- Second Quarter Net Income of $0.68 per Share
- Total Assets of $1.1 Billion on Strong Loan Growth
- Non-performing Assets were 0.58% of Total Assets
- Wealth Assets Under Administration Increased $68 million to $668 Million
LAKEVILLE, Conn., July 27, 2018 (GLOBE NEWSWIRE) -- 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, 2018.
Net income allocated to common shareholders was $1.9 million, or $0.68 per common share, for the quarter ended June 30, 2018 (second quarter 2018), compared with $2.0 million, or $0.72 per common share, for the first quarter ended March 31, 2018 (first quarter 2018), and $1.9 million, or $0.68 per common share, for the second quarter ended June 30, 2017 (second quarter 2017).
Salisbury’s President and Chief Executive Officer, Richard J. Cantele, Jr., stated, “We continued to generate solid earnings on robust loan growth despite extremely competitive markets and a challenging interest rate environment. The credit quality of our loan portfolio remains strong as we continue to prudently capitalize on the strength of our commercial and residential lending franchise. During the quarter we also completed the acquisition of the Fishkill, N. Y. branch of Orange Bank & Trust Company and consolidated our existing Fishkill branch into this new location. We remain focused on enhancing long-term value for our shareholders and providing outstanding service to our customers.”
Net-Interest Income
Tax equivalent net interest income for the second quarter 2018 increased $43 thousand, or 0.5%, versus first quarter 2018, and increased $262 thousand, or 3.3%, versus second quarter 2017. Average earning assets increased $46.6 million versus second quarter 2018, and increased $102.8 million versus second quarter 2017. Average total interest bearing deposits increased $25.6 million versus first quarter 2018 and increased $55.4 million versus second quarter 2017. The increase in average interest bearing deposits from the first quarter 2018 partly reflected the acquisition of the Fishkill, N.Y. branch in April 2018, which increased deposits by approximately $8 million. The increase in average interest bearing deposits from the second quarter 2017 partly reflected the acquisition of the New Paltz, N.Y. branch in June 2017, which increased deposits by approximately $31 million. The tax equivalent net interest margin for the second quarter 2018 was 3.31% compared with 3.46% for the first quarter 2018 and 3.58% for the second quarter 2017.
Non-Interest Income
Non-interest income for second quarter 2018 increased $84 thousand versus first quarter 2018 and increased $107 thousand versus second quarter 2017.
Trust and Wealth Advisory fees increased $55 thousand versus first quarter 2018 and increased $57 thousand versus second quarter 2017. The quarter-over-quarter increase reflected higher tax preparation and estate settlement fees partly offset by lower asset-based fees. The year-over-year increase primarily reflected higher asset-based fees and higher estate settlement fees. Assets under administration were $668 million as of June 30, 2018 compared with $600 million at March 31, 2018 and $586 million as of June 30, 2017. The increase from the first quarter 2018 was primarily attributed to growth in non-discretionary assets and, to a lesser extent, growth in discretionary assets.
Service charges and fees increased $24 thousand versus first quarter 2018 and decreased $10 thousand versus second quarter 2017. The increase from the first quarter 2018 primarily reflected higher interchange fees whereas the decrease versus second quarter 2017 reflected higher interchange fees, which were offset by lower deposit and other fees.
Income from sales and servicing of mortgage loans decreased $18 thousand versus first quarter 2018 and increased $22 thousand versus second quarter 2017. No mortgage loans were sold during the second quarter 2018 compared with sales of $0.7 million for first quarter 2018, and $1.6 million for second quarter 2017. The increase versus second quarter 2017 primarily reflected lower amortization for mortgage servicing rights in the second quarter 2018. Second quarter 2018, first quarter 2018, and second quarter 2017 included mortgage servicing amortization and periodic impairment charges (net) of $11 thousand, $11 thousand, and $68 thousand, respectively.
