Lakeville-based Salisbury Bank had first quarter net income of $3 million, or $0.52 per basic common share, compared to $4.1 million, or $0.71 per basic common share, in the fourth quarter of 2022 and $3.5 million, or $0.62 per basic common share, in the first quarter of 2022.
The bank’s first quarter net income included pre-tax costs of $385,000 related to the pending merger with NBT Bancorp. The bank also plans to close its Red Oaks Mill, New York, branch April 30, and first quarter results reflected costs of $158,000 to write-off fixed assets.
The bank also adopted the current expected credit losses (CECL) accounting methodology in the first quarter.
Salisbury’s loans totaled $1.3 billion at the end of the first quarter 2023, up $22.1 million, or 1.8 percent, from the fourth quarter and $171.5 million, or 15.9 percent, year-over-year.
Total deposits were $1.3 billion as of March 31, down $65.4 million, or 4.8 percent from Dec. 31 and up $2.6 million, or 0.2 percent, from March 31, 2022.
The bank’s balance of deposits that were not insured by the FDIC or not collateralized by securities owned by Salisbury was approximately $344 million, or 27 percent, of total deposits.
“Our financial results for the first quarter were impacted by the challenging banking and macro-economic environment,” Salisbury’s President and CEO Richard J. Cantele Jr. said in the bank’s first quarter earnings statement. “Despite these headwinds, Salisbury’s business model remains conservative, the Bank is well-capitalized and our deposit base is diversified. Additionally, the unrealized losses in our investment portfolio do not present a material risk to the Bank or to our customers.”
Salisbury could complete its sale to NBT Bancorp this quarter.
“As we look forward and take a longer term perspective, we are excited that the strategic partnership with NBT has been approved by Salisbury shareholders,” Cantele said. “The merger is expected to close this quarter, subject to regulatory approval. While we work through the integration of these two high-performing franchises, Salisbury employees will remain focused on prudently managing the Bank’s capital and liquidity and providing outstanding service to our customers.”
