UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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): December 11, 2008
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SALISBURY BANCORP, INC.
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(Exact name of registrant as specified in charter)
Connecticut 000-24751 06-1514263
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(State or other jurisdiction of (Commission File Number) (IRS Employer
incorporation) 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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(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K is intended to simultaneously
satisfy the filing obligations of the registrant under any of the following
provisions (see General Instructions A.2. below):
[_] Written communications pursuant to Rule 425 under the Securities Act (12
C.F.R. 230.425)
[_] Soliciting material pursuant to Rule 14a-2 under the Exchange Act (17
C.F.R. 240.14a-12)
[_] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 C.F.R. 240.14d-2(b))
[_] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 C.F.R. 240.13e-4(c))
Form 8-K, Current Report
Salisbury Bancorp, Inc.
Section 8. Other Events
Item 8.01. Other Events
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Salisbury Bancorp, Inc. ("Salisbury" or the "Company") (NYSE Alternext US:
SAL), parent company of Salisbury Bank and Trust Company ("Bank"), reported
today that the Bank has prepaid a $19 million borrowing from the Federal Home
Loan Bank of Boston at a cost of approximately $570,000, net of tax. The Bank
took such action as part of a program to restructure a portion of the Bank's
borrowings. The borrowings which were at a rate of 5.97% will be replaced with
new Federal Home Loan Bank advances that have lower interest rates and a revised
maturity structure. While the prepayment will result in a one time after tax
expense of approximately $570,000 in the fourth calendar quarter of 2008, the
Company still expects to report net income for the quarter ended December 31,
2008.
This restructuring is expected to result in a decrease in future
borrowing expense which is intended to increase earnings per share in 2009 and
future years. After careful analysis the Company has determined that the
borrowing restructuring was an advisable course of action given the current
interest rate environment, and the opportunities to reprice that are present in
the market. The intended future benefit of this restructuring is improvement in
earnings per share due to a decrease in future borrowing expense.
Salisbury Bancorp's sole subsidiary, Salisbury Bank and Trust Company,
is a community bank. The Company has assets in excess of $480 million and
capital in excess of $38 million and has served the communities of northwestern
Connecticut and proximate communities in New York and Massachusetts for
approximately 150 years. Salisbury Bank and Trust Company is headquartered in
Lakeville, Connecticut and operates full service branches in Canaan, Salisbury
and Sharon as well as Lakeville, Connecticut, South Egremont and Sheffield,
Massachusetts and Dover Plains, New York. The Bank offers a full complement of
consumer and business banking products and services as well as trust and wealth
advisory services.
Statements contained in this report contain 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 made 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 government regulations; changes in accounting principles;
and the quality or composition of the loan and investment portfolios and other
factors that may be described in the Company's quarterly reports on Form 10-Q
and its annual report on Form 10-K, each filed with the Securities and Exchange
Commission, which are available at the Securities and Exchange Commission's
internet website (www.sec.gov) and to which reference is hereby made. Therefore,
actual future results may differ significantly from results discussed in the
forward looking statements.
SIGNATURES
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: December 12, 2008 SALISBURY BANCORP, INC.
By: /s/ John F. Foley
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John F. Foley
Chief Financial Officer