UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________
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) October 31, 2014
______________
Salisbury Bancorp, Inc.
(Exact name of registrant as specified in its charter)
______________
Connecticut (State of other jurisdiction of incorporation) |
000-24751 (Commission File Number) |
06-1514263 (IRS Employer Identification No.) |
5 Bissell Street, Lakeville, Connecticut (Address of principal executive offices) |
|
06039 (Zip Code)
| |||
Registrant’s telephone number, including area code: (860) 435-9801 | |||||
(Former name or former address, if changed since last report) | |||||
______________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: □ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) □ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) □ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) □ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Section 2. Financial Information
Item 2.02. Results of Operations and Financial Condition
On October 31, 2014 Salisbury Bancorp, Inc. (“Salisbury”) the holding company for Salisbury Bank and Trust Company (the “Bank”), issued a press release announcing results for its third quarter ended September 30, 2014. The press release is attached as Exhibit 99.1 and is incorporated herein by reference.
Section 8. Other Events
Item 8.01. Other Events
The Board of Directors of Salisbury Bancorp, Inc. declared a $0.28 per common share quarterly cash dividend at their October 31, 2014 meeting. The dividend will be paid on November 28, 2014 to shareholders of record as of November 14, 2014.
Section 9. Financial Statements and Exhibits
Item 9.01. Financial Statements and Exhibits
(a) | Not applicable. |
(b) | Not applicable. |
(c) | Not applicable. |
(d) | Exhibits. |
Exhibit No. Description
99.1 Press release dated October 31, 2014
-2- |
SIGNATURE
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 hereunto duly authorized.
Salisbury Bancorp, Inc.
Date: October 31, 2014 |
By: |
/s/ Donald E. White |
Donald E. White Executive Vice President and Chief Financial Officer |
-3-
Exhibit 99.1
Friday, October 31, 2014
Company Press Release
Source: Salisbury Bancorp, Inc.
Salisbury Contact: Richard J. Cantele, Jr., President and Chief Executive Officer
860-435-9801 or rcantele@salisburybank.com
FOR IMMEDIATE RELEASE
SALISBURY BANCORP, INC. REPORTS RESULTS FOR THIRD QUARTER 2014; DECLARES 28 CENT DIVIDEND
Lakeville, Conn., October 31, 2014 /GlobeNewswire …..Salisbury Bancorp, Inc. (“Salisbury”) NASDAQ Capital Market: “SAL”, the holding company for Salisbury Bank and Trust Company (the “Bank”), announced results for its third quarter ended September 30, 2014.
During the first three calendar quarters of 2014, Salisbury made significant progress in implementing strategic initiatives to enhance its market presence in each of the three states in which it operates:
Selected third quarter 2014 statistics:
Net income available to common shareholders was $728,000, or $0.43 per common share, for the quarter ended September 30, 2014 (third quarter 2014), versus $926,000, or $0.54 per common share, for the quarter ended June 30, 2014 (second quarter 2014), and $976,000, or $0.57 per common share, for the quarter ended September 30, 2013 (third quarter 2013).
Richard J. Cantele, Jr., President and Chief Executive Officer, stated, “We are pleased with the integration and performance to date of both our Sharon, Connecticut branch acquisition and consolidation, as well as our de-novo branch in Great Barrington, Massachusetts. We are also continuing to work towards a smooth integration of our previously announced proposed acquisition of Riverside Bank, based in Poughkeepsie, New York. The respective shareholders of both Riverside and Salisbury have approved the merger, and we expect to complete this transaction prior to year end following receipt of regulatory approval. The Bank’s third quarter results reflect growth in both loans and deposits and demonstrate our continued commitment to the communities in our market area.”
Net Interest Income
Tax equivalent net interest and dividend income for third quarter 2014 decreased $152,000, or 2.9%, versus second quarter 2014, and increased $108,000, or 2.2%, versus third quarter 2013. Average total interest bearing deposits increased $29.2 million as compared with second quarter 2014 and increased $15.7 million as compared with third quarter 2013. Average earning assets increased $39.1 million as compared with second quarter 2014 and increased $31.2 million as compared with third quarter 2013. The net interest margin on a tax equivalent basis decreased from 3.74% at second quarter 2014 to 3.39% and decreased 12 basis points versus third quarter 2013 from 3.51%.
