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Sussex Bancorp Reports Second Quarter Results and Improved
Asset Quality for 2012
GlobeNewswire
2012-07-31
FRANKLIN, N.J., July 30, 2012 (GLOBE NEWSWIRE) -- Sussex Bancorp (the
"Company") (Nasdaq:SBBX), the holding company for Sussex Bank (the
"Bank") today announced net income of $481 thousand, or $0.15 per basic
and $0.14 per diluted share, for the quarter ended June 30, 2012, as
compared to $727 thousand, or $0.22 per basic and diluted share, for
the same period last year. For the six months ended June 30, 2012, the
Company reported net income of $286 thousand, or $0.09 per basic and
diluted share, as compared to $1.4 million, or $0.44 per basic share
and $0.43 per diluted share, for the same period last year. The Company
attributed the decrease in net income for the six months ended June 30,
2012 largely to the write-down and expenses related to the prospective
sale of one of our largest foreclosed assets. Expenses related to
additional commercial lending staff, technology upgrades, increased
advertising and promotion and FDIC assessment costs (due to deposit
growth) also added to the increase.
The Company is beginning to see the results of its growth initiatives
as loan growth for the second quarter of 2012, on a linked quarter
basis, was the highest in at least three years. "Our enhanced
commercial lending division has substantially improved our loan
production, which has helped us positively change the mix of the
balance sheet. This shift has had a positive impact on our operating
results by offsetting some of the downward pressure on our net interest
margin due to the low level of interest rates," said Anthony
Labozzetta, President and Chief Executive Officer of Sussex Bank.
For June 30, 2012, asset quality improved as non-performing assets
("NPA's") declined 10.2% and overall problem assets (total
classified/criticized/foreclosed assets) have declined 31.9% to $42.7
million at June 30, 2012 from a historical high of $62.8 million at
March 31, 2010. "Reducing our legacy problem assets is one of our
primary focuses for 2012 and we see significant progress in this area.
This quarter, we have reduced our NPA's by 10.2 percent and our
classified/criticized/foreclosed assets by 13.8 percent. With the
pending sale of one of our largest foreclosed real estate properties we
are hopeful that this momentum will continue into the third quarter,"
said Mr. Labozzetta.
Second Quarter 2012 Highlights
-- Return on average assets decreased to 0.37% for the three months ended
June 30, 2012, from 0.61% for the same period in 2011.
-- Net interest income on a tax equivalent basis decreased for the second
quarter and six months ended June 30, 2012, by 2.6% and 5.7%,
respectively, as compared to the same periods last year. The declines
for 2012 were mostly due to declines in loan yields, lower average
balances for loans and an increase in liquidity resulting from deposit
growth outpacing loans.
-- Net interest margin on a tax equivalent basis increased for the second
quarter and six months ended June 30, 2012 to 3.59% and 3.55%,
respectively, as compared to 3.98% and 4.06% for the same periods last
year.
-- Provision for loan losses decreased $154 thousand, or 13.8%, in the
second quarter of 2012, as compared to the second quarter of 2011 and
declined $133 thousand, or 6.8%, for the six month period ended June 30,
2012, as compared to the same period one year earlier.
-- Non-interest income decreased $82 thousand, or 5.5%, to $1.4 million in
the second quarter of 2012 over the prior year and declined $3 thousand,
or 0.1%, for the six month period ended June 30, 2012, as compared to
the same period one year earlier. The decreases were driven by declines
in security gains and service fees on deposits.
-- Non-interest expense increased $366 thousand to $4.1 million in the
second quarter of 2012, compared to the same period in 2011 and grew by
$1.4 million, or 18.7%, for the six month period ended June 30, 2012, as
compared to the same period one year earlier. The increases were largely
attributed to growth in commercial lenders and certain operating
expenses attributed to supporting the growth of the Company.
