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, 2023.
Net income available to common shareholders was
$3.0 million, or $0.52 per basic common share, for the first
quarter ended March 31, 2023 (first quarter 2023), compared with
$4.1 million, or $0.71 per basic common share, for the fourth
quarter ended December 31, 2022 (fourth quarter 2022), and $3.5
million, or $0.62 per basic common share, for the first quarter
ended March 31, 2022 (first quarter 2022). Net income for first
quarter 2023 included pre-tax costs of $385 thousand related to
Salisbury’s pending merger with NBT Bancorp (“NBT merger”) and $158
thousand to write off fixed assets in the Red Oaks Mill, New York
branch, which will close on April 30, 2023. In aggregate, these
costs reduced first quarter 2023 earnings per basic share and
return on average assets by $0.08 and 0.12%, respectively.
Salisbury’s President and Chief Executive
Officer, Richard J. Cantele, Jr., stated, “Our financial results
for the first quarter were impacted by the challenging banking and
macro-economic environment. Despite these headwinds, Salisbury’s
business model remains conservative, the Bank is well-capitalized
and our deposit base is diversified. Additionally, the unrealized
losses in our investment portfolio do not present a material risk
to the Bank or to our customers. As we look forward and take a
longer term perspective, we are excited that the strategic
partnership with NBT has been approved by Salisbury shareholders.
The merger is expected to close this quarter, subject to regulatory
approval. While we work through the integration of these two
high-performing franchises, Salisbury employees will remain focused
on prudently managing the Bank’s capital and liquidity and
providing outstanding service to our customers.”
Net Interest and Dividend Income
Tax equivalent net interest income of $11.3
million for the first quarter 2023 decreased $903 thousand, or
7.4%, versus fourth quarter 2022, and increased $834 thousand, or
8.0%, versus first quarter 2022. Tax equivalent interest income of
$15.1 million for first quarter 2023 increased $755 thousand, or
5.3%, versus fourth quarter 2022 and increased $3.8 million, or
33.8%, from first quarter 2022. The cost of interest-bearing
liabilities of $3.8 million for first quarter 2023 increased $1.7
million, or 77.5%, from fourth quarter 2022 and increased $3.0
million, or 367.5%, from first quarter 2022.
Average earning assets of $1.5 billion for first
quarter 2023 increased $23.3 million, or 1.6%, from fourth quarter
2022, and increased $82.5 million, or 5.8%, versus first quarter
2022. Average earning assets for first quarter 2023 included
average PPP loan balances of $0.2 million, net of deferred fees,
compared with $0.4 million in fourth quarter 2022 and $18.7 million
in first quarter 2022, respectively. Average total interest bearing
liabilities of $1.0 billion for first quarter 2023 increased $45.9
million, or 4.7%, from fourth quarter 2022 and increased $70.6
million, or 7.4%, versus first quarter 2022. The increase in
average total interest-bearing liabilities from the comparative
periods primarily reflected higher brokered deposits, which
Salisbury utilized to fund loan growth and to provide
liquidity.
The tax equivalent net interest margin for first
quarter 2023 was 2.99% compared with 3.28% for fourth quarter 2022
and 2.95% for first quarter 2022. Excluding PPP loans, the tax
equivalent net interest margin for first quarter 2023 was 2.99%
compared with 3.28% for fourth quarter 2022 and 2.86% for first
quarter 2022. The decline in the tax equivalent net interest margin
from the comparative quarters primarily reflected an increase in
the cost of interest bearing deposits and borrowed funds as well as
an increase in the amount of borrowed funds. See SUPPLEMENTAL
INFORMATION – Net Interest and Dividend Income on page 9 of this
release for additional details.
Non-Interest Income
Non-interest income of $2.7 million for first
quarter 2023 increased $75 thousand versus fourth quarter 2022 and
decreased $401 thousand versus first quarter 2022.
Trust and Wealth Advisory fees of $1.2 million
for first quarter 2023 increased $28 thousand from fourth quarter
2022 and decreased $88 thousand from first quarter 2022. The change
in fee income versus the comparative quarters was primarily driven
by asset management fees. Assets under administration were $1.30
billion at March 31, 2023 compared with $1.29 billion at December
31, 2022 and $1.05 billion at March 31, 2022. Discretionary assets
under administration of $588.4 million at March 31, 2023 compared
with $561.1 million at December 31, 2022 and $625.3 million at
March 31, 2022. The variance from the comparative quarters
primarily reflected changes in market valuations. Non-discretionary
assets under administration of $712.7 million at March 31, 2023
decreased from $728.9 million at December 31, 2022 and increased
from $423.9 million at March 31, 2022. The variance from the
comparative periods primarily reflected changes in the valuation of
certain partnership assets for an existing client relationship. The
trust and wealth business records only a nominal annual fee on this
relationship.
_____________________________
1 The tangible common equity ratio is a non-GAAP
measure. Management considers this ratio to be an important measure
of risk. Refer to page 8 of this document for the reconciliation of
the components of this calculation to U.S. GAAP.
Service charges and fees of $1.2 million for
first quarter 2023 increased $16 thousand from fourth quarter 2022
and increased $97 thousand from first quarter 2022. The increase
from fourth quarter 2022 primarily reflected higher deposit and
loan fees, which were partially offset by lower interchange fees.
The increase from first quarter 2022 primarily reflected higher
deposit and higher interchange fees. Net fees from mortgage banking
activities were below the comparative quarters. Salisbury did not
sell any residential loans to FHLBB during first quarter 2023 and
fourth quarter 2022 compared with sales of $5.5 million in first
quarter 2022.