Non-Interest Income
Non-interest income decreased $129,000, or 8.0%, versus second quarter 2014 and increased $94,000, or 6.0%, versus third quarter 2013. Trust and Wealth Advisory revenues decreased $148,000 versus second quarter 2014 and increased $41,000 versus third quarter 2013. The quarter-over-quarter decrease is mainly due to tax preparation fees collected annually in the second quarter and decreased estate fees. Service charges and fees increased $13,000 versus second quarter 2014 and $44,000 versus third quarter 2013 due to higher volume of interchange fees and loan servicing fees implemented in 2014. Income from sales and servicing of mortgage loans in the third quarter decreased by $3,000 as compared to the second quarter 2014 and increased $9,000 as compared to the third quarter 2013. Mortgage loan sales totaled $1.4 million for third quarter 2014, $1.6 million for second quarter 2014 and $2.2 million for third quarter 2013. Third quarter 2014, second quarter 2014 and third quarter 2013 included amortization on mortgage servicing rights of $55,000, $86,000 and $101,000, respectively. Other income includes income from bank owned life insurance and rental income.
Non-Interest Expense
Non-interest expense for third quarter 2014 increased $41,000 versus second quarter 2014 and increased $465,000 versus third quarter 2013. Compensation decreased $13,000 versus second quarter 2014 and increased $62,000 versus third quarter 2013. The year-over-year growth includes annual increases and higher medical insurance expense due to increased employee participation, partially offset by lower severance related payments. Premises and equipment increased $27,000 versus second quarter 2014 and increased $106,000 versus third quarter 2013. The year-over-year increase is mainly due to the opening of the Great Barrington, Massachusetts branch, the acquisition and consolidation of the Sharon branch and related renovation expense. Data processing decreased $15,000 versus second quarter 2014 and increased $62,000 versus third quarter 2013, mainly due to the Sharon, Connecticut branch acquisition conversion and the errors related to communication circuit billings. Professional fees increased $16,000 versus second quarter 2014, and increased $135,000 versus third quarter 2013. Second and third quarter 2014 included legal and consulting expenses related to strategic initiatives. Collections and OREO expense decreased $8,000 versus second quarter 2014, and increased $3,000 versus third quarter 2013. Salisbury had $333,000 in foreclosed property at September 30, 2014. FDIC insurance decreased $5,000 versus second quarter 2014 and increased $8,000 versus third quarter 2013. Remaining operating expenses increased $39,000 versus second quarter 2014 and increased $89,000 versus third quarter 2013 due primarily to increases in other administrative and operational expenses and expenses related to strategic initiatives.
The effective income tax rates for third quarter 2014, second quarter 2014 and third quarter 2013 were 12.8%, 19.8% and 17.7%, respectively.
Loans
Net loans receivable increased $5.3 million during third quarter 2014 to $461.9 million at September 30, 2014, from $456.6 million at June 30, 2014, and increased $41.6 million from $420.3 million at September 30, 2013.
Asset Quality
Non-performing assets increased $0.2 million during third quarter 2014 to $8.9 million, or 1.4% of assets, at September 30, 2014, versus $8.7 million, or 1.4% of assets, at June 30, 2014, and decreased $0.8 million versus $9.7 million, or 1.7% of assets, at September 30, 2013.
The $0.2 million increase in non-performing assets in third quarter 2014 resulted primarily from loans aggregating $0.4 million placed on non-accrual status and a $0.5 million change in 90+ past due status offset in part by $0.1 million in loan repayments, $0.5 million reinstated to accrual and payoffs, and $0.1 million in loan charge-offs and sale of OREO.
Total impaired and potential problem loans increased $1.6 million during third quarter 2014 to $26.6 million, or 5.7% of gross loans receivable, at September 30, 2014, versus $25.0 million, or 5.4% of gross loans receivable, at June 30, 2014, and increased $1.5 million versus $25.1 million, or 5.9% of gross loans receivable, at September 30, 2013.