Realized gains / (losses) on the sale of securities were $30 thousand for the second quarter 2018 compared with $(15) thousand for the first quarter 2018 and $(14) thousand for the second quarter 2017. Losses on an investment in a CRA mutual fund were $(20) thousand in the second quarter 2018. Prior to first quarter 2018, unrealized gains and losses on equity investments were included in shareholders’ equity.
Non-Interest Expense
Non-interest expense for second quarter 2018 increased $238 thousand versus first quarter 2018 and increased $666 thousand versus second quarter 2017.
Total compensation expense decreased $97 thousand versus first quarter 2018 as higher salary expense, reflecting higher production accruals, was offset by lower payroll taxes and lower benefits expense and higher deferred expenses related to loan originations. Total compensation expenses year-over-year increased by $409 thousand primarily reflecting higher base salaries and higher production accruals, reflecting higher loan origination volume, and higher ESOP, 401K and deferred compensation expense.
Premises and equipment expense increased $77 thousand versus first quarter 2018 and increased $194 thousand versus second quarter 2017. The increase from the first quarter 2018 primarily reflected operating costs related to the new Newburgh and Fishkill, N.Y. branches and the relocation and consolidation of existing branches into those new locations. The year-over-year increase primarily reflected lease and depreciation expense as well as other operating costs associated with the new Newburgh and Fishkill, N.Y. branches as well the New Paltz, N.Y. branch, which was acquired in June 2017.
Data processing expenses, which also include data communications, increased $70 thousand versus first quarter 2018 and increased $52 thousand versus second quarter 2017. The increase from the first quarter 2018 reflected higher core system and Trust & Wealth related data processing charges. The year over year increase primarily reflected higher core system charges and higher data communications expenses, partly offset by lower Trust & Wealth related data processing charges.
Professional fees decreased $8 thousand versus first quarter 2018, and decreased $153 thousand versus second quarter 2017. The decline from the first quarter 2018 primarily reflected lower investment management and audit accruals. The decline from the second quarter 2017 primarily reflected lower audit accruals and lower consultation fees. The second quarter 2018 also included one-time legal and consultation costs of approximately $75 thousand related to the acquisition of the Fishkill, N.Y. branch from Orange Bank & Trust Company.
Loan related expenses increased $101 thousand compared to first quarter 2018 and increased $81 thousand versus second quarter 2017. The increase over both comparable periods was primarily driven by higher OREO carrying costs, delinquent taxes paid on properties in the foreclosure process and appraisal costs.
The effective income tax rates for second quarter 2018, first quarter 2018 and second quarter 2017 were 14.4%, 18.1% and 24.62%, respectively. The decline in the effective income tax rate from the first quarter 2018 primarily reflected the impact of permanent items on lower taxable income. The decline in the effective income tax rate from the second quarter 2017 primarily reflected the enactment of the new U.S. tax law during the fourth quarter of 2017.
Loans
Gross loans receivable increased $42.7 million during second quarter 2018 to $880.2 million at June 30, 2018, compared with $837.4 million at March 31, 2018, and increased $101.8 million from $771.9 million at June 30, 2017. Residential real estate loans increased $15.5 million during second quarter 2018 to $407.1 million, and increased $37.6 million from second quarter 2017. Commercial real estate loans increased $11.6 million during second quarter 2018 to $283.9 million, and increased $31.0 million from second quarter 2017. Commercial and Industrial loans increased $13.6 million from first quarter 2018 to $150.9 million, and increased $25.3 million from second quarter 2017.
The allowance for loan losses for second quarter 2018 was $7.4 million compared with $7.1 million for first quarter 2018 and $6.5 million for second quarter 2017.
Asset Quality
Non-performing assets increased $0.6 million during second quarter 2018 to $6.4 million, or 0.58% of assets at June 30, 2018, from $5.8 million, or 0.57% of assets at March 31, 2018, and decreased $5.3 million from $11.7 million, or 1.20% of assets, at June 30, 2017.
