-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, C4dJ0k7fPKr07q2wnsvIe+LOG2SG9XB5vJi0JoLqWhXXquO3j+g5/ratz48wC7xP z4l8ApvpLOwnL0Ld+XxowQ== 0000914317-99-000129.txt : 19990308 0000914317-99-000129.hdr.sgml : 19990308 ACCESSION NUMBER: 0000914317-99-000129 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990224 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19990305 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SALISBURY BANCORP INC CENTRAL INDEX KEY: 0001060219 STANDARD INDUSTRIAL CLASSIFICATION: SAVINGS INSTITUTION, FEDERALLY CHARTERED [6035] IRS NUMBER: 061514263 STATE OF INCORPORATION: CT FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 000-24751 FILM NUMBER: 99557737 BUSINESS ADDRESS: STREET 1: 5 BISSELL ST CITY: LAKEVILLE STATE: CT ZIP: 06039-1868 BUSINESS PHONE: 8604359801 MAIL ADDRESS: STREET 1: 5 BISSELL ST CITY: LAKEVILLE STATE: CT ZIP: 06039-1868 8-K 1 SECURITIES AND EXCHANGE COMMISSION Washington, DC 20429 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): February 24, 1999 ----------------- SALISBURY BANCORP, INC. ----------------------- (Exact name of registrant as specified in charter) Connecticut 06-1514263 - -------------------------------------------------------------------------------- (State or other jurisdiction of incorporation) (IRS Employer Identification No.) 5 Bissell Street, Lakeville, Connecticut 06039-1868 - -------------------------------------------------------------------------------- (Address of principal executive offices) (zip code) Registrant's telephone number, including area code: (860) 435-9801 -------------- Form 8-K, Current Report Salisbury Bancorp, Inc. Item 5. Other Matters. Salisbury Bancorp, Inc., the parent company of Salisbury Bank and Trust Company, announced earnings for the fourth quarter of 1998 and for year ended December 31, 1998. The Board of Directors of Salisbury Bancorp, Inc., also declared a $.12 per share first quarter cash dividend at their February 24, 1999 Board meeting. The quarterly cash dividend will be paid on April 30, 1999 to shareholders of record as of March 31, 1999. Item 7. Financial Statements, Pro Forma Financial Information and Exhibits. c. Exhibits. 99. Press release dated February 26, 1999 Exhibit Index Page ------------- ---- 99. Press release dated February 26, 1999 3 Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereto duly authorized. Dated: March 5, 1999 SALISBURY BANCORP, INC. By: /s/ John F. Perotti ------------------- John F. Perotti, President and Chief Executive Officer -2- EX-99 2 EXHIBIT 99 PRESS RELEASE DATED FEBRUARY 26, 1999 SALISBURY BANCORP, INC. ANNOUNCES YEAR END EARNINGS Lakeville, Connecticut, February 26, 1999/PRNewswire. Salisbury Bancorp, Inc. (AMEX:SAL) (the "Company") the holding company for Salisbury Bank and Trust Company (the "Bank") reported fourth quarter earnings of $635,000 and net earnings of $2,413,000 or $1.53 per diluted share for the year ended December 31, 1998. This compares to fourth quarter earnings of $563,000 and net earnings of $2,190,000 or $1.40 per diluted share for the year ended December 31, 1997. Salisbury Bancorp, Inc. became the bank holding company for Salisbury Bank and Trust Company and began trading on the American Stock Exchange on August 24, 1998. The Bank is a community bank operating full service banking offices in Lakeville, Salisbury and Sharon, Connecticut. It has served the communities of Northwestern Connecticut and proxmiate communities in New York and Massachusetts for approximately 150 years. During the reorganization each share of Bank stock was exchanged for six shares of common stock of the Company. Therefore, all prior period per share data has been restated to reflect the 6-1 conversion. The Company also initiated a stock repurchase program during the year to acquire up to approximately 10% of the outstanding stock of the Company. According to John F. Perotti, President and CEO, the repurchase generally will be reflected through open market purchases although he did not rule out the possibility of unsolicited negotiated transactions or other types of repurchases. The Company's total assets increased to $217,223,000 at year end December 31, 1998 compared to $183,433,000 at year end December 31, 1997. This increase is primarily from an increase in borrowings from the Federal Home Loan Bank of Boston. These borrowings are the results of an interest rate risk strategy designed to prevent loss of income primarily in a falling rate environment and a strategy directed at providing the Company with competitive fixed rate mortgage products. Although the additional borrowings resulted in increased interest