SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20429
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 24, 1999
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SALISBURY BANCORP, INC.
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(Exact name of registrant as specified in charter)
Connecticut 06-1514263
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(State or other jurisdiction of incorporation) (IRS Employer Identification No.)
5 Bissell Street, Lakeville, Connecticut 06039-1868
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(Address of principal executive offices) (zip code)
Registrant's telephone number, including area code: (860) 435-9801
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Form 8-K, Current Report
Salisbury Bancorp, Inc.
Item 5. Other Matters.
Salisbury Bancorp, Inc., the parent company of Salisbury Bank and
Trust Company, announced earnings for the fourth quarter of 1998
and for year ended December 31, 1998.
The Board of Directors of Salisbury Bancorp, Inc., also declared a
$.12 per share first quarter cash dividend at their February 24,
1999 Board meeting.
The quarterly cash dividend will be paid on April 30, 1999 to
shareholders of record as of March 31, 1999.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
c. Exhibits.
99. Press release dated February 26, 1999
Exhibit Index Page
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99. Press release dated February 26, 1999 3
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereto duly authorized.
Dated: March 5, 1999 SALISBURY BANCORP, INC.
By: /s/ John F. Perotti
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John F. Perotti, President and
Chief Executive Officer
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EXHIBIT 99
PRESS RELEASE DATED FEBRUARY 26, 1999
SALISBURY BANCORP, INC. ANNOUNCES YEAR END EARNINGS
Lakeville, Connecticut, February 26, 1999/PRNewswire. Salisbury Bancorp, Inc.
(AMEX:SAL) (the "Company") the holding company for Salisbury Bank and Trust
Company (the "Bank") reported fourth quarter earnings of $635,000 and net
earnings of $2,413,000 or $1.53 per diluted share for the year ended December
31, 1998. This compares to fourth quarter earnings of $563,000 and net earnings
of $2,190,000 or $1.40 per diluted share for the year ended December 31, 1997.
Salisbury Bancorp, Inc. became the bank holding company for Salisbury Bank and
Trust Company and began trading on the American Stock Exchange on August 24,
1998. The Bank is a community bank operating full service banking offices in
Lakeville, Salisbury and Sharon, Connecticut. It has served the communities of
Northwestern Connecticut and proxmiate communities in New York and Massachusetts
for approximately 150 years.
During the reorganization each share of Bank stock was exchanged for six shares
of common stock of the Company. Therefore, all prior period per share data has
been restated to reflect the 6-1 conversion. The Company also initiated a stock
repurchase program during the year to acquire up to approximately 10% of the
outstanding stock of the Company. According to John F. Perotti, President and
CEO, the repurchase generally will be reflected through open market purchases
although he did not rule out the possibility of unsolicited negotiated
transactions or other types of repurchases.
The Company's total assets increased to $217,223,000 at year end December 31,
1998 compared to $183,433,000 at year end December 31, 1997. This increase is
primarily from an increase in borrowings from the Federal Home Loan Bank of
Boston. These borrowings are the results of an interest rate risk strategy
designed to prevent loss of income primarily in a falling rate environment and a
strategy directed at providing the Company with competitive fixed rate mortgage
products. Although the additional borrowings resulted in increased interest
expense, the investment of these funds in loans and securities produced an
increase in net interest income of $558,000 to $7,476,000 at December 31, 1998
compared to $6,918,000 at year end 1997. This is an increase of 8.10%.
Noninterest income for 1998 increased 18.44%, primarily the result of continued
growth in the Trust Department and an increase in MasterMoney debit card and
VISA credit card transactions. Total noninterest expenses totaled $5,346,000 at
year end 1998 compared to $4,766,000 for the same period in 1997. This increase
was impacted by one time holding company formation costs of $150,000 and one
time OREO disposition costs amounting to approximately $235,000. Excluding these
one time expenses, other noninterest expenses increased approximately 4.76% when
comparing 1998 to 1997. This reflects managements continuing efforts to control
operating expenses. Shareholders equity increased to $21,650,000 at December 31,
1998. This represents an increase of 5.4% over year ending 1997 total equity of
$20,483,000. The Company's risk-based capital ratios at year end 1998 were
20.73% for tier 1 capital and 22% for total capital. These ratios substantially
exceed regulatory minimums for bank holding companies. Overall book value of
common stock was $13.91 at December 31, 1998 as compared to $13.06 at December
31, 1997 and dividends for 1998 totaled $.60 per share compared to 1997
dividends of $.52 per share, an increase of 15%. This represents a payout ratio
of 39.2%
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<CAPTION>
SALISBURY BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 1998 AND 1997
ASSETS 1998 1997
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<S> <C> <C>
Cash and due from banks ................................................... $ 5,525,258 $ 7,180,643
Interest bearing demand deposits with other banks ......................... 469,816 166,947
Federal funds sold ........................................................ 6,200,000 4,325,000
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Cash and cash equivalents ............................................ 12,195,074 11,672,590
Investments in available-for-sale securities (at fair value) .............. 78,655,408 47,511,291
Investments in held-to-maturity securities (fair value of $573,075 as of
December 31, 1998 and $1,790,362 as of December 31, 1997) .............. 579,078 1,771,723
Federal Home Loan Bank stock, at cost ..................................... 2,056,000 833,300
Loans, net ................................................................ 119,142,785 116,691,065
Other real estate owned ................................................... 180,000 205,000
Premises and equipment .................................................... 2,399,607 2,707,458
Accrued interest receivable ............................................... 1,383,349 1,299,186
Other assets .............................................................. 631,565 741,207
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Total assets ......................................................... $217,222,866 $183,432,820