The amount of total impaired and potential problem loans increased $0.3 million during the second quarter to $23.3 million (2.7% of gross loans receivable), compared to $23.0 million, or 2.8% of gross loans receivable at March 31, 2018, and increased $1.0 million from $22.3 million, or 2.9% of gross loans receivable at June 30, 2017.
Accruing loans receivable 30-to-89 days past due decreased $1.9 million during second quarter 2018 to $1.5 million, or 0.17% of gross loans receivable, from $3.4 million, or 0.40% of gross loans receivable at March 31, 2018, and decreased $1.5 million from $3.0 million, or 0.38% of gross loans receivable at June 30, 2017.
Provision for loan loss expense was $467 thousand for second quarter 2018 versus $326 thousand for first quarter 2018, and $364 thousand for second quarter 2017. The increase in the provision from both comparable periods primarily reflected the growth in the portfolio. Net loan charge-offs were $144 thousand for the second quarter 2018, $43 thousand for first quarter 2018 and $155 thousand for the second quarter 2017. Reserve coverage, as measured by the ratio of the allowance for loan losses to gross loans, was 0.84% for the second quarter 2018, versus 0.84% for first quarter 2018 and 0.83% for second quarter 2017.
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
Book value per common share increased $0.18 during the second quarter to $35.38 per share and increased $0.72 from the second quarter 2017. Tangible book value per common share increased $0.25 during second quarter 2018 to $29.88 and increased $0.94 from the second quarter 2017.
Shareholders’ equity increased $1.1 million in second quarter 2018 to $99.2 million at June 30, 2018 as net income of $1.9 million and the issuance of restricted stock awards of $0.2 million was partly offset by common stock dividends paid of $0.8 million and unrealized losses in the AFS portfolio of $0.2 million.
The Bank’s regulatory capital ratios remain in compliance with regulatory “well capitalized” requirements. At June 30, 2018, Salisbury’s Tier 1 leverage, total risk-based capital, and common equity tier 1 capital ratios were 8.30%, 12.27%, and 10.18%, respectively. The Bank’s Tier 1 leverage, total risk-based capital, and common equity tier 1 capital ratios were 8.98%, 11.92%, and 11.02%, respectively, compared with regulatory “well capitalized” minimums of 5.00%, 10.00%, and 6.5%, respectively.
Second Quarter 2018 Dividends on Common Shares
The Board of Directors of Salisbury declared a $0.28 per common share quarterly cash dividend at its July 27, 2018 meeting. The dividend will be paid on August 31, 2018 to shareholders of record as of August 17, 2018.
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.
Forward-Looking Statements
This news release may contain statements relating to future results of 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.
Salisbury Bancorp, Inc. and Subsidiary
CONSOLIDATED BALANCE SHEETS
| (in thousands, except share data) | June 30, 2018 (unaudited) | December 31, 2017 | ||||
| ASSETS | ||||||
| Cash and due from banks | $ | 5,953 | $ | 9,357 | ||
| Interest bearing demand deposits with other banks | 71,520 | 39,129 | ||||
