00
    -18.00 (-0.05%)
     
  • Nasdaq Futures

    15,948.00
    -40.50 (-0.25%)
     
  • Russell 2000 Futures

    2,195.50
    -9.70 (-0.44%)
     
  • Crude Oil

    67.73
    +1.23 (+1.85%)
     
  • Gold

    1,773.30
    +10.60 (+0.60%)
     
  • Silver

    22.31
    +0.03 (+0.13%)
     
  • EUR/USD

    1.1297
    -0.0009 (-0.08%)
     
  • 10-Yr Bond

    1.4480
    +0.0140 (+0.98%)
     
  • Vix

    27.95
    -3.17 (-10.19%)
     
  • GBP/USD

    1.3287
    -0.0015 (-0.11%)
     
  • USD/JPY

    113.1830
    -0.0260 (-0.02%)
     
  • BTC-USD

    56,410.60
    -13.33 (-0.02%)
     
  • CMC Crypto 200

    1,432.66
    -6.23 (-0.43%)
     
  • FTSE 100

    7,129.21
    -39.47 (-0.55%)
     
  • Nikkei 225

    27,842.89
    +89.52 (+0.32%)
     

Salisbury Bancorp, Inc. Increases Dividend and Reports Record Full Year 2019 Results

  • Oops!
    Something went wrong.
    Please try again later.
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Fourth Quarter and Record Full Year 2019 Net Income of $1.06 and $3.95 per Basic Common Share, Respectively

  • Quarterly Cash Dividend Increased 3.6% to $0.29 Per Common Share

  • Book Value and Tangible Book Value Per Common Share Increased 9% and 11%, Respectively in 2019

  • Wealth Assets Under Administration Increased 20% in 2019 to $778 Million

  • Non-performing Assets were 0.35% of Total Assets Compared with 0.74% at December 31, 2018

LAKEVILLE, Conn., Jan. 24, 2020 (GLOBE NEWSWIRE) -- Salisbury Bancorp, Inc. (“Salisbury”), (NASDAQ Capital Market: “SAL”), the holding company for Salisbury Bank and Trust Company (the “Bank”), announced results for its fourth quarter and full year ended December 31, 2019.

Net income available to common shareholders was $3.0 million, or $1.06 per common share (basic), for Salisbury’s fourth quarter ended December 31, 2019 (fourth quarter 2019), compared with $2.9 million, or $1.06 per common share (basic), for the third quarter ended September 30, 2019 (third quarter 2019), and $2.5 million, or $0.91 per common share (basic), for the fourth quarter ended December 31, 2018 (fourth quarter 2018).

Results for the fourth quarter 2019 included a non-recurring non-taxable reduction in compensation expense of $328 thousand or $0.12 per common share (basic) related to a change in terms of agreements related to bank-owned life insurance policies (“BOLI”). The fourth quarter and full year 2019 also included FDIC assessment credits of $120 thousand and $240 thousand, respectively. Results for the fourth quarter 2018 included a non-recurring non-taxable gain of $341 thousand or $0.12 per common share (basic) related to proceeds received from a BOLI policy due to the death of a covered former employee.

Salisbury’s President and Chief Executive Officer, Richard J. Cantele, Jr., stated, “Despite challenging market conditions and a very competitive environment in 2019, we achieved strong financial results as evidenced by record earnings, an improved ROAA and a lower efficiency ratio. We prudently grew the Bank while also improving overall credit quality. We enter 2020 from a position of financial strength and are pleased to provide our shareholders with an increase in their dividend. We remain focused on maintaining credit quality and enhancing profitability, while continuing to provide outstanding customer service.”

Net Interest and Dividend Income

Tax equivalent net interest and dividend income for the fourth quarter 2019 was essentially unchanged versus third quarter 2019, and increased $103 thousand, or 1.2%, versus fourth quarter 2018. Fourth quarter 2019 average earning assets of $1.1 billion decreased $16.8 million versus third quarter 2019, and increased $5.0 million versus fourth quarter 2018. Average total interest bearing deposits of $704.7 million decreased $12.2 million versus third quarter 2019 and increased $22.3 million versus fourth quarter 2018. The tax equivalent net interest margin for fourth quarter 2019 was 3.34% compared with 3.29% for third quarter 2019 and 3.34% for fourth quarter 2018. Net interest and dividend income for fourth quarter 2019 included a charge of $90 thousand for the write-off of an unamortized premium on a purchased loan, which paid off during the quarter. This write-off reduced the fourth quarter tax equivalent net interest margin by approximately 0.04%.