-- Segment reporting
-- Our insurance subsidiary, Tri-state Insurance Agency, Inc., reported an
8.0% increase in revenues to $609 thousand for the second quarter of
2012 as compared to the same period last year. Net income before taxes
was 47.9% higher for the second quarter 2012 as compared to the same
period last year
-- For the first half of 2012 revenues increased by 2.5%. When adjusting
for a decline in contingency income for 2012, core revenues were up 8.1%
for year to date 2012 as compared to the same period last year. Net
income before taxes for the six months ended June 30, 2012, declined $48
thousand as compared to the same period last year largely due to a $67
thousand decrease in contingency income.
-- Balance sheet
-- Gross loans increased $7.2 million, or 2.1%, at June 30, 2012 as
compared to December 31, 2011. The Company began closing loans during
the second quarter of 2012 from the loan pipeline that was built earlier
in the year and continues to be strong.
-- Total deposits increased $4.7 million, or 1.1%, due to an increase in
core deposits of $10.1 million, or 3.2%, offset by a decrease in time
deposits of $5.4 million, or 4.9%, compared to December 31, 2011.
-- Credit Quality
-- Total classified/criticized/foreclosed assets decreased $6.9 million, or
13.8%, to $42.7 million at June 30, 2012 from $49.6 million at December
31, 2011, which resulted in a cumulative decline of 31.9% from the
historical high of $62.8 million at March 31, 2010.
-- Non-performing assets declined by $3.5 million, or 10.2% for June 30,
2012, as compared to December 31, 2011. Non-performing assets as a
percent of total assets were 5.96% at June 30, 2012 down from 6.71% at
December 31, 2011.
-- The allowance for loan losses totaled $6.3 million at June 30, 2012, or
1.8% of total loans as compared to $7.2 million, or 2.1% of total loans,
at December 31, 2011.
-- Capital adequacy
-- At June 30, 2012, the leverage, Tier I risk-based capital and total
risk-based capital ratios for the Bank were 9.10%, 12.77% and 14.02%,
respectively, all in excess of the ratios required to be deemed
"well-capitalized."
Second Quarter 2012 Financial Results
The Company reported net income of $481 thousand for the second quarter
of 2012 as compared to net income of $727 thousand for the same period
in 2011. Basic and diluted loss per share for the three months ended
June 30, 2012, were $0.15 and $0.14, respectively, compared to the
basic and diluted earnings per share of $0.22 for the comparable period
of 2011. The decline in net income was largely due to operating costs
resulting from growth initiatives of the Company, a decline in the net
interest margin and write-downs on foreclosed assets.
Net Interest Income
Net interest income, on a fully tax equivalent basis, declined $116
thousand, or 2.6%, to $4.3 million for the quarter ended June 30, 2011,
as compared to $4.4 million for same period in 2011. The decrease in
net interest income was largely due to the Company's net interest
margin declining 39 basis points to 3.59% for the second quarter of
2012. The decline in the net interest margin was mostly due to a 39
basis point decline in the average rate earned on loans. This decline
in net interest income was partially offset by a decrease in the
average rate paid on total interest bearing liabilities, which
decreased 21 basis points to 0.90% for the second quarter of 2011 from
1.11% for the same period in 2011. The decline was in part offset by a
$37.2 million, or 8.4%, increase in average interest earning assets,
principally securities.
Provision for Loan Losses
Provision for loan losses decreased $154 thousand to $958 thousand for
the quarter ended June 30, 2012, as compared to $1.1 million for the
same period in 2011.
Non-interest Income
The Company reported a decrease in non-interest income of $82 thousand,
or 5.5%, to $1.4 million for the quarter ended June 30, 2012, as
compared to the same period last year. The decrease in non-interest
income was largely due to a $134 thousand decline in gain on the sale
of securities and a $53 thousand decrease in service fees on deposit
accounts. These decreases were partly offset by increases in other
income and insurance commissions and fees of $67 thousand and $45
thousand, respectively.
Non-interest Expense
The Company's non-interest expenses increased $366 thousand, or 9.9%,
to $4.1 million for the quarter ended June 30, 2012, as compared to the
same period last year. The increase for the second quarter of 2012
versus the same period in 2011 was largely due to an increase of $138
thousand in salaries and employee benefits. The increase was mostly
attributed to approximate costs of $110 thousand related to the hiring
of additional commercial lenders and support staff. In addition,
furniture, equipment and data processing, advertising and promotion and
FDIC assessments increased $46 thousand, $42 thousand and $46 thousand,
respectively, for the second quarter of 2012 versus the same period in
2011.