Non-Interest Expense
Non-interest expense of $9.1 million for first
quarter 2023 increased $179 thousand from fourth quarter 2022 and
increased $473 thousand versus first quarter 2022. Non-interest
expense for first quarter 2023 and fourth quarter 2022 included
costs of approximately $385 thousand and $497 thousand,
respectively, associated with the pending NBT merger. Non-interest
expense for first quarter 2023 also included a non-recurring charge
of $158 thousand to write off fixed assets in the Red Oaks Mill,
New York branch, which will be closed on April 30, 2023.
Compensation expense of $5.2 million for first quarter 2023
decreased $143 thousand from fourth quarter 2022 and increased $433
thousand versus first quarter 2022. The increase in compensation
expense from first quarter 2022 primarily reflected higher base
salary expense and higher incentive accruals as well as lower
deferred compensation expense.
Excluding compensation expense, other
non-interest expenses for first quarter 2023 increased $322
thousand from fourth quarter 2022 and increased $40 thousand from
first quarter 2022. The increase from comparative quarters
primarily reflected higher professional fees associated with the
NBT merger, and the write-off of fixed assets associated with the
pending Red Oaks Mill, New York branch closure. First quarter 2022
included fraud related losses of $251 thousand.
The effective income tax rates for first quarter
2023, fourth quarter 2022 and first quarter 2022 were 20.0%, 20.1%
and 18.6%, respectively.
Loans
Gross loans receivable of $1.3 billion for first
quarter 2023 increased $22.1 million, or 1.8%, from fourth quarter
2022, and increased $171.5 million, or 15.9%, from first quarter
2022. Residential 5+ multifamily gross loans receivable at March
31, 2023 and December 31, 2022 included a loan for approximately
$16.0 million. At March 31, 2022 this loan, which had a gross
balance of approximately $12.0 million, was reported in the
commercial real estate category while the project was under
construction. The ratio of gross loans to deposits for first
quarter 2023 was 96.7% compared with 90.4% for fourth quarter 2022
and 83.6% for first quarter 2022. Balances by loan type for the
comparative periods were as follows:
|
Loan Type ($ in thousands) |
Q1 2023 |
|
Q4 2022 |
|
Q1 2022 |
|
Residential Real Estate (1-4 Family) |
$ |
483,893 |
|
$ |
476,719 |
|
$ |
425,301 |
| Residential 5+
Multifamily |
|
91,772 |
|
|
80,400 |
|
|
53,376 |
| Commercial Real Estate |
|
433,379 |
|
|
421,147 |
|
|
376,088 |
|
Commercial & Industrial ex PPP Loans |
|
185,376 |
|
|
190,191 |
|
|
163,832 |
|
PPP Loans |
|
226 |
|
|
299 |
|
|
13,666 |
| Commercial & Industrial –
Total |
|
185,602 |
|
|
190,490 |
|
|
177,498 |
| Farm Land |
|
3,451 |
|
|
4,081 |
|
|
2,778 |
| Vacant Land |
|
14,601 |
|
|
14,440 |
|
|
14,710 |
| Municipal |
|
17,577 |
|
|
19,693 |
|
|
14,263 |
| Consumer |
|
19,491 |
|
|
20,546 |
|
|
14,356 |
|
Deferred Costs/(Fees) |
|
875 |
|
|
1,001 |
|
|
761 |
|
Gross Loans Receivable |
$ |
1,250,641 |
|
$ |
1,228,517 |
|
$ |
1,079,131 |
|
Gross Loans Receivable ex PPP |
$ |
1,250,415 |
|
$ |
1,228,218 |
|
$ |
1,065,465 |
Asset Quality
Non-performing assets of $2.2 million, or 0.14%
of total assets at March 31, 2023, decreased $0.5 million from $2.7
million, or 0.17% of total assets at December 31, 2022, and
decreased $0.6 million from $2.8 million, or 0.19% of total assets,
at March 31, 2022.
The amount of total impaired and potential
problem loans increased $0.2 million during the quarter to $10.9
million or 0.87% of gross loans receivable at March 31, 2023
compared to $11.4 million, or 0.93% of gross loans receivable at
December 31, 2022 and $27.3 million, or 2.53% of gross loans
receivable at March 31, 2022. The decrease in the balance from
first quarter 2022 primarily reflected management’s upgrade of the
internal risk rating on certain hospitality related loans, which
were previously downgraded due to concerns over COVID-19. These
businesses demonstrated a return to pre-pandemic levels of activity
and liquidity, which warranted the improvement in risk rating.
Accruing loans receivable 30-to-89 days past due
of $2.2 million, or 0.18% of gross loans receivable, increased $0.9
million from $1.3 million, or 0.11% of gross loans receivable at
December 31, 2022, and decreased $0.1 million from $2.3 million, or
0.22% of gross loans receivable at March 31, 2022.