Accruing loans past due 30-to-89 days decreased $1.0 million during third quarter 2014 to $1.3 million, or 0.28% of gross loans receivable, at September 30, 2014, and compares favorably to the prior quarter total of $2.3 million, or 0.50% of gross loans receivable, at June 30, 2014. Accruing loans past due 30-to-89 days decreased $3.8 million as compared to September 30, 2013.
Provision for loan losses was $318,000 versus $314,000 second quarter 2014 and $240,000 for third quarter 2013. Net loan charge-offs were $36,000, $106,000 and $215,000, for the respective quarters. Reserve coverage, as measured by the ratio of the allowance for loan losses to gross loans, increased to 1.15% at September 30, 2014 versus 1.11% at June 30, 2014 and 1.10% at September 30, 2013.
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.
Capital
Both Salisbury and the Bank’s regulatory capital ratios remain in compliance with regulatory “well capitalized” requirements. At September 30, 2014, Salisbury’s Tier 1 leverage and total risk-based capital ratios were 9.85% and 16.27%, respectively, and the Bank’s Tier 1 leverage and total risk-based capital ratios were 8.26% and 13.77%, respectively, versus regulatory “well capitalized” minimums of 5.00% and 10.00%, respectively.
At September 30, 2014, Salisbury’s assets totaled $638 million. Book value and tangible book value per common share were $34.74 and $28.49, respectively. Tangible book value excludes goodwill and core deposit intangibles.
In August 2011, Salisbury received $16 million of capital from the U.S. Treasury’s Small Business Lending Fund (the “SBLF”) program and repaid the $8.8 million of capital received in 2009 from the U.S. Treasury’s Capital Purchase Program. The SBLF program was established to encourage lending to small businesses by providing Tier 1 capital to qualified community banks with assets of less than $10 billion. To date Salisbury has used this capital to increase its portfolio of qualified small business loans by $37.5 million and to augment its regulatory capital ratios.
Third Quarter 2014 Dividend on Common Shares
The Board of Directors of Salisbury, the holding company for Salisbury Bank and Trust Company, declared a $0.28 per common share quarterly cash dividend at their October 31, 2014 meeting. The dividend will be paid on November 28, 2014 to shareholders of record as of November 14, 2014.
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; South Egremont, Sheffield, and Great Barrington, Massachusetts; and Dover Plains and Millerton, 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
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 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 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 (www.sec.gov) and to which reference is hereby made. Therefore, actual future results may differ materially from results discussed in the forward-looking statements.
ADDITIONAL INFORMATION AND WHERE TO FIND IT
In connection with the proposed acquisition of Riverside Bank (“proposed transaction”), Salisbury filed with the SEC a Registration Statement on Form S-4 that included a proxy statement of Salisbury and Riverside Bank and a prospectus of Salisbury, as well as other relevant documents concerning the proposed transaction. SHAREHOLDERS OF SALISBURY AND RIVERSIDE BANK ARE URGED TO READ CAREFULLY THE REGISTRATION STATEMENT AND JOINT PROXY STATEMENT/PROSPECTUS REGARDING THE PROPOSED TRANSACTION IN ITS ENTIRETY AND ANY OTHER DOCUMENTS FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY CONTAIN IMPORTANT INFORMATION. Investors and shareholders of Salisbury and Riverside Bank may obtain a free copy of the joint proxy statement/prospectus containing information about Salisbury and Riverside Bank, as well as other filings containing information about Salisbury, at the SEC’s website at www.sec.gov. The joint proxy statement/prospectus and the other filings may also be obtained free of charge at Salisbury’s website at www.salisburybank.com.
