EXHIBIT 99.1
| Sussex Bancorp | Donald L. Kovach |
| 399 Route 23 | President/CEO |
| Franklin, NJ 07416 | 973-827-2914 |
| FOR IMMEDIATE RELEASE | |
SUSSEX BANCORP ANNOUNCES SECOND QUARTER AND FIRST SIX MONTHS 2008 EARNINGS
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FRANKLIN, NEW JERSEY – July 16, 2008– Sussex Bancorp (NASDAQ: “SBBX”) today announced its financial results for the quarter and the six months ending June 30, 2008.
For the quarter ended June 30, 2008, the Company earned net income of $359,000 compared to net income of $294,000 reported for the second quarter of 2007. For the six months ended June 30, 2008, the Company earned net income of $996,000, a decline from the $1,018,000 earned for the same period last year. Basic earnings per share for the three and six months ended June 30, 2008 were $0.12 and $0.32, respectively, compared to $0.09 and $0.32 for the respective comparable periods of 2007. Diluted earnings per share were $0.12 and $0.32 respectively for the three and six months ended June 30, 2008, compared to $0.09 and $0.32 in the respective comparable periods of 2007.
The Company’s net interest income increased to $2,922,000 for the quarter ended June 30, 2008 from $2,894,000 for the second quarter of 2007. The Company’s interest income decreased to $5,494,000 for the quarter ended June 30, 2008 from $5,613,000 for the second quarter of 2007. The decline primarily reflects a decline in interest income on the Company’s loan portfolio related to the increase in non-accrual loans during the second half of 2007. However, this decrease was offset by a decline in the Company’s interest expense, to $2,572,000 for the three months ended June 30, 2008 from $2,719,000 for the second quarter of 2007. For the six months ended June 30, 2008, the Company’s net interest income increased to $5,813,000 from the $5,743,000 earned for the same period last year. For the six months ended June 30, 2008, the Company’s interest income increased to $11,090,000 from $11,005,000 for the period ended June 30, 2007, while the Company’s interest expense increased to $5,277,000 from $5,262,000 for the six months ended June 30, 2007. As a result of these changes, the Company’s net interest margin declined to 3.15% and 3.22% for the three and six months ended June 30, 2008, respectively, from 3.46% and 3.53% for the three and six months ended June 30, 2007, respectively.
The Company reported non-interest income of $1,228,000 and $2,907,000 for the current three and six month periods ended June 30, 2008, respectively, compared to non-interest income of $1,235,000 and $2,821,000 for the three and six month periods ending June 30, 2007.
The Company’s other expenses increased in the three and six month periods of 2008 compared to the prior year periods. For the three month period ending June 30, 2008 other expenses increased by $231,000 thousand, or 6.9%, while other expenses increased by $464,000 thousand, or 7.1%, for the six months ended June 30, 2008 compared to the prior year periods.
At June 30, 2008 the Company had total assets of $432.5 million, compared to total assets of $387.3 million at June 30, 2007. The Company’s total deposits increased to $346.3 million at June 30, 2008 from $311.3 million at June 30, 2007, and the Company’s total loan portfolio, net of unearned income, increased to $305.4 million at June 30, 2008 from $284.6 million at June 30, 2007.
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, Port Jervis and Warwick, New York and for the Tri-State Insurance Agency, Inc., a full service insurance agency located in Sussex County, New Jersey.