On January 1, 2023, Salisbury adopted the
Current Expected Credit Loss (“CECL”) accounting standard to
estimate credit losses over the life of a loan. As a result of this
implementation, Salisbury recorded a reduction of $0.9 million to
retained earnings, an increase of $0.3 million to the allowance for
credit (“ACL”) losses, an increase of $0.9 million to other
liabilities for unfunded commitments reserves and an increase in
deferred tax assets of $0.3 million. The ACL for first quarter 2023
was $16.0 million compared with $14.8 million for fourth quarter
2022 and $12.9 million for first quarter 2022. The provision
expense was $0.9 million for first quarter 2022 compared with $0.5
million for fourth quarter 2022 and $0.4 million for first quarter
2022. The provision expense for first quarter 2023 primarily
reflected loan growth during the quarter as well as the forecast of
certain macro-economic factors, which underpin the Bank’s CECL
model. Net loan charge-offs were $32 thousand for the first quarter
2023 compared with $13 thousand for fourth quarter 2022 and $410
thousand for the first quarter 2022.
Reserve coverage, as measured by the ratio of
the allowance for loan losses to gross loans, excluding PPP loans,
was 1.28% for the first quarter 2023 versus 1.21% for both fourth
quarter 2022 and first quarter 2022. Similarly, reserve coverage,
as measured by the ratio of the allowance for loan losses to
non-performing loans was 714% for the first quarter 2023 versus
558% for fourth quarter 2022 and 467% for first quarter 2022.
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, Borrowings and Liquidity
Total deposits of $1.3 billion at March 31, 2023
decreased $65.4 million, or 4.8%, from December 31, 2022 and
increased $2.6 million, or 0.2%, from March 31, 2022. Salisbury
accumulates deposits from a diverse customer base. At March 31,
2023, the composition of Salisbury’s deposit balances was as
follows: retail: 45%; commercial: 39%; municipalities: 8%; brokered
funds: 4%; Wealth Advisory: 3%; and educational institutions: 1%.
At March 31, 2023, the balance of Salisbury’s deposits that were
not insured by the FDIC or not collateralized by marketable
securities owned by Salisbury was approximately $344 million, or
27%, of total deposits.
At March 31, 2023, Salisbury had outstanding
brokered deposits balances of $53.2 million compared with balances
of $45.0 million at December 31, 2022. Salisbury did not have any
outstanding brokered deposit balances at March 31, 2022. Brokered
deposits are included in the certificates of deposit balances on
Salisbury’s consolidated balance sheet. Management utilized
brokered deposits in first quarter 2023 to fund loan growth and as
a source of liquidity. Excluding brokered funds, Salisbury’s
deposits declined $73.5 million, or 5.6%, from fourth quarter 2022
and declined $50.6 million, or 3.9%, from first quarter 2022.
Average total deposits were $1.3 billion for first quarter 2023,
fourth quarter 2022 and first quarter 2022. Average total deposits
for first quarter 2023 included average brokered deposits of $47.9
million compared with $25.8 million for fourth quarter 2022 and
$7.5 million for first quarter 2022.
Salisbury has access to various sources of
liquidity, including the FHLBB and the Federal Reserve Bank.
Salisbury had $100.0 million of outstanding advances from FHLBB at
March 31, 2023 compared with $10.0 million at December 31, 2022 and
$0.4 million at March 31, 2022, respectively. Salisbury’s excess
borrowing capacity at FHLBB was approximately $145 million at March
31, 2023. Additionally, at March 31, 2023, Salisbury had
approximately $100 million of eligible collateral that could be
posted to the Federal Reserve to secure funds under the Bank Term
Funding Program. Salisbury has not borrowed funds under this
program.
Capital
Shareholders’ equity increased $4.0 million in
first quarter to $132.4 million at March 31, 2023 as net income of
$3.0 million, unrealized gains, net of taxes, in the
available-for-sale securities (“AFS”) portfolio of $2.7 million and
other activity of $0.1 million, were partially offset by common
stock dividends paid of $0.9 million and a reduction of $0.9
million to retained earnings for the adoption of CECL. The
unrealized losses, net of taxes, in the AFS portfolio were $18.0
million at March 31, 2023. Book value per common share of $22.79 at
March 31, 2023 increased $0.66 from fourth quarter 2022 and
increased $0.23 from first quarter 2022. Tangible book value per
common share of $20.38 at March 31, 2023 increased $0.67 from
fourth quarter 2022 and increased $0.28 from first quarter 2022. At
March 31, 2023, the Bank’s tangible common equity ratio, which
included the unrealized losses in the AFS portfolio noted above,
was 7.63%.
The Bank’s regulatory capital ratios remain in
compliance with regulatory “well capitalized” requirements. At
March 31, 2023, the Bank’s Tier 1 leverage, total risk-based
capital, and common equity tier 1 capital ratios were 9.98%,
13.41%, and 12.16%, 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 2023, Salisbury did not
repurchase any of its outstanding common stock pursuant to its
stock repurchase program, which was established in March 2021 and
renewed in March 2022.
Dividend on Common Shares
On April 26, 2023, the Board of Directors of
Salisbury approved a quarterly cash dividend of $0.16 per common
share that will be paid on May 26, 2023 to shareholders of record
as of May 12, 2023.
Other Matters
In July 2022, Salisbury management discovered
that the Bank’s trust department terminated a trust account in May
2020 and distributed approximately $1.0 million that should have
been retained in continuance of the trust account. In March 2023,
Salisbury filed an amended complaint against the beneficiaries to
recover the distributed proceeds and to reinstate the trust
account. At this time, management believes that Salisbury’s
exposure is not yet known or knowable and could potentially range
from zero to approximately $0.8 million depending upon the facts
and circumstances.
