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Lakeville-based Salisbury Bank had second quarter earnings on par with the same period last year, despite a $1.8 million loan loss provision.
Salisbury Bank’s second quarter net income was $2.7 million, or $0.96 per common share, compared with $2 million, or $0.72 per common share, in the first quarter and $2.7 million, or $0.96 per common share, for the second quarter last year.
“The pandemic continues to weigh heavily on businesses and consumers as we all adapt to the new ‘normal,’” Salisbury’s President and CEO Richard J. Cantele Jr. said in a statement. “Despite a higher provision for loan losses, we reported solid results for the second quarter and we continued to bolster our capital base. We remain steadfast in our commitment to help our customers navigate through this period of uncertainty. In addition, we have accelerated our charitable giving to many non-profits in the communities served by the bank.”
Cantele said Salisbury Bank processed almost 900 Paycheck Protection Program loans for nearly $100 million, preserving approximately 10,500 jobs. He added that the bank also assisted hundreds of customers affected by the COVID-19 pandemic by providing fee waivers of fees and short-term loan payment deferments.
Loan payments were deferred on 124 residential and consumer loans with a total balance of $35 million and 200 commercial loans with a $136 million total balance. Approximately $240,000 of deposit and transaction fees were waived in the second quarter.
The allowance for loan losses in the second quarter was $12.4 million compared with $10.6 million on March 31 and $8.9 million at June 30, 2019. The provision for loan losses expense was $1.8 million for second quarter compared to $1.7 million for first quarter 2020 and $151,000 for the second quarter of 2019. The allowance for loan losses was 1.18 percent of total loans in the second quarter compared to 1.11 percent in the first quarter and 0.97 percent in the second quarter of 2019.
The net interest margin for the second quarter 2020 was 3.31 percent compared with 3.35 percent for the first quarter and 3.19 percent for the second quarter of 2019
Salisbury Bank had about $1.29 billion in total assets in the second quarter, up from $1.1 billion at the end of 2019. Total deposits were $1.1 billion as of June 30 compared to $965.6 million in the first quarter and $950.7 million on June 30, 2019.
Excluding $98.9 million in PPP loans, Salisbury’s total loans were $956.4 million in the second quarter compared to $959.8 million on March 31 and $919.5 million at June 30, 2019.
The second quarter also saw Salisbury Bancorp get added to the Russell 3000 Index.