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| CONSOLIDATED BALANCE SHEETS |
| (Dollars In Thousands) |
| (Unaudited) |
| ASSETS | June 30, 2008 | June 30, 2007 | December 31, 2007 | |||||||||
| Cash and due from banks | $ | 11,409 | $ | 9,240 | $ | 7,985 | ||||||
| Federal funds sold | 30,735 | 16,795 | 3,790 | |||||||||
| Cash and cash equivalents | 42,144 | 26,035 | 11,775 | |||||||||
| Interest bearing time deposits with other banks | 100 | 100 | 100 | |||||||||
| Trading securities | 14,104 | 12,282 | 14,259 | |||||||||
| Securities available for sale | 48,539 | 45,703 | 48,397 | |||||||||
| Federal Home Loan Bank Stock, at cost | 2,111 | 1,358 | 2,032 | |||||||||
| Loans receivable, net of unearned income | 305,366 | 284,640 | 300,646 | |||||||||
| Less: allowance for loan losses | 4,831 | 3,860 | 5,140 | |||||||||
| Net loans receivable | 300,535 | 280,780 | 295,506 | |||||||||
| Foreclosed real estate | 3,437 | - | - | |||||||||
| Premises and equipment, net | 8,868 | 8,606 | 9,112 | |||||||||
| Accrued interest receivable | 1,862 | 1,804 | 2,035 | |||||||||
| Goodwill | 2,820 | 2,820 | 2,820 | |||||||||
| Other assets | 7,943 | 7,766 | 7,496 | |||||||||
| Total Assets | $ | 432,463 | $ | 387,254 | $ | 393,532 | ||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||
| Liabilities: | ||||||||||||
| Deposits: | ||||||||||||
| Non-interest bearing | $ | 43,750 | $ | 37,818 | $ | 36,625 | ||||||
| Interest bearing | 302,546 | 273,517 | 271,913 | |||||||||
| Total Deposits | 346,296 | 311,335 | 308,538 | |||||||||
| Borrowings | 36,173 | 20,226 | 35,200 | |||||||||
| Accrued interest payable and other liabilities | 2,547 | 2,663 | 2,467 | |||||||||
| Junior subordinated debentures | 12,887 | 18,042 | 12,887 | |||||||||
| Total Liabilities | 397,903 | 352,266 | 359,092 | |||||||||
| Total Stockholders' Equity | 34,560 | 34,988 | 34,440 | |||||||||
| Total Liabilities and Stockholders' Equity | $ | 432,463 | $ | 387,254 | $ | 393,532 | ||||||
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| SUSSEX BANCORP | ||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
| (Dollars In Thousands) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2008 | 2007 | 2008 | 2007 | |||||||||||||
| INTEREST INCOME | ||||||||||||||||
| Loans receivable, including fees | $ | 4,637 | $ | 4,881 | $ | 9,448 | $ | 9,534 | ||||||||
| Securities: | ||||||||||||||||
| Taxable | 543 | 404 | 1,067 | 800 | ||||||||||||
| Tax-exempt | 226 | 257 | 462 | 507 | ||||||||||||
| Federal funds sold | 88 | 69 | 112 | 161 | ||||||||||||
| Interest bearing deposits | - | 2 | 1 | 3 | ||||||||||||
| Total Interest Income | 5,494 | 5,613 | 11,090 | 11,005 | ||||||||||||
| INTEREST EXPENSE | ||||||||||||||||
| Deposits | 2,068 | 2,355 | 4,198 | 4,563 | ||||||||||||
| Borrowings | 373 | 243 | 755 | 465 | ||||||||||||
| Junior subordinated debentures | 131 | 121 | 324 | 234 | ||||||||||||
| Total Interest Expense | 2,572 | 2,719 | 5,277 | 5,262 | ||||||||||||
| Net Interest Income | 2,922 | 2,894 | 5,813 | 5,743 | ||||||||||||
| PROVISION FOR LOAN LOSSES | 117 | 436 | 290 | 544 | ||||||||||||
| Net Interest Income after Provision for Loan Losses | 2,805 | 2,458 | 5,523 | 5,199 | ||||||||||||
| OTHER INCOME | ||||||||||||||||
| Service fees on deposit accounts | 351 | 335 | 702 | 654 | ||||||||||||
| ATM and debit card fees | 120 | 104 | 225 | 191 | ||||||||||||
| Insurance commissions and fees | 653 | 664 | 1,396 | 1,518 | ||||||||||||
| Investment brokerage fees | 48 | 56 | 95 | 213 | ||||||||||||
| Holding gains (losses) on trading securities | (196 | ) | (48 | ) | 21 | (2 | ) | |||||||||
| Gain on sale of securities, available for sale | 68 | - | 152 | - | ||||||||||||
| Other | 184 | 124 | 316 | 247 | ||||||||||||
| Total Other Income | 1,228 | 1,235 | 2,907 | 2,821 | ||||||||||||