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,
2023, 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, 2023 |
December 31, 2022 |
|
ASSETS |
|
|
|
Cash and due from banks |
$ |
6,231 |
|
$ |
5,864 |
|
|
Interest bearing demand deposits with other banks |
|
43,613 |
|
|
44,675 |
|
|
Total cash and cash equivalents |
|
49,844 |
|
|
50,539 |
|
|
Securities |
|
|
|
Available-for-sale at fair value |
|
187,598 |
|
|
187,410 |
|
|
Mutual funds at fair value |
|
2,068 |
|
|
1,933 |
|
|
Federal Home Loan Bank of Boston stock at cost |
|
5,030 |
|
|
1,285 |
|
|
Loans receivable, net (allowance for loan losses: $16,009 and
$14,846) |
|
1,234,632 |
|
|
1,213,671 |
|
|
Bank premises and equipment, net |
|
21,597 |
|
|
22,148 |
|
|
Goodwill |
|
13,815 |
|
|
13,815 |
|
|
Intangible assets (net of accumulated amortization: $5,691 and
$5,654) |
|
188 |
|
|
227 |
|
|
Accrued interest receivable |
|
6,383 |
|
|
6,797 |
|
|
Cash surrender value of life insurance policies |
|
30,571 |
|
|
30,379 |
|
|
Deferred taxes |
|
8,234 |
|
|
8,492 |
|
|
Other assets |
|
5,374 |
|
|
4,886 |
|
|
Total Assets |
$ |
1,565,334 |
|
$ |
1,541,582 |
|
|
LIABILITIES and SHAREHOLDERS' EQUITY |
|
|
|
Deposits |
|
|
|
Demand (non-interest bearing) |
$ |
370,049 |
|
$ |
395,994 |
|
|
Demand (interest bearing) |
|
218,902 |
|
|
231,486 |
|
|
Money market |
|
296,974 |
|
|
343,965 |
|
|
Savings and other |
|
236,755 |
|
|
233,578 |
|
|
Certificates of deposit |
|
170,362 |
|
|
153,370 |
|
|
Total deposits |
|
1,293,042 |
|
|
1,358,393 |
|
|
Repurchase agreements |
|
3,230 |
|
|
7,228 |
|
|
Federal Home Loan Bank of Boston advances |
|
100,000 |
|
|
10,000 |
|
|
Subordinated debt |
|
24,545 |
|
|
24,531 |
|
|
Note payable |
|
117 |
|
|
128 |
|
|
Finance lease obligations |
|
4,225 |
|
|
4,262 |
|
|
Accrued interest and other liabilities |
|
7,820 |
|
|
8,685 |
|
|
Total Liabilities |
|
1,432,979 |
|
|
1,413,227 |
|
|
Shareholders' Equity |
|
|
|
Common stock - $0.10 per share par value |
|
|
|
Authorized: 10,000,000; |
|
|
|
Issued: 5,807,719 and 5,798,816 |
|
|
|
Outstanding: 5,807,719 and 5,798,816 |
|
581 |
|
|
580 |
|
| Unearned compensation –
restricted stock awards |
|
(961 |
) |
|
(1,144 |
) |
| Paid-in capital |
|
47,396 |
|
|
47,466 |
|
| Retained earnings |
|
103,371 |
|
|
102,178 |
|
|
Accumulated other comprehensive (loss), net |
|
(18,032 |
) |
|
(20,725 |
) |
|
Total Shareholders' Equity |
|
132,355 |
|
|
128,355 |
|
|
Total Liabilities and Shareholders' Equity |
$ |
1,565,334 |
|
$ |
1,541,582 |
|
Salisbury Bancorp, Inc. and SubsidiaryCONSOLIDATED
STATEMENTS OF INCOME (unaudited)
|
Three months ended March 31, (in thousands, except per share
amounts) |
|
2023 |
|
2022 |
|
|
Interest and dividend income |
|
|
|
Interest and fees on loans |
$ |
13,250 |
$ |
10,163 |
|
|
Interest on debt securities |
|
|
|
Taxable |
|
1,068 |
|
724 |
|
|
Tax exempt |
|
212 |
|
174 |
|
|
Other interest and dividends |
|
393 |
|
57 |
|
|
Total interest and dividend income |
|
14,923 |
|
11,118 |
|
|
Interest expense |
|
|
|
Deposits |
|
2,818 |
|
478 |
|
|
Repurchase agreements |
|
16 |
|
3 |
|
|
Finance lease |
|
40 |
|
41 |
|
|
Note payable |
|
2 |
|
2 |
|
|
Subordinated debt |
|
233 |
|
233 |
|
|
Federal Home Loan Bank of Boston advances |
|
687 |
|
55 |
|
|
Total interest expense |
|
3,796 |
|
812 |
|
|
Net interest and dividend income |
|
11,127 |
|
10,306 |
|
|
Provision for loan losses |
|
924 |
|
363 |
|
|