Salisbury Bancorp, Inc. and Subsidiary
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data) | September 30, 2014 (unaudited) |
December 31, 2013 | ||||||
ASSETS | ||||||||
Cash and due from banks | $ | 5,759 | $ | 5,926 | ||||
Interest bearing demand deposits with other banks | 43,066 | 6,785 | ||||||
Total cash and cash equivalents | 48,825 | 12,711 | ||||||
Interest bearing time deposits with other banks | — | 738 | ||||||
Securities | ||||||||
Available-for-sale at fair value | 85,445 | 94,491 | ||||||
Federal Home Loan Bank of Boston stock at cost | 3,515 | 5,340 | ||||||
Loans held-for-sale | — | 173 | ||||||
Loans receivable, net (allowance for loan losses: $5,384 and $4,683) | 461,913 | 438,178 | ||||||
Other real estate owned | 333 | 377 | ||||||
Bank premises and equipment, net | 12,899 | 11,611 | ||||||
Goodwill | 9,829 | 9,829 | ||||||
Intangible assets (net of accumulated amortization: $2,161 and $1,967) | 872 | 576 | ||||||
Accrued interest receivable | 1,834 | 1,760 | ||||||
Cash surrender value of life insurance policies | 8,802 | 7,529 | ||||||
Deferred taxes | — | 260 | ||||||
Other assets | 3,822 | 3,536 | ||||||
Total Assets | $ | 638,089 | $ | 587,109 | ||||
LIABILITIES and SHAREHOLDERS' EQUITY | ||||||||
Deposits | ||||||||
Demand (non-interest bearing) | $ | 99,843 | $ | 84,677 | ||||
Demand (interest bearing) | 81,877 | 81,932 | ||||||
Money market | 132,471 | 120,550 | ||||||
Savings and other | 122,836 | 107,171 | ||||||
Certificates of deposit | 85,267 | 83,039 | ||||||
Total deposits | 522,294 | 477,369 | ||||||
Repurchase agreements | 6,500 | 2,554 | ||||||
Federal Home Loan Bank of Boston advances | 29,218 | 30,411 | ||||||
Capital lease liability | 424 | 425 | ||||||
Deferred taxes | 643 | — | ||||||
Accrued interest and other liabilities | 3,494 | 3,560 | ||||||
Total Liabilities | 562,573 | 514,319 | ||||||
Commitments and contingencies | — | — | ||||||
Shareholders' Equity | ||||||||
Preferred stock - $.01 per share par value | ||||||||
Authorized: 25,000; Issued: 16,000 (Series B); | ||||||||
Liquidation preference: $1,000 per share | 16,000 | 16,000 | ||||||
Common stock - $.10 per share par value | ||||||||
Authorized: 3,000,000; | ||||||||
Issued: 1,713,281 and 1,710,121 | 171 | 171 | ||||||
Unearned compensation-restricted stock awards | (254 | ) | (335 | ) | ||||
Paid-in capital | 13,764 | 13,668 | ||||||
Retained earnings | 42,960 | 42,240 | ||||||
Accumulated other comprehensive income, net | 2,875 | 1,046 | ||||||
Total Shareholders' Equity | 75,516 | 72,790 | ||||||
Total Liabilities and Shareholders' Equity | $ | 638,089 | $ | 587,109 |
Salisbury Bancorp, Inc. and Subsidiary
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
Periods ended September 30, | Three months ended | Nine months ended | ||||||||||||||
(in thousands, except per share amounts) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Interest and dividend income | ||||||||||||||||
Interest and fees on loans | $ | 4,656 | $ | 4,516 | $ | 13,983 | $ | 13,415 | ||||||||
Interest on debt securities | ||||||||||||||||
Taxable | 330 | 418 | 1,075 | 1,359 | ||||||||||||
Tax exempt | 416 | 475 | 1,294 | 1,441 | ||||||||||||
Other interest and dividends | 42 | 22 | 87 | 58 | ||||||||||||
Total interest and dividend income | 5,444 | 5,431 | 16,439 | 16,273 | ||||||||||||
