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) July 31, 2015
_________________________
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 July 31, 2015 Salisbury Bancorp, Inc. (“Salisbury”) the holding company for Salisbury Bank and Trust Company (the “Bank”), issued a press release announcing results for its second quarter ended June 30, 2015. 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 July 31, 2015 meeting. The dividend will be paid on August 28, 2015 to shareholders of record as of August 14, 2015.
Section 9. Financial Statements and Exhibits
Item 9.01. Financial Statements and Exhibits
| (a) | Not applicable. |
| (b) | Not applicable. |
| (c) | Not applicable. |
| (d) | Exhibits. |
| Exhibits No. | Description |
| 99.1 | Press release dated July 31, 2015 |
| - 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: July 31, 2015 | By: | /s/ Donald E. White |
| Donald E. White | ||
| Executive Vice President and Chief Financial Officer |
- 3 -
Exhibit 99.1
Friday, July 31, 2015
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 SECOND QUARTER 2015; DECLARES 28 CENT DIVIDEND
Lakeville, Connecticut, July 31, 2015 /GlobeNewswire…..Salisbury Bancorp, Inc. (“Salisbury”), NASDAQ Capital Market: “SAL”, the holding company for Salisbury Bank and Trust Company (the “Bank”), announced results for its second quarter ended June 30, 2015.
Net income available to common shareholders was $2,032,000, or $0.74 per common share, for the second quarter ended June 30, 2015 (second quarter 2015), compared with $2,194,000, or $0.81 per common share, for the first quarter ended March 31, 2015 (first quarter 2015), and $926,000, or $0.54 per common share, for the second quarter ended June 30, 2014 (second quarter 2014).
Selected Second Quarter 2015 Financial Highlights
As a result of Salisbury’s acquisition of Riverside Bank being completed in December 2014, the results of Riverside Bank’s 2014 stand-alone operations are not included in the presentation below of any Salisbury information prior to December 2014.
| • | Salisbury’s earnings per common share for the three (3) and six (6) month periods ended June 30, 2015 increased to $0.74 and $1.55, respectively, per common share as compared with $0.54 and $0.83 per common share for the same periods in 2014. |
| • | During the six (6) month period ended June 30, 2015, total shareholders’ equity increased to $104.1 million from $101.8 million at December 31, 2014. |
| • | Salisbury’s efficiency ratio improved to 62.91% for the quarter ended June 30, 2015 as compared with 65.45% from the prior quarter and 72.35% for the second quarter in 2014. |
| • | Annualized return on average assets for the quarter ended June 30, 2015 amounted to 0.94% as compared with 1.03% for the prior quarter and 0.62% for the second quarter of 2014. |
| • | Annualized return on average common equity amounted to 9.26% for the quarter ended June 30, 2015 as compared with 10.22% for the prior quarter and 6.32% for the second quarter of 2014. |
Richard J. Cantele, President and Chief Executive Officer stated, “We have made significant progress with respect to integrating the acquisitions we completed during 2014. We are achieving the desired benefits of our Riverside Bank acquisition and are combining the strengths of that organization with the core strengths of Salisbury. While it has been less than one year since the consummation of this acquisition, we are achieving positive results in terms of improved earnings, returns on equity and assets, capital growth and improved efficiency. We are pleased with our progress to date, and we remain committed to achieving greater benefits for our shareholders and customers.”
Net-Interest Income
Tax equivalent net interest income decreased $154,000, or 1.9%, versus first quarter 2015, and increased $2.9 million, or 54.7%, versus second quarter 2014. Interest income for the second quarter reflects net accretion related to the fair value adjustments of loans acquired in the Riverside Bank acquisition in the amount of $654,000. The first quarter of 2015 included similar adjustments totaling $650,000. Average earning assets increased $3.1 million versus first quarter 2015, and increased $247.0 million versus second quarter 2014. Average total interest bearing deposits decreased $2.0 million versus first quarter 2015 and increased $160.2 million versus second quarter 2014 primarily as a result of the Riverside Bank acquisition. The net interest margin of 4.01% decreased 10 basis points versus 4.11% for the first quarter 2015 and increased 27 basis points versus 3.74% for the second quarter 2014.