Net interest and dividend income after provision for loan
losses |
|
10,203 |
|
9,943 |
|
|
Non-interest income |
|
|
|
Trust and wealth advisory |
|
1,153 |
|
1,241 |
|
|
Service charges and fees |
|
1,235 |
|
1,138 |
|
|
Mortgage banking activities, net |
|
59 |
|
355 |
|
|
Gains (losses) on CRA mutual fund |
|
20 |
|
(42 |
) |
|
Gains on securities, net |
|
- |
|
210 |
|
| Bank-owned life insurance
(“BOLI”) income |
|
192 |
|
162 |
|
|
Other |
|
34 |
|
30 |
|
|
Total non-interest income |
|
2,693 |
|
3,094 |
|
|
Non-interest expense |
|
|
|
Salaries |
|
3,721 |
|
3,479 |
|
|
Employee benefits |
|
1,468 |
|
1,277 |
|
|
Premises and equipment |
|
1,105 |
|
1,104 |
|
|
Loss on sale of assets |
|
158 |
|
9 |
|
|
Information processing and services |
|
831 |
|
685 |
|
|
Professional fees |
|
945 |
|
787 |
|
|
Collections, OREO, and loan related |
|
72 |
|
117 |
|
|
FDIC insurance |
|
98 |
|
171 |
|
|
Marketing and community support |
|
127 |
|
184 |
|
|
Amortization of intangibles |
|
39 |
|
54 |
|
|
Other |
|
562 |
|
786 |
|
|
Total non-interest expense |
|
9,126 |
|
8,653 |
|
|
Income before income taxes |
|
3,770 |
|
4,384 |
|
|
Income tax provision |
|
752 |
|
816 |
|
|
Net income |
$ |
3,018 |
$ |
3,568 |
|
|
Net income available to common shareholders |
$ |
2,968 |
$ |
3,508 |
|
|
|
|
|
|
Basic earnings per common share |
$ |
0.52 |
$ |
0.62 |
|
|
Diluted earnings per common share |
|
0.52 |
|
0.62 |
|
|
Common dividends per share |
|
0.16 |
|
0.16 |
|
Salisbury Bancorp, Inc. and SubsidiarySELECTED
CONSOLIDATED FINANCIAL DATA (unaudited)
|
At or for the quarters ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands, except per share amounts and ratios) |
Q1 2023 |
|
|
Q4 2022 |
|
|
Q3 2022 |
|
|
Q2 2022 |
|
|
Q1 2022 |
|
|
Total assets |
$ |
1,565,334 |
|
|
$ |
1,541,582 |
|
|
$ |
1,512,138 |
|
|
$ |
1,496,521 |
|
|
$ |
1,465,082 |
|
| Loans receivable, net |
|
1,234,632 |
|
|
|
1,213,671 |
|
|
|
1,176,493 |
|
|
|
1,135,758 |
|
|
|
1,066,216 |
|
| Total securities |
|
194,696 |
|
|
|
190,628 |
|
|
|
192,530 |
|
|
|
205,727 |
|
|
|
217,591 |
|
| Deposits |
|
1,293,042 |
|
|
|
1,358,393 |
|
|
|
1,325,204 |
|
|
|
1,316,539 |
|
|
|
1,290,474 |
|
| FHLBB advances |
|
100,000 |
|
|
|
10,000 |
|
|
|
20,000 |
|
|
|
- |
|
|
|
419 |
|
| Shareholders’ equity |
|
132,355 |
|
|
|
128,355 |
|
|
|
123,160 |
|
|
|
127,303 |
|
|
|
130,066 |
|
| Wealth assets under
administration |
|
1,301,162 |
|
|
|
1,289,918 |
|
|
|
1,232,272 |
|
|
|
1,261,244 |
|
|
|
1,049,240 |
|
|
Discretionary wealth assets under administration |
|
588,414 |
|
|
|
561,050 |
|
|
|
522,109 |
|
|
|
546,506 |
|
|
|
625,346 |
|
|
Non-discretionary wealth assets under administration |
|
712,748 |
|
|
|
728,868 |
|
|
|
710,163 |
|
|
|
714,738 |
|
|
|
423,894 |
|
| Non-performing loans |
|
2,241 |
|
|
|
2,663 |
|
|
|
1,860 |
|
|
|
4,229 |
|
|
|
2,765 |
|
| Non-performing assets |
|
2,241 |
|
|
|
2,663 |
|
|
|
1,860 |
|
|
|
4,229 |
|
|
|
2,765 |
|
| Accruing loans past due 30-89
days |
|
2,234 |
|
|
|
1,309 |
|
|
|
390 |
|
|
|
1,001 |
|
|
|
2,349 |
|
| Net interest and dividend
income |
|
11,127 |
|
|
|
12,015 |
|
|
|
11,844 |
|
|
|
10,872 |
|
|
|
10,306 |
|
| Net interest and dividend
income, tax equivalent(1) |
|
11,318 |
|
|
|
12,221 |
|
|
|
12,054 |
|
|
|
11,061 |
|
|
|
10,484 |
|
| Provision expense for loan
losses |
|
924 |
|
|
|
525 |
|
|
|
695 |
|
|
|
1,100 |
|
|
|
363 |
|
| Non-interest income |
|
2,693 |
|
|
|
2,618 |
|
|
|
2,693 |
|
|
|
3,297 |
|
|
|
3,094 |
