200 Munsonhurst Road
Franklin, NJ 07416
SUSSEX BANCORP REPORTS IMPROVEMENT IN ASSET QUALITY FOR 2012
FRANKLIN, NEW JERSEY – January 31, 2013 – Sussex Bancorp (the “Company”) (NasdaqGM: SBBX), the holding company for Sussex Bank (the “Bank”) today announced an improvement of 30.1% in non-performing assets (“NPAs”) for 2012. In addition, overall problem assets are down 44.4% from their historical high at March 31, 2010 and the ratio of NPAs to total assets improved to 4.6% at December 31, 2012 from 6.7% at December 31, 2011. The Company also reported full year results for net income of $735 thousand, or $0.23 per basic share and $0.22 per diluted share, for fiscal year 2012 as compared to $2.5 million, or $0.76 per basic share and $0.74 per diluted share, for the same period last year.
“We have made significant progress towards reducing our legacy problem assets, which was one of our primary goals for 2012. This quarter, we have reduced our non-performing assets by 30.1% and our total problem assets by 29.5% as compared to the same period last year. With the prospective sales of several foreclosed real estate properties we are hopeful that this momentum will continue into 2013”, said Anthony Labozzetta, President and Chief Executive Officer of Sussex Bank. “Our operating results have been negatively affected by high levels of credit quality costs related to legacy problem assets. As we continue to reduce our problem assets, we will further improve our financial performance,” added Mr. Labozzetta.
Operating Performance
For the quarter ended December 31, 2012, the Company reported a net loss of $97 thousand, or $(0.03) per basic and diluted share, as compared to $515 thousand, or $0.16 per basic share and $0.15 per diluted share, for the same period last year. The decrease for the quarter ended December 31, 2012 in net income was largely due to higher expenses and write-downs related to foreclosed real estate of $988 thousand and to higher provision for loan losses of $790 thousand as compared to the same period last year. The aforementioned increases in expenses were partly offset by a $659 thousand increase in gain on the sale of securities.
The Company attributed the decrease in net income of $1.7 million, or 70.2%, to $735 thousand for the year ended December 31, 2012, as compared to the same period last year, to an increase in expenses and write-downs related to foreclosed real estate (+$1.7 million), greater provision for loan losses (+$1.0 million), higher operating costs resulting from growth initiatives of the Company and a decline in the net interest margin. These increases in expenses were partly offset by increases in gains on the sale of securities (+$1.2 million) and higher Tri-State Insurance Agency, Inc. net income before taxes of $109 thousand, or 71.5%, for the year ended December 31, 2012 as compared to the same period last year.
Net Interest Income. Net interest income on a fully tax equivalent basis declined $149 thousand, or 3.5%, to $4.1 million for the fourth quarter of 2012 as compared to $4.3 million for same period in 2011. The decrease in net interest income was largely due to the Company’s net interest margin declining 18 basis points to 3.41% for the fourth quarter of 2012 compared to the same period last year. The decline in the net interest margin was mostly due to a 33 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 22 basis points to 0.84% for the fourth quarter of 2012 from 1.06% for the same period in 2011 and a $9.1 million, or 1.9%, increase in average interest earning assets, principally securities.
Net interest income, on a fully tax equivalent basis, decreased $762 thousand, or 4.4%, to $16.8 million for the year ended December 31, 2012, as compared to $17.5 million for same period in 2011. The Company’s net interest margin declined 35 basis points to 3.52% for the year ended December 31, 2012, compared to 3.87% for the same period last year. The decline was mostly attributed to a 34 basis point decline in the average rate earned on loans to 5.19%, which was partly offset by a 19 basis point decrease in the average rate paid on interest bearing liabilities to 0.90% for the year ended December 31, 2012, as compared to the same period last year and a $23.5 million, or 5.2%, increase in average interest earning assets, principally securities.
Provision for Loan Losses.Provision for loan losses increased $790 thousand to $1.4 million for the fourth quarter of 2012, as compared to $618 thousand for the same period in 2011.
Provision for loan losses increased $1.0 million to $4.3 million for the year ended December 31, 2012, as compared to $3.3 million for the same period last year. The increases in the provision for loan losses for the quarter and year-ended December 31, 2012 were largely attributed to an increase in charge-offs related to the resolution of problem loans.
Non-interest Income.The Company reported an increase in non-interest income of $1.0 million, or 75.4%, to $2.3 million for the fourth quarter of 2012 as compared to the same period last year. The increase in non-interest income was largely due to increases of $659 thousand and $70 thousand in gains on the sale of securities and gains on the sale of foreclosed real estate, respectively. Additionally, there was a $231 thousand impairment write-down on equity securities that occurred in the same period last year that did not recur in 2012.
The Company reported an increase in non-interest income of $1.8 million, or 33.3%, to $7.0 million for the year ended December 31, 2012, as compared to the same period last year. The increase in non-interest income was largely due to increases in gains on sale of securities, insurance commissions and fees and other income, which increased $1.2 million, $214 thousand and $135 thousand, respectively. Additionally, there was a $231 thousand impairment write-down on equity securities that occurred in the same period last year that did not recur in 2012.