| OTHER EXPENSES | ||||||||||||||||
| Salaries and employee benefits | 1,976 | 1,829 | 3,855 | 3,611 | ||||||||||||
| Occupancy, net | 304 | 300 | 662 | 613 | ||||||||||||
| Furniture, equipment and data processing | 374 | 356 | 747 | 694 | ||||||||||||
| Stationary and supplies | 48 | 46 | 91 | 92 | ||||||||||||
| Professional fees | 88 | 165 | 197 | 304 | ||||||||||||
| Advertising and promotion | 161 | 137 | 287 | 241 | ||||||||||||
| Insurance | 47 | 48 | 85 | 94 | ||||||||||||
| FDIC assessment | 90 | 9 | 185 | 18 | ||||||||||||
| Postage and freight | 46 | 48 | 84 | 88 | ||||||||||||
| Amortization of intangible assets | 14 | 26 | 29 | 63 | ||||||||||||
| Other | 419 | 372 | 818 | 758 | ||||||||||||
| Total Other Expenses | 3,567 | 3,336 | 7,040 | 6,576 | ||||||||||||
| Income before Income Taxes | 466 | 357 | 1,390 | 1,444 | ||||||||||||
| PROVISION FOR INCOME TAXES | 107 | 63 | 394 | 426 | ||||||||||||
| Net Income | $ | 359 | $ | 294 | $ | 996 | $ | 1,018 | ||||||||
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| SUSSEX BANCORP | |||||||
| COMPARATIVE AVERAGE BALANCES AND AVERAGE INTEREST RATES | |||||||
| (Dollars In Thousands) | |||||||
| (Unaudited) |
| Six Months Ended June 30, | ||||||||||||||||||||||||
| 2008 | 2007 | |||||||||||||||||||||||
| Average | Average | Average | Average | |||||||||||||||||||||
| Earning Assets: | Balance | Interest (1) | Rate (2) | Balance | Interest (1) | Rate (2) | ||||||||||||||||||
| Securities: | ||||||||||||||||||||||||
| Tax exempt (3) | $ | 22,287 | $ | 690 | 6.23 | % | $ | 24,030 | $ | 663 | 5.57 | % | ||||||||||||
| Taxable | 41,339 | 1,067 | 5.19 | % | 34,135 | 800 | 4.73 | % | ||||||||||||||||
| Total securities | 63,626 | 1,757 | 5.55 | % | 58,166 | 1,463 | 5.07 | % | ||||||||||||||||
| Total loans receivable (4) | 303,192 | 9,448 | 6.27 | % | 272,678 | 9,534 | 7.05 | % | ||||||||||||||||
| Other interest-earning assets | 10,153 | 113 | 2.24 | % | 6,397 | 164 | 5.16 | % | ||||||||||||||||
| Total earning assets | 376,971 | $ | 11,318 | 6.04 | % | 337,242 | $ | 11,161 | 6.67 | % | ||||||||||||||
| Non-interest earning assets | 30,054 | 28,098 | ||||||||||||||||||||||
| Allowance for loan losses | (5,305 | ) | (3,496 | ) | ||||||||||||||||||||
| Total Assets | $ | 401,720 | $ | 361,844 | ||||||||||||||||||||
| Sources of Funds: | ||||||||||||||||||||||||
| Interest bearing deposits: | ||||||||||||||||||||||||
| NOW | $ | 58,426 | $ | 429 | 1.48 | % | $ | 58,221 | $ | 642 | 2.22 | % | ||||||||||||
| Money market | 29,588 | 354 | 2.41 | % | 36,731 | 704 | 3.87 | % | ||||||||||||||||
| Savings | 53,995 | 551 | 2.05 | % | 39,655 | 178 | 0.91 | % | ||||||||||||||||
| Time | 134,773 | 2,864 | 4.27 | % | 127,386 | 3,039 | 4.81 | % | ||||||||||||||||
| Total interest bearing deposits | 276,782 | 4,198 | 3.05 | % | 261,993 | 4,563 | 3.51 | % | ||||||||||||||||
| Borrowed funds | 35,914 | 755 | 4.16 | % | 19,565 | 465 | 4.73 | % | ||||||||||||||||
| Junior subordinated debentures | 12,887 | 324 | 4.97 | % | 5,366 | 234 | 8.66 | % | ||||||||||||||||
| Total interest bearing liabilities | 325,583 | $ | 5,277 | 3.26 | % | 286,924 | $ | 5,262 | 3.70 | % | ||||||||||||||
| Non-interest bearing liabilities: | ||||||||||||||||||||||||
| Demand deposits | 39,286 | 37,647 | ||||||||||||||||||||||
| Other liabilities | 2,069 | 2,218 | ||||||||||||||||||||||
| Total non-interest bearing liabilities | 41,355 | 39,865 | ||||||||||||||||||||||
| Stockholders' equity | 34,782 | 35,055 | ||||||||||||||||||||||
| Total Liabilities and Stockholders' Equity | $ | 401,720 | $ | 361,844 | ||||||||||||||||||||
Net Interest Income and Margin (5) | $ | 6,041 | 3.22 | % | $ | 5,899 | 3.53 | % | ||||||||||||||||
| (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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