Non-Interest Income
Non-interest income for second quarter 2015 increased $4,000 versus first quarter 2015 and increased $218,000 versus second quarter 2014. Trust and wealth advisory revenues increased $68,000 versus first quarter 2015 and decreased $49,000 versus second quarter 2014. Such decrease is the result of a decrease in managed assets. Service charges and fees increased $47,000 versus first quarter 2015 and increased $152,000 versus second quarter 2014. The increases were a result of higher fees due to increased transactional volume, mainly attributable to the contribution from the deposits assumed in the Riverside Bank acquisition. Income from sales and servicing of mortgage loans increased $53,000 versus first quarter 2015 and increased $64,000 versus second quarter 2014 due to a decrease in amortization as a result of a decline in projected prepayment rates. Second quarter 2015 mortgage loans sales totaled $3.0 million versus $2.1 million for first quarter 2015 and $1.6 million for second quarter 2014. Second quarter 2015, first quarter 2015, and second quarter 2014 included a mortgage servicing valuation impairment benefit / (charge) of $6,000, ($9,000), and $2,000, respectively. Gain on sale of securities for second quarter 2015 totaled $11,000, compared to $175,000 in the first quarter 2015 and no gains were recognized in the second quarter of 2014. Other income includes bank owned life insurance income and rental income.
Non-Interest Expense
Non-interest expense for second quarter 2015 decreased $264,000 versus first quarter 2015 and increased $1.5 million versus second quarter 2014. Total compensation expense decreased $136,000 versus first quarter 2015 as a result of lower salary and payroll tax expense partially offset by higher employee benefit costs. The total compensation expense year-over-year increase of $719,000 (second quarter 2015 versus second quarter 2014) reflects increased staffing levels primarily as a result of the Riverside Bank acquisition.
Premises and equipment increased $5,000 versus first quarter 2015 and increased $212,000 versus second quarter 2014. The quarterly increase was related to seasonal building maintenance. The year-over-year increase is mainly due to the addition of branch facilities acquired as a result of the Riverside Bank acquisition in December 2014, and the Sharon, Connecticut branch acquisition, as well as the opening of a new branch in Great Barrington, Massachusetts in June 2014.
Data processing decreased $76,000 versus first quarter 2015 and decreased $35,000 versus second quarter 2014 mainly attributable to a reclassification of trust tax filing fees from data processing to consulting fees in first quarter 2015.
Professional fees decreased $57,000 versus first quarter 2015, and increased $249,000 versus second quarter 2014. First quarter 2015 included additional audit expenses related to the Riverside Bank merger. In second quarter 2015, trust tax filing fees were reclassified from data processing to consulting fees.
Collections and OREO related expenses decreased $16,000 versus first quarter 2015 and increased $147,000 versus second quarter 2014. The year-over-year increase is mainly due to the write-down associated with OREO properties in second quarter 2015.
The effective income tax rates for second quarter 2015, first quarter 2015 and second quarter 2014 were 29.96%, 29.90% and 19.85%, respectively.
Loans
Net loans receivable increased $1.0 million during second quarter 2015 to $677.7 million at June 30, 2015, compared with $676.7 million at March 31, 2015, and increased $221.1 million compared with $456.6 million at June 30, 2014. The year-over-year increase includes loans acquired with a fair value of $196.3 million from the Riverside Bank transaction completed in the fourth quarter 2014.
Asset Quality
Non-performing assets increased $0.1 million during second quarter 2015 to $15.0 million, or 1.7% of assets at June 30, 2015, from $14.9 million, or 1.7% of assets at March 31, 2015, and increased $6.2 million from $8.8 million, or 1.4% of assets, at June 30, 2014.