|
| Non-interest expense |
|
9,126 |
|
|
|
8,947 |
|
|
|
8,512 |
|
|
|
8,532 |
|
|
|
8,653 |
|
| Income before income
taxes |
|
3,770 |
|
|
|
5,161 |
|
|
|
5,330 |
|
|
|
4,537 |
|
|
|
4,384 |
|
| Income tax provision |
|
752 |
|
|
|
1,037 |
|
|
|
994 |
|
|
|
692 |
|
|
|
816 |
|
| Net income |
|
3,018 |
|
|
|
4,124 |
|
|
|
4,336 |
|
|
|
3,845 |
|
|
|
3,568 |
|
| Net income allocated to common
shareholders |
|
2,968 |
|
|
|
4,055 |
|
|
|
4,264 |
|
|
|
3,772 |
|
|
|
3,508 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Per share
data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic earnings per common
share |
$ |
0.52 |
|
|
$ |
0.71 |
|
|
$ |
0.75 |
|
|
$ |
0.67 |
|
|
$ |
0.62 |
|
| Diluted earnings per common
share |
|
0.52 |
|
|
|
0.71 |
|
|
|
0.75 |
|
|
|
0.66 |
|
|
|
0.62 |
|
| Dividends per common
share |
|
0.16 |
|
|
|
0.16 |
|
|
|
0.16 |
|
|
|
0.16 |
|
|
|
0.16 |
|
| Book value per common
share |
|
22.79 |
|
|
|
22.13 |
|
|
|
21.29 |
|
|
|
22.01 |
|
|
|
22.56 |
|
| Tangible book value per common
share - Non-GAAP⁽2⁾ |
|
20.38 |
|
|
|
19.71 |
|
|
|
18.86 |
|
|
|
19.57 |
|
|
|
20.10 |
|
| Common shares
outstanding at end of period (in thousands) |
|
5,808 |
|
|
|
5,799 |
|
|
|
5,784 |
|
|
|
5,784 |
|
|
|
5,765 |
|
| Weighted average
common shares outstanding, to calculate basic earnings per share
(in thousands) |
|
5,702 |
|
|
|
5,688 |
|
|
|
5,687 |
|
|
|
5,666 |
|
|
|
5,636 |
|
| Weighted average
common shares outstanding, to calculate diluted earnings per share
(in thousands) |
|
5,714 |
|
|
|
5,710 |
|
|
|
5,713 |
|
|
|
5,699 |
|
|
|
5,694 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Profitability
ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net interest margin (tax
equivalent)(1) |
|
2.99 |
% |
|
|
3.28 |
% |
|
|
3.27 |
% |
|
|
3.15 |
% |
|
|
2.95 |
% |
| Efficiency ratio(2) |
|
61.07 |
|
|
|
56.66 |
|
|
|
57.38 |
|
|
|
59.49 |
|
|
|
63.38 |
|
| Effective income tax rate |
|
19.95 |
|
|
|
20.10 |
|
|
|
18.65 |
|
|
|
15.25 |
|
|
|
18.60 |
|
| Return on average assets |
|
0.79 |
|
|
|
1.07 |
|
|
|
1.13 |
|
|
|
1.06 |
|
|
|
0.97 |
|
| Return on average common
shareholders’ equity |
|
9.36 |
|
|
|
13.05 |
|
|
|
13.23 |
|
|
|
11.98 |
|
|
|
10.65 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Credit quality
ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-performing loans to loans
receivable, gross |
|
0.18 |
% |
|
|
0.22 |
% |
|
|
0.16 |
% |
|
|
0.37 |
% |
|
|
0.26 |
% |
| Accruing loans past due 30-89
days to loans receivable, gross |
|
0.18 |
|
|
|
0.11 |
|
|
|
0.03 |
|
|
|
0.09 |
|
|
|
0.22 |
|
| Allowance for loan losses to
loans receivable, gross |
|
1.28 |
|
|
|
1.21 |
|
|
|
1.20 |
|
|
|
1.19 |
|
|
|
1.20 |
|
| Allowance for loan losses to
non-performing loans |
|
714.4 |
|
|
|
557.5 |
|
|
|
770.6 |
|
|
|
324.0 |
|
|
|
467.3 |
|
| Non-performing assets to total
assets |
|
0.14 |
|
|
|
0.17 |
|
|
|
0.12 |
|
|
|
0.28 |
|
|
|
0.19 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Capital
ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common shareholders' equity to
assets |
|
8.35 |
% |
|
|
8.33 |
% |
|
|
8.14 |
% |
|
|
8.51 |
% |
|
|
8.88 |
% |
| Tangible common shareholders'
equity to tangible assets - Non-GAAP(2) |
|
7.63 |
|
|
|
7.48 |
|
|
|
7.28 |
|
|
|
7.63 |
|
|
|
7.99 |
|
| Tier 1 leverage
capital(3) |
|
9.98 |
|
|
|
9.99 |
|
|
|
9.83 |
|
|
|
10.04 |
|
|
|
9.66 |
|
| Total risk-based
capital(3) |
|
13.41 |
|
|
|
13.43 |
|
|
|
13.24 |
|
|
|
