SALISBURY BANCORP, INC. - FORM 8-K/A - EX-99.1 - EXHIBIT 99.1 - February 17, 2015

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8-K/A - FORM 8-K/A - SALISBURY BANCORP, INC.sal0217form8ka.htm

Salisbury Bancorp Inc., and Subsidiary
Proforma Condensed Consolidated Balance Sheets
Proforma September 30, 2014 and December 31, 2013
(in 000's)
(unaudited)
             
             
    September 30, 2014    1    December 31, 2013    Change 
                     
ASSETS
Cash and cash equivalents and certificates of deposit  $59,883        $22,860   $37,023 
Securities available for sale, at fair value   100,054         114,797    (14,743)
Loans, net and loans held for sale   656,440         617,116    39,324 
Premises and equipment, net   14,506         13,286    1,220 
Goodwill   12,553         12,553    — 
Identifiable intangible assets   2,749         2,791    (42)
Cash surrender value of life insurance policies   13,189         11,851    1,338 
Other assets   12,260         14,484    (2,224)
                     
     Total assets  $871,634        $809,738   $61,896 
                     
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits  $726,359        $673,276   $53,083 
Borrowings   36,142         33,390    2,752 
Other liabilities   5,413         4,489    924 
     Total liabilities   767,914         711,155    56,759 
                     
Stockholders'  equity   103,720    2    98,583    3,597 
                     
     Total liabilities and stockholders' equity  $871,634        $809,738   $61,896 
                     
Notes:                    
(1)
September 30, 2014 includes the SAL June 2014 acquisition of a branch from another financial institution.
As a result of this acquisition, cash and cash equivalents increased $16,969,000, loans increased $61,000, intangible assets increased $489,000, fixed assets increased $158,000, and deposits increased $17,678,000, at June 30, 2014.
                     
(2)
Includes dividend adjustment of $0.28 per share per quarter on additional 1,007,000 shares, 1,001,000 of which were issued to Riverside shareholders and an additional 6,000 shares were awarded under the 2011 Long Term Incentive Plan.

 

 
 

Salisbury Bancorp Inc., and Subsidiary
Proforma Condensed Consolidated Statements of Income
Proforma For the Three Months Ended September 30, 2014 and September 30, 2013
Proforma For the Nine Months Ended September 30, 2014 and September 30, 2013
(Unaudited)
 
 
 
   Three Months Ended 1   Nine Months Ended 1
    September 30,   September 30,
     2014             2013           2014           2013  
            (in thousands except per share data)        
Interest and dividend income:                              
  Interest and fees on loans  $7,695   2   $6,971       $22,875   2 $ 20,699
  Interest and dividends on securities   851   3    945        2,595   3   2,952
     Total interest and dividend income   8,546        7,916        25,470       23,651
                               
Interest expense:                              
  Interest on deposits   521   4    745        1,549   4   2,424
  Interest on borrowed funds   311        313        926       939
     Total interest expense   832        1,058        2,475       3,363
                               
Net interest and dividend income   7,714        6,858        22,995       20,288
Provision for loan losses   318   5    450        969   5   1,626
Net interest income, after provision for loan losses   7,396        6,408        22,026       18,662
                               
Non-interest income:                              
Service charges on deposits   760        734        2,173       2,101
Income from fiduciary activities   791        750        2,509       2,299
Other operating income   229        201        535       886
Total non-interest income   1,780        1,685        5,217       5,286
                               
Non-interest expense:       9                 9    
Salaries and employee benefits   3,447   8    3,492        10,259   8   10,284
Occupancy and equipment expenses   877   6    802        2,565   6   2,321
Other operating expense   2,167   7    1,721        6,738   7   5,565
Total non-interest expense   6,491        6,015        19,562       18,170
                               
Income before income taxes   2,685        2,078        7,681       5,778
Provision for income taxes   756   10    544        2,272   10   1,431
Net income  $1,929       $1,534       $5,409     $ 4,347
Net income available to common shareholders  $1,889       $1,494       $5,289     $ 4,227
                               
Shares:                              
Basic   2,692        2,698        2,691       2,699
Diluted   2,712        2,698        2,711       2,699
                               
Earnings per share:                              
Basic  $0.70       $0.55       $1.97     $ 1.57
Diluted  $0.70       $0.55       $1.95     $ 1.57

 

 

    1 September 30, 2014 includes the SAL June 2014 acquisition of a branch from another financial institution.
  Impacts from this transaction included in the proforma condensed statements of income for the nine months ending September 30, 2014 are (in whole dollars):
    2 No adjustment for incremental PCI accretion is included.  Totals reflect historically reported income adjusted for impact of ASC 310-20 loans
    3 Adjusted to reflect estimated yield change as a result of fair value adjustments
    4 Adjustment for interest rate mark on time deposits
    5 Riverside's historical provision expense reversed as required under purchase accounting
    6 Reflects adjustment to depreciation expense resulting from fair value of real estate
    7 Reflects amortization of core deposit intangible created through assumption of Riverside's core deposits
    8 Reflects adjustment related to certain employee benefits due to Riverside acquisition
    9 Reflects estimated net operations cost saves of $142 for the three month period and $426 for the nine month period
  10 Reflects a change in taxes from adjustments at an assumed tax rate of 34%
  11 Projected adjustment to Interest and fees on loans as a result of ASC 310-20

      ASC 310-20  
  Year 1                      2,012      
  Year 2                      1,010      
  Year 3                         877      
  Year 4                         702      
  Year 5                         381      
  Total                      4,982      
  12 Projected total interest recognized on PCI loans as a result of fair value adjustments
      PCI      
  Year 1                      1,295      
  Year 2                         783      
  Year 3                         293      
  Year 4                         129      
  Year 5                           67      
  Total                      2,567      

 

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