Non-Interest Income

Non-interest income of $2.4 million for fourth quarter 2019 increased $163 thousand versus third quarter 2019 and decreased $405 thousand versus fourth quarter 2018. Third quarter 2019 and fourth quarter 2018 included realized losses of $9 thousand and realized gains of $302 thousand, respectively on the sale of available-for-sale securities. There were no realized gains or losses on the sale of available-for-sale securities in fourth quarter 2019.

Trust and Wealth Advisory fees of $1.0 million for fourth quarter 2019 were essentially unchanged from third quarter 2019 and increased $101 thousand versus fourth quarter 2018. The increase from fourth quarter 2018 primarily reflected higher asset-based fees. Assets under administration were $777.5 million as of December 31, 2019 compared with $752.5 million at September 30, 2019 and $648.0 million as of December 31, 2018. The increase from third quarter 2019 reflected growth in discretionary and non-discretionary assets of $23.3 million and $1.7 million, respectively. The increase from fourth quarter 2018 reflected growth in discretionary and non-discretionary assets of $100.5 million and $29.0 million, respectively.

Service charges and fees of $1.1 million for fourth quarter 2019 increased $89 thousand versus third quarter 2019 and increased $67 thousand versus fourth quarter 2018. The increase from third quarter 2019 and fourth quarter 2018 primarily reflected loan prepayment penalties. Income from mortgage sales and servicing increased $24 thousand versus third quarter 2019 and increased $34 thousand versus fourth quarter 2018. The increase from prior quarters reflected higher gains on mortgage sales, due to an increase in volume and higher servicing income.

Non-interest income for the fourth quarter 2019 included BOLI income of $139 thousand compared to $86 thousand in third quarter 2019 and $432 thousand in fourth quarter 2018. BOLI income for fourth quarter 2018 included the death benefit proceeds received as noted above.

Non-Interest Expense

Non-interest expense of $7.1 million for fourth quarter 2019 decreased $104 thousand versus third quarter 2019 and decreased $829 thousand versus fourth quarter 2018. Non-interest expense for both the third and fourth quarter 2019 included FDIC assessment credits of $120 thousand. Compensation expense of $4.0 million for fourth quarter 2019 decreased $191 thousand from third quarter 2019 and decreased $196 thousand versus fourth quarter 2018. Compensation expense for fourth quarter 2019 included a one-time reduction of $328 thousand due to the substantive modification of key terms of agreements related to BOLI policies.

Premises and equipment costs of $1.1 million increased $92 thousand from third quarter 2019 and decreased $308 thousand versus fourth quarter 2018. The fourth quarter 2018 included a charge of $171 thousand to write-off the remainder of the lease and the fixed assets related to the Bank’s previously occupied Fishkill, New York branch location and a charge of $95 thousand to write-off the remaining term of a third party software contract. Non-interest expense for fourth quarter 2019 included negligible charges on OREO (other real estate owned) property compared with losses of $84 thousand and $184 thousand in third quarter 2019 and fourth quarter 2018, respectively.

The effective income tax rates for fourth quarter 2019, third quarter 2019 and fourth quarter 2018 were 16.1%, 18.0% and 13.7%, respectively. The tax rate for the fourth quarter 2019 and 2018 reflected the non-taxable compensation credit related to BOLI and BOLI proceeds received and recorded in those respective periods.

Full Year Results

Full year 2019 net income available to common shareholders was $11.0 million, or $3.95 per common share (basic), compared with $8.7 million, or $3.15 per common share (basic) for full year 2018.