Year to Date 2012 Financial Results
The Company reported net income of $286 thousand for the six months
ended June 30, 2012, as compared to net income of $1.4 million for the
same period in 2011. Basic and diluted loss per share for the six
months ended June 30, 2012, were $0.09 compared to the basic and
diluted earnings per share of $0.44 and $0.43, respectively, for the
comparable period of 2011. The decline in net income was largely due to
operating costs resulting from growth initiatives of the Company, costs
related to the resolution of one of our largest foreclosed assets of
the Company and a decline in the net interest margin.
Net Interest Income
Net interest income, on a fully taxable equivalent basis, decreased
$511 thousand, or 5.7%, to $8.4 million for the six months ended June
30, 2012, as compared to $8.9 million for same period in 2011. The
Company's net interest margin declined 51 basis points to 3.55% for the
first half of 2012, compared to 4.06% for the first half of 2011. The
decline was mostly attributed to a 37 basis point decline in the
average rate earned on loans to 5.24%, which was partly offset by a 16
basis point decrease in the average rate paid on interest bearing
liabilities to 0.95% for the six month periods ended June 30, 2012, as
compared to the same period last year. The decline was in part offset
by a $33.1 million, or 7.5%, increase in average interest earning
assets, principally securities.
Provision for Loan Losses
Provision for loan losses decreased $133 thousand to $1.8 million for
the first half of 2012, as compared to $2.0 million for the same period
in 2011.
Non-interest Income
The Company reported a decrease in non-interest income of $3 thousand,
or 0.1%, to $2.7 million for the six months ended June 30, 2012, as
compared to the same period last year. The decrease in non-interest
income was largely due to a $94 thousand decrease in service fees on
deposits and a $75 thousand decline in gain on sale of securities.
Increases in other income and gain on sale of loans of $64 thousand and
$47 thousand, respectively, mostly offset the aforementioned declines.
Non-interest Expense
The Company's non-interest expenses increased $1.4 million, or 18.7%,
to $9.0 million for the six months ended June 30, 2012, as compared to
the same period last year. The increase for the first half of 2012
compared to the same period in 2011 was largely due to increases in
salaries and benefits and write-downs on foreclosed real estate of $555
thousand and $539 thousand, respectively, between the first six months
of 2012 and 2011. The increase in write-downs and expenses related to
foreclosed real estate was principally due to the prospective sale of
one of our largest foreclosed assets, which is scheduled to close
during the third quarter. The increase in salaries and employee
benefits was mostly attributed to costs of $270 thousand related to the
hiring of additional commercial lenders and support staff, higher
medical benefit costs and severance costs of $110 thousand for a former
executive during the first quarter of 2012.
Financial Condition Comparison
At June 30, 2012, the Company's total assets were $512.2 million, an
increase of $5.2 million, or 1.0%, as compared to total assets of
$507.0 million at December 31, 2011. The increase in total assets was
largely driven by loan growth ($7.2 million, or 2.1%) funded by deposit
growth ($4.7 million, or 1.1%) and cash and cash equivalents.
Total loans receivable, net of unearned income, increased $7.2 million,
or 2.1%, to $346.9 million at June 30, 2012 from $339.7 million at
year-end 2011. The Company's security portfolio, which includes
securities available for sale and securities held to maturity,
increased $20.1 million, or 20.0%, to $120.7 million at June 30, 2012,
as compared to $100.6 million at December 31, 2011.
The Company's total deposits increased 1.1% to $430.1 million at June
30, 2012, from $425.4 million at December 31, 2011. The increase in
deposits was driven by growth in core deposits (non-interest bearing
deposits, NOW, savings and money market accounts) of $10.1 million, or
3.2%, offset by a decrease in time deposits of $5.4 million, or 4.9%,
for June 30, 2012, as compared to December 31, 2011.
At June 30, 2012, the Company's total stockholders' equity was $40.5
million, an increase of $620 thousand when compared to December 31,
2011.