| Total cash and cash equivalents | 77,473 | 48,486 | ||||
| Securities | ||||||
| Available-for-sale at fair value | 85,057 | 78,212 | ||||
| CRA mutual fund | 825 | 835 | ||||
| Federal Home Loan Bank of Boston stock at cost | 4,988 | 3,813 | ||||
| Loans held-for-sale | 206 | 669 | ||||
| Loans receivable, net (allowance for loan losses: $7,381 and $6,776) | 872,796 | 801,703 | ||||
| Other real estate owned | 478 | 719 | ||||
| Bank premises and equipment, net | 18,811 | 16,401 | ||||
| Goodwill | 13,815 | 13,815 | ||||
| Intangible assets (net of accumulated amortization: $4,279 and $4,043) | 1,601 | 1,837 | ||||
| Accrued interest receivable | 3,025 | 2,665 | ||||
| Cash surrender value of life insurance policies | 14,544 | 14,381 | ||||
| Deferred taxes | 1,101 | 677 | ||||
| Other assets | 2,060 | 2,771 | ||||
| Total Assets | $ | 1,096,780 | $ | 986,984 | ||
| LIABILITIES and SHAREHOLDERS' EQUITY | ||||||
| Deposits | ||||||
| Demand (non-interest bearing) | $ | 215,149 | $ | 220,536 | ||
| Demand (interest bearing) | 147,120 | 142,575 | ||||
| Money market | 228,918 | 190,953 | ||||
| Savings and other | 172,701 | 144,600 | ||||
| Certificates of deposit | 133,593 | 116,831 | ||||
| Total deposits | 897,481 | 815,495 | ||||
| Repurchase agreements | 1,691 | 1,668 | ||||
| Federal Home Loan Bank of Boston advances | 79,538 | 54,422 | ||||
| Subordinated debt | 9,823 | 9,811 | ||||
| Note payable | 297 | 313 | ||||
| Capital lease liability | 3,147 | 1,835 | ||||
| Accrued interest and other liabilities | 5,623 | 5,926 | ||||
| Total Liabilities | 997,600 | 889,470 | ||||
| Shareholders' Equity | ||||||
| Common stock - $.10 per share par value | ||||||
| Authorized: 5,000,000; | ||||||
| Issued: 2,885,788 and 2,872,578 | ||||||
| Outstanding: 2,803,126 and 2,785,216 | 280 | 279 | ||||
| Unearned compensation - restricted stock awards | (983 | ) | (606 | ) | ||
| Paid-in capital | 43,727 | 42,998 | ||||
| Retained earnings | 57,002 | 54,664 | ||||
| Accumulated other comprehensive (loss) income, net | (846 | ) | 179 | |||
| Total Shareholders' Equity | 99,180 | 97,514 | ||||
| Total Liabilities and Shareholders' Equity | $ | 1,096,780 | $ | 986,984 | ||
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) | 2018 | 2017 | 2018 | 2017 | ||||||||
| Interest and dividend income | ||||||||||||
| Interest and fees on loans | $ | 9,007 | $ | 8,126 | $ | 17,656 | $ | 16,347 | ||||
| Interest on debt securities | ||||||||||||
| Taxable | 532 | 354 | 992 | 672 | ||||||||
| Tax exempt | 29 | 113 | 61 | 277 | ||||||||
| Other interest and dividends | 181 | 94 | 340 | 176 | ||||||||
| Total interest and dividend income | 9,749 | 8,687 | 19,049 | 17,472 | ||||||||
| Interest expense | ||||||||||||
| Deposits | 997 | 578 | 1,774 | 1,094 | ||||||||
| Repurchase agreements | 1 | 1 | 3 | 1 | ||||||||
| Capital lease | 48 | 20 | 83 | 37 | ||||||||
| Note payable | 4 | 5 | 9 | 7 | ||||||||
| Subordinated debt | 156 | 156 | 312 | 312 | ||||||||
| Federal Home Loan Bank of Boston advances | 500 | 266 | 833 | 528 | ||||||||
| Total interest expense | 1,706 | 1,026 | 3,014 | 1,979 | ||||||||
| Net interest and dividend income | 8,043 | 7,661 | 16,035 | 15,493 | ||||||||