Tax equivalent net interest income of $34.7 million for 2019 increased $1.1 million from 2018. Average earning assets of $1.1 billion increased $53.0 million from 2018 and average total interest bearing deposits of $712.4 million increased from $649.2 million in 2018. The tax equivalent net interest margin for 2019 was 3.27% compared with 3.35% for 2018. The provision for loan loss expense was $1.0 million in 2019 compared with $1.7 million in 2018.

Non-interest income for 2019 was $9.3 million versus $8.9 million in 2018. Non-interest expense of $28.9 million for 2019 declined $0.9 million from 2018. The effective tax rate for 2019 was 17.5% compared with 16.2% for 2018. The tax rate for 2019 and 2018 reflected the non-taxable compensation credit related to BOLI and BOLI proceeds received and recorded in those respective periods.

Loans

Gross loans receivable increased $12.4 million during fourth quarter 2019 to $936.3 million at December 31, 2019, compared with $923.9 million at September 30, 2019, and increased $19.2 million from $917.1 million at December 31, 2018. Balances by loan type for the comparative periods were as follows:

Loan Type

Q4 2019

Q3 2019

Q4 2018

Residential Real Estate

$

427,441

$

421,843

$

428,846

Commercial Real Estate

298,261

296,302

292,575

Commercial & Industrial

169,411

164,078

162,905

Farm Land

3,641

3,686

4,185

Vacant Land

7,893

8,111

8,322

Municipal

21,914

22,260

14,344

Consumer

6,385

6,290

4,512

Deferred Fees

1,362

1,359

1,421

Gross Loans Receivable

$

936,308

$

923,929

$

917,110

The ratio of gross loans to deposits for fourth quarter 2019 was 101.8% compared with 95.6% for third quarter 2019 and 99.0% for fourth quarter 2018.

Asset Quality

Non-performing assets decreased $1.8 million during the fourth quarter to $3.9 million, or 0.35% of total assets at December 31, 2019, from $5.7 million, or 0.50% of total assets at September 30, 2019, and decreased $4.4 million from $8.3 million, or 0.74% of total assets, at December 31, 2018.

The amount of total impaired and potential problem loans was $21.3 million or 2.27% of gross loans receivable at December 31, 2019 compared to $22.6 million, or 2.44% of gross loans receivable at September 30, 2019 and $20.2 million, or 2.20% of gross loans receivable at December 31, 2018.

Accruing loans receivable 30-to-89 days past due increased $0.3 million during fourth quarter 2019 to $2.1 million, or 0.22% of gross loans receivable, from $1.8 million, or 0.19% of gross loans receivable at September 30, 2019, and decreased $0.1 million from $2.2 million, or 0.24% of gross loans receivable at December 31, 2018.

The allowance for loan losses for fourth quarter 2019 was $8.9 million compared with $8.8 million for third quarter 2019 and $7.8 million for fourth quarter 2018.

The provision for loan loss expense was $417 thousand for fourth quarter 2019 versus $94 thousand for third quarter 2019, and $558 thousand for the fourth quarter 2018. The increase in the provision from third quarter 2019 was primarily attributable to loan growth and higher charge-offs in the fourth quarter 2019. Net loan charge-offs were $368 thousand for the fourth quarter 2019, $135 thousand for third quarter 2019 and $471 thousand for the fourth quarter 2018. Reserve coverage, as measured by the ratio of the allowance for loan losses to gross loans, was 0.95% for the fourth quarter 2019, versus 0.96% for the third quarter 2019 and 0.85% for the fourth quarter 2018. Similarly, reserve coverage, as measured by the ratio of the allowance for loan losses to non-performing loans was 246% for the fourth quarter of 2019, versus 165% for the third quarter of 2019 and 120% for the fourth quarter of 2018.

Salisbury endeavors to work constructively to resolve its non-performing loan issues with customers. Substantially all non-performing loans are collateralized with real estate and the repayment of such loans is largely dependent on the return of such loans to performing status or the liquidation of the underlying real estate collateral.

