EX-99.1 2 sal0420form8kexh99_1.htm EXHIBIT 99.1

Exhibit 99.1

 

Wednesday, April 20, 2022

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 FIRST QUARTER 2022

 

·First Quarter 2022 Net Income of $1.24 per Basic Common Share
·Common Equity Tier 1 and Total Capital Ratios of 12.8% and 14.0%, Respectively
·Non-performing Assets were 0.19% of Total Assets Compared with 0.27% at December 31, 2021
·Announced the Renewal of a Share Repurchase Program

 

Lakeville, Connecticut, April 20, 2022 /GlobeNewswire…..Salisbury Bancorp, Inc. (“Salisbury”), (NASDAQ Capital Market: “SAL”), the holding company for Salisbury Bank and Trust Company (the “Bank”), announced results for its first quarter ended March 31, 2022.

Net income available to common shareholders was $3.5 million, or $1.24 per basic common share, for Salisbury’s first quarter ended March 31, 2022 (first quarter 2022), compared with $4.1 million, or $1.45 per basic common share, for the fourth quarter ended December 31, 2021 (fourth quarter 2021), and $4.5 million, or $1.59 per basic common share, for the first quarter ended March 31, 2021 (first quarter 2021).

Salisbury’s President and Chief Executive Officer, Richard J. Cantele, Jr., stated, “We reported solid earnings, strong credit quality metrics and robust capital ratios for first quarter 2022 as we continue to invest in building out the foundation for prudent future growth. While our residential mortgage pipeline has begun to normalize back to pre-pandemic levels, our commercial pipeline is very strong. We are cautiously optimistic that the business environment will remain favorable despite the headwinds of high inflation, rising interest rates, and geo-political tensions. We remain focused on maintaining rigorous underwriting standards and driving profitable growth across our markets while continuing to provide outstanding customer service.”

Net Interest and Dividend Income

Tax equivalent net interest income of $10.5 million for the first quarter 2022 decreased $251 thousand, or 2.3%, versus fourth quarter 2021, and decreased $36 thousand, or 0.3%, versus first quarter 2021. Tax equivalent interest income of $11.3 million for first quarter 2022 decreased $248 thousand, or 2.1%, versus fourth quarter 2021 and increased $30 thousand, or 0.3%, from first quarter 2021.

The cost of interest-bearing liabilities of $812 thousand for first quarter 2022 was essentially unchanged from fourth quarter 2021 and increased $66 thousand, or 8.8%, from first quarter 2021.

Average earning assets of $1.4 billion for first quarter 2022 declined $8.9 million, or 0.6%, from fourth quarter 2021, and increased $154.6 million, or 12.3%, versus first quarter 2021. Average earning assets for first quarter 2022 included average PPP loan balances of $18.7 million, net of deferred fees. Average total interest bearing liabilities of $1.0 billion for first quarter 2022 increased $5.1 million, or 0.5%, from fourth quarter 2021 and increased $89.9 million, or 10.4%, versus first quarter 2021.

The tax equivalent net interest margin for first quarter 2022 was 2.95% compared with 2.99% for fourth quarter 2021 and 3.34% for first quarter 2021. Excluding PPP loans, the tax equivalent net interest margin for first quarter 2022 was 2.86% compared with 2.87% for fourth quarter 2021 and 3.16% for first quarter 2021. See SUPPLEMENTAL INFORMATION – Net Interest and Dividend Income on page 9 of this release for additional details.

Non-Interest Income

Non-interest income of $3.1 million for first quarter 2022 increased $247 thousand versus fourth quarter 2021 and increased $253 thousand versus first quarter 2021.

Trust and Wealth Advisory fees of $1.2 million for first quarter 2022 decreased $45 thousand from fourth quarter 2021 and increased $95 thousand versus first quarter 2021. The variances primarily reflected fluctuations in asset-based fees. Assets under administration were $1.0 billion at March 31, 2022 compared with $1.1 billion at December 31, 2021 and $902.1 million at March 31, 2021. Discretionary assets under administration of $625.3 million in first quarter 2022 compared with $657.8 million in fourth quarter 2021 and $578.2 million in first quarter 2021. The fluctuations in value primarily reflected changes in market valuations. Non-discretionary assets under administration of $423.9 million in first quarter 2022 declined slightly from $425.4 million in fourth quarter 2021 and increased from $323.9 million in first quarter 2021. The increase in non-discretionary assets from first quarter 2021 primarily reflected the addition of partnership assets under administration for the same client relationship. The trust and wealth business records only a nominal annual fee on this relationship.