13.28 |
|
|
|
13.98 |
|
| Common equity tier 1
capital(3) |
|
12.16 |
|
|
|
12.24 |
|
|
|
12.07 |
|
|
|
12.13 |
|
|
|
12.80 |
|
(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 SubsidiarySUPPLEMENTAL
INFORMATION – Non-GAAP Financial Measures (unaudited)
| At or for
the quarters ended |
|
(in thousands, except per share amounts and ratios) |
Q1 2023 |
|
|
Q4 2022 |
|
|
Q3 2022 |
|
|
Q2 2022 |
|
|
Q1 2022 |
|
|
Common Shareholders' Equity |
$ |
132,355 |
|
|
$ |
128,355 |
|
|
$ |
123,160 |
|
|
$ |
127,303 |
|
|
$ |
130,066 |
|
| Less: Goodwill |
|
(13,815 |
) |
|
|
(13,815 |
) |
|
|
(13,815 |
) |
|
|
(13,815 |
) |
|
|
(13,815 |
) |
| Less: Intangible assets |
|
(188 |
) |
|
|
(227 |
) |
|
|
(269 |
) |
|
|
(314 |
) |
|
|
(364 |
) |
| Tangible Common
Shareholders' Equity |
$ |
118,352 |
|
|
$ |
114,313 |
|
|
$ |
109,076 |
|
|
$ |
113,174 |
|
|
$ |
115,887 |
|
| Total Assets |
$ |
1,565,334 |
|
|
$ |
1,541,582 |
|
|
$ |
1,512,138 |
|
|
$ |
1,496,521 |
|
|
$ |
1,465,082 |
|
| Less: Goodwill |
|
(13,815 |
) |
|
|
(13,815 |
) |
|
|
(13,815 |
) |
|
|
(13,815 |
) |
|
|
(13,815 |
) |
| Less: Intangible assets |
|
(188 |
) |
|
|
(227 |
) |
|
|
(269 |
) |
|
|
(314 |
) |
|
|
(364 |
) |
| Tangible Total
Assets |
$ |
1,551,331 |
|
|
$ |
1,527,540 |
|
|
$ |
1,498,054 |
|
|
$ |
1,482,392 |
|
|
$ |
1,450,903 |
|
| Common Shares outstanding (in
thousands) |
|
5,808 |
|
|
|
5,799 |
|
|
|
5,784 |
|
|
|
5,784 |
|
|
|
5,765 |
|
| |
|
|
|
|
|
| Book value per Common Share –
GAAP |
$ |
22.79 |
|
|
$ |
22.13 |
|
|
$ |
21.29 |
|
|
$ |
22.01 |
|
|
$ |
22.56 |
|
| Tangible book value per Common
Share - Non-GAAP |
|
20.38 |
|
|
|
19.71 |
|
|
|
18.86 |
|
|
|
19.57 |
|
|
|
20.10 |
|
| Tangible common shareholders’
equity to tangible total assets - Non-GAAP |
|
7.63 |
% |
|
|
7.48 |
% |
|
|
7.28 |
% |
|
|
7.63 |
% |
|
|
7.99 |
% |
|
Consolidated: |
|
|
|
|
|
| Non-interest expense |
$ |
9,126 |
|
|
$ |
8,947 |
|
|
$ |
8,512 |
|
|
$ |
8,532 |
|
|
$ |
8,653 |
|
|
Amortization of core deposit intangibles |
|
(39 |
) |
|
|
(42 |
) |
|
|
(46 |
) |
|
|
(50 |
) |
|
|
(54 |
) |
|
OREO recovery |
|
- |
|
|
|
- |
|
|
|
15 |
|
|
|
- |
|
|
|
- |
|
|
Merger-related costs |
|
(385 |
) |
|
|
(497 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Fixed asset write-off |
|
(158 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Fraud-related recovery (losses) |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
50 |
|
|
|
(251 |
) |
| Adjusted non-interest
expense |
$ |
8,544 |
|
|
$ |
8,408 |
|
|
$ |
8,481 |
|
|
$ |
8,532 |
|
|
$ |
8,348 |
|
| Net interest and dividend
income, tax equivalent |
$ |
11,318 |
|
|
$ |
12,221 |
|
|
$ |
12,054 |
|
|
$ |
11,061 |
|
|
$ |
10,484 |
|
| Non-interest income |
|
2,693 |
|
|
|
2,618 |
|
|
|
2,693 |
|
|
|
3,297 |
|
|
|
3,094 |
|
|
(Gains) losses on securities |
|
(20 |
) |
|
|
1 |
|
|
|
47 |
|
|
|
75 |
|
|
|
(168 |
) |
|
BOLI proceeds receivable |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(89 |
) |
|
|
- |
|
|
Gains on sale of loans |
|
- |
|
|
|
- |
|
|
|
(15 |
) |
|
|
- |
|
|
|
(239 |
) |
| Adjusted revenue |
$ |
13,991 |
|
|
$ |
14,840 |
|
|
$ |
14,779 |
|
|
$ |
14,344 |
|
|
$ |
13,171 |
|
| Efficiency Ratio –
Non-GAAP(1) |
|
61.07 |
% |
|
|
56.66 |
% |
|
|
57.38 |
% |
|
|
59.49 |
% |
|
|
63.38 |
% |
(1) Excluding revenue and expenses associated with trust &
wealth advisory, the efficiency ratios would be: Q1 2023: 59.08%;
Q4 2022: 54.64%; Q3 2022: 55.28%; Q2 2022: 57.21%; Q1 2022:
61.83%.