Deposits and Borrowings

Deposits were $919.5 million at December 31, 2019 compared with $966.2 million at September 30, 2019 and $926.7 million at December 31, 2018. The decline in deposits from third quarter 2019 of $46.7 million reflected the maturity of $30.0 million of brokered deposits as well as normal seasonal customer activity. Deposits at December 31, 2019 reflected brokered deposits, including CDARS one-way buys, of $2.9 million compared with $32.9 million at September 30, 2019 and $39.4 million at December 31, 2018. Average total deposits for the fourth quarter 2019 were $932.4 million compared with $938.5 million for the third quarter 2019 and $905.7 million for the fourth quarter 2018. Average total deposits for the fourth quarter 2019 included average brokered deposits of $22.1 million compared with $31.6 million for third quarter 2019.

Federal Home Loan Bank of Boston (FHLBB) advances increased $13.1 million during the quarter to $50.9 million at December 31, 2019 and decreased $16.3 million from December 31, 2018.

Capital

Book value per common share increased $0.70 during the fourth quarter 2019 to $40.22 per share and increased $3.36 from the fourth quarter 2018. Tangible book value per common share increased $0.74 during fourth quarter 2019 to $34.98 and increased $3.53 as compared to the fourth quarter 2018.

Shareholders’ equity increased $2.1 million in fourth quarter to $113.7 million at December 31, 2019 as net income of $3.0 million and restricted stock activity of $0.2 million were partly offset by unrealized losses in the available-for-sale securities portfolio of $0.4 million and common stock dividends paid of $0.8 million.

The Bank’s regulatory capital ratios remain in compliance with regulatory “well capitalized” requirements. At December 31, 2019, the Bank’s Tier 1 leverage, total risk-based capital, and common equity tier 1 capital ratios were 9.60%, 12.84%, and 11.83%, respectively, compared with regulatory “well capitalized” minimums of 5.00%, 10.00%, and 6.5%, respectively.

Dividend on Common Shares

The Board of Directors of Salisbury approved a $0.01 increase in the quarterly dividend at its January 24, 2020 meeting. The quarterly cash dividend of $0.29 per common share will be paid on February 28, 2020 to shareholders of record as of February 14, 2020.

Background

Salisbury Bancorp, Inc. is the parent company of Salisbury Bank and Trust Company, a Connecticut chartered commercial bank serving the communities of northwestern Connecticut and proximate communities in New York and Massachusetts, since 1848, through full service branches in Canaan, Lakeville, Salisbury and Sharon, Connecticut; Great Barrington, South Egremont and Sheffield, Massachusetts; and Dover Plains, Fishkill, Millerton, Newburgh, New Paltz, Poughkeepsie, and Red Oaks Mill, New York. The Bank offers a broad spectrum of consumer and business banking products and services as well as trust and wealth advisory services.

Forward-Looking Statements

This news release may contain statements relating to Salisbury’s and the Bank’s future results that are considered “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 and estimates made by management 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 laws and regulations; changes in accounting principles; and the quality or composition of the loan and investment portfolios, technological changes and cybersecurity matters, and other factors that may be described in Salisbury’s quarterly reports on Form 10-Q and its annual report on Form 10-K, which are available at the Securities and Exchange Commission’s website (www.sec.gov) and to which reference is hereby made. Forward-looking statements made by Salisbury in this news release speak only as of the date they are made. Events or other facts that could cause Salisbury’s actual results to differ may arise from time to time and Salisbury cannot predict all such events and factors. Salisbury undertakes no obligation to publicly update any forward-looking statement unless as may be required by law.

Investor presentation slides, which include a review of financial results and trends through the period ended December 31, 2019, are available in the Shareholder Relations section of Salisbury’s website at salisburybank.com under Shareholder Relations/News & Market Information/Presentations simultaneously with this Release.


