LAKEVILLE, Conn., Feb. 2 /PRNewswire-FirstCall/ -- Salisbury
Bancorp, Inc. ("Salisbury"), (NYSE Amex: SAL), the holding company
for Salisbury Bank and Trust Company (the "Bank"), announced
results for its fourth quarter and year ended December 31, 2009.
Net income available to common shareholders was $734,000, or $0.43
per common share, for the fourth quarter ended December 31, 2009
compared with $954,000, or $0.57 per common share, for the fourth
quarter of 2008. The decrease in earnings was primarily due to the
recognition of a tax benefit in the fourth quarter of 2008 arising
from the Freddie Mac preferred stock loss recognized in the third
quarter of 2008, offset in part by improvements in all categories
in the current quarter, namely, a lower provision for loan losses,
lower non-interest expense, higher net interest income and higher
non-interest income. Net interest and dividend income for the
current quarter increased slightly, by $68,000. Average earning
assets grew $67.3 million, or 14%, as a result of significant
deposit growth, while the net interest margin declined 24 basis
points to 3.29% compared with 3.50% a year ago. The lower net
interest margin was mostly due to the dilutive effect of carrying
$44 million in short term funds reflecting a more conservative
liquidity management strategy. The provision for loan losses for
the quarter was $60,000 compared with $589,000 for the fourth
quarter of 2008. Non-interest income increased $272,000 due to
higher service charges and fees, gains on mortgage sales, and from
the inclusion in the 2008 quarter of a security write-down and a
mortgage servicing rights impairment charge. Non-interest expense
decreased $363,000 due primarily to the inclusion in the fourth
quarter of 2008 of a prepayment fee, net of tax, of $674,000 for
the early redemption of $19 million of Federal Home Loan Bank of
Boston advances to restructure a portion of the Bank's wholesale
borrowings. Offsetting this benefit were higher FDIC insurance and
data processing expenses, and an OREO loss in the current quarter.
President and Chief Executive Officer Richard J. Cantele, Jr.
stated, "Despite the challenges presented by current economic
conditions, income from core operations remains stable. The growth
in both loans and deposits primarily reflects our focus on doing
what we do best, making loans and gathering deposits in the
communities we serve. I believe the fundamentals of our core
business remain solid and are reflected in the growth of our
balance sheet." For the year ended December 31, 2009 net income
available to common shareholders was $2,102,000, or $1.25 per
common share, compared with $1,106,000, or $.66 per common share,
for the year ended December 31, 2008. Return on average common
shareholder's equity was 5.13% for 2009 compared with 2.59% for
2008. Net interest and dividend income increased $1,129,000 due
primarily to a $60.5 million increase in average earning assets,
made possible by significant deposit growth, which more than offset
a 22 basis point decrease in the net interest margin to 3.51% from
3.73%. As noted in the quarterly comparison, the decline in the net
interest margin was mostly due to carrying significantly larger
balances of low yielding short term investments. The provision for
loan losses for 2009 was $985,000 compared with $1,279,000 for
2008. Non-interest income increased $2,190,000 for 2009, of which
improvement of $1,700,000 related to lower securities losses. In
June 2009 the Bank recognized a $1,128,000 write-down for other
than temporary impairment on five non-agency issued CMO securities.
In 2008 the Bank recognized a $2,856,000 write-down on Freddie Mac
preferred stock. Excluding securities losses, all other
non-interest income increased $490,000 for the year due primarily
to increased gains on mortgage sales, up $399,000 from
significantly higher loan origination activity, increased income
from bank-owned life insurance, up $228,000 due to a death payout
and a 1035 policy exchange, and higher mortgage servicing income,
up $204,000 due to a 2008 impairment charge, offset in part by
lower trust and wealth advisory fees, down $286,000 due mostly to a
decline in the value of managed assets during 2008, and credit card
fees, down $263,000 due to the sale of the credit card portfolio
during 2008. Non-interest expense increased $1,881,000 due
primarily to higher salaries, up $566,000, partially due to higher
mortgage loan origination commissions, higher pension expense, up
$561,000 due in part to the former CEO's early retirement, benefits
and payroll taxes, up $108,000, data processing, up $273,000
excluding credit card processing, professional fees, up $239,000,
OREO expense, up $185,000, and FDIC insurance, up $854,000 due to
higher premium rates, the 2009 special assessment and deposit
growth, offset in part by the inclusion in 2008 of the Federal Home
Loan Bank advance prepayment fee, net of tax, of $674,000, lower
credit card processing fees, down $139,000 due to the sale of the
portfolio, and lower marketing expense, down $115,000. During 2009,
Salisbury's assets grew $67 million to $562 million at December 31,
2009. Total net loans, including loans held for sale, grew $31
million, or 10.28%, to $328 million. Non-performing assets
increased $.5 million during the quarter and $2.3 million for the
year to $7.7 million at December 31, 2009. A single loan
relationship accounts for $3.0 million non-performing assets.