| Provision for loan losses | 467 | 364 | 793 | 716 | ||||||||
| Net interest and dividend income after provision for loan losses | 7,576 | 7,297 | 15,242 | 14,777 | ||||||||
| Non-interest income | ||||||||||||
| Trust and wealth advisory | 949 | 892 | 1,843 | 1,746 | ||||||||
| Service charges and fees | 892 | 902 | 1,760 | 1,863 | ||||||||
| Gains on sales of mortgage loans, net | (1 | ) | 30 | 17 | 79 | |||||||
| Mortgage servicing, net | 84 | 31 | 167 | 76 | ||||||||
| Losses on CRA mutual fund | (20 | ) | - | (20 | ) | - | ||||||
| Gain (losses) on available-for-sale securities, net | 30 | (14 | ) | 16 | (14 | ) | ||||||
| Other | 124 | 110 | 249 | 223 | ||||||||
| Total non-interest income | 2,058 | 1,951 | 4,032 | 3,973 | ||||||||
| Non-interest expense | ||||||||||||
| Salaries | 2,939 | 2,668 | 5,785 | 5,437 | ||||||||
| Employee benefits | 969 | 831 | 2,128 | 1,919 | ||||||||
| Premises and equipment | 1,101 | 907 | 2,125 | 1,802 | ||||||||
| Data processing | 556 | 504 | 1,042 | 977 | ||||||||
| Professional fees | 611 | 764 | 1,230 | 1,481 | ||||||||
| OREO gains, losses and writedowns | 1 | - | 53 | 144 | ||||||||
| Collections, OREO, and loan related | 235 | 155 | 316 | 312 | ||||||||
| FDIC insurance | 123 | 98 | 253 | 247 | ||||||||
| Marketing and community support | 222 | 152 | 463 | 403 | ||||||||
| Amortization of intangibles | 116 | 126 | 236 | 252 | ||||||||
| Other | 544 | 546 | 965 | 1,081 | ||||||||
| Total non-interest expense | 7,417 | 6,751 | 14,596 | 14,055 | ||||||||
| Income before income taxes | 2,217 | 2,497 | 4,678 | 4,695 | ||||||||
| Income tax provision | 318 | 615 | 763 | 1,208 | ||||||||
| Net income | $ | 1,899 | $ | 1,882 | $ | 3,915 | $ | 3,487 | ||||
| Net income allocated to common shareholders | $ | 1,877 | $ | 1,867 | $ | 3,873 | $ | 3,461 | ||||
| Basic earnings per common share | $ | 0.68 | $ | 0.68 | $ | 1.40 | $ | 1.26 | ||||
| Diluted earnings per common share | 0.68 | 0.67 | 1.39 | 1.25 | ||||||||
| 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 2018 | Q1 2018 | Q4 2017 | Q3 2017 | Q2 2017 | ||||||||||
| Total assets | $ | 1,096,780 | $ | 1,014,934 | $ | 986,984 | $ | 979,469 | $ | 974,806 | |||||
| Loans receivable, net | 872,796 | 830,370 | 801,703 | 784,136 | 771,850 | ||||||||||
| Total securities | 90,870 | 84,878 | 82,860 | 88,546 | 84,468 | ||||||||||
| Deposits | 897,481 | 831,837 | 815,495 | 831,989 | 811,341 | ||||||||||
| FHLBB advances | 79,538 | 62,480 | 54,422 | 27,364 | 47,302 | ||||||||||
| Shareholders’ equity | 99,180 | 98,097 | 97,514 | 97,526 | 96,545 | ||||||||||
| Wealth assets under administration | 667,933 | 600,256 | 610,218 | 594,510 | 585,759 | ||||||||||
| Discretionary wealth assets under administration | 397,637 | 390,248 | 394,673 | 374,357 | 374,271 | ||||||||||
| Non-Discretionary wealth assets under administration | 270,296 | 210,008 | 215,545 | 220,153 | 211,488 | ||||||||||
| Non-performing loans | 5,881 | 5,094 | 6,635 | 8,313 | 7,835 | ||||||||||
| Non-performing assets | 6,359 | 5,761 | 7,354 | 12,257 | 11,690 | ||||||||||
| Accruing loans past due 30-89 days | 1,507 | 3,362 | 3,536 | 3,449 | 2,961 | ||||||||||