Salisbury Bancorp, Inc. and Subsidiary
CONSOLIDATED BALANCE SHEETS (unaudited)

(in thousands, except share data)

December 31, 2019

December 31, 2018

ASSETS

Cash and due from banks

$

7,406

$

7,238

Interest bearing demand deposits with other banks

19,479

51,207

Total cash and cash equivalents

26,885

58,445

Interest bearing Time Deposits with Financial Institutions

750

-

Securities

Available-for-sale at fair value

91,801

91,818

CRA mutual fund at fair value

882

836

Federal Home Loan Bank of Boston stock at cost

3,242

4,496

Loans held-for-sale

332

-

Loans receivable, net (allowance for loan losses: $8,895 and $7,831)

927,413

909,279

Other real estate owned

314

1,810

Bank premises and equipment, net

17,385

18,175

Goodwill

13,815

13,815

Intangible assets (net of accumulated amortization: $4,884 and $4,498)

995

1,383

Accrued interest receivable

3,415

3,148

Cash surrender value of life insurance policies

20,580

14,438

Deferred taxes

1,249

1,276

Other assets

3,390

2,635

Total Assets

$

1,112,448

$

1,121,554

LIABILITIES and SHAREHOLDERS' EQUITY

Deposits

Demand (non-interest bearing)

$

237,852

$

228,448

Demand (interest bearing)

153,314

153,586

Money market

239,504

204,219

Savings and other

161,112

178,807

Certificates of deposit

127,724

161,679

Total deposits

919,506

926,739

Repurchase agreements

8,530

4,104

Federal Home Loan Bank of Boston advances

50,887

67,154

Subordinated debt

9,859

9,835

Note payable

246

280

Finance lease obligations

1,718

3,081

Accrued interest and other liabilities

8,047

6,902

Total Liabilities

998,793

1,018,095

Shareholders' Equity

Common stock - $0.10 per share par value

Authorized: 5,000,000;

Issued: 2,825,912 and 2,806,781

Outstanding: 2,825,912 and 2,806,781

283

281

Unearned compensation – restricted stock awards

(725

)

(711

)

Paid-in capital

44,420

43,770

Retained earnings

68,320

60,339

Accumulated other comprehensive income (loss), net

1,357

(220

)

Total Shareholders' Equity

113,655

103,459

Total Liabilities and Shareholders' Equity

$

1,112,448

$

1,121,554

Salisbury Bancorp, Inc. and Subsidiary
CONSOLIDATED STATEMENTS OF INCOME (unaudited)

Periods ended December 31,

Three months ended

Twelve months ended

(in thousands, except per share amounts)

2019

2018

2019

2018

Interest and dividend income

Interest and fees on loans

$

9,883

$

9,846

$

39,742

$

37,072

Interest on debt securities

Taxable

490

643

2,223

2,231

Tax exempt

190

47

545

136

Other interest and dividends

142

271

903

933

Total interest and dividend income

10,705

10,807

43,413

40,372

Interest expense

Deposits

1,650

1,559

7,324

4,656

Repurchase agreements

8

5

24

12

Finance lease

36

47

170

178

Note payable

4

4

16

18

Subordinated Debt

156

156

624

624

Federal Home Loan Bank of Boston advances

186

421

1,143

1,733

Total interest expense

2,040

2,192

9,301

7,221

Net interest and dividend income

8,665

8,615

34,112

33,151

Provision for loan losses

417

558

955

1,728

Net interest and dividend income after provision for loan losses

8,248

8,057

33,157

31,423

Non-interest income

Trust and wealth advisory

1,022

921

3,995

3,700

Service charges and fees

1,092

1,025

4,028

3,718

Gains on sales of mortgage loans, net

67

51

116

89

Mortgage servicing, net

75

57

307

308

(Losses) Gains on CRA mutual fund

(4

)

8

25

(18

)

Gains on sales of available -for-sale- securities, net

-

302

263

318

BOLI income and gains

139

432

392

678

Other

28

28

124

152

Total non-interest income

2,419

2,824

9,250

8,945

Non-interest expense

Salaries

3,055

3,140

12,048

12,003

Employee benefits

976

1,087

4,384

4,280

Premises and equipment

1,066

1,374

4,016

4,535

Data processing

581

558

2,201

2,119

Professional fees

523

510

2,213

2,236

OREO gains, losses and write-downs, net

3

184

408

275

Collections, OREO, and loan related

108

145

436

578

FDIC insurance

(33

)