Service charges and fees of $1.1 million for first quarter 2022 decreased $148 thousand versus fourth quarter 2021 and increased $188 thousand versus first quarter 2021. The decrease from fourth quarter 2021 primarily reflected lower interchange and lower loan prepayment fees. The increase from first quarter 2021 primarily reflected higher deposit fees. Income from mortgage sales and servicing increased $28 thousand versus fourth quarter 2021 and decreased $492 thousand versus first quarter 2021. The decrease from first quarter 2021 reflected a lower volume of sales of residential mortgage loans to the FHLB Boston.

Non-interest income for first quarter 2022 included a pre-tax gain on the sale of available-for-sale (“AFS”) securities of $210 thousand. Salisbury did not recognize any gains or losses on the sale of AFS securities in the comparative periods. Other non-interest income for first quarter 2022 included a pre-tax gain of $239 thousand on the sale of $3.8 million of commercial and residential loans.

Non-Interest Expense

Non-interest expense of $8.7 million for first quarter 2022 increased $182 thousand versus fourth quarter 2021 and increased $1.4 million versus first quarter 2021. Non-interest expense for first quarter 2022 included two isolated instances of debit card or check cashing fraud-related losses aggregating $251 thousand. Compensation expense of $4.8 million for first quarter 2022 decreased slightly from fourth quarter 2021 and increased $543 thousand versus first quarter 2021. The increase from first quarter 2021 primarily reflected higher salary, production and incentive accruals and significantly lower deferred loan origination expenses due to the processing of PPP loans in first quarter 2021.

Excluding compensation, other non-interest expenses for first quarter 2022 increased $212 thousand from fourth quarter 2021 and increased $851 thousand from first quarter 2021. The increase from fourth quarter 2021 primarily reflected the fraud losses noted above as well as higher professional fees and information processing expenses, partially offset by lower marketing expenses. The increase from first quarter 2021 primarily reflected the fraud related charges as well as higher facilities, information processing and marketing expenses.

The effective income tax rates for first quarter 2022, fourth quarter 2021 and first quarter 2021 were 18.6%, 19.1% and 21.6%, respectively. The lower tax rate in first quarter 2022 primarily reflected a higher mix of tax-exempt income from municipal bonds and tax advantaged loans on a comparatively lower level of pre-tax income.

Loans

Gross loans receivable of $1.1 billion were essentially unchanged from December 31, 2021, and increased $24.0 million, or 2.3%, from March 31, 2021. Excluding PPP loans, gross loans receivable increased $11.3 million, or 1.1%, from fourth quarter 2021 and $107.4 million, or 11.2%, from first quarter 2021. Approximately $5.5 million of residential loans were sold to FHLB Boston in first quarter 2022 compared with $4.2 million during fourth quarter 2021 and $21.3 million in first quarter 2021. The ratio of gross loans to deposits for first quarter 2022 was 83.6% compared with 80.8% for fourth quarter 2021 and 87.1% for first quarter 2021. Balances by loan type for the comparative periods were as follows:

Loan Type    Q1 2022      Q4 2021      Q1 2021  
Residential Real Estate  $478,677   $468,464   $418,991 
Commercial Real Estate   376,088    369,761    341,142 
Commercial & Industrial ex PPP Loans   163,832    169,543    152,388 
PPP Loans   13,666    25,589    96,969 
Commercial & Industrial – Total   177,498    195,132    249,357 
Farm Land   2,778    2,807    3,606 
Vacant Land   14,710    14,182    13,228 
Municipal   14,263    16,534    21,495 
Consumer   14,356    12,547    8,617 
Deferred Costs/(Fees)   761    285    (1,365)
Gross Loans Receivable  $1,079,131   $1,079,712   $1,055,071 
Gross Loans Receivable ex PPP  $1,065,465   $1,054,123   $958,102 

 

Asset Quality

Asset quality continued to improve during the quarter. Non-performing assets decreased $1.4 million during the first quarter to $2.8 million, or 0.19% of total assets at March 31, 2022, from $4.2 million, or 0.27% of total assets at December 31, 2021, and decreased $2.9 million from $5.7 million, or 0.41% of total assets, at March 31, 2021.

