Exhibit 99.1
Sussex Bancorp
200 Munsonhurst Road, Rt. 517
Franklin, NJ 07416
973-827-2914
FOR IMMEDIATE RELEASE |
SUSSEX BANCORP ANNOUNCES IMPROVED THIRD QUARTER AND NINE MONTH EARNINGS
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FRANKLIN, NEW JERSEY – October 22, 2009– Sussex Bancorp (NASDAQ: “SBBX”) today announced improved financial results for the third quarter and nine months ended September 30, 2009.
For the quarter ended September 30, 2009, the Company earned $897 thousand compared to a net loss of $3.0 million for the quarter ended September 30, 2008. For the nine months ended September 30, 2009, the Company earned $1.7 million compared to a net loss of $2.0 million reported for the same period last year. Basic and diluted earnings per share for the three and nine months ended September 30, 2009, were $0.28 and $0.54, respectively, compared to basic and diluted loss per share of ($0.92) and ($0.62) for the comparable periods of 2008. The improvement in the Company’s performance in 2009 reflects higher net interest income, partially offset by higher provisions for loan losses, and the impact of other than temporary impairment (“OTTI”) charges in 2008 attributable to Fannie Mae and Freddie Mac preferred stock. The Company had no comparable OTTI charge in 2009.
The Company’s net interest income increased to $4.2 million for the quarter ended September 30, 2009 from $3.1 million for the third quarter of 2008. The Company’s interest income was unchanged at $5.9 million during each period, while the Company’s interest expense decreased to $1.7 million for the three months ended September 30, 2009 from $2.7 million for the third quarter of 2008.
For the nine months ended September 30, 2009, the Company’s net interest income increased to $11.0 million from the $9.0 million earned for the same period last year. For the nine months ended September 30, 2009, the Company’s interest income increased to $17.5 million from $17.0 million in the nine months ended September 30, 2008. As the Company’s average earning assets increased by $48.8 million, its yield on earning assets decreased by 47 basis points. The Company’s interest expense decreased to $6.5 million for the nine months ended September 30, 2009 from $8.0 million for the nine month period ended September 30, 2008. The Company’s average interest bearing liabilities increased by $56.1 million in the first nine months of 2009 compared to the prior year, and the Company’s cost of interest bearing liabilities decreased by 97 basis points.
For the nine months ended September 30, 2009, the Company’s net interest margin increased by 30 basis points, to 3.51% from 3.21 % in the prior year period. For the third quarter of 2009, the Company’s net interest margin increased to 4.04% from 3.18% in the third quarter of 2008.
The loan loss provision for the third quarter was $520 thousand compared to $279 thousand for the same period last year. For the nine month period the provision was $1.6 million, compared to $569 thousand for the same period last year. At September 30, 2009, non-performing assets totaled $23.8 million compared to $15.1 million at September 30, 2008 and $15.0 million at December 31, 2008.
At September 30, 2009 the Company had total assets of $452.5 million, compared to total assets of $439.1 million at September 30, 2008. The Company’s total loans increased $18.1 million to $330.4 million at September 30, 2009 from $312.3 million at September 30, 2008.
The Company reported non-interest income for the three and nine month periods ending September 30, 2009 of $1.3 million and $4.1 million, respectively, compared to a loss of $2.3 million and non-interest income of $632 thousand for the three and nine month periods ending September 30, 2008, respectively. The reduced non-interest income for the three and nine month periods in 2008 reflects the OTTI charge discussed above, which is recognized in non-interest income.
Salaries and employee benefits increased by $228 thousand to $2.1 million for the quarter ended September 30, 2009 from the $1.8 million in the same period last year and declined by $73 thousand in the nine months ended September 30, 2009 compared to the prior year period. The increase in the quarterly period is related to expenses accrued in relation to severance owed to a former executive officer of the Company and the Bank.
Sussex Bancorp is the holding company for Sussex Bank, which operates through its eight New Jersey offices and two Orange County offices and for the Tri-State Insurance Agency, Inc., a full service insurance agency located in Sussex County, New Jersey.