Reserve coverage, as measured by the ratio of the allowance for
loan losses to gross loans decreased slightly to 1.05% at December
31, 2009 compared with 1.10% at September 30, 2009, though is
higher than 0.91% at December 31, 2008. Deposits grew $73 million
to $418 million from $345 million at December 31, 2008. This
significant growth in deposits stems from customer preference for
the safety of insured deposits and a concerted effort by the Bank's
staff to expand deposit relationships with customers, and, from the
acquisition of $11 million in deposits from the Canaan branch of
Webster bank in December 2009. At December 31, 2009, book value per
common share was $25.81 and tier 1 leverage and total risk-based
capital ratios were 8.31% and 12.89%, respectively. In March 2009
Salisbury issued $8.8 million of preferred stock pursuant to the
U.S. Treasury's TARP CPP. The Board of Directors of Salisbury
Bancorp, Inc. (NYSE Amex: SAL), the holding company for Salisbury
Bank and Trust Company, declared a $.28 per common share quarterly
cash dividend at their January 29, 2010 meeting. The dividend will
be paid on February 26, 2010 to shareholders of record as of
February 12, 2010. 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, South Egremont and Sheffield,
Massachusetts and Dover Plains and Millerton, New York. 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 Salisbury'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
(http://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. Salisbury
Bancorp, Inc SELECTED CONSOLIDATED FINANCIAL DATA (in thousands
except ratios and per share amounts) (unaudited) Three month Twelve
month period ended period ended December 31 December 31 STATEMENT
OF INCOME 2009 2008 2009 2008 ---- ---- ---- ---- Interest and
dividend income $6,317 $6,586 $25,893 $26,557 Interest expense
2,183 2,520 9,032 10,825 Net interest income 4,134 4,066 16,861
15,732 Provision for loan losses 60 589 985 1,279 Gains (losses) on
securities, net 37 (38) (655) (2,355) Trust and wealth advisory 545
580 1,978 2,264 Service charges and fees 475 437 1,818 1,930 Gains
on sales of mortgage loans 140 69 743 344 Mortgage servicing 4
(102) 80 (124) Other 71 54 467 182 Non-interest income 1,272 1,000
4,431 2,241 Compensation 2,193 2,105 9,524 8,330 Premises and
equipment 494 487 1,939 1,859 Data processing 432 334 1,473 1,339
Professional fees 399 347 1,508 1,269 FDIC assessment 173 74 914 60
Marketing and community contributions 106 154 342 457 Insurance 35
57 126 218 Printing and stationery 73 76 298 277 FHLB advance
prepayment fee - 864 - 864 OREO 168 5 191 6 Amortization of core
deposit intangible 41 41 164 164 Other 350 283 1,411 1,166
Non-interest expense 4,464 4,827 17,890 16,009 Income (loss) before
income taxes 882 (350) 2,417 685 Provision (benefit) for income
taxes 33 (1,304) (49) (421) Net income 849 954 2,466 1,106 Net
income available to common shareholders 734 954 2,102 1,106 Per
common share Diluted earnings $0.43 $0.57 $1.25 $0.66 Cash
dividends 0.28 0.28 1.12 1.12 Statistical data Net interest margin
3.29% 3.48% 3.51% 3.73% Efficiency ratio 83.14 94.57 81.51 78.75
Return on average assets 0.48 0.75 0.39 0.23 Return on average
common shareholders' equity 6.27 9.53 5.13 2.59 Weighted average
equivalent common shares outstanding, diluted 1,687 1,686 1,686
1,685 Salisbury Bancorp, Inc. SELECTED CONSOLIDATED FINANCIAL DATA
(in thousands except ratios and per share amounts) (unaudited)
December 31, December 31 FINANCIAL CONDITION 2009 2008 ---- ----
Total assets $562,347 $495,754 Loans, net 327,922 297,367 Allowance
for loan losses 3,473 2,724 Securities 151,125 155,916 Cash and
cash equivalents 43,298 9,660 Intangible assets 11,293 10,994
Demand (non-interest bearing) 70,026 65,479 Demand (interest
bearing) 43,845 24,873 Money market 64,477 57,648 Savings and other
86,316 71,405 Certificates of deposit 153,539 125,520 Deposits
418,203 344,925 Federal Home Loan Bank advances 76,364 87,914
Repurchase agreements 11,415 11,203 Shareholders' equity 52,355
38,939 Non-performing assets 7,720 5,379 Per common share Book
value $25.81 $23.10 Tangible book value 19.12 16.58 Statistical
data Non-performing assets to total assets 1.37% 1.09% Allowance
for loan losses to total loans 1.05 0.91 Allowance for loan losses
to non-performing loans 46.64 52.64 Common shareholders' equity to
assets 9.31 7.85 Tangible common shareholders' equity to assets
5.73 5.64 Tier 1 leverage capital 8.31 7.74 Total risk-based
capital 12.89 11.59 Common shares outstanding, net (period end)
1,687 1,686 DATASOURCE: Salisbury Bancorp, Inc. CONTACT: Richard J.
Cantele, Jr., President and Chief Executive Officer,
+1-860-435-9801,
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