Asset and Credit Quality
The overall credit quality of the Company continues to show signs of
improvement as our classified/criticized/foreclosed assets declined
$6.9 million, or 13.8% from December 31, 2011. Our
classified/criticized/foreclosed assets totaled $42.7 million at June
30, 2012, as compared to $49.6 million at December 31, 2011, and have
declined 31.9% from a historical high of $62.8 million at March 31,
2010. Loans internally rated "Substandard," "Doubtful" or "Loss" are
considered classified assets, while loans rated as "Special Mention"
are considered criticized. Such risk ratings are consistent with the
classification system used by regulatory agencies and are consistent
with industry practices.
Non-performing assets, which include non-accrual loans, 90 days past
due and still accruing, performing troubled debt restructured loans and
foreclosed assets, decreased $3.5 million, or 10.2%, to $30.5 million
at June 30, 2012, as compared to $34.0 million at December 31, 2011.
The ratio of non-performing assets to total assets for June 30, 2012
and December 31, 2011 were 5.96% and 6.71%, respectively. The allowance
for loan losses was $6.3 million, or 1.8% of total loans, at June 30,
2012, compared to $7.2 million, or 2.1% of total loans, at December 31,
2011.
About Sussex Bancorp
Sussex Bancorp is the holding company for Sussex Bank, which operates
through its main office in Franklin, New Jersey and through its nine
branch offices located in Andover, Augusta, Newton, Montague, Sparta,
Vernon and Wantage, New Jersey, Port Jervis and Warwick, New York; a
loan production office in Rochelle Park, New Jersey and for the
Tri-State Insurance Agency, Inc., a full service insurance agency with
locations in Augusta and Rochelle Park, New Jersey. For additional
information, please visit the company's Web site at www.sussexbank.com.
The Sussex Bancorp logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=9580
Forward-Looking Statements
This press release contains statements that are forward looking and are
made pursuant to the "safe-harbor" provisions of the Private Securities
Litigation Reform Act of 1995 (the "Reform Act"). Such statements may
be identified by the use of words such as "expect," "estimate,"
"assume," "believe," "anticipate," "will," "forecast," "plan,"
"project," or similar words. Such statements are based on the Company's
current expectations and are subject to certain risks and uncertainties
that could cause actual results to differ materially from those
projected. Factors that may cause actual results to differ materially
from those contemplated by such forward-looking statements include,
among others, changes to interest rates, the ability to control costs
and expenses, general economic conditions, the success of the Company's
efforts to diversify its revenue base by developing additional sources
of non-interest income while continuing to manage its existing fee
based business, risks associated with the quality of the Company's
assets and the ability of its borrowers to comply with repayment terms.
Further information about these and other relevant risks and
uncertainties may be found in the Company's Annual Report on Form 10-K
for the fiscal year ended December 31, 2011, and in subsequent filings
with the Securities and Exchange Commission. The Company undertakes no
obligation to publicly release the results of any revisions to those
forward looking statements that may be made to reflect events or
circumstances after this date or to reflect the occurrence of
unanticipated events.
SUSSEX BANCORP
SUMMARY FINANCIAL HIGHLIGHTS
(In Thousands, Except Percentages and Per Share Data)
(Unaudited)
6/30/12 VS.