expense, the investment of these funds in loans and securities produced an increase in net interest income of $558,000 to $7,476,000 at December 31, 1998 compared to $6,918,000 at year end 1997. This is an increase of 8.10%. Noninterest income for 1998 increased 18.44%, primarily the result of continued growth in the Trust Department and an increase in MasterMoney debit card and VISA credit card transactions. Total noninterest expenses totaled $5,346,000 at year end 1998 compared to $4,766,000 for the same period in 1997. This increase was impacted by one time holding company formation costs of $150,000 and one time OREO disposition costs amounting to approximately $235,000. Excluding these one time expenses, other noninterest expenses increased approximately 4.76% when comparing 1998 to 1997. This reflects managements continuing efforts to control operating expenses. Shareholders equity increased to $21,650,000 at December 31, 1998. This represents an increase of 5.4% over year ending 1997 total equity of $20,483,000. The Company's risk-based capital ratios at year end 1998 were 20.73% for tier 1 capital and 22% for total capital. These ratios substantially exceed regulatory minimums for bank holding companies. Overall book value of common stock was $13.91 at December 31, 1998 as compared to $13.06 at December 31, 1997 and dividends for 1998 totaled $.60 per share compared to 1997 dividends of $.52 per share, an increase of 15%. This represents a payout ratio of 39.2% -3-
SALISBURY BANCORP, INC. AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS DECEMBER 31, 1998 AND 1997 ASSETS 1998 1997 ------------ ------------ Cash and due from banks ................................................... $ 5,525,258 $ 7,180,643 Interest bearing demand deposits with other banks ......................... 469,816 166,947 Federal funds sold ........................................................ 6,200,000 4,325,000 ------------ ------------ Cash and cash equivalents ............................................ 12,195,074 11,672,590 Investments in available-for-sale securities (at fair value) .............. 78,655,408 47,511,291 Investments in held-to-maturity securities (fair value of $573,075 as of December 31, 1998 and $1,790,362 as of December 31, 1997) .............. 579,078 1,771,723 Federal Home Loan Bank stock, at cost ..................................... 2,056,000 833,300 Loans, net ................................................................ 119,142,785 116,691,065 Other real estate owned ................................................... 180,000 205,000 Premises and equipment .................................................... 2,399,607 2,707,458 Accrued interest receivable ............................................... 1,383,349 1,299,186 Other assets .............................................................. 631,565 741,207 ------------ ------------ Total assets ......................................................... $217,222,866 $183,432,820 ============ ============ LIABILITIES AND STOCKHOLDERS' EQUITY Demand deposits ........................................................... $ 27,434,614 $ 26,497,015 Savings and NOW deposits .................................................. 64,885,607 67,445,595 Time deposits ............................................................. 60,830,923 62,230,844 ------------ ------------ Total deposits ....................................................... 153,151,144 156,173,454 Federal Home Loan Bank advances ........................................... 41,119,806 5,496,975 Other liabilities ......................................................... 1,301,809 1,279,281 ------------ ------------ Total liabilities .................................................... 195,572,759 162,949,710 ------------ ------------ Stockholders' equity: Common stock, par value $.10 per share in 1998 and $3.33 per share in 1997; authorized 3,000,000 shares in 1998 and 500,000 shares in 1997; issued and outstanding, 1,556,286 shares in 1998 and 261,398 shares in 1997................................................................ 155,629 870,451 Paid-in capital ........................................................... 4,882,027 4,543,265 Retained earnings ......................................................... 16,255,216 14,772,805 Accumulated other comprehensive income .................................... 357,235 296,589 ------------ ------------ Total stockholders' equity ........................................... 21,650,107 20,483,110 ------------ ------------ Total liabilities and stockholders' equity ........................... $217,222,866 $183,432,820 ============ ============