The amount of total impaired and potential problem loans decreased during the quarter to $27.3 million or 2.53% of gross loans receivable at March 31, 2022 compared to $32.8 million, or 3.04% of gross loans receivable at December 31, 2021 and $48.9 million, or 4.64% of gross loans receivable at March 31, 2021.

Accruing loans receivable 30-to-89 days past due increased $1.0 million during first quarter 2022 to $2.3 million, or 0.22% of gross loans receivable, from $1.3 million, or 0.12% of gross loans receivable at December 31, 2021, and decreased $0.1 million from $2.4 million, or 0.23% of gross loans receivable at March 31, 2021.

The allowance for loan losses for first quarter 2022 was $12.9 million compared with $13.0 million for fourth quarter 2021 and $13.9 million for first quarter 2021.The provision expense was $363 thousand for first quarter 2022 compared with a net reserve release of $202 thousand for fourth quarter 2021 and a provision expense of $158 thousand for the first quarter 2021. The provision expense for first quarter 2022 primarily offset net loan charge-offs (recoveries), which were $410 thousand for the first quarter 2022, $3 thousand for fourth quarter 2021 and $25 thousand for the first quarter 2021. Net charge-offs for first quarter 2022 included a write-down of $374 thousand to reduce the carrying value on $3.8 million of non-performing and under-performing residential and commercial loans, which Salisbury sold during the quarter, to the initial bid prices. The proceeds from the sale subsequently increased by approximately $239 thousand due to higher final bids. This increase was recorded as a pre-tax gain on sale in mortgage banking activities, net in Salisbury’s consolidated statement of income.

Reserve coverage, as measured by the ratio of the allowance for loan losses to gross loans, excluding PPP loans, was 1.21% for the first quarter 2022 versus 1.23% for the fourth quarter 2021 and 1.45% for the first quarter 2021. Similarly, reserve coverage, as measured by the ratio of the allowance for loan losses to non-performing loans was 467% for the first quarter 2022 versus 309% for fourth quarter 2021 and 243% for first quarter 2021.

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.

Deposits and Borrowings

Deposits of $1.3 billion at March 31, 2022 decreased $45.7 million, or 3.4%, from December 31, 2021 and increased $79.3 million, or 6.6%, from March 31, 2021. At March 31, 2022, Salisbury did not have any outstanding brokered deposits compared with balances of $7.9 million at December 31, 2021 and $18.0 million at March 31, 2021. Average total deposits for the first quarter 2022 were $1.3 billion compared with $1.3 billion for the fourth quarter 2021 and $1.2 billion for the first quarter 2021.

Advances from FHLBB were $0.4 million at March 31, 2022 compared with $7.7 million and $11.4 million at December 31, 2021 and March 31, 2021, respectively. In first quarter 2022, Salisbury paid-off of a $6.0 million FHLB advance due in December 2022. Salisbury’s excess borrowing capacity at FHLBB was approximately $251 million at March 31, 2022.

Capital

Shareholders’ equity decreased $6.5 million in first quarter to $130.1 million at March 31, 2022 as unrealized losses in the available-for-sale securities (“AFS”) portfolio of $9.3 million and common stock dividends paid of $0.9 million were partially offset by net income of $3.6 million and other activity of $0.1 million. The unrealized losses in the AFS portfolio, which reflected the sharp increase in market interest rates during first quarter 2022, reduced both book value and tangible book value at March 31, 2022. Book value per common share of $45.12 at March 31, 2022 decreased $2.61 from fourth quarter 2021 and increased $0.40 from first quarter 2021. Tangible book value per common share of $40.20 at March 31, 2022 decreased $2.56 from fourth quarter 2021 and increased $0.55 from first quarter 2021.

The Bank’s regulatory capital ratios remain in compliance with regulatory “well capitalized” requirements. At March 31, 2022, the Bank’s Tier 1 leverage, total risk-based capital, and common equity tier 1 capital ratios were 9.66%, 13.98%, and 12.80%, respectively, compared with regulatory “well capitalized” minimums of 5.00%, 10.00%, and 6.5%, respectively. The unrealized losses in the AFS portfolio noted above do not affect the Bank’s regulatory capital ratios.