| Net interest and dividend income | 8,043 | 7,994 | 8,025 | 7,766 | 7,661 | ||||||||||
| Net interest and dividend income, tax equivalent | 8,155 | 8,112 | 8,231 | 7,983 | 7,894 | ||||||||||
| Provision for loan losses | 467 | 326 | 67 | 237 | 364 | ||||||||||
| Non-interest income | 2,058 | 1,974 | 2,182 | 2,080 | 1,951 | ||||||||||
| Non-interest expense | 7,417 | 7,182 | 8,052 | 7,220 | 6,751 | ||||||||||
| Income before income taxes | 2,217 | 2,460 | 2,088 | 2,389 | 2,497 | ||||||||||
| Income tax provision | 318 | 445 | 1,011 | 695 | 615 | ||||||||||
| Net income | 1,899 | 2,015 | 1,077 | 1,694 | 1,882 | ||||||||||
| Net income applicable to common shareholders | 1,877 | 1,995 | 1,065 | 1,678 | 1,867 | ||||||||||
| Per share data | |||||||||||||||
| Basic earnings per common share | $ | 0.68 | $ | 0.72 | $ | 0.39 | $ | 0.61 | $ | 0. 68 | |||||
| Diluted earnings per common share | 0.68 | 0.72 | 0.38 | 0.60 | 0.67 | ||||||||||
| Dividends per common share | 0.28 | 0.28 | 0.28 | 0.28 | 0.28 | ||||||||||
| Book value per common share | 35.38 | 35.20 | 35.01 | 35.01 | 34.66 | ||||||||||
| Tangible book value per common share - Non-GAAP(1) | 29.88 | 29.63 | 29.39 | 29.34 | 28.94 | ||||||||||
| Common shares outstanding at end of period (in thousands) | 2,803 | 2,787 | 2,785 | 2,786 | 2,785 | ||||||||||
| Weighted average common shares outstanding, to calculate basic earnings per share (in thousands) | 2,761 | 2,759 | 2,757 | 2,757 | 2,757 | ||||||||||
| Weighted average common shares outstanding, to calculate diluted earnings per share (in thousands) | 2,779 | 2,780 | 2,778 | 2,777 | 2,775 | ||||||||||
| Profitability ratios | |||||||||||||||
| Net interest margin (tax equivalent) | 3.31 | % | 3.46 | % | 3.58 | % | 3.50 | % | 3.58 | % | |||||
| Efficiency ratio(2) | 70.87 | 69.35 | 64.90 | 67.18 | 66.56 | ||||||||||
| Effective income tax rate(3) | 14.35 | 18.09 | 48.42 | 29.09 | 24.62 | ||||||||||
| Return on average assets | 0.69 | 0.81 | 0.43 | 0.69 | 0.77 | ||||||||||
| Return on average common shareholders’ equity | 7.68 | 8.33 | 4.38 | 6.89 | 7.82 | ||||||||||
| Credit quality ratios | |||||||||||||||
| Non-performing loans to loans receivable, gross | 0.67 | 0.61 | 0.82 | 1.05 | 1.01 | ||||||||||
| Accruing loans past due 30-89 days to loans receivable, gross | 0.17 | 0.40 | 0.44 | 0.44 | 0.38 | ||||||||||
| Allowance for loan losses to loans receivable, gross | 0.84 | 0.84 | 0.84 | 0.82 | 0.83 | ||||||||||
| Allowance for loan losses to non-performing loans | 125.51 | 138.56 | 102.12 | 79.30 | 82.87 | ||||||||||
| Non-performing assets to total assets | 0.58 | 0.57 | 0.74 | 1.25 | 1.20 | ||||||||||
| Capital ratios | |||||||||||||||
| Common shareholders' equity to assets | 9.04 | % | 9.67 | % | 9.88 | % | 9.96 | % | 9.90 | % | |||||
| Tangible common shareholders' equity to tangible assets - Non-GAAP(1) | 7.75 | 8.26 | 8.43 | 8.48 | 8.41 | ||||||||||
| Tier 1 leverage capital | 8.30 | 8.56 | 8.53 | 8.49 | 8.77 | ||||||||||
| Total risk-based capital | 12.27 | 12.70 | 12.94 | 13.20 | 13.12 | ||||||||||
| Common equity tier 1 capital | 10.18 | 10.54 | 10.73 | 10.96 | 10.88 | ||||||||||
(1) Refer to schedule labeled “Supplemental Information – Non-GAAP Financial Measures”.
