SALISBURY BANCORP (PARENT ONLY) CONDENSED FINANCIAL INFORMATION

12 Months Ended

Dec. 31, 2011

Salisbury Bancorp Parent Only Condensed Financial Information

SALISBURY BANCORP (PARENT ONLY) CONDENSED FINANCIAL INFORMATION

NOTE 21 – SALISBURY BANCORP (PARENT ONLY) CONDENSED FINANCIAL INFORMATION

The unconsolidated balance sheets and statements of income and cash flows of Salisbury Bancorp, Inc. are presented as follows:

Balance Sheets Years ended December 31, (in thousands)	2011		2010
Assets
Cash and due from banks	$	9,082	$	8,473
Securities available-for-sale		1,103		1,130
Investment in bank subsidiary		56,720		45,408
Other assets		25		5
Total Assets	$	66,930	$	55,016
Liabilities and Shareholders’ Equity
Liabilities	$	68	$	—
Shareholders’ equity		66,862		55,016
Total Liabilities and Shareholders’ Equity	$	66,930	$	55,016

Statements of Income Years ended December 31, (in thousands)	2011		2010		2009
Dividends from subsidiary	$	2,372	$	2,280	$	1,500
Interest on securities (taxable)		99		105		101
Expenses		116		105		145
Income before taxes and equity in undistributed net income of subsidiary		2,355		2,280		1,456
Income tax benefit		—		—		(15	)
Income before equity in undistributed net income of subsidiary		2,355		2,280		1,471
Equity in undistributed net income of subsidiary		1,757		1,380		996
Net income	$	4,112	$	3,660	$	2,467

Statements of Cash Flows Years ended December 31, (in thousands)	2011			2010			2009
Net income	$	4,112		$	3,660		$	2,467
Adjustments to reconcile net income to
net cash provided by operating activities:
Equity in undistributed net income of subsidiary		(1,757	)		(1,380	)		(996	)
Accretion of securities		(11	)		(11	)		(10	)
Other		(3	)		13			(22	)
Net cash provided by operating activities		2,341			2,282			1,439
Investing Activities
Investment in bank		(6,466	)		—			—
Purchases of securities available-for-sale		—			—			(8,068	)
Maturities of securities available-for-sale		—			2,000			5,000
Net cash provided (utilized) by investing activities		(6,466	)		2,000			(3,068	)
Financing Activities
Common stock dividends paid		(1,891	)		(1,890	)		(1,889	)
Preferred stock dividends paid		(382	)		(441	)		(296	)
Payment to repurchase Preferred Stock		(8,816	)		—			—
Payment to repurchase warrants		(205	)		—			—
Proceeds from issuance of Common Stock		28			23			19
Proceeds from issuance of Preferred Stock		16,000			—			8,816
Net cash (utilized) provided by financing activities		4,734			(2,308	)		6,650
Increase in cash and cash equivalents		609			1,974			5,021
Cash and cash equivalents, beginning of period		8,473			6,499			1,478
Cash and cash equivalents, end of period	$	9,082		$	8,473		$	6,499