Interest expense | ||||||||||||||||
Deposits | 379 | 459 | 1,079 | 1,437 | ||||||||||||
Repurchase agreements | 3 | 2 | 5 | 4 | ||||||||||||
Capital lease | 12 | — | 29 | — | ||||||||||||
Federal Home Loan Bank of Boston advances | 296 | 311 | 892 | 935 | ||||||||||||
Total interest expense | 690 | 772 | 2,005 | 2,376 | ||||||||||||
Net interest income | 4,754 | 4,659 | 14,434 | 13,897 | ||||||||||||
Provision for loan losses | 318 | 240 | 969 | 876 | ||||||||||||
Net interest and dividend income after provision for loan losses | 4,436 | 4,419 | 13,465 | 13,021 | ||||||||||||
Non-interest income | ||||||||||||||||
Trust and wealth advisory | 791 | 750 | 2,509 | 2,299 | ||||||||||||
Service charges and fees | 639 | 595 | 1,807 | 1,687 | ||||||||||||
Gains on sales of mortgage loans, net | — | 69 | 43 | 501 | ||||||||||||
Mortgage servicing, net | 41 | (37 | ) | 80 | (3 | ) | ||||||||||
Other | 82 | 82 | 234 | 251 | ||||||||||||
Total non-interest income | 1,553 | 1,459 | 4,673 | 4,735 | ||||||||||||
Non-interest expense | ||||||||||||||||
Salaries | 1,980 | 1,922 | 5,776 | 5,508 | ||||||||||||
Employee benefits | 697 | 693 | 2,176 | 2,140 | ||||||||||||
Premises and equipment | 728 | 622 | 2,102 | 1,789 | ||||||||||||
Data processing | 420 | 358 | 1,254 | 1,145 | ||||||||||||
Professional fees | 441 | 306 | 1,485 | 996 | ||||||||||||
Collections and OREO | 77 | 74 | 298 | 305 | ||||||||||||
FDIC insurance | 119 | 111 | 340 | 350 | ||||||||||||
Marketing and community support | 115 | 99 | 355 | 326 | ||||||||||||
Amortization of intangibles | 75 | 56 | 194 | 167 | ||||||||||||
Other | 456 | 402 | 1,306 | 1,232 | ||||||||||||
Total non-interest expense | 5,108 | 4,643 | 15,286 | 13,958 | ||||||||||||
Income before income taxes | 881 | 1,235 | 2,852 | 3,798 | ||||||||||||
Income tax provision | 113 | 219 | 567 | 695 | ||||||||||||
Net income | $ | 768 | $ | 1,016 | $ | 2,285 | $ | 3,103 | ||||||||
Net income available to common shareholders | $ | 728 | $ | 976 | $ | 2,159 | $ | 2,982 | ||||||||
Basic earnings per common share | $ | 0.43 | $ | 0.57 | $ | 1.26 | $ | 1.75 | ||||||||
Diluted earnings per common share | 0.43 | 0.57 | 1.26 | 1.75 | ||||||||||||
Dividends per common share | 0.28 | 0.28 | 0.84 | 0.84 |
Salisbury Bancorp, Inc. and Subsidiary
SELECTED CONSOLIDATED FINANCIAL DATA (unaudited)
At or for the three month periods ended | ||||||||||||||||||||
(in thousands, except per share amounts and ratios) | Q3 2014 | Q2 2014 | Q1 2014 | Q4 2013 | Q3 2013 | |||||||||||||||
Total assets | $ | 638,089 | $ | 621,476 | $ | 589,771 | $ | 587,109 | $ | 589,481 | ||||||||||
Loans receivable, net | 461,913 | 456,627 | 446,518 | 438,178 | 420,306 | |||||||||||||||
Total securities | 88,960 | 92,884 | 98,015 | 99,831 | 105,156 | |||||||||||||||
Deposits | 522,294 | 507,361 | 477,512 | 477,369 | 479,869 | |||||||||||||||
FHLBB advances | 29,218 | 29,619 | 30,017 | 30,411 | 30,801 | |||||||||||||||
Shareholders’ equity | 75,516 | 75,000 | 74,001 | 72,790 | 71,211 | |||||||||||||||
Wealth assets under management | 416,510 | 429,093 | 439,951 | 431,793 | 408,448 | |||||||||||||||
Non-performing loans | 8,611 | 8,379 | 8,149 | 7,172 | 9,166 | |||||||||||||||
Non-performing assets | 8,945 | 8,757 | 8,527 | 7,549 | 9,737 | |||||||||||||||