The amount of total impaired and potential problem loans improved to $30.3 million (4.44% of gross loans receivable) during second quarter 2015, compared to $30.9 million, or 4.53% of gross loans receivable at March 31, 2015. While the aggregate of such loans increased $5.3 million from $25.0 million at June 30, 2014, the percentage of such loans improved from 5.43% of gross loans receivable at June 30, 2014.
Accruing loans receivable 30-to-89 days past due decreased $2.8 million during second quarter 2015 to $2.8 million, or 0.41% of gross loans receivable, from $5.6 million, or 0.82% of gross loans receivable at March 31, 2015, and increased $0.5 million versus June 30, 2014.
Provision for loan loss expense was $165,000 for second quarter 2015 versus a benefit of $200,000 in first quarter 2015 and an expense for second quarter 2014 of $314,000. Excluding recoveries of $460,000, provision expense would have been approximately $260,000 for the first quarter 2015. Net loan charge-offs (recoveries) were $320,000 for the second quarter 2015, ($24,000) for first quarter 2015 and $106,000 for second quarter 2014, respectively. Reserve coverage, as measured by the ratio of the allowance for loan losses to gross loans, was 0.74% for the second quarter 2015, versus 0.76% for first quarter 2015 and 1.11% for second quarter 2014. When expressed as a percentage of gross loans, the allowance for loan losses declined significantly from June 30, 2014 to June 30, 2015 due to the increase in the balance of gross loans that resulted from the addition of the loans purchased from Riverside Bank.
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 June 30, 2015, Salisbury’s tier 1 leverage, total risk-based capital, and common equity tier 1 capital ratios were 10.42%, 14.22%, and 11.01%, respectively. The Bank’s tier 1 leverage, total risk-based capital, and common equity tier 1 capital ratios were 9.40%, 12.91%, and 12.12%, respectively, compared with regulatory “well capitalized” minimums of 5.00%, 10.00%, and 6.5%, respectively. Risk based capital information for 2015 incorporates the implementation of Basel III.
At June 30, 2015, Salisbury’s assets totaled $861 million. Book value and tangible book value per common share were $32.26 and $26.69, 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. 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 $48.3 million and to augment its regulatory capital ratios.
Second Quarter 2015 Dividends on Common Shares
The Board of Directors of Salisbury declared a $0.28 per common share quarterly cash dividend at their July 31, 2015 meeting. The dividend will be paid on August 28, 2015 to shareholders of record as of August 14, 2015.
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, Poughkeepsie, and Red Oaks Mill, New York. The Bank offers a full complement 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.
Salisbury Bancorp, Inc. and Subsidiary
CONSOLIDATED BALANCE SHEETS
| (in thousands, except share data) | June 30, 2015 (unaudited) |
December 31, 2014 | ||||||
| ASSETS | ||||||||
| Cash and due from banks | $ | 13,203 | $ | 13,280 | ||||
| Interest bearing demand deposits with other banks | 37,217 | 22,825 | ||||||
| Total cash and cash equivalents | 50,420 | 36,105 | ||||||
| Securities | ||||||||