---------------------
6/30/2012 12/31/2011 6/30/2011 6/30/2011 12/31/2011
---------- ---------- --------- --------- ----------
BALANCE SHEET HIGHLIGHTS - Period End
Balances
-------------------------------------
Total securities $ 120,676 $ 100,581 $ 73,855 63.4 % 20.0 %
Total loans 346,884 339,705 339,564 2.2 % 2.1 %
Allowance for loan losses (6,260) (7,210) (7,536) (16.9)% (13.2)%
Total assets 512,190 506,953 473,164 8.2 % 1.0 %
Total deposits 430,082 425,376 392,914 9.5 % 1.1 %
Total borrowings and junior
subordinated debt 38,887 38,887 38,887 -- % -- %
Total shareholders' equity 40,522 39,902 38,615 4.9 % 1.6 %
FINANCIAL DATA - QUARTER ENDED:
-------------------------------------
Net interest income (tax equivalent)
(a) $ 4,300 $ 4,251 $ 4,416 (2.6)% 1.2 %
Provision for loan losses 958 618 1,112 (13.8)% 55.0 %
Total other income 1,419 1,331 1,501 (5.5)% 6.6 %
Total other expenses 4,065 4,199 3,699 9.9 % (3.2)%
Income before provision for income
taxes (tax equivalent) 696 765 1,106 (37.1)% (9.1)%
Provision for income taxes 65 102 229 (71.6)% (36.3)%
Taxable equivalent adjustment (a) 150 148 150 (0.2)% 1.3 %
---------- ---------- --------- --------- ----------
Net income $ 481 $ 515 $ 727 (33.8)% (6.7)%
========== ========== ========= ========= ==========
Net income per common share - Basic $ 0.15 $ 0.16 $ 0.22 (31.8)% (6.3)%
Net income per common share - Diluted $ 0.14 $ 0.15 $ 0.22 (36.4)% (6.7)%
Return on average assets 0.37 % 0.41 % 0.61 % (39.3)% (9.3)%
Return on average equity 4.76 % 5.22 % 7.63 % (37.6)% (8.7)%
Net interest margin (tax equivalent) 3.59 % 3.59 % 3.98 % (9.9)% (0.2)%
FINANCIAL DATA - YEAR TO DATE:
-------------------------------------
Net interest income (tax equivalent)
(a) $ 8,412 $ 8,923 (5.7)%
Provision for loan losses 1,818 1,951 (6.8)%
Total other income 2,743 2,746 (0.1)%
Total other expenses 8,975 7,559 18.7 %
Income before provision for income
taxes (tax equivalent) 86 2,159 (96.0)%
Provision for income taxes (200) 438 (145.7)%
Taxable equivalent adjustment (a) 276 300 (8.0)%
---------- --------- ---------
Net income $ 286 $ 1,421 (79.9)%
========== ========= =========
Net income per common share - Basic $ 0.09 $ 0.44 (79.5)%
Net income per common share - Diluted $ 0.09 $ 0.43 (79.1)%
Return on average assets 0.11 % 0.60 % (81.4)%
Return on average equity 1.42 % 7.57 % (81.2)%
Net interest margin (tax equivalent) 3.55 % 4.06 % (12.5)%
SHARE INFORMATION:
-------------------------------------
Book value per common share $ 11.89 $ 11.83 $ 11.45 3.8 % 0.5 %
Outstanding shares- period ending 3,409 3,373 3,373 1.1 % 1.1 %
Average diluted shares outstanding
(year to date) 3,318 3,326 3,323 (0.2)% (0.2)%
CAPITAL RATIOS:
-------------------------------------
Total equity to total assets 7.91 % 7.87 % 8.16 % (3.1)% 0.5 %
Leverage ratio (b) 9.10 % 9.29 % 9.56 % (4.8)% (2.0)%
Tier 1 risk-based capital ratio (b) 12.77 % 12.98 % 12.84 % (0.5)% (1.6)%
Total risk-based capital ratio (b) 14.02 % 14.24 % 14.10 % (0.6)% (1.5)%
ASSET QUALITY AND RATIOS:
-------------------------------------
Non-accrual loans $ 24,243 $ 24,283 $ 25,062 (3.3)% (0.2)%
Loans 90 days past due and still
accruing 118 803 1,029 (88.5)% (85.3)%
Troubled debt restructured loans (c) 604 3,411 1,314 (54.1)% (82.3)%
Foreclosed real estate 5,566 5,509 4,545 22.5% 1.0 %
---------- ---------- --------- --------- ----------
Non-performing assets $ 30,531 $ 34,006 $ 31,950 (4.4)% (10.2)%
========== ========== ========= ========= ==========
Foreclosed real estate, Criticized