Non-interest Expense.The Company’s non-interest expenses increased $1.0 million, or 23.9%, to $5.2 million for the fourth quarter of 2012 as compared to the same period last year. The increase for the fourth quarter of 2012 versus the same period in 2011 was largely due to an increase in expenses related to foreclosed real estate and other expenses, which increased $988 thousand and $47 thousand, respectively.
The Company’s non-interest expenses increased $2.7 million, or 17.0%, to $18.5 million for the year ended December 31, 2012, as compared to the same period last year. The increase during 2012 compared to 2011 was largely due to increases in expenses and write-downs related to foreclosed real estate and salaries and benefits of $1.7 million and $459 thousand, respectively. The increase in expenses and write-downs related to foreclosed real estate was principally due to the prospective sales of foreclosed real estate properties. The increase in salaries and employee benefits was mostly attributed to costs 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 December 31, 2012, the Company’s total assets were $514.7 million, an increase of $7.8 million, or 1.5%, as compared to total assets of $507.0 million at December 31, 2011. The increase in total assets was largely driven by securities growth of $23.5 million, or 23.4%, and net loans receivable growth of $10.3 million or 3.1%, which was partially offset by a decline in cash and cash equivalents of $25.8 million, or 68.9%.
Total loans receivable, net of unearned income, increased $8.0 million, or 2.4%, to $347.7 million at December 31, 2012, from $339.7 million at year-end 2011. During the year ended December 31, 2012, the Company originated approximately $70.0 million in new loans. The loan volume for 2012 was largely offset by pay-offs of non-performing loans and potential problem loans, loans repurchased from a participating bank, and loan charge-offs. During 2012, there were approximately $9.0 million in loans that the Company sold back to the participating bank that had originated the loans. The loans sold included $1.7 million in non-accrual loans and were part of approximately $12.0 million in loans that the Company had negotiated the full pay-off of all contractual amounts due (principal and interest plus $45,000 in fees). The remaining loans are scheduled to be sold back to the participating bank during the first quarter of 2013. Such loans were originated and purchased by the Company between the years of 2003 and 2009.
The Company’s securities portfolio, which includes securities available for sale and securities held to maturity, increased $23.5 million, or 23.4%, to $124.1 million at December 31, 2012, as compared to $100.6 million at December 31, 2011.
The Company’s total deposits increased $7.0 million, or 1.7%, to $432.4 million at December 31, 2012, from $425.4 million at December 31, 2011. The increase in deposits was due to an increase in non-interest bearing deposits of $3.6 million, or 8.1%, and an increase in interest bearing core deposits of $10.7 million, or 4.0%, which was partially offset by a decrease in time deposits of $7.2 million, or 6.5%, for December 31, 2012 as compared to December 31, 2011. The Company’s funding mix continues to improve as low cost deposits grow.
At December 31, 2012, the Company’s total stockholders’ equity was $40.4 million, an increase of $470 thousand when compared to December 31, 2011. At December 31, 2012, the leverage, Tier I risk-based capital and total risk-based capital ratios for the Bank were 9.27%, 12.93% and 14.18%, respectively, all in excess of the ratios required to be deemed “well-capitalized.”
Asset and Credit Quality
The overall credit quality of the Company continued positive trends through December 31, 2012, as our total problem assets declined $14.6 million, or 29.5%, from December 31, 2011. Our total problem assets totaled $34.9 million at December 31, 2012, as compared to $49.6 million at December 31, 2011, and have declined 44.4% 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.
NPAs, which include non-accrual loans, loans 90 days past due and still accruing, performing troubled debt restructured loans and foreclosed real estate, decreased $10.3 million, or 30.1%, to $23.8 million at December 31, 2012, as compared to $34.0 million at December 31, 2011. The ratios of NPAs to total assets for December 31, 2012 and December 31, 2011 were 4.6% and 6.7%, respectively. The Company has been actively marketing its foreclosed real estate properties, which amounted to $5.1 million at December 31, 2012, with an average book value of approximately $267 thousand per property. Approximately $2.0 million, or 40%, of the Company’s total foreclosed real estate properties at December 31, 2012, are under contract for sale or are under letters of intent (“LOI”) to purchase. The increase of $1.7 million, or 413.0%, in expenses and write-downs related to foreclosed real estate for the year ended December 31, 2012, as compared to the same period last year was largely attributed to the foreclosed properties that are under contract for sale or under an LOI. In addition, the Company had a 62.4% improvement in loans past due 30 to 89 days to $2.8 million at December 31, 2012 as compared to December 31, 2011, which is the lowest level it has been in the last three years.
The allowance for loan losses was $5.0 million, or 1.4% of total loans, at December 31, 2012, compared to $7.2 million, or 2.1% of total loans, at December 31, 2011. The decline in the allowance for loan losses was largely attributed to $6.6 million in net charge-offs, which was in part offset by $4.3 million in provision for loan losses for the twelve months ended December 31, 2012.
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 website at www.sussexbank.com.