| Available-for-sale at fair value | 79,417 | 91,312 | ||||||
| Federal Home Loan Bank of Boston stock at cost | 3,515 | 3,515 | ||||||
| Loans held-for-sale | 300 | 568 | ||||||
| Loans receivable, net (allowance for loan losses: $5,059 and $5,358) | 677,726 | 673,330 | ||||||
| Other real estate owned | 268 | 1,002 | ||||||
| Bank premises and equipment, net | 14,020 | 14,431 | ||||||
| Goodwill | 12,552 | 12,552 | ||||||
| Intangible assets (net of accumulated amortization: $2,591 and $2,258) | 2,657 | 2,990 | ||||||
| Accrued interest receivable | 2,292 | 2,334 | ||||||
| Cash surrender value of life insurance policies | 13,499 | 13,314 | ||||||
| Deferred taxes | 2,834 | 2,428 | ||||||
| Other assets | 1,294 | 1,546 | ||||||
| Total Assets | $ | 860,794 | $ | 855,427 | ||||
| LIABILITIES and SHAREHOLDERS' EQUITY | ||||||||
| Deposits | ||||||||
| Demand (non-interest bearing) | $ | 171,022 | $ | 161,386 | ||||
| Demand (interest bearing) | 118,293 | 117,169 | ||||||
| Money market | 173,488 | 174,274 | ||||||
| Savings and other | 123,697 | 121,387 | ||||||
| Certificates of deposit | 134,234 | 141,210 | ||||||
| Total deposits | 720,734 | 715,426 | ||||||
| Repurchase agreements | 2,771 | 4,163 | ||||||
| Federal Home Loan Bank of Boston advances | 28,033 | 28,813 | ||||||
| Capital lease liability | 423 | 424 | ||||||
| Accrued interest and other liabilities | 4,729 | 4,780 | ||||||
| Total Liabilities | 756,690 | 753,606 | ||||||
| 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: 5,000,000 and 3,000,000; | ||||||||
| Issued: 2,731,176 and 2,720,766 | 273 | 272 | ||||||
| Paid-in capital | 41,312 | 41,077 | ||||||
| Retained earnings | 45,378 | 42,677 | ||||||
| Unearned compensation - restricted stock awards | (229 | ) | (313 | ) | ||||
| Accumulated other comprehensive income | 1,370 | 2,108 | ||||||
| Total Shareholders' Equity | 104,104 | 101,821 | ||||||
| Total Liabilities and Shareholders' Equity | $ | 860,794 | $ | 855,427 |
Salisbury Bancorp, Inc. and Subsidiary
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
| Periods ended June 30, | Three months ended | Six months ended | ||||||||||||||
| (in thousands, except per share amounts) | 2015 | 2014 | 2015 | 2014 | ||||||||||||
| Interest and dividend income | ||||||||||||||||
| Interest and fees on loans | $ | 7,850 | $ | 4,731 | $ | 15,772 | $ | 9,327 | ||||||||
| Interest on debt securities | ||||||||||||||||
| Taxable | 298 | 365 | 624 | 745 | ||||||||||||
| Tax exempt | 357 | 432 | 747 | 878 | ||||||||||||
| Other interest and dividends | 40 | 24 | 73 | 45 | ||||||||||||
| Total interest and dividend income | 8,545 | 5,552 | 17,216 | 10,995 | ||||||||||||
| Interest expense | ||||||||||||||||
| Deposits | 453 | 349 | 897 | 700 | ||||||||||||
| Repurchase agreements | 2 | 1 | 3 | 2 | ||||||||||||
| Capital lease | 17 | — | 35 | 18 | ||||||||||||
| Federal Home Loan Bank of Boston advances | 280 | 297 | 562 | 595 | ||||||||||||
| Total interest expense | 752 | 647 | 1,497 | 1,315 | ||||||||||||
| Net interest and dividend income | 7,793 | 4,905 | 15,719 | 9,680 | ||||||||||||
| Provision (benefit) for loan losses | 165 | 314 | (35 | ) | 651 | |||||||||||
| Net interest and dividend income after provision (benefit) for loan losses | 7,628 | 4,591 | 15,754 | 9,029 | ||||||||||||