Salisbury Bancorp, Inc. and SubsidiarySUPPLEMENTAL
INFORMATION – Net Interest and Dividend Income
(unaudited)
|
At or for the quarters ended |
Average Balance |
Income / Expense |
Average Yield / Rate |
|
(dollars in thousands) |
Q1 2023 |
|
Q4 2022 |
|
Q1 2022 |
|
Q1 2023 |
|
Q4 2022 |
|
Q1 2022 |
|
Q1 2023 |
|
|
Q4 2022 |
|
|
Q1 2022 |
|
|
Loans (a)(d) |
$ |
1,236,778 |
|
$ |
1,209,184 |
|
$ |
1,079,610 |
|
$ |
13,367 |
|
$ |
12,726 |
|
$ |
10,277 |
|
4.29 |
% |
|
4.16 |
% |
|
3.79 |
% |
| Securities (c)(d) |
|
214,246 |
|
|
217,963 |
|
|
208,140 |
|
|
1,353 |
|
|
1,279 |
|
|
962 |
|
2.53 |
|
|
2.35 |
|
|
1.85 |
|
| FHLBB stock |
|
3,436 |
|
|
1,416 |
|
|
1,434 |
|
|
19 |
|
|
15 |
|
|
7 |
|
2.29 |
|
|
4.29 |
|
|
2.05 |
|
| Short
term funds (b) |
|
40,689 |
|
|
43,328 |
|
|
123,454 |
|
|
375 |
|
|
339 |
|
|
50 |
|
3.72 |
|
|
3.10 |
|
|
0.16 |
|
| Total interest-earning
assets |
|
1,495,149 |
|
|
1,471,891 |
|
|
1,412,638 |
|
|
15,114 |
|
|
14,359 |
|
|
11,296 |
|
4.02 |
|
|
3.86 |
|
|
3.19 |
|
| Other
assets |
|
55,022 |
|
|
52,855 |
|
|
74,795 |
|
|
|
|
|
|
| Total
assets |
$ |
1,550,171 |
|
$ |
1,524,746 |
|
$ |
1,487,433 |
|
|
|
|
|
|
| Interest-bearing demand
deposits |
$ |
223,742 |
|
$ |
232,228 |
|
$ |
232,464 |
|
|
119 |
|
|
115 |
|
|
99 |
|
0.22 |
|
|
0.20 |
|
|
0.17 |
|
| Money market accounts |
|
320,015 |
|
|
331,451 |
|
|
321,198 |
|
|
1,270 |
|
|
915 |
|
|
126 |
|
1.61 |
|
|
1.10 |
|
|
0.16 |
|
| Savings and other |
|
232,162 |
|
|
246,650 |
|
|
233,092 |
|
|
402 |
|
|
291 |
|
|
64 |
|
0.70 |
|
|
0.47 |
|
|
0.11 |
|
|
Certificates of deposit |
|
161,300 |
|
|
128,787 |
|
|
131,059 |
|
|
1,027 |
|
|
465 |
|
|
189 |
|
2.58 |
|
|
1.43 |
|
|
0.59 |
|
| Total interest-bearing
deposits |
|
937,219 |
|
|
939,116 |
|
|
917,813 |
|
|
2,818 |
|
|
1,786 |
|
|
478 |
|
1.22 |
|
|
0.75 |
|
|
0.21 |
|
| Repurchase agreements |
|
3,961 |
|
|
6,615 |
|
|
7,146 |
|
|
16 |
|
|
20 |
|
|
3 |
|
1.65 |
|
|
1.18 |
|
|
0.14 |
|
| Finance lease |
|
5,397 |
|
|
5,475 |
|
|
5,097 |
|
|
40 |
|
|
40 |
|
|
41 |
|
2.96 |
|
|
2.94 |
|
|
3.23 |
|
| Note payable |
|
121 |
|
|
132 |
|
|
163 |
|
|
2 |
|
|
2 |
|
|
2 |
|
6.17 |
|
|
6.16 |
|
|
6.12 |
|
| Subordinated debt (f) |
|
24,536 |
|
|
24,523 |
|
|
24,480 |
|
|
233 |
|
|
233 |
|
|
233 |
|
3.80 |
|
|
3.80 |
|
|
3.81 |
|
| FHLBB
advances |
|
57,056 |
|
|
6,576 |
|
|
2,974 |
|
|
687 |
|
|
57 |
|
|
55 |
|
4.82 |
|
|
3.37 |
|
|
7.46 |
|
| Total interest-bearing
liabilities |
|
1,028,290 |
|
|
982,437 |
|
|
957,673 |
|
|
3,796 |
|
|
2,138 |
|
|
812 |
|
1.49 |
|
|
0.86 |
|
|
0.34 |
|
| Demand deposits |
|
382,601 |
|
|
408,672 |
|
|
386,884 |
|
|
|
|
|
|
| Other liabilities |
|
8,427 |
|
|
8,233 |
|
|
7,036 |
|
|
|
|
|
|
|
Shareholders’ equity |
|
130,853 |
|
|
125,404 |
|
|
135,840 |
|
|
|
|
|
|
| Total
liabilities & shareholders’ equity |
$ |
1,550,171 |
|
$ |
1,524,746 |
|
$ |
1,487,433 |
|
|
|
|
|
|
| Net interest income |
|
|
|
|
$ |
11,318 |
|
$ |
12,221 |
|
$ |
10,484 |
|
|
|
| Spread on interest-bearing
funds |
|
|
|
|
|
|
|
2.54 |
|
|
3.00 |
|
|
2.84 |
|
| Net
interest margin (e) |
|
|
|
|
|
|
|
2.99 |
|
|
3.28 |
|
|
2.95 |
|
| (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 $0.2 million, $0.2
million and $0.2 million, respectively, for Q1 2023, Q4 2022 and Q1
2022 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 2023 and
2022. |
| (e) |
Net interest income divided by average interest-earning
assets. |
| (f) |
Net of issuance costs. |
Source: Salisbury Bancorp, Inc.
Salisbury Contact: Richard J. Cantele, Jr.,
President and Chief Executive Officer860-435-9801 or
rcantele@salisburybank.com
Salisbury Bancorp (NASDAQ:SAL)
Graphique Historique de l'Action
De Déc 2024 à Jan 2025
Salisbury Bancorp (NASDAQ:SAL)
Graphique Historique de l'Action
De Jan 2024 à Jan 2025