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LIABILITIES AND STOCKHOLDERS' EQUITY
Demand deposits ........................................................... $ 27,434,614 $ 26,497,015
Savings and NOW deposits .................................................. 64,885,607 67,445,595
Time deposits ............................................................. 60,830,923 62,230,844
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Total deposits ....................................................... 153,151,144 156,173,454
Federal Home Loan Bank advances ........................................... 41,119,806 5,496,975
Other liabilities ......................................................... 1,301,809 1,279,281
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Total liabilities .................................................... 195,572,759 162,949,710
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Stockholders' equity:
Common stock, par value $.10 per share in 1998 and $3.33 per share in
1997; authorized 3,000,000 shares in 1998 and 500,000 shares in 1997;
issued and outstanding, 1,556,286 shares in 1998 and 261,398 shares
in 1997................................................................ 155,629 870,451
Paid-in capital ........................................................... 4,882,027 4,543,265
Retained earnings ......................................................... 16,255,216 14,772,805
Accumulated other comprehensive income .................................... 357,235 296,589
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Total stockholders' equity ........................................... 21,650,107 20,483,110
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Total liabilities and stockholders' equity ........................... $217,222,866 $183,432,820
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<CAPTION>
SALISBURY BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
Years Ended December 31, 1998, 1997 and 1996
1998 1997 1996
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<S> <C> <C> <C>
Interest and dividend income:
Interest and fees on loans .......................................... $ 9,479,885 $ 9,459,235 $ 9,347,382
Interest and dividends on securities:
Taxable ........................................................... 2,971,296 2,413,960 2,012,107
Tax-exempt ........................................................ 400,206 288,599 174,822
Dividends on equity securities .................................... 60,636 55,225 51,179
Other interest ...................................................... 449,329 407,263 488,825
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Total interest and dividend income ............................. 13,361,352 12,624,282 12,074,315
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Interest expense:
Interest on deposits ............................................. 5,124,335 5,364,746 5,336,829
Interest on Federal Home Loan Bank advances ...................... 760,841 341,811 180,964
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Total interest expense ......................................... 5,885,176 5,706,557 5,517,793
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Net interest and dividend income ................................. 7,476,176 6,917,725 6,556,522
Provision for loan losses ........................................... 120,000 50,000 275,000
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Net interest and dividend income after provision for
loan losses ...................................................... 7,356,176 6,867,725 6,281,522
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Other income:
Trust department income .......................................... 1,031,255 934,163 751,951
Service charges on deposit accounts .............................. 347,188 251,733 277,714
Securities gains, net ............................................ 4,372 11,676
Other income ..................................................... 387,217 300,544 390,924
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Total other income ............................................. 1,765,660 1,490,812 1,432,265
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</TABLE>
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<TABLE>
<CAPTION>
SALISBURY BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
Years Ended December 31, 1998, 1997 and 1996
(continued)
1998 1997 1996
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<S> <C> <C> <C>
Other expense:
Salaries and employee benefits ................................... 2,631,604 2,399,275 2,375,438
Occupancy expense ................................................ 242,099 206,432 227,483
Equipment expense ................................................ 427,935 367,160 268,386
Data processing .................................................. 251,175 257,301 307,933
Insurance ........................................................ 95,503 87,289 72,242
Provision for loss on other real estate owned .................... 97,563
Other real estate owned writedowns ............................... 65,000
Net cost (profit) of operation of other real estate owned......... (52,196) 12,231 6,633
Printing and stationery .......................................... 137,889 137,698 170,824
Legal expense .................................................... 173,279 141,303 75,954
Other expense .................................................... 1,373,901 1,157,467 944,815
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Total other expense ............................................ 5,346,189 4,766,156 4,547,271
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Income before income taxes ..................................... 3,775,647 3,592,381 3,166,516
Income taxes ........................................................ 1,363,075 1,402,000 1,052,152
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Net income ....................................................... $ 2,412,572 $ 2,190,381 $ 2,114,364
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Earnings per common share ........................................... $ 1.54 $ 1.41 $ 1.35
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Earnings per common share
assuming dilution ................................................ $ 1.53 $ 1.40 $ 1.35
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The Directors of Salisbury Bancorp, Inc. also announced today that a $.12 per
share quarterly cash dividend for the first quarter of 1999 was declared at
their February 24, 1999 meeting.
The quarterly cash dividend will be paid on April 30, 1999 to shareholders of
record as of March 31, 1999. This compares to an $.11 per share dividend that
was paid for the first quarter of 1998.
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