Salisbury Bancorp, Inc. Reports Results For First Quarter 2022

Rhea-AI Summary

Salisbury Bancorp reported a net income of $3.5 million or $1.24 per basic share for Q1 2022, down from $4.1 million in Q4 2021. The Common Equity Tier 1 and Total Capital Ratios stood at 12.8% and 14.0%, respectively. Non-performing assets decreased to 0.19% of total assets from 0.27% in Q4 2021. The company renewed its share repurchase program allowing for the buyback of up to 5% of shares over the next year. A quarterly dividend of $0.32 per share was approved to be paid on May 27, 2022.

Positive

• Net income of $3.5 million for Q1 2022 reflects a strong performance.
• Non-performing assets decreased to 0.19% of total assets, indicating improved asset quality.
• Renewal of share repurchase program allows for up to 5% buyback of shares.
• Approval of a quarterly dividend of $0.32 per share demonstrates commitment to returning value to shareholders.

Negative

• Net income decreased from $4.1 million in Q4 2021 and $4.5 million in Q1 2021.
• Tax equivalent net interest income decreased by 2.3% compared to Q4 2021.
• Non-interest expense increased by $1.4 million compared to Q1 2021, indicating rising operational costs.
• Decrease in assets under administration in wealth management services, affecting revenue potential.

• 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, Conn., April 20, 2022 (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 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 Contact: Richard J. Cantele, Jr., President and Chief Executive Officer
860-435-9801 or rcantele@salisburybank.com

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.

FAQ

What was Salisbury Bancorp's net income for Q1 2022?

Salisbury Bancorp reported a net income of $3.5 million for Q1 2022.

What is the stock symbol for Salisbury Bancorp?

The stock symbol for Salisbury Bancorp is SAL.

When will Salisbury Bancorp's dividend be paid?

The dividend will be paid on May 27, 2022, to shareholders of record as of May 13, 2022.

What are the capital ratios for Salisbury Bancorp as of Q1 2022?

As of Q1 2022, the Common Equity Tier 1 and Total Capital Ratios were 12.8% and 14.0%, respectively.

What was the status of non-performing assets for Salisbury Bancorp in Q1 2022?

Non-performing assets decreased to 0.19% of total assets in Q1 2022.