SUSSEX BANCORP | ||||||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||||||
(Dollars In Thousands) | ||||||||||||
(Unaudited) | ||||||||||||
ASSETS | September 30, 2009 | September 30, 2008 | December 31, 2008 | |||||||||
Cash and due from banks | $ | 13,240 | $ | 10,537 | $ | 7,602 | ||||||
Federal funds sold | 2,038 | 15,470 | 13,310 | |||||||||
Cash and cash equivalents | 15,278 | 26,007 | 20,912 | |||||||||
Interest bearing time deposits with other banks | 100 | 100 | 100 | |||||||||
Trading securities | 3,974 | 13,519 | 13,290 | |||||||||
Securities available for sale | 80,040 | 64,487 | 62,272 | |||||||||
Federal Home Loan Bank Stock, at cost | 2,046 | 2,111 | 1,975 | |||||||||
Loans receivable, net of unearned income | 330,404 | 312,330 | 320,880 | |||||||||
Less: allowance for loan losses | 5,064 | 5,080 | 5,813 | |||||||||
Net loans receivable | 325,340 | 307,250 | 315,067 | |||||||||
Foreclosed real estate | 4,380 | 3,931 | 3,864 | |||||||||
Premises and equipment, net | 7,165 | 8,697 | 8,526 | |||||||||
Accrued interest receivable | 2,120 | 2,058 | 2,115 | |||||||||
Goodwill | 2,820 | 2,820 | 2,820 | |||||||||
Other assets | 9,271 | 8,099 | 9,654 | |||||||||
Total Assets | $ | 452,534 | $ | 439,079 | $ | 440,595 | ||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||
Liabilities: | ||||||||||||
Deposits: | ||||||||||||
Non-interest bearing | $ | 39,037 | $ | 40,430 | $ | 34,784 | ||||||
Interest bearing | 330,100 | 316,231 | 325,297 | |||||||||
Total Deposits | 369,137 | 356,661 | 360,081 | |||||||||
Borrowings | 33,104 | 36,160 | 33,146 | |||||||||
Accrued interest payable and other liabilities | 2,717 | 2,572 | 2,571 | |||||||||
Junior subordinated debentures | 12,887 | 12,887 | 12,887 | |||||||||
Total Liabilities | 417,845 | 408,280 | 408,685 | |||||||||
Total Stockholders' Equity | 34,689 | 30,799 | 31,910 | |||||||||
Total Liabilities and Stockholders' Equity | $ | 452,534 | $ | 439,079 | $ | 440,595 |
SUSSEX BANCORP | ||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
(Dollars In Thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
INTEREST INCOME | ||||||||||||||||
Loans receivable, including fees | $ | 4,923 | $ | 4,887 | $ | 14,520 | $ | 14,335 | ||||||||
Securities: | ||||||||||||||||
Taxable | 651 | 631 | 2,032 | 1,698 | ||||||||||||
Tax-exempt | 308 | 248 | 897 | 710 | ||||||||||||
Federal funds sold | 5 | 111 | 26 | 223 | ||||||||||||
Interest bearing deposits | 1 | 1 | 15 | 2 | ||||||||||||
Total Interest Income | 5,888 | 5,878 | 17,490 | 16,968 | ||||||||||||
INTEREST EXPENSE | ||||||||||||||||
Deposits | 1,264 | 2,219 | 5,166 | 6,417 | ||||||||||||
Borrowings | 359 | 377 | 1,067 | 1,132 | ||||||||||||
Junior subordinated debentures | 64 | 135 | 251 | 459 | ||||||||||||
Total Interest Expense | 1,687 | 2,731 | 6,484 | 8,008 | ||||||||||||
Net Interest Income | 4,201 | 3,147 | 11,006 | 8,960 | ||||||||||||
PROVISION FOR LOAN LOSSES | 520 | 279 | 1,583 | 569 | ||||||||||||
Net Interest Income after Provision for Loan Losses | 3,681 | 2,868 | 9,423 | 8,391 | ||||||||||||
OTHER INCOME | ||||||||||||||||
Service fees on deposit accounts | 380 | 409 | 1,095 | 1,111 | ||||||||||||
ATM and debit card fees | 126 | 123 | 354 | 348 | ||||||||||||
Insurance commissions and fees | 548 | 576 | 1,757 | 1,972 | ||||||||||||
Investment brokerage fees | 30 | 22 | 111 | 117 | ||||||||||||
Holding gains on trading securities | 2 | (8 | ) | 21 | 13 | |||||||||||
Gain on sale of securities, available for sale | 55 | - | 55 | 152 | ||||||||||||
Gain on sale of fixed assets | - | - | 203 | - | ||||||||||||
Loss on sale of foreclosed real estate | (34 | ) | - | (35 | ) | - | ||||||||||
Impairment write-down on equity securities | - | (3,526 | ) | - | (3,526 | ) | ||||||||||
Other | 173 | 129 | 509 | 445 | ||||||||||||
Total Other Income | 1,280 | (2,275 | ) | 4,070 | 632 | |||||||||||