186

261

579

Marketing and community support

171

185

619

815

Amortization of intangibles

91

107

388

454

Other

539

433

1,938

1,961

Total non-interest expense

7,080

7,909

28,912

29,835

Income before income taxes

3,587

2,972

13,495

10,533

Income tax provision

578

408

2,359

1,709

Net income

$

3,009

$

2,564

$

11,136

$

8,824

Net income available to common shareholders

$

2,960

$

2,528

$

10,976

$

8,713

Basic earnings per common share

$

1.06

$

0.91

$

3.95

$

3.15

Diluted earnings per common share

1.06

0.91

3.93

3.13

Common dividends per share

0.28

0.28

1.12

1.12


Salisbury Bancorp, Inc. and Subsidiary
SELECTED CONSOLIDATED FINANCIAL DATA (unaudited)

At or for the quarters ended

(in thousands, except per share amounts and ratios)

Q4 2019

Q3 2019

Q2 2019

Q1 2019

Q4 2018

Total assets

$

1,112,448

$

1,144,240

$

1,119,212

$

1,118,925

$

1,121,554

Loans receivable, net

927,413

915,083

910,573

911,188

909,279

Total securities

95,925

98,270

103,857

102,479

97,150

Deposits

919,506

966,178

950,723

941,969

926,739

FHLBB advances

50,887

37,828

32,769

47,712

67,154

Shareholders’ equity

113,655

111,580

108,948

106,109

103,459

Wealth assets under administration

777,503

752,467

713,319

691,731

648,027

Discretionary wealth assets under administration

498,737

475,482

464,537

444,110

398,287

Non-discretionary wealth assets under administration

278,766

276,985

248,782

247,621

249,740

Non-performing loans

3,621

5,370

5,062

6,389

6,514

Non-performing assets

3,935

5,687

5,463

7,130

8,324

Accruing loans past due 30-89 days

2,077

1,784

2,473

2,228

2,165

Net interest and dividend income

8,665

8,667

8,344

8,437

8,615

Net interest and dividend income, tax equivalent(1)

8,839

8,831

8,486

8,562

8,736

Provision for loan losses

417

94

151

294

558

Non-interest income

2,419

2,256

2,548

2,027

2,824

Non-interest expense

7,080

7,184

7,439

7,211

7,909

Income before income taxes

3,587

3,645

3,302

2,959

2,972

Income tax provision

578

657

599

525

408

Net income

3,009

2,988

2,703

2,434

2,564

Net income allocated to common shareholders

2,960

2,940

2,671

2,408

2,528

Per share data

Basic earnings per common share

$

1.06

$

1.06

$

0.96

$

0.87

$

0.91

Diluted earnings per common share

1.06

1.05

0.95

0.86

0.91

Dividends per common share

0.28

0.28

0.28

0.28

0.28

Book value per common share

40.22

39.52

38.59

37.81

36.86

Tangible book value per common share - Non-GAAP (2)

34.98

34.24

33.28

32.43

31.45

Common shares outstanding at end of period (in thousands)

2,826

2,823

2,823

2,807

2,807

Weighted average common shares outstanding, to calculate basic earnings per share (in thousands)

2,781

2,783

2,780

2,777

2,766

Weighted average common shares outstanding, to calculate diluted earnings per share (in thousands)

2,794

2,795

2,793

2,789

2,779

Profitability ratios

Net interest margin (tax equivalent) (1)

3.34

%

3.29

%

3.19

%

3.28

%

3.34

%

Efficiency ratio (3)

61.81

62.90

65.81

66.15

69.13

Effective income tax rate

16.11

18.02

18.14

17.75

13.74

Return on average assets

1.07

1.05

0.97

0.89

0.92

Return on average common shareholders’ equity

10.56

10.73

10.07

9.45

9.99

Credit quality ratios

Non-performing loans to loans receivable, gross

0.39

0.58

0.55

0.69

0.71

Accruing loans past due 30-89 days to loans receivable, gross

0.22

0.19

0.27

0.24

0.24

Allowance for loan losses to loans receivable, gross

0.95

0.96

0.97

0.95

0.85

Allowance for loan losses to non-performing loans

245.64

164.73

175.56

136.96

120.21

Non-performing assets to total assets

0.35

0.50

0.49

0.64

0.74

Capital ratios

Common shareholders' equity to assets

10.22

%

9.75

%

9.73

%

9.48

%

9.22

%

Tangible common shareholders' equity to tangible assets - Non-GAAP(2)

