EXHIBIT 99.1
| Sussex Bancorp 200 Munsonhurst Road, Rt. 517 Franklin, NJ 07416 | Candace Leatham Executive Vice President & Treasurer 973-827-2914 |
| FOR IMMEDIATE RELEASE |
SUSSEX BANCORP ANNOUNCES INCREASED SECOND QUARTER 2005 EARNINGS
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DECLARES QUARTERLY CASH DIVIDEND OF $0.07 PER SHARE
FRANKLIN, NEW JERSEY – July 21, 2005– Sussex Bancorp (AMEX: “SBB”) today announced its financial results for the second quarter ending June 30, 2005.
| Second Quarter Highlights Include: |
- Quarterly net income growth of 70.3% from same quarter in 2004
- Growth in quarterly non-interest income of $157 thousand or 13.5% over same quarter in 2004
- Cash dividend
For the quarter ended June 30, 2005, the Company earned net income of $666,000, an increase of 70.3% over net income of $391,000 reported for the second quarter of 2004. For the six months ended June 30, 2005, the Company earned net income of $1,186,000, an increase of $424,000 from the $762,000 earned for the same period last year. Basic earnings per share for the three and six months ended June 30, 2005 were $0.22 and $0.39 respectively, compared to $0.21 and $0.42 for the respective comparable periods of 2004. Diluted earnings per share were $0.22 and $0.39 respectively for the three and six months ended June 30, 2005, compared to $0.20 and $0.40 in the respective comparable periods of 2004.
The Company’s net interest income increased to $2,742,000 for the quarter ended June 30, 2005 from $2,123,000 for the second quarter of 2004. The Company’s interest income increased to $3,684,000 for the quarter ended June 30, 2005 from $2,809,000 for the second quarter of 2004. The Company’s interest expense increased to $942,000 for the three months ended June 30, 2005 from $686,000 for the second quarter of 2004. For the six months ended June 30, 2005, the Company’s net interest income increased to $5,378,000 from the $4,255,000 earned for the same period last year. For the six months ended June 30, 2005, the Company’s interest income increased to $7,107,000 from $5,608,000 for the period ended June 30, 2004. The Company’s total deposits increased to $236.3 million at June 30, 2005 from $217.4 million at June 30, 2004. At June 30, 2005 the Company had total assets of $290.4 million, compared to total assets of $251.1 million at June 30, 2004.
The loan loss provision for the second quarter was $206,000 compared to $105,000 for the same period last year. The Company’s total loans increased $42 million to $186.3 million at June 30, 2005 from $144.3 million at June 30, 2004.
The Company also experienced increases in non-interest income in both the current quarter and year to date periods compared to 2004. The Company reported non-interest income of $1,324,000 and $2,425,000 for the current three and six month periods, respectively, compared to non-interest income of $1,167,000 and $2,317,000 for the three and six month periods ending June 30, 2004. For the three and six month periods ending June 30, 2005, $315,000 and $551,000 was from service charges on deposit accounts.
Sussex Bancorp also announced that it’s Board of Directors declared a cash dividend of $0.07 pershare, payable on August 30, 2005 to shareholders of record as of August 2, 2005.
Sussex Bancorp is the holding company for Sussex Bank, which operates through its main office in Franklin, New Jersey and branch offices in Andover, Augusta, Newton, Montague, Sparta, Vernon and Wantage, New Jersey, and for the Tri-State Insurance Agency, Inc., a full service insurance agency located in Sussex County, New Jersey.
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SUSSEX BANCORP
CONSOLIDATED STATEMENT OF CONDITION
(In Thousands, Except Share Data)
(Unaudited)
| ASSETS | June 30, 2005 | June 30, 2004 | ||||||
| Cash and due from banks | $ | 14,186 | $ | 12,387 | ||||
| Federal funds sold | 2,195 | 4,990 | ||||||
| Time deposits with other banks | 500 | 500 | ||||||
| Securities available for sale | 73,352 | 75,449 | ||||||
| Loans receivable, net of unearned income | 186,278 | 144,275 | ||||||
| Allowance for loan losses | (2,158 | ) | (1,958 | ) | ||||
| Net loans | ||||||||
| 184,120 | 142,317 | |||||||
| Premises and equipment | 5,830 | 5,470 | ||||||
| Accrued interest receivable | 1,567 | 1,209 | ||||||
| Goodwill | 2,334 | 2,124 | ||||||
| Other assets | 6,362 | 6,669 | ||||||
| Total Assets | $ | 290,446 | $ | 251,115 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Liabilities: | ||||||||
| Deposits: | ||||||||
| Non-interest bearing | $ | 36,719 | $ | 35,710 | ||||
| Interest bearing | 199,613 | 181,689 | ||||||
| Total Deposits | 236,332 | 217,399 | ||||||
| Borrowings | 14,000 | 11,000 | ||||||
| Other liabilities | 2,365 | 2,520 | ||||||
| Junior subordinated debentures | 5,155 | 5,155 | ||||||