Accruing loans past due 30-89 days | 1,294 | 2,306 | 4,021 | 5,374 | 5,094 | |||||||||||||||
Net interest and dividend income | 4,754 | 4,905 | 4,775 | 4,793 | 4,659 | |||||||||||||||
Net interest and dividend income, tax equivalent | 5,075 | 5,227 | 5,104 | 5,115 | 4,967 | |||||||||||||||
Provision for loan losses | 318 | 314 | 337 | 190 | 240 | |||||||||||||||
Non-interest income | 1,553 | 1,682 | 1,438 | 1,571 | 1,459 | |||||||||||||||
Non-interest expense | 5,108 | 5,068 | 5,110 | 4,977 | 4,643 | |||||||||||||||
Income before income taxes | 881 | 1,205 | 766 | 1,197 | 1,235 | |||||||||||||||
Income tax provision | 113 | 239 | 215 | 214 | 219 | |||||||||||||||
Net income | 768 | 966 | 551 | 980 | 1,016 | |||||||||||||||
Net income available to common shareholders | 728 | 926 | 505 | 940 | 976 | |||||||||||||||
Per share data | ||||||||||||||||||||
Basic earnings per common share | $ | 0.43 | $ | 0.54 | $ | 0.29 | $ | 0.55 | $ | 0.57 | ||||||||||
Diluted earnings per common share | 0.43 | 0.54 | 0.29 | 0.55 | 0.57 | |||||||||||||||
Dividends per common share | 0.28 | 0.28 | 0.28 | 0.28 | 0.28 | |||||||||||||||
Book value per common share | 34.74 | 34.44 | 33.90 | 33.21 | 32.28 | |||||||||||||||
Tangible book value per common share - Non-GAAP(1) | 28.50 | 28.15 | 27.85 | 27.12 | 26.17 | |||||||||||||||
Common shares outstanding at end of period | 1,713 | 1,713 | 1,711 | 1,710 | 1,710 | |||||||||||||||
Weighted average common shares outstanding, basic and diluted, | ||||||||||||||||||||
to calculate earnings per share | 1,693 | 1,691 | 1,691 | 1,691 | 1,691 | |||||||||||||||
Profitability ratios | ||||||||||||||||||||
Net interest margin (tax equivalent) | 3.39 | % | 3.74 | % | 3.72 | % | 3.71 | % | 3.51 | % | ||||||||||
Efficiency ratio(2) | 75.92 | 72.35 | 77.11 | 71.77 | 71.22 | |||||||||||||||
Non-interest income to operating revenue | 24.62 | 25.54 | 23.14 | 24.68 | 23.85 | |||||||||||||||
Effective income tax rate | 12.82 | 19.85 | 28.02 | 17.92 | 17.70 | |||||||||||||||
Return on average assets | 0.45 | 0.62 | 0.35 | 0.64 | 0.64 | |||||||||||||||
Return on average common shareholders’ equity | 4.85 | 6.32 | 3.53 | 6.69 | 7.05 | |||||||||||||||
Credit quality ratios | ||||||||||||||||||||
Net charge-offs to average loans receivable, gross | 0.03 | % | 0.09 | % | 0.12 | % | 0.15 | % | 0.20 | % | ||||||||||
Non-performing loans to loans receivable, gross | 1.84 | 1.82 | 1.81 | 1.62 | 2.16 | |||||||||||||||
Accruing loans past due 30-89 days to loans receivable, gross | 0.28 | 0.50 | 0.89 | 1.22 | 1.20 | |||||||||||||||
Allowance for loan losses to loans receivable, gross | 1.15 | 1.11 | 1.09 | 1.06 | 1.10 | |||||||||||||||
Allowance for loan losses to non-performing loans | 62.52 | 60.89 | 60.05 | 65.30 | 50.80 | |||||||||||||||
Non-performing assets to total assets | 1.40 | 1.41 | 1.45 | 1.29 | 1.65 | |||||||||||||||
Capital Ratios | ||||||||||||||||||||
Common shareholders' equity to assets | 9.33 | % | 9.49 | % | 9.83 | % | 9.67 | % | 9.37 | % | ||||||||||
Tangible common shareholders' equity to assets - Non-GAAP(1) | 7.78 | 7.90 | 8.22 | 8.04 | 7.73 | |||||||||||||||
Tier 1 leverage capital | 9.85 | 10.50 | 10.65 | 10.65 | 10.28 | |||||||||||||||
Total risk-based capital | 16.27 | 16.11 | 16.42 | 16.46 | 16.67 |
(1) Refer to schedule labeled “Supplemental Information - Non-GAAP Financial Measures.”