During first quarter 2022, Salisbury did not repurchase any of its outstanding common stock pursuant to its stock repurchase program established in March 2021. In March 2022, Salisbury’s Board of Directors approved the renewal of this program which authorizes Salisbury to repurchase Salisbury’s common stock in amounts up to an aggregate of five percent (5%) of the outstanding shares of Salisbury’s common stock from time to time over a period of twelve (12) months.

Dividend on Common Shares

On April 20, 2022, the Board of Directors of Salisbury approved a quarterly cash dividend of $0.32 per common share that will be paid on May 27, 2022 to shareholders of record as of May 13, 2022.

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, New Paltz, Poughkeepsie, and Red Oaks Mill, New York. The Bank offers a broad spectrum of consumer and business banking products and services, as well as trust and wealth advisory services. For more information, please visit www.salisburybank.com.

Forward-Looking Statements

This news release may contain statements relating to Salisbury’s and the Bank’s future results that are considered “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 laws and regulations; changes in accounting principles; and the quality or composition of the loan and investment portfolios, technological changes and cybersecurity matters, and other factors that may be described in Salisbury’s quarterly reports on Form 10-Q and its annual report on Form 10-K, which are available at the Securities and Exchange Commission’s website (www.sec.gov) and to which reference is hereby made. Forward-looking statements made by Salisbury in this news release speak only as of the date they are made. Events or other facts that could cause Salisbury’s actual results to differ may arise from time to time and Salisbury cannot predict all such events and factors. Salisbury undertakes no obligation to publicly update any forward-looking statement unless as may be required by law.

Investor presentation slides, which include a review of financial results and trends through the period ended March 31, 2022, are available in the Shareholder Relations section of Salisbury’s website at salisburybank.com under About Us/Shareholder Relations/News & Market Information/Presentations.

   

 

Salisbury Bancorp, Inc. and Subsidiary

CONSOLIDATED BALANCE SHEETS (unaudited)

(in thousands, except share data)    March 31, 2022      December 31, 2021  
ASSETS          
Cash and due from banks  $4,814   $6,404 
Interest bearing demand deposits with other banks   94,047    168,931 
Total cash and cash equivalents   98,861    175,335 
Interest bearing Time Deposits with Financial Institutions   750    750 
Securities          
Available-for-sale at fair value   215,652    202,396 
CRA mutual fund at fair value   862    901 
Federal Home Loan Bank of Boston stock at cost   1,077    1,397 
Loans held-for-sale   1,070    2,684 
Loans receivable, net (allowance for loan losses: $12,915 and $12,962)   1,066,216    1,066,750 
Bank premises and equipment, net   22,856    22,625 
Goodwill   13,815    13,815 
Intangible assets (net of accumulated amortization: $5,517 and $5,463)   364    418 
Accrued interest receivable   5,895    6,260 
Cash surrender value of life insurance policies   27,900    27,738 
Deferred taxes   4,591    2,588 
Other assets   5,173    5,527 
Total Assets  $1,465,082   $1,529,184 
LIABILITIES and SHAREHOLDERS' EQUITY          
Deposits          
Demand (non-interest bearing)  $370,082   $416,073 
Demand (interest bearing)   233,893    233,600 
Money market   317,462    330,436 
Savings and other   240,824    237,075 
Certificates of deposit   128,213    119,009 
Total deposits   1,290,474    1,336,193 
Repurchase agreements   8,161    11,430 
Federal Home Loan Bank of Boston advances   419    7,656 
Subordinated debt   24,488    24,474 
Note payable   159    170 
Finance lease obligations   4,363    4,107 
Accrued interest and other liabilities   6,952    8,554 
Total Liabilities   1,335,016    1,392,584 
Shareholders' Equity          
Common stock - $0.10 per share par value          
Authorized: 5,000,000;          
Issued: 2,882,458 and 2,861,697          
Outstanding: 2,882,458 and 2,861,697   288    286 
Unearned compensation – restricted stock awards   (1,550)   (925)
Paid-in capital   47,099    46,374 
Retained earnings   92,648    89,995 
Accumulated other comprehensive (loss) income, net   (8,419)   870 
Total Shareholders' Equity   130,066    136,600 
Total Liabilities and Shareholders' Equity  $1,465,082   $1,529,184 