| Non-interest income | ||||||||||||||||
| Gains on sales of available-for-sale securities, net | 11 | — | 186 | — | ||||||||||||
| Trust and wealth advisory | 890 | 939 | 1,712 | 1,718 | ||||||||||||
| Service charges and fees | 778 | 626 | 1,509 | 1,168 | ||||||||||||
| Gains on sales of mortgage loans, net | 87 | 32 | 181 | 43 | ||||||||||||
| Mortgage servicing, net | 20 | 11 | (20 | ) | 39 | |||||||||||
| Other | 114 | 74 | 228 | 152 | ||||||||||||
| Total non-interest income | 1,900 | 1,682 | 3,796 | 3,120 | ||||||||||||
| Non-interest expense | ||||||||||||||||
| Salaries | 2,449 | 1,951 | 4,989 | 3,795 | ||||||||||||
| Employee benefits | 960 | 739 | 1,965 | 1,480 | ||||||||||||
| Premises and equipment | 913 | 701 | 1,821 | 1,374 | ||||||||||||
| Data processing | 398 | 433 | 872 | 788 | ||||||||||||
| Professional fees | 593 | 344 | 1,243 | 706 | ||||||||||||
| Collections and OREO | 228 | 85 | 472 | 221 | ||||||||||||
| FDIC insurance | 133 | 124 | 331 | 221 | ||||||||||||
| Marketing and community support | 180 | 127 | 290 | 240 | ||||||||||||
| Amortization of core deposit intangibles | 164 | 63 | 333 | 118 | ||||||||||||
| Merger and acquisition related expenses | — | 90 | — | 391 | ||||||||||||
| Other | 553 | 411 | 1,090 | 844 | ||||||||||||
| Total non-interest expense | 6,571 | 5,068 | 13,406 | 10,178 | ||||||||||||
| Income before income taxes | 2,957 | 1,205 | 6,144 | 1,971 | ||||||||||||
| Income tax provision | 885 | 239 | 1,838 | 454 | ||||||||||||
| Net income | $ | 2,072 | $ | 966 | $ | 4,306 | $ | 1,517 | ||||||||
| Net income available to common shareholders | $ | 2,032 | $ | 926 | $ | 4,226 | $ | 1,431 | ||||||||
| Basic earnings per common share | $ | 0.74 | $ | 0.54 | $ | 1.55 | $ | 0.83 | ||||||||
| Diluted earnings per common share | 0.74 | 0.54 | 1.54 | 0.83 | ||||||||||||
| Common dividends per share | 0.28 | 0.28 | 0.56 | 0.56 | ||||||||||||
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) | Q2 2015 | Q1 2015 | Q4 2014 | Q3 2014 | Q2 2014 | |||||||||||||||
| Total assets | $ | 860,794 | $ | 865,037 | $ | 855,427 | $ | 638,089 | $ | 621,476 | ||||||||||
| Loans receivable, net | 677,726 | 676,734 | 673,330 | 461,913 | 456,627 | |||||||||||||||
| Total securities | 82,932 | 84,694 | 94,827 | 88,960 | 92,884 | |||||||||||||||
| Deposits | 720,734 | 724,910 | 715,426 | 522,294 | 507,361 | |||||||||||||||
| FHLBB advances | 28,033 | 28,403 | 28,813 | 29,218 | 29,619 | |||||||||||||||
| Shareholders’ equity | 104,104 | 103,211 | 101,821 | 75,516 | 75,000 | |||||||||||||||
| Wealth assets under management | 374,141 | 384,574 | 385,316 | 416,510 | 429,093 | |||||||||||||||
| Non-performing loans | 14,728 | 14,000 | 9,890 | 8,611 | 8,379 | |||||||||||||||
| Non-performing assets | 14,995 | 14,875 | 10,892 | 8,945 | 8,757 | |||||||||||||||
| Accruing loans past due 30-89 days | 2,799 | 5,564 | 4,128 | 1,294 | 2,306 | |||||||||||||||
| Net interest and dividend income | 7,793 | 7,926 | 5,717 | 4,754 | 4,905 | |||||||||||||||
| Net interest and dividend income, tax equivalent | 8,084 | 8,238 | 6,038 | 5,075 | 5,227 | |||||||||||||||
| Provision (benefit) for loan losses | 165 | (200 | ) | 165 | 318 | 314 | ||||||||||||||
