SELECTED QUARTERLY CONSOLIDATED FINANCIAL DATA (Unaudited)

12 Months Ended

Dec. 31, 2011

Selected Quarterly Consolidated Financial Data

SELECTED QUARTERLY CONSOLIDATED FINANCIAL DATA (Unaudited)

NOTE 23 – SELECTED QUARTERLY CONSOLIDATED FINANCIAL DATA (Unaudited)

Selected quarterly consolidated financial data for the years ended December 31, 2011 and 2010 is as follows:

Year ended December 31, 2011 (in thousands, except ratios and per share amounts)	Q1 2011			Q2 2011			Q3 2011			Q4 2011
Statement of Income
Interest and dividend income	$	6,039		$	6,020		$	5,956		$	6,029
Interest expense		1,532			1,403			1,333			1,291
Net interest and dividend income		4,507			4,617			4,623			4,738
Provision for loan losses		330			350			180			580
Trust and Wealth Advisory		667			596			599			686
Service charges and fees		499			522			535			534
Gains on sales of mortgage loans, net		133			59			177			318
Mortgage servicing, net		32			(5	)		(35	)		74
Securities gains		11			—			—			—
Other		59			58			58			79
Non-interest income		1,401			1,230			1,334			1,691
Non-interest expense		4,424			4,432			4,534			4,249
Income before income taxes		1,154			1,065			1,243			1,600
Income tax provision		211			183			204			352
Net income		943			882			1,039			1,248
Net income available to common shareholders		828			766			810			1,184
Financial Condition
Total assets	$	576,894		$	588,315		$	618,958		$	609,284
Loans, net		361,243			364,854			362,879			370,766
Allowance for loan losses		3,978			3,979			4,027			4,076
Securities		131,310			145,492			157,162			161,876
Deposits		452,379			459,029			478,591			471,306
Repurchase agreements		8,241			12,359			14,787			12,148
FHLBB advances		55,888			55,460			55,033			54,615
Shareholders’ equity		55,948			58,109			67,387			66,862
Non-performing assets		11,741			15,015			13,948			10,819
Per Common Share Data
Earnings, diluted and basic	$	0.49		$	0.45		$	0.48		$	0.70
Cash dividends declared		0.28			0.28			0.28			0.28
Cash dividends paid		0.28			0.28			0.28			0.28
Book value		27.92			29.17			30.39			30.12
Market price: (a)
High		28.00			28.12			27.76			25.00
Low		24.51			24.02			21.23			21.32
Statistical Data
Net interest margin (fully tax equivalent)		3.56	%		3.56	%		3.43	%		3.49	%
Efficiency ratio (fully tax equivalent)		69.77			69.43			70.93			62.83
Return on average assets		0.59			0.53			0.57			0.77
Return on average shareholders’ equity		7.24			6.38			6.61			9.21
Weighted average equivalent shares outstanding, diluted		1,688			1,689			1,689			1,689

(a) The above market prices reflect inter-dealer prices, without retail markup, markdown or commissions, and may not necessarily represent actual transactions.

Salisbury Bancorp, Inc.’s Common Stock, par value $.10 per share (“Common Stock”) trades on the NYSE Amex Equities Market under the symbol: SAL. As of March 1, 2012, there were 1,530 shareholders of record of Salisbury’s Common Stock.

Selected quarterly consolidated financial data (unaudited) continued:

Year ended December 31, 2010 (in thousands, except ratios and per share amounts)	Q1 2010			Q2 2010			Q3 2010			Q4 2010
Statement of Income
Interest and dividend income	$	6,019		$	6,231		$	6,206		$	6,200
Interest expense		1,983			1,905			1,851			1,758
Net interest and dividend income		4,036			4,326			4,355			4,442
Provision for loan losses		180			260			180			380
Trust and Wealth Advisory		545			491			471			595
Service charges and fees		469			525			581			526
Gains on sales of mortgage loans, net		60			141			297			391
Mortgage servicing, net		15			9			(52	)		52
Securities gains		—			1			16			—
Other		57			89			63			62
Non-interest income		1,146			1,256			1,376			1,626
Non-interest expense		4,329			4,272			4,368			4,241
Income before income taxes		673			1,050			1,183			1,446
Income tax provision		79			172			236			206
Net income		594			878			946			1,240
Net income available to common shareholders		479			763			832			1,125
Financial Condition
Total assets	$	563,118		$	542,181		$	583,753		$	575,470
Loans, net		329,599			342,130			340,387			352,449
Allowance for loan losses		3,649			3,768			3,847			3,920
Securities		172,271			161,514			156,441			153,511
Deposits		422,489			423,990			431,521			430,289
Repurchase agreements		7,973			8,120			16,333			13,190
FHLBB advances		75,356			74,946			74,532			72,812
Shareholders’ equity		53,023			54,389			57,430			55,016
Non-performing assets		12,339			11,520			10,916			10,751
Per Common Share Data
Earnings, diluted and basic	$	0.28		$	0.45		$	0.49		$	0.67
Cash dividends declared		0.28			0.28			0.28			0.28
Cash dividends paid		0.28			0.28			0.28			0.28
Book value		26.21			27.00			28.81			27.37
Market price: (a)
High		28.00			26.74			24.80			26.15
Low		21.00			21.50			21.77			21.86
Statistical Data
Net interest margin (fully tax equivalent)		3.25	%		3.41	%		3.39	%		3.44	%
Efficiency ratio (fully tax equivalent)		78.13			77.82			71.95			65.55
Return on average assets		0.34			0.54			0.57			0.77
Return on average shareholders’ equity		4.34			6.77			7.04			9.25
Weighted average equivalent shares outstanding, diluted		1,686			1,686			1,686			1,687

(a) The above market prices reflect inter-dealer prices, without retail markup, markdown or commissions, and may not necessarily represent actual transactions.