 

   

 

Salisbury Bancorp, Inc. and Subsidiary

CONSOLIDATED STATEMENTS OF INCOME (unaudited)

Three months ended March 31, (in thousands, except per share amounts)    2022      2021  
Interest and dividend income          
Interest and fees on loans  $10,163   $10,477 
Interest on debt securities          
Taxable   724    423 
Tax exempt   174    162 
Other interest and dividends   57    34 
Total interest and dividend income   11,118    11,096 
Interest expense          
Deposits   478    555 
Repurchase agreements   3    3 
Finance lease   41    32 
Note payable   2    3 
Subordinated debt   233    119 
Federal Home Loan Bank of Boston advances   55    34 
Total interest expense   812    746 
Net interest and dividend income   10,306    10,350 
Provision for loan losses   363    158 
Net interest and dividend income after provision for loan losses   9,943    10,192 
Non-interest income          
Trust and wealth advisory   1,241    1,146 
Service charges and fees   1,138    950 
Mortgage banking activities, net   355    608 
(Losses) on CRA mutual fund   (42)   (16)
Gains on securities, net   210    — 
Bank-owned life insurance (“BOLI”) income   162    125 
Other   30    28 
Total non-interest income   3,094    2,841 
Non-interest expense          
Salaries   3,479    2,901 
Employee benefits   1,277    1,312 
Premises and equipment   1,104    954 
Loss on sale of assets   9    — 
Information processing and services   685    565 
Professional fees   787    711 
Collections, OREO, and loan related   117    84 
FDIC insurance   171    145 
Marketing and community support   184    82 
Amortization of intangibles   54    71 
Other   786    434 
Total non-interest expense   8,653    7,259 
Income before income taxes   4,384    5,774 
Income tax provision   816    1,248 
Net income  $3,568   $4,526 
Net income available to common shareholders  $3,508   $4,462 
           
Basic earnings per common share  $1.24   $1.59 
Diluted earnings per common share   1.23    1.59 
Common dividends per share   0.32    0.29 

 

   

 

Salisbury Bancorp, Inc. and Subsidiary

SELECTED CONSOLIDATED FINANCIAL DATA (unaudited)

 

At or for the quarters ended               
(in thousands, except per share amounts and ratios)  Q1 2022    Q4 2021    Q3 2021    Q2 2021    Q1 2021  
Total assets  $1,465,082   $1,529,184   $1,476,849   $1,436,666   $1,403,129 
Loans receivable, net   1,066,216    1,066,750    1,057,451    1,032,345    1,041,185 
Total securities   217,591    204,694    177,979    152,943    129,960 
Deposits   1,290,474    1,336,193    1,289,628    1,243,369    1,211,171 
FHLBB advances   419    7,656    8,905    10,152    11,396 
Shareholders’ equity   130,066    136,600    133,533    131,709    127,242 
Wealth assets under administration   1,049,240    1,083,152    973,198    970,306    902,141 
Discretionary wealth assets under administration   625,346    657,789    608,228    614,312    578,199 
Non-discretionary wealth assets under administration   423,894    425,363    364,970    355,994    323,942 
Non-performing loans   2,764    4,199    5,001    5,539    5,706 
Non-performing assets   2,764    4,199    5,001    5,539    5,706 
Accruing loans past due 30-89 days   2,349    1,342    909    1,400    2,374 
Net interest and dividend income   10,306    10,543    10,165    9,565    10,350 
Net interest and dividend income, tax equivalent(1)   10,484    10,735    10,345    9,739    10,520 
Provision (release) expense for loan losses   363    (202)   400    (1,075)   158 
Non-interest income   3,094    2,847    2,840    2,971    2,841 
Non-interest expense   8,653    8,471    8,284    8,086    7,259 
Income before income taxes   4,384    5,121    4,321    5,525    5,774 
Income tax provision   816    980    868    1,172    1,248 
Net income   3,568    4,141    3,453    4,353    4,526 
Net income allocated to common shareholders   3,508    4,076    3,400    4,287    4,462 
                          