| Non-interest income | 1,900 | 1,896 | 1,579 | 1,553 | 1,682 | |||||||||||||||
| Non-interest expense | 6,571 | 6,835 | 6,852 | 5,108 | 5,068 | |||||||||||||||
| Income before income taxes | 2,957 | 3,187 | 279 | 881 | 1,205 | |||||||||||||||
| Income tax provision | 885 | 953 | 43 | 113 | 239 | |||||||||||||||
| Net income | 2,072 | 2,234 | 236 | 768 | 966 | |||||||||||||||
| Net income available to common shareholders | 2,032 | 2,194 | 196 | 728 | 926 | |||||||||||||||
| Per share data | ||||||||||||||||||||
| Basic earnings per common share | $ | 0.74 | $ | 0.81 | $ | 0.10 | $ | 0.43 | $ | 0.54 | ||||||||||
| Diluted earnings per common share | 0.74 | 0.80 | 0.10 | 0.43 | 0.54 | |||||||||||||||
| Dividends per common share | 0.28 | 0.28 | 0.28 | 0.28 | 0.28 | |||||||||||||||
| Book value per common share | 32.26 | 31.96 | 31.54 | 34.74 | 34.44 | |||||||||||||||
| Tangible book value per common share - Non-GAAP⁽¹⁾ | 26.69 | 26.33 | 25.84 | 28.50 | 28.15 | |||||||||||||||
| Common shares outstanding at end of period | 2,731 | 2,729 | 2,721 | 1,713 | 1,713 | |||||||||||||||
| Weighted average common shares outstanding, to calculate basic earnings per share | 2,706 | 2,699 | 1,977 | 1,693 | 1,691 | |||||||||||||||
| Weighted average common shares outstanding, to calculate diluted earnings per share | 2,724 | 2,716 | 1,981 | 1,693 | 1,691 | |||||||||||||||
Profitability ratios | ||||||||||||||||||||
| Net interest margin (tax equivalent) | 4.01 | % | 4.11 | % | 3.68 | % | 3.39 | % | 3.74 | % | ||||||||||
| Efficiency ratio(2) | 62.91 | 65.45 | 77.84 | 75.92 | 72.35 | |||||||||||||||
| Non-interest income to operating revenue | 19.51 | 17.84 | 21.65 | 24.62 | 25.54 | |||||||||||||||
| Effective income tax rate | 29.96 | 29.90 | 15.41 | 12.82 | 19.85 | |||||||||||||||
| Return on average assets | 0.94 | 1.03 | 0.11 | 0.45 | 0.62 | |||||||||||||||
| Return on average common shareholders’ equity | 9.26 | 10.22 | 1.18 | 4.85 | 6.32 | |||||||||||||||
| Credit quality ratios | ||||||||||||||||||||
| Net charge-offs to average loans receivable, gross | 0.19 | % | -0.01 | % | 0.14 | % | 0.03 | % | 0.09 | % | ||||||||||
| Non-performing loans to loans receivable, gross | 2.16 | 2.05 | 1.46 | 1.84 | 1.82 | |||||||||||||||
| Accruing loans past due 30-89 days to loans receivable, gross | 0.41 | 0.82 | 0.61 | 0.28 | 0.50 | |||||||||||||||
| Allowance for loan losses to loans receivable, gross | 0.74 | 0.76 | 0.79 | 1.15 | 1.11 | |||||||||||||||
| Allowance for loan losses to non-performing loans | 34.35 | 37.02 | 54.18 | 62.52 | 60.89 | |||||||||||||||
| Non-performing assets to total assets | 1.74 | 1.72 | 1.27 | 1.40 | 1.41 | |||||||||||||||
| Capital ratios | ||||||||||||||||||||
| Common shareholders' equity to assets | 10.24 | % | 10.08 | % | 10.03 | % | 9.33 | % | 9.49 | % | ||||||||||
| Tangible common shareholders' equity to tangible assets - Non-GAAP⁽¹⁾ | 8.62 | 8.45 | 8.37 | 7.78 | 7.90 | |||||||||||||||
| Tier 1 leverage capital | 10.42 | 10.29 | 12.31 | 9.85 | 10.50 | |||||||||||||||
| Total risk-based capital | 14.22 | 13.65 | 14.29 | 16.27 | 16.11 | |||||||||||||||
| Common equity tier 1 capital | 11.01 | 10.50 | N/A | N/A | N/A | |||||||||||||||
(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 and nonrecurring FHLBB prepayment fees and litigation expenses.