and Classified Assets 42,736 49,584 53,403 (20.0)% (13.8)%
Charge-offs, net (quarterly) $ 2,306 $ 803 $ 802 187.5 % 187.2 %
Charge-offs, net as a % of average
loans (annualized) 2.70 % 0.96 % 0.93 % 189.1 % 182.4 %
Non-accrual loans to total loans 6.99 % 7.15 % 7.38 % (5.3)% (2.2)%
Non-performing assets to total assets 5.96 % 6.71 % 6.75 % (11.7)% (11.1)%
Allowance for loan losses as a % of
non-performing loans 25.19 % 26.03 % 28.57 % (11.8)% (3.2)%
Allowance for loan losses to total
loans 1.80 % 2.12 % 2.22 % (18.7)% (15.0)%
(a) Full taxable equivalent basis, using a 39% effective tax rate and adjusted for TEFRA (Tax
and Equity Fiscal Responsibility Act) interest expense disallowance
(b) Sussex Bank capital ratios
(c) Troubled debt restructured loans currently performing in accordance with renegotiated terms
SUSSEX BANCORP
CONSOLIDATED BALANCE SHEETS
(Dollars In Thousands)
(Unaudited)
June 30, December
ASSETS 2012 31, 2011
---------- ----------
Cash and due from banks $ 5,553 $ 3,903
Interest-bearing deposits with
other banks 6,978 33,597
---------- ----------
Cash and cash equivalents 12,531 37,500
Interest bearing time deposits
with other banks 100 100
Securities available for sale,
at fair value 115,508 96,361
Securities held to maturity 5,168 4,220
Federal Home Loan Bank Stock,
at cost 1,943 1,837
Loans receivable, net of
unearned income 346,884 339,705
Less: allowance for loan
losses 6,260 7,210
---------- ----------
Net loans receivable 340,624 332,495
Foreclosed real estate 5,566 5,509
Premises and equipment, net 6,784 6,778
Accrued interest receivable 1,688 1,735
Goodwill 2,820 2,820
Bank owned life insurance 11,346 11,142
Other assets 8,112 6,456
---------- ----------
Total Assets $ 512,190 $ 506,953
========== ==========
LIABILITIES AND STOCKHOLDERS'
EQUITY
Liabilities:
Deposits:
Non-interest bearing $ 48,089 $ 44,762
Interest bearing 381,993 380,614
---------- ----------
Total Deposits 430,082 425,376
Borrowings 26,000 26,000
Accrued interest payable and
other liabilities 2,699 2,788
Junior subordinated debentures 12,887 12,887
---------- ----------
Total Liabilities 471,668 467,051
Total Stockholders' Equity 40,522 39,902
---------- ----------
Total Liabilities and
Stockholders' Equity $ 512,190 $ 506,953
========== ==========
SUSSEX BANCORP
CONSOLIDATED STATEMENTS OF INCOME
(Dollars In Thousands Except Per Share Data)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
------------------ ------------------
2012 2011 2012 2011
-------- -------- -------- --------
INTEREST INCOME
Loans receivable, including
fees $ 4,375 $ 4,739 $ 8,825 $ 9,523
Securities:
Taxable 433 310 753 675
Tax-exempt 290 291 535 583
Federal funds sold -- 2 -- 3
Interest bearing deposits 9 10 26 13
-------- -------- -------- --------
Total Interest Income 5,107 5,352 10,139 10,797
-------- -------- -------- --------
INTEREST EXPENSE
Deposits 632 767 1,351 1,536
Borrowings 264 264 529 529
Junior subordinated
debentures 61 55 123 109
-------- -------- -------- --------
Total Interest Expense 957 1,086 2,003 2,174
-------- -------- -------- --------
Net Interest Income 4,150 4,266 8,136 8,623
PROVISION FOR LOAN LOSSES 958 1,112 1,818 1,951
-------- -------- -------- --------
Net Interest Income
after Provision for
Loan Losses 3,192 3,154 6,318 6,672
-------- -------- -------- --------
OTHER INCOME
Service fees on deposit
accounts 275 328 550 644
ATM and debit card fees 151 138 288 260
Bank owned life insurance 101 105 204 209
Insurance commissions and
fees 609 564 1,208 1,179
Investment brokerage fees 36 39 72 70