Per share data                         
Basic earnings per common share  $1.24   $1.45   $1.21   $1.53   $1.59 
Diluted earnings per common share   1.23    1.43    1.20    1.52    1.59 
Dividends per common share   0.32    0.31    0.31    0.30    0.29 
Book value per common share   45.12    47.73    46.66    46.02    44.72 
Tangible book value per common share - Non-GAAP ⁽2⁾   40.20    42.76    41.67    41.01    39.65 
Common shares outstanding at end of period (in thousands)   2,882    2,862    2,862    2,862    2,845 
Weighted average common shares outstanding, to calculate basic earnings per share (in thousands)   2,818    2,817    2,817    2,810    2,805 
Weighted average common shares outstanding, to calculate diluted earnings per share (in thousands)   2,847    2,835    2,843    2,829    2,815 
                          
Profitability ratios                         
Net interest margin (tax equivalent) (1)   2.95%   2.99%   2.92%   2.82%   3.34%
Efficiency ratio (2)   63.38    61.91    61.63    63.07    53.75 
Effective income tax rate   18.60    19.13    20.09    21.21    21.61 
Return on average assets   0.97    1.10    0.93    1.21    1.38 
Return on average common shareholders’ equity   10.65    12.14    10.27    13.51    14.53 
                          
Credit quality ratios                         
Non-performing loans to loans receivable, gross   0.26%   0.39%   0.47%   0.53%   0.54%
Accruing loans past due 30-89 days to loans receivable, gross   0.25    0.12    0.08    0.13    0.23 
Allowance for loan losses to loans receivable, gross   1.20    1.20    1.23    1.22    1.32 
Allowance for loan losses to non-performing loans   467.3    308.7    263.3    229.4    243.4 
Non-performing assets to total assets   0.19    0.27    0.34    0.39    0.41 
                          
Capital ratios                         
Common shareholders' equity to assets   8.88%   8.93%   9.04%   9.17%   9.07%
Tangible common shareholders' equity to tangible assets - Non-GAAP (2)   7.99    8.08    8.15    8.25    8.12 
Tier 1 leverage capital (3)   9.66    9.42    9.31    9.33    9.83 
Total risk-based capital (3)   13.98    14.08    14.20    14.67    14.58 
Common equity tier 1 capital (3)   12.80    12.87    12.95    13.42    13.33 
                          

(1) Adjusted to reflect the U.S. federal statutory benefit on income derived from tax-exempt securities and loans.

(2) Refer to schedule labeled “Supplemental Information – Non-GAAP Financial Measures”.
(3) Represents the capital ratios of the Bank.

 

   

 

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)  Q1 2022    Q4 2021    Q3 2021    Q2 2021    Q1 2021  
Common Shareholders' Equity  $130,066   $136,600   $133,533   $131,709   $127,242 
Less: Goodwill   (13,815)   (13,815)   (13,815)   (13,815)   (13,815)
Less: Intangible assets   (364)   (418)   (476)   (538)   (603)
Tangible Common Shareholders' Equity  $115,887   $122,367   $119,242   $117,356   $112,824 
Total Assets  $1,465,082   $1,529,184   $1,476,849   $1,436,666   $1,403,129 
Less: Goodwill   (13,815)   (13,815)   (13,815)   (13,815)   (13,815)
Less: Intangible assets   (364)   (418)   (476)   (538)   (603)
Tangible Total Assets  $1,450,903   $1,514,951   $1,462,558   $1,422,313   $1,388,711 
Common Shares outstanding (in thousands)   2,882    2,862    2,862    2,862    2,845 
                          