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) | Q2 2015 | Q1 2015 | Q4 2014 | Q3 2014 | Q2 2014 | |||||||||||||||
| Shareholders' Equity | $ | 104,104 | $ | 103,211 | $ | 101,821 | $ | 75,516 | $ | 75,000 | ||||||||||
| Less: Preferred Stock | (16,000 | ) | (16,000 | ) | (16,000 | ) | (16,000 | ) | (16,000 | ) | ||||||||||
| Common Shareholders' Equity | 88,104 | 87,211 | 85,821 | 59,516 | 59,000 | |||||||||||||||
| Less: Goodwill | (12,552 | ) | (12,552 | ) | (12,552 | ) | (9,829 | ) | (9,829 | ) | ||||||||||
| Less: Intangible assets | (2,657 | ) | (2,821 | ) | (2,990 | ) | (872 | ) | (946 | ) | ||||||||||
| Tangible Common Shareholders' Equity | $ | 72,895 | $ | 71,838 | $ | 70,279 | $ | 48,815 | $ | 48,225 | ||||||||||
| Total Assets | $ | 860,794 | $ | 865,037 | $ | 855,427 | $ | 638,089 | $ | 621,476 | ||||||||||
| Less: Goodwill | (12,552 | ) | (12,552 | ) | (12,552 | ) | (9,829 | ) | (9,829 | ) | ||||||||||
| Less: Intangible assets | (2,657 | ) | (2,821 | ) | (2,990 | ) | (872 | ) | (946 | ) | ||||||||||
| Tangible Total Assets | $ | 845,585 | $ | 849,664 | $ | 839,885 | $ | 627,388 | $ | 610,701 | ||||||||||
| Common Shares outstanding | 2,731 | 2,729 | 2,721 | 1,713 | 1,713 | |||||||||||||||
| Book value per Common Share – GAAP | $ | 32.26 | $ | 31.96 | $ | 31.54 | $ | 34.74 | $ | 34.44 | ||||||||||
| Tangible book value per Common Share - Non-GAAP | 26.69 | 26.33 | 25.84 | 28.50 | 28.15 | |||||||||||||||
| Common Shareholders’ Equity to Assets – GAAP | 10.24 | % | 10.08 | % | 10.03 | % | 9.33 | % | 9.49 | % | ||||||||||
| Tangible Common Shareholders’ Equity to Tangible Assets – Non-GAAP | 8.62 | 8.45 | 8.37 | 7.78 | 7.90 | |||||||||||||||
| Non-interest expense | $ | 6,571 | $ | 6,835 | $ | 6,852 | $ | 5,108 | $ | 5,068 | ||||||||||
| Less: Amortization of core deposit intangibles | (164 | ) | (169 | ) | (97 | ) | (75 | ) | (63 | ) | ||||||||||
| Less: Foreclosed property expense | (131 | ) | (148 | ) | (114 | ) | (1 | ) | (5 | ) | ||||||||||
| Less: Strategic initiatives | — | — | (1,596 | ) | (197 | ) | (90 | ) | ||||||||||||
| Operating expenses | $ | 6,276 | $ | 6,518 | $ | 5,045 | $ | 4,835 | $ | 4,910 | ||||||||||
| Net interest and dividend income, tax equivalent | $ | 8,084 | $ | 8,238 | $ | 6,038 | $ | 5,075 | $ | 5,227 | ||||||||||
| Non-interest income | 1,900 | 1,896 | 1,579 | 1,553 | 1,682 | |||||||||||||||
| Gains on securities, net | (11 | ) | (175 | ) | — | — | — | |||||||||||||
| Operating revenue | $ | 9,973 | $ | 9,959 | $ | 7,617 | $ | 6,628 | $ | 6,909 | ||||||||||
| Efficiency Ratio less strategic initiatives | 62.91 | % | 65.45 | % | 66.19 | % | 72.94 | % | 71.07 | % | ||||||||||