Gain on sale of loans, held
for sale -- -- 47 --
Gain on sale of securities,
available for sale 135 269 194 269
Loss on sale of fixed
assets (7) -- (6) --
Gain (loss) on sale of
foreclosed real estate 1 7 3 (4)
Other 118 51 183 119
-------- -------- -------- --------
Total Other Income 1,419 1,501 2,743 2,746
-------- -------- -------- --------
OTHER EXPENSES
Salaries and employee
benefits 2,124 1,986 4,548 3,993
Occupancy, net 354 336 716 717
Furniture, equipment and
data processing 334 288 688 588
Advertising and promotion 88 46 159 89
Professional fees 145 149 303 276
Director fees 74 72 180 139
FDIC assessment 172 126 339 382
Insurance 58 54 111 110
Stationary and supplies 39 40 84 83
Loan collection costs 201 177 335 292
Write-down on foreclosed
real estate 69 -- 684 145
Expenses related to
foreclosed real estate 33 79 126 103
Amortization of intangible
assets 1 2 3 5
Other 373 344 699 637
-------- -------- -------- --------
Total Other Expenses 4,065 3,699 8,975 7,559
-------- -------- -------- --------
Income before Income
Taxes 546 956 86 1,859
PROVISION (BENEFIT) FOR
INCOME TAXES 65 229 (200) 438
-------- -------- -------- --------
Net Income $ 481 $ 727 $ 286 $ 1,421
======== ======== ======== ========
OTHER COMPREHENSIVE INCOME:
Net unrealized gains on
available for sale
securities arising during
the period $ 303 $ 855 $ 720 $ 1,072
Reclassification adjustment
for gain on sales included
in net income (135) (269) (194) (269)
Income tax expense related
to other comprehensive
income (67) (234) (210) (321)
-------- -------- -------- --------
Other comprehensive
income, net of income
taxes 101 352 316 482
-------- -------- -------- --------
Comprehensive income $ 582 $ 1,079 $ 602 $ 1,903
======== ======== ======== ========
EARNINGS PER SHARE
Basic $ 0.15 $ 0.22 $ 0.09 $ 0.44
Diluted $ 0.14 $ 0.22 $ 0.09 $ 0.43
SUSSEX BANCORP
COMPARATIVE AVERAGE BALANCES AND AVERAGE INTEREST RATES
(Dollars In Thousands)
(Unaudited)
Three Months Ended June 30,
-----------------------------------------------------------
2012 2011
------------------------------ ---------------------------
Average Average
Average Interest Rate Average Interest Rate
Balance (1) (2) Balance (1) (2)
---------- --------- ------- -------- -------- -------
Earning Assets:
Securities:
Tax exempt (3) $ 31,416 $ 440 5.64% $29,805 $441 5.94%
Taxable 90,026 433 1.93% 48,992 310 2.54%
---------- --------- ------- -------- -------- -------
Total securities 121,442 873 2.89% 78,797 751 3.83%
Total loans receivable (4) 341,426 4,375 5.15% 343,333 4,739 5.54%
Other interest-earning
assets 19,162 9 0.18% 22,674 12 0.20%
---------- --------- ------- -------- -------- -------
Total earning assets 482,030 $ 5,257 4.39% 444,804 $5,502 4.96%
Non-interest earning assets 41,691 36,421
Allowance for loan losses (7,798) (7,602)
---------- --------
Total Assets $ 515,923 $473,623
========== ========
Sources of Funds:
Interest bearing deposits:
NOW $ 95,817 $ 42 0.17% $78,439 $106 0.54%
Money market 18,849 15 0.33% 14,504 20 0.55%
Savings 164,106 154 0.38% 169,086 296 0.70%
Time 108,124 421 1.57% 91,804 345 1.51%
---------- --------- ------- -------- -------- -------
Total interest bearing
deposits 386,896 632 0.66% 353,833 767 0.87%
Borrowed funds 26,000 264 4.02% 26,000 264 4.08%
Junior subordinated
debentures 12,887 61 1.86% 12,887 55 1.71%
---------- --------- ------- -------- -------- -------
Total interest bearing
liabilities 425,783 $ 957 0.90% 392,720 $1,086 1.11%
Non-interest bearing
liabilities:
Demand deposits 47,801 40,402