(2) Calculated using SNL’s methodology: 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, nonrecurring pension plan curtailment, litigation expenses and penalty of FHLBB advance prepayment.
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) | Q3 2014 | Q2 2014 | Q1 2014 | Q4 2013 | Q3 2013 | |||||||||||||||
Shareholders' Equity | $ | 75,516 | $ | 75,000 | $ | 74,001 | $ | 72,790 | $ | 71,211 | ||||||||||
Less: Preferred Stock | (16,000 | ) | (16,000 | ) | (16,000 | ) | (16,000 | ) | (16,000 | ) | ||||||||||
Common Shareholders' Equity | 59,516 | 59,000 | 58,001 | 56,790 | 55,211 | |||||||||||||||
Less: Goodwill | (9,829 | ) | (9,829 | ) | (9,829 | ) | (9,829 | ) | (9,829 | ) | ||||||||||
Less: Intangible assets | (872 | ) | (946 | ) | (520 | ) | (576 | ) | (631 | ) | ||||||||||
Tangible Common Shareholders' Equity | $ | 48,815 | $ | 48,225 | $ | 47,652 | $ | 46,385 | $ | 44,751 | ||||||||||
Total Assets | $ | 638,089 | $ | 621,476 | $ | 589,771 | $ | 587,109 | $ | 589,481 | ||||||||||
Less: Goodwill | (9,829 | ) | (9,829 | ) | (9,829 | ) | (9,829 | ) | (9,829 | ) | ||||||||||
Less: Intangible assets | (872 | ) | (946 | ) | (520 | ) | (576 | ) | (631 | ) | ||||||||||
Tangible Total Assets | $ | 627,388 | $ | 610,701 | $ | 579,422 | $ | 576,704 | $ | 579,021 | ||||||||||
Common Shares outstanding | 1,713 | 1,713 | 1,711 | 1,710 | 1,710 | |||||||||||||||
Book value per Common Share – GAAP | $ | 34.74 | $ | 34.44 | $ | 33.90 | $ | 33.21 | $ | 32.28 | ||||||||||
Tangible book value per Common Share - Non-GAAP | 28.50 | 28.15 | 27.85 | 27.12 | 26.17 | |||||||||||||||
Common Equity to Assets – GAAP | 9.33 | % | 9.49 | % | 9.83 | % | 9.67 | % | 9.37 | % | ||||||||||
Tangible Common Equity to Assets – Non-GAAP | 7.78 | 7.90 | 8.22 | 8.04 | 7.73 | |||||||||||||||
Non-interest expense | $ | 5,108 | $ | 5,068 | $ | 5,110 | $ | 4,977 | $ | 4,643 | ||||||||||
Less: Amortization of core deposit intangibles | (75 | ) | (63 | ) | (56 | ) | (56 | ) | (56 | ) | ||||||||||
Less: Foreclosed property expense | (1 | ) | (5 | ) | (10 | ) | (123 | ) | (10 | ) | ||||||||||
Less: Strategic initiatives | (197 | ) | (90 | ) | (301 | ) | (233 | ) | — | |||||||||||
Operating Expenses | $ | 4,835 | $ | 4,910 | $ | 4,743 | $ | 4,565 | $ | 4,577 | ||||||||||
Net interest and dividend income, tax equivalent | $ | 5,075 | $ | 5,227 | $ | 5,104 | $ | 5,115 | $ | 4,967 | ||||||||||
Non-interest income | 1,553 | 1,682 | 1,438 | 1,571 | 1,459 | |||||||||||||||
Operating Revenue | $ | 6,628 | $ | 6,909 | $ | 6,542 | $ | 6,686 | $ | 6,426 | ||||||||||
Efficiency Ratio less strategic initiatives | 72.94 | % | 71.07 | % | 72.49 | % | 68.27 | % | 71.22 | % |