| Total Liabilities | 257,852 | 236,074 | ||||||
| Stockholders' Equity: | ||||||||
| Common Stock, no par value, authorized | ||||||||
| 5,000,000 shares: outstanding shares, | ||||||||
| 3,017,213 in 2005 and 1,835,085 in 2004 | 25,580 | 9,913 | ||||||
| Retained earnings | 6,881 | 5,547 | ||||||
| Other comprehensive income, net of tax | 133 | (419 | ) | |||||
| Total Stockholders' Equity | 32,594 | 15,041 | ||||||
| Total Liabilities and Stockholders' Equity | $ | 290,446 | $ | 251,115 | ||||
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SUSSEX BANCORP
CONSOLIDATED STATEMENT OF INCOME
(In Thousands, Except Share Data)
(Unaudited)
| Six Months Ended June 30, | ||||||||
| 2005 | 2004 | |||||||
| INTEREST INCOME: | ||||||||
| Interest and fees on loans | $ | 5,489 | $ | 4,262 | ||||
| Interest on federal funds sold | 119 | 31 | ||||||
| Interest on time deposits | 27 | 17 | ||||||
| Interest on securities: | ||||||||
| Taxable interest | 880 | 885 | ||||||
| Tax-exempt interest | 592 | 413 | ||||||
| Total Interest Income | 7,107 | 5,608 | ||||||
| INTEREST EXPENSE: | ||||||||
| Interest on deposits | 1,273 | 967 | ||||||
| Interest on borrowings | 292 | 265 | ||||||
| Interest on capital debentures | 164 | 121 | ||||||
| Total Interest Expense | 1,729 | 1,353 | ||||||
| Net Interest Income | 5,378 | 4,255 | ||||||
| PROVISION FOR LOAN LOSSES | 341 | 253 | ||||||
| Net Interest Income after Provision for | ||||||||
| Loan Losses | 5,037 | 4,002 | ||||||
| NON-INTEREST INCOME: | ||||||||
| Service charges on deposit accounts | 551 | 382 | ||||||
| Insurance commissions and fees | 1,217 | 1,170 | ||||||
| Other income | 657 | 765 | ||||||
| Total Non-Interest Income | 2,425 | 2,317 | ||||||
| NON-INTEREST EXPENSE: | ||||||||
| Salaries and employee benefits | 3,203 | 3,090 | ||||||
| Occupancy, net | 488 | 414 | ||||||
| Furniture and equipment | 522 | 412 | ||||||
| Other expenses | 1,612 | 1,354 | ||||||
| Total Non-Interest Expense | 5,825 | 5,270 | ||||||
| Income Before Income Tax Expense | 1,637 | 1,049 | ||||||
| PROVISION FOR INCOME TAX EXPENSE | 451 | 287 | ||||||
| Net Income | $ | 1,186 | $ | 762 | ||||
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SUSSEX BANCORP
COMPARATIVE AVERAGE BALANCES AND AVERAGE INTEREST RATES
(In Thousands)
(Unaudited)
| Six Months Ended June 30, | ||||||||||||||||||||||
| (dollars in thousands) | 2005 | 2004 | ||||||||||||||||||||
| Earning Assets: | Average Balance | Interest (1) | Average Rate (2) | Average Balance | Interest (1) | Average Rate (2) | ||||||||||||||||
| Securities: | ||||||||||||||||||||||
| Tax exempt (3) | $ | 27,749 | $ | 845 | 6.14% | $ | 22,172 | $ | 589 | 5.34% | ||||||||||||
| Taxable | 47,954 | 880 | 3.70% | 52,349 | 885 | 3.40% | ||||||||||||||||
| Total securities | 75,703 | 1,725 | 4.60% | 74,521 | 1,474 | 3.98% | ||||||||||||||||
| Total loans receivable (4) | 169,676 | 5,489 | 6.52% | 138,719 | 4,262 | 6.18% | ||||||||||||||||
| Other interest-earning assets | 11,098 | 146 | 2.64% | 9,255 | 48 | 1.05% | ||||||||||||||||
| Total earning assets | 256,477 | $ | 7,360 | 5.79% | 222,495 | $ | 5,784 | 5.23% | ||||||||||||||
| Non-interest earning assets | 23,813 | 24,527 | ||||||||||||||||||||
| Allowance for loan losses | (2,051 | ) | (1,842 | ) | ||||||||||||||||||
| Total Assets | $ | 278,239 | $ | 245,180 | ||||||||||||||||||
| Sources of Funds: | ||||||||||||||||||||||
| Interest bearing deposits: | ||||||||||||||||||||||
| NOW | $ | 7,685 | $ | 23 | 0.61% | $ | 47,066 | $ | 107 | 0.46% | ||||||||||||
| Money market | 58,158 | 300 | 1.04% | 8,784 | 42 | 0.97% | ||||||||||||||||
| Savings | 65,214 | 226 | 0.70% | 66,097 | 215 | 0.65% | ||||||||||||||||
| Time | 62,039 | 724 | 2.35% | 57,941 | 603 | 2.09% | ||||||||||||||||
| Total interest bearing deposits | 193,096 | 1,273 | 1.33% | 179,888 | 967 | 1.08% | ||||||||||||||||
| Borrowed funds | 12,484 | 292 | 4.65% | 11,000 | 265 | 4.77% | ||||||||||||||||
| Junior subordinated debentures | 5,155 | 164 | 6.32% | 5,155 | 121 | 4.64% | ||||||||||||||||
| Total interest bearing liabilities | 210,735 | $ | 1,729 | 1.65% | 196,043 | $ | 1,353 | 1.39% | ||||||||||||||
| Non-interest bearing liabilities: | ||||||||||||||||||||||
| Demand deposits | 34,168 | 31,826 | ||||||||||||||||||||
| Other liabilities | 1,451 | 2,159 | ||||||||||||||||||||
| Total non-interest bearing liabilities | 35,619 | 33,985 | ||||||||||||||||||||
| Stockholders' equity | 31,885 | 15,152 | ||||||||||||||||||||
| Total Liabilities and Stockholders' Equity | $ | 278,239 | $ | 245,180 | ||||||||||||||||||
| Net Interest Income and Margin (5) | $ | 5,631 | 4.43% | $ | 4,431 | 4.01% | ||||||||||||||||
| (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 |
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