OTHER EXPENSES | ||||||||||||||||
Salaries and employee benefits | 2,070 | 1,842 | 5,624 | 5,697 | ||||||||||||
Occupancy, net | 320 | 315 | 981 | 977 | ||||||||||||
Furniture, equipment and data processing | 314 | 372 | 991 | 1,119 | ||||||||||||
Stationary and supplies | 37 | 50 | 127 | 141 | ||||||||||||
Professional fees | 216 | 140 | 585 | 337 | ||||||||||||
Advertising and promotion | 49 | 92 | 145 | 379 | ||||||||||||
Insurance | 54 | 42 | 140 | 127 | ||||||||||||
FDIC assessment | 172 | 95 | 687 | 280 | ||||||||||||
Postage and freight | 33 | 34 | 110 | 118 | ||||||||||||
Amortization of intangible assets | 4 | 14 | 14 | 43 | ||||||||||||
Write-down on foreclosed real estate | - | - | 456 | - | ||||||||||||
Expenses related to foreclosed real estate | 77 | 75 | 353 | 132 | ||||||||||||
Other | 367 | 368 | 1,050 | 1,129 | ||||||||||||
Total Other Expenses | 3,713 | 3,439 | 11,263 | 10,479 | ||||||||||||
Income (loss) before Income Taxes | 1,248 | (2,846 | ) | 2,230 | (1,456 | ) | ||||||||||
PROVISION FOR INCOME TAXES | 351 | 181 | 485 | 575 | ||||||||||||
Net Income (Loss) | $ | 897 | $ | (3,027 | ) | $ | 1,745 | $ | (2,031 | ) |
SUSSEX BANCORP | ||||||||||||||
COMPARATIVE AVERAGE BALANCES AND AVERAGE INTEREST RATES | ||||||||||||||
(Dollars In Thousands) | ||||||||||||||
(Unaudited) |
Nine Months Ended September 30, | ||||||||||||||||||||||||
2009 | 2008 | |||||||||||||||||||||||
Average | Average | Average | Average | |||||||||||||||||||||
Earning Assets: | Balance | Interest (1) | Rate (2) | Balance | Interest (1) | Rate (2) | ||||||||||||||||||
Securities: | ||||||||||||||||||||||||
Tax exempt (3) | $ | 28,812 | $ | 1,347 | 6.25 | % | $ | 22,906 | $ | 1,061 | 6.19 | % | ||||||||||||
Taxable | 61,628 | 2,032 | 4.41 | % | 45,576 | 1,698 | 4.98 | % | ||||||||||||||||
Total securities | 90,440 | 3,379 | 4.99 | % | 68,482 | 2,759 | 5.38 | % | ||||||||||||||||
Total loans receivable (4) | 324,797 | 14,519 | 5.98 | % | 304,859 | 14,335 | 6.28 | % | ||||||||||||||||
Other interest-earning assets | 21,226 | 41 | 0.25 | % | 14,350 | 225 | 2.10 | % | ||||||||||||||||
Total earning assets | 436,463 | $ | 17,939 | 5.50 | % | 387,691 | $ | 17,319 | 5.97 | % | ||||||||||||||
Non-interest earning assets | 36,269 | 30,837 | ||||||||||||||||||||||
Allowance for loan losses | (6,059 | ) | (5,188 | ) | ||||||||||||||||||||
Total Assets | $ | 466,673 | $ | 413,340 | ||||||||||||||||||||
Sources of Funds: | ||||||||||||||||||||||||
Interest bearing deposits: | ||||||||||||||||||||||||
NOW | $ | 57,108 | $ | 432 | 1.01 | % | $ | 58,277 | $ | 604 | 1.38 | % | ||||||||||||
Money market | 15,129 | 144 | 1.27 | % | 26,346 | 451 | 2.29 | % | ||||||||||||||||
Savings | 171,163 | 2,264 | 1.77 | % | 73,098 | 1,376 | 2.51 | % | ||||||||||||||||
Time | 103,722 | 2,325 | 3.00 | % | 130,380 | 3,986 | 4.08 | % | ||||||||||||||||
Total interest bearing deposits | 347,122 | 5,166 | 1.99 | % | 288,101 | 6,417 | 2.98 | % | ||||||||||||||||
Borrowed funds | 33,123 | 1,067 | 4.25 | % | 35,998 | 1,132 | 4.13 | % | ||||||||||||||||
Junior subordinated debentures | 12,887 | 251 | 2.57 | % | 12,887 | 459 | 4.68 | % | ||||||||||||||||
Total interest bearing liabilities | 393,132 | $ | 6,484 | 2.21 | % | 336,986 | $ | 8,008 | 3.17 | % | ||||||||||||||
Non-interest bearing liabilities: | ||||||||||||||||||||||||
Demand deposits | 38,512 | 39,721 | ||||||||||||||||||||||
Other liabilities | 2,159 | 2,207 | ||||||||||||||||||||||
Total non-interest bearing liabilities | 40,671 | 41,928 | ||||||||||||||||||||||
Stockholders' equity | 32,870 | 34,426 | ||||||||||||||||||||||
Total Liabilities and Stockholders' Equity | $ | 466,673 | $ | 413,340 | ||||||||||||||||||||
Net Interest Income and Margin (5) | $ | 11,455 | 3.51 | % | $ | 9,311 | 3.21 | % |
(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 |