(2) Calculated using S&P Global’s (publicly recognized resource of bank data) methodology, as follows: 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 litigation expenses.
(3) The effective tax rate for 4Q 2017 included the discrete charge related to the remeasurement of net deferred tax assets. Excluding this charge, the effective tax rate for the quarter was 27.12%.
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 2018 | Q1 2018 | Q4 2017 | Q3 2017 | Q2 2017 | ||||||||||
| Common Shareholders' Equity | $ | 99,180 | $ | 98,097 | $ | 97,514 | $ | 97,526 | $ | 96,545 | |||||
| Less: Goodwill | (13,815 | ) | (13,815 | ) | (13,815 | ) | (13,815 | ) | (13,827 | ) | |||||
| Less: Intangible assets | (1,601 | ) | (1,716 | ) | (1,837 | ) | (1,974 | ) | (2,116 | ) | |||||
| Tangible Common Shareholders' Equity | $ | 83,764 | $ | 82,566 | $ | 81,862 | $ | 81,737 | $ | 80,602 | |||||
| Total Assets | $ | 1,096,780 | $ | 1,014,934 | $ | 986,984 | $ | 979,469 | $ | 974,806 | |||||
| Less: Goodwill | (13,815 | ) | (13,815 | ) | (13,815 | ) | (13,815 | ) | (13,827 | ) | |||||
| Less: Intangible assets | (1,601 | ) | (1,716 | ) | (1,837 | ) | (1,974 | ) | (2,116 | ) | |||||
| Tangible Total Assets | $ | 1,081,364 | $ | 999,403 | $ | 971,332 | $ | 963,680 | $ | 958,863 | |||||
| Common Shares outstanding | 2,803 | 2,787 | 2,785 | 2,786 | 2,785 | ||||||||||
| Book value per Common Share – GAAP | $ | 35.38 | $ | 35.20 | $ | 35.01 | $ | 35.01 | $ | 34.66 | |||||
| Tangible book value per Common Share - Non-GAAP | 29.88 | 29.63 | 29.39 | 29.34 | 28.94 | ||||||||||
| Non-interest expense | $ | 7,417 | $ | 7,182 | $ | 8,052 | $ | 7,220 | $ | 6,751 | |||||
| Less: Amortization of core deposit intangibles | (116 | ) | (120 | ) | (138 | ) | (142 | ) | (126 | ) | |||||
| Less: Foreclosed property expense including OREO gains, losses and write downs | (71 | ) | (56 | ) | (1,281 | ) | (318 | ) | (63 | ) | |||||
| Operating Expenses | $ | 7,230 | $ | 7,006 | $ | 6,633 | $ | 6,760 | $ | 6,562 | |||||
| Net interest and dividend income, tax equivalent | $ | 8,155 | $ | 8,112 | $ | 8,231 | $ | 7,983 | $ | 7,894 | |||||
| Non-interest income | 2,058 | 1,974 | 2,182 | 2,080 | 1,951 | ||||||||||
| Gains (losses) on securities | (11 | ) | 15 | (193 | ) | - | 14 | ||||||||
| Operating Revenue | $ | 10,202 | $ | 10,101 | $ | 10,220 | $ | 10,063 | $ | 9,859 | |||||
| Efficiency Ratio - Non-GAAP | 70.87 | % | 69.35 | % | 64.90 | % | 67.18 | % | 66.56 | % | |||||
Salisbury Contact: Richard J. Cantele, Jr., President and Chief Executive Officer
860-435-9801 or rcantele@salisburybank.com
Source: Salisbury Bancorp, Inc.