9.01

8.56

8.51

8.25

7.98

Tier 1 leverage capital (4)

9.60

9.27

9.10

8.98

8.83

Total risk-based capital (4)

12.84

12.58

12.57

12.38

12.09

Common equity tier 1 capital (4)

11.83

11.57

11.54

11.35

11.17

(1) Adjusted to reflect the U.S. federal statutory benefit on income derived from tax-exempt securities and loans.
(2) Refer to schedule labeled “Supplemental Information – Non-GAAP Financial Measures”.
(3) Calculated as follows: Noninterest expense before OREO expense, amortization of intangibles, and goodwill impairments as a percent of net interest income (fully taxable equivalent) and noninterest revenues, excluding gains from securities transactions and litigation expenses.
(4) Represents the capital ratios of the Bank.


Salisbury Bancorp, Inc. and Subsidiary
SUPPLEMENTAL INFORMATION – Non-GAAP Financial Measures (unaudited)

At or for the quarters ended

(in thousands, except per share amounts and ratios)

Q4 2019

Q3 2019

Q2 2019

Q1 2019

Q4 2018

Common Shareholders' Equity

$

113,655

$

111,580

$

108,948

$

106,108

$

103,459

Less: Goodwill

(13,815

)

(13,815

)

(13,815

)

(13,815

)

(13,815

)

Less: Intangible assets

(995

)

(1,086

)

(1,180

)

(1,279

)

(1,383

)

Tangible Common Shareholders' Equity

$

98,845

$

96,679

$

93,953

$

91,014

$

88,261

Total Assets

$

1,112,448

$

1,144,240

$

1,119,212

$

1,118,925

$

1,121,554

Less: Goodwill

(13,815

)

(13,815

)

(13,815

)

(13,815

)

(13,815

)

Less: Intangible assets

(995

)

(1,086

)

(1,180

)

(1,279

)

(1,383

)

Tangible Total Assets

$

1,097,638

$

1,129,339

$

1,104,217

$

1,103,831

$

1,106,356

Common Shares outstanding

2,826

2,823

2,823

2,807

2,807

Book value per Common Share – GAAP

$

40.22

$

39.52

$

38.59

$

37.81

$

36.86

Tangible book value per Common Share - Non-GAAP

34.98

34.24

33.28

32.43

31.45

Tangible common shareholders’ equity to tangible total assets - Non-GAAP

9.01

%

8.56

%

8.51

%

8.25

%

7.98

%

Consolidated:

Non-interest expense

$

7,080

$

7,184

$

7,438

$

7,211

$

7,909

Less: Amortization of core deposit intangibles

(91

)

(93

)

(99

)

(104

)

(107

)

Less: Foreclosed property expense including OREO gains, losses and
Write downs

(27

)

(115

)

(271

)

(103

)

(260

)

Adjusted non-interest expense

$

6,961

$

6,976

$

7,068

$

7,004

$

7,542

Net interest and dividend income, tax equivalent

$

8,839

$

8,831

$

8,486

$

8,562

$

8,736

Non-interest income

2,419

2,256

2,548

2,027

2,824

(Gains) losses on securities

4

3

(294

)

(2

)

(310

)

BOLI proceeds receivable

-

-

-

-

(341

)

Adjusted revenue

$

11,262

$

11,090

$

10,740

$

10,588

$

10,909

Efficiency Ratio – Non-GAAP 1

61.81

%

62.90

%

65.81

%

66.15

%

69.13

%

1 Excluding revenue and expenses associated with trust & wealth advisory, the efficiency ratios would be: Q4 2019: 60.19%; Q3 2019: 61.13%; Q2 2019: 64.09%; Q1 2019: 64.51%; Q4 2018: 67.17%.

Source: Salisbury Bancorp, Inc.

Salisbury Contact: Richard J. Cantele, Jr., President and Chief Executive Officer
860-435-9801 or rcantele@salisburybank.com