Book value per Common Share – GAAP  $45.12   $47.73   $46.66   $46.02   $44.72 
Tangible book value per Common Share - Non-GAAP   40.20    42.76    41.67    41.01    39.65 
Tangible common shareholders’ equity to tangible total assets - Non-GAAP   7.99%   8.08%   8.15%   8.25%   8.12%
Consolidated:                         
Non-interest expense  $8,653   $8,471   $8,284   $8,086   $7,259 
Less: Amortization of core deposit intangibles   (54)   (57)   (61)   (65)   (71)
Less: Write-down of fixed assets   —    —    (144)   —    — 
Less: Fraud-related losses   (251)   —    —    —    — 
Adjusted non-interest expense  $8,348   $8,414   $8,079   $8,021   $7,188 
Net interest and dividend income, tax equivalent  $10,484   $10,735   $10,345   $9,739   $10,520 
Non-interest income   3,094    2,847    2,840    2,971    2,841 
(Gains) losses on securities   (168)   9    (3)   6    16 
Gains on sale of fixed assets   —    —    (73)   —    — 
Gains on sale of loans   (239)   —    —    —    — 
Adjusted revenue  $13,171   $13,591   $13,109   $12,716   $13,377 
Efficiency Ratio – Non-GAAP 1   63.38%   61.91%   61.63%   63.07%   53.75%
                          

1 Excluding revenue and expenses associated with trust & wealth advisory, the efficiency ratios would be: Q1 2022: 61.83%; Q4 2021: 60.62%; Q3 2021: 60.70%; Q2 2021: 61.59%; Q1 2021: 51.97%.

 

   

 

Salisbury Bancorp, Inc. and Subsidiary

SUPPLEMENTAL INFORMATION – Net Interest and Dividend Income (unaudited)

At or for the quarters ended Average Balance  Income / Expense  Average Yield / Rate
(dollars in thousands)  Q1 2022    Q4 2021    Q1 2021    Q1 2022    Q4 2021    Q1 2021    Q1 2022    Q4 2021    Q1 2021  
Loans (a)(d)  $1,079,610   $1,078,097   $1,051,658   $10,277   $10,560   $10,592    3.79%   3.89%   4.02%
Securities (c)(d)   208,140    186,284    103,062    962    911    640    1.85    1.96    2.48 
FHLBB stock   1,434    1,641    1,948    7    11    9    2.05    2.68    1.85 
Short term funds (b)   123,454    155,502    101,401    50    62    25    0.16    0.16    0.10 
Total interest-earning assets   1,412,638    1,421,524    1,258,069    11,296    11,544    11,266    3.19    3.22    3.57 
Other assets   74,795    76,059    71,252                               
Total assets  $1,487,433   $1,497,583   $1,329,321                               
Interest-bearing demand deposits  $232,464   $225,607   $218,425    99    104    106    0.17    0.18    0.20 
Money market accounts   321,198    329,005    288,767    126    139    129    0.16    0.17    0.18 
Savings and other   233,092    233,463    197,526    64    66    56    0.11    0.11    0.11 
Certificates of deposit   131,059    121,192    129,603    189    200    264    0.59    0.65    0.83 
Total interest-bearing deposits   917,813    909,267    834,321    478    509    555    0.21    0.21    0.27 
Repurchase agreements   7,146    7,923    8,453    3    3    3    0.14    0.16    0.15 
Finance lease   5,097    2,696    2,824    41    34    32    3.23    5.10    4.60 
Note payable   163    173    200    2    3    3    6.12    6.49    6.18 
Subordinated debt (f)   24,480    24,467    10,156    233    233    119    3.81    3.82    4.68 
FHLBB advances   2,974    8,071    11,825    55    28    34    7.46    1.38    1.14 
Total interest-bearing liabilities   957,673    952,597    867,779    812    810    746    0.34    0.34    0.35 
Demand deposits   386,884    401,294    328,372                               
Other liabilities   7,036    8,410    6,839                               
Shareholders’ equity   135,840    135,282    126,331                               
Total liabilities & shareholders’ equity  $1,487,433   $1,497,583   $1,329,321                               
Net interest income                 $10,484   $10,735   $10,520                
Spread on interest-bearing funds                                 2.84    2.88    3.22 
Net interest margin (e)                                 2.95    2.99    3.34 
                                              
(a)Includes non-accrual loans.
(b)Includes interest-bearing deposits in other banks and federal funds sold.
(c)Average balances of securities are based on amortized cost.
(d)Includes tax exempt income benefit of $178,000, $192,000 and $170,000, respectively, for Q1 2022, Q4 2021 and Q1 2021 on tax-exempt securities and loans whose income and yields are calculated on a tax-equivalent basis. The income benefit reflected the U.S. federal statutory tax rate of 21.0% for 2022 and 2021.
(e)Net interest income divided by average interest-earning assets.
(f)Net of issuance costs.