Other liabilities 1,931 2,370
---------- --------
Total non-interest bearing
liabilities 49,732 42,772
Stockholders' equity 40,408 38,131
---------- --------
Total Liabilities and
Stockholders' Equity $ 515,923 $473,623
========== ========
Net Interest Income and
Margin (5) 4,300 3.59% 4,416 3.98%
Tax-equivalent basis
adjustment (150) (150)
--------- --------
Net Interest Income $ 4,150 $ 4,266
========= ========
(1) Includes loan fee income
(2) Average rates on securities are calculated on amortized costs
(3) Full taxable equivalent basis, using a 39% effective tax rate and adjusted for TEFRA
(Tax and Equity Fiscal Responsibility Act) interest expense disallowance
(4) Loans outstanding include non-accrual loans
(5) Represents the difference between interest earned and interest paid, divided by
average total interest-earning assets
SUSSEX BANCORP
COMPARATIVE AVERAGE BALANCES AND AVERAGE INTEREST RATES
(Dollars In Thousands)
(Unaudited)
Six Months Ended June 30,
-----------------------------------------------------------
2012 2011
------------------------------ ---------------------------
Average Average
Average Interest Rate Average Interest Rate
Balance (1) (2) Balance (1) (2)
---------- --------- ------- -------- -------- -------
Earning Assets:
Securities:
Tax exempt (3) $ 28,051 $ 811 5.81% $29,913 $883 5.95%
Taxable 83,766 753 1.81% 54,181 675 2.51%
---------- --------- ------- -------- -------- -------
Total securities 111,817 1,564 2.81% 84,094 1,558 3.74%
Total loans receivable (4) 338,492 8,825 5.24% 342,511 9,523 5.61%
Other interest-earning
assets 26,499 26 0.20% 17,111 16 0.19%
---------- --------- ------- -------- -------- -------
Total earning assets 476,808 $ 10,415 4.39% 443,716 $11,097 5.04%
Non-interest earning assets 41,447 36,425
Allowance for loan losses (7,670) (7,209)
---------- --------
Total Assets $ 510,585 $472,932
========== ========
Sources of Funds:
Interest bearing deposits:
NOW $ 94,055 $ 93 0.20% $79,558 $220 0.56%
Money market 18,204 36 0.39% 13,960 38 0.56%
Savings 163,619 359 0.44% 169,839 594 0.71%
Time 109,037 863 1.59% 90,919 684 1.52%
---------- --------- ------- -------- -------- -------
Total interest bearing
deposits 384,915 1,351 0.71% 354,276 1,536 0.87%
Borrowed funds 26,000 529 4.03% 27,295 529 3.86%
Junior subordinated
debentures 12,887 123 1.88% 12,887 109 1.69%
---------- --------- ------- -------- -------- -------
Total interest bearing
liabilities 423,802 $ 2,003 0.95% 394,458 $2,174 1.11%
Non-interest bearing
liabilities:
Demand deposits 44,557 38,616
Other liabilities 1,972 2,332
---------- --------
Total non-interest bearing
liabilities 46,529 40,948
Stockholders' equity 40,254 37,526
---------- --------
Total Liabilities and
Stockholders' Equity $ 510,585 $472,932
========== ========
Net Interest Income and
Margin (5) $ 8,412 3.55% $8,923 4.06%
Tax-equivalent basis
adjustment (276) (300)
--------- --------
Net Interest Income $ 8,136 $ 8,623
========= ========
(1) Includes loan fee income
(2) Average rates on securities are calculated on amortized costs
(3) Full taxable equivalent basis, using a 39% effective tax rate and adjusted for TEFRA
(Tax and Equity Fiscal Responsibility Act) interest expense disallowance
(4) Loans outstanding include non-accrual loans
(5) Represents the difference between interest earned and interest paid, divided by
average total interest-earning assets
CONTACT: Anthony Labozzetta, President/CEO
Steven Fusco, SVP/CFO
973-827-2914
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