-4-
SALISBURY BANCORP, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF INCOME Years Ended December 31, 1998, 1997 and 1996 1998 1997 1996 ----------- ----------- ----------- Interest and dividend income: Interest and fees on loans .......................................... $ 9,479,885 $ 9,459,235 $ 9,347,382 Interest and dividends on securities: Taxable ........................................................... 2,971,296 2,413,960 2,012,107 Tax-exempt ........................................................ 400,206 288,599 174,822 Dividends on equity securities .................................... 60,636 55,225 51,179 Other interest ...................................................... 449,329 407,263 488,825 ----------- ----------- ----------- Total interest and dividend income ............................. 13,361,352 12,624,282 12,074,315 ----------- ----------- ----------- Interest expense: Interest on deposits ............................................. 5,124,335 5,364,746 5,336,829 Interest on Federal Home Loan Bank advances ...................... 760,841 341,811 180,964 ----------- ----------- ----------- Total interest expense ......................................... 5,885,176 5,706,557 5,517,793 ----------- ----------- ----------- Net interest and dividend income ................................. 7,476,176 6,917,725 6,556,522 Provision for loan losses ........................................... 120,000 50,000 275,000 ----------- ----------- ----------- Net interest and dividend income after provision for loan losses ...................................................... 7,356,176 6,867,725 6,281,522 ----------- ----------- ----------- Other income: Trust department income .......................................... 1,031,255 934,163 751,951 Service charges on deposit accounts .............................. 347,188 251,733 277,714 Securities gains, net ............................................ 4,372 11,676 Other income ..................................................... 387,217 300,544 390,924 ----------- ----------- ----------- Total other income ............................................. 1,765,660 1,490,812 1,432,265 ----------- ----------- -----------
-5-
SALISBURY BANCORP, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF INCOME Years Ended December 31, 1998, 1997 and 1996 (continued) 1998 1997 1996 ----------- ----------- ----------- Other expense: Salaries and employee benefits ................................... 2,631,604 2,399,275 2,375,438 Occupancy expense ................................................ 242,099 206,432 227,483 Equipment expense ................................................ 427,935 367,160 268,386 Data processing .................................................. 251,175 257,301 307,933 Insurance ........................................................ 95,503 87,289 72,242 Provision for loss on other real estate owned .................... 97,563 Other real estate owned writedowns ............................... 65,000 Net cost (profit) of operation of other real estate owned......... (52,196) 12,231 6,633 Printing and stationery .......................................... 137,889 137,698 170,824 Legal expense .................................................... 173,279 141,303 75,954 Other expense .................................................... 1,373,901 1,157,467 944,815 ----------- ----------- ----------- Total other expense ............................................ 5,346,189 4,766,156 4,547,271 ----------- ----------- ----------- Income before income taxes ..................................... 3,775,647 3,592,381 3,166,516 Income taxes ........................................................ 1,363,075 1,402,000 1,052,152 ----------- ----------- ----------- Net income ....................................................... $ 2,412,572 $ 2,190,381 $ 2,114,364 =========== =========== =========== Earnings per common share ........................................... $ 1.54 $ 1.41 $ 1.35 =========== =========== =========== Earnings per common share assuming dilution ................................................ $ 1.53 $ 1.40 $ 1.35 =========== =========== ===========
The Directors of Salisbury Bancorp, Inc. also announced today that a $.12 per share quarterly cash dividend for the first quarter of 1999 was declared at their February 24, 1999 meeting. The quarterly cash dividend will be paid on April 30, 1999 to shareholders of record as of March 31, 1999. This compares to an $.11 per share dividend that was paid for the first quarter of 1998. -6- -----END PRIVACY-ENHANCED MESSAGE-----