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.
| Contacts: | Anthony Labozzetta, President/CEO |
Steven Fusco, SVP/CFO
973-827-2914
| SUSSEX BANCORP | ||||||||||||||||||||
| SUMMARY FINANCIAL HIGHLIGHTS | ||||||||||||||||||||
| (In Thousands, Except Percentages and Per Share Data) | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| 12/31/12 VS. | ||||||||||||||||||||
| 12/31/2012 | 9/30/2012 | 12/31/2011 | 12/31/2011 | 9/30/2012 | ||||||||||||||||
| BALANCE SHEET HIGHLIGHTS - Period End Balances | ||||||||||||||||||||
| Total securities | $ | 124,102 | $ | 124,595 | $ | 100,581 | 23.4 | % | (0.4 | )% | ||||||||||
| Total loans | 347,736 | 340,395 | 339,705 | 2.4 | % | 2.2 | % | |||||||||||||
| Allowance for loan losses | (4,976 | ) | (6,721 | ) | (7,210 | ) | (31.0 | )% | (26.0 | )% | ||||||||||
| Total assets | 514,734 | 504,294 | 506,953 | 1.5 | % | 2.1 | % | |||||||||||||
| Total deposits | 432,436 | 417,341 | 425,376 | 1.7 | % | 3.6 | % | |||||||||||||
| Total borrowings and junior subordinated debt | 38,887 | 38,887 | 38,887 | - | % | - | % | |||||||||||||
| Total shareholders' equity | 40,372 | 41,182 | 39,902 | 1.2 | % | (2.0 | )% | |||||||||||||
| FINANCIAL DATA - QUARTER ENDED: | ||||||||||||||||||||
| Net interest income (tax equivalent) (a) | $ | 4,102 | $ | 4,239 | $ | 4,251 | (3.5 | )% | (3.2 | )% | ||||||||||
| Provision for loan losses | 1,408 | 1,104 | 618 | 127.8 | % | 27.5 | % | |||||||||||||
| Total other income | 2,335 | 1,962 | 1,331 | 75.4 | % | 19.0 | % | |||||||||||||
| Total other expenses | 5,201 | 4,295 | 4,199 | 23.9 | % | 21.1 | % | |||||||||||||
| (Loss) income before provision for income taxes (tax equivalent) | (172 | ) | 802 | 765 | (122.5 | )% | (121.4 | )% | ||||||||||||
| (Benefit) provision for income taxes | (235 | ) | 106 | 102 | (330.4 | )% | (321.7 | )% | ||||||||||||
| Taxable equivalent adjustment (a) | 160 | 150 | 148 | 8.1 | % | 6.7 | % | |||||||||||||
| Net (loss) income | $ | (97 | ) | $ | 546 | $ | 515 | (118.8 | )% | (117.8 | )% | |||||||||
| Net income per common share - Basic | $ | (0.03 | ) | $ | 0.17 | $ | 0.16 | (118.8 | )% | (117.6 | )% | |||||||||
| Net income per common share - Diluted | $ | (0.03 | ) | $ | 0.17 | $ | 0.15 | (120.0 | )% | (117.6 | )% | |||||||||
| Return on average assets | (0.08 | )% | 0.43 | % | 0.41 | % | (118.4 | )% | (117.6 | )% | ||||||||||
| Return on average equity | (0.94 | )% | 5.32 | % | 5.22 | % | (118.0 | )% | (117.7 | )% | ||||||||||
| Net interest margin (tax equivalent) | 3.41 | % | 3.57 | % | 3.59 | % | (5.1 | )% | (4.5 | )% | ||||||||||
| FINANCIAL DATA - YEAR TO DATE: | ||||||||||||||||||||
| Net interest income (tax equivalent) (a) | $ | 16,753 | $ | 12,651 | $ | 17,515 | (4.4 | )% | ||||||||||||
| Provision for loan losses | 4,330 | 2,922 | 3,306 | 31.0 | % | |||||||||||||||
| Total other income | 7,040 | 4,705 | 5,283 | 33.3 | % | |||||||||||||||
| Total other expenses | 18,471 | 13,270 | 15,783 | 17.0 | % | |||||||||||||||
| Income before provision for income taxes (tax equivalent) | 992 | 1,164 | 3,709 | (73.3 | )% | |||||||||||||||
| (Benefit) provision for income taxes | (329 | ) | (94 | ) | 637 | (151.6 | )% | |||||||||||||
| Taxable equivalent adjustment (a) | 586 | 426 | 602 | (2.6 | )% | |||||||||||||||
| Net income | $ | 735 | $ | 832 | $ | 2,470 | (70.2 | )% | ||||||||||||
| Net income per common share - Basic | $ | 0.23 | $ | 0.26 | $ | 0.76 | (69.7 | )% | ||||||||||||
| Net income per common share - Diluted | $ | 0.22 | $ | 0.25 | $ | 0.74 | (70.3 | )% | ||||||||||||
| Return on average assets | 0.19 | % | 0.22 | % | 0.51 | % | (62.4 | )% | ||||||||||||
| Return on average equity | 2.41 | % | 2.74 | % | 6.44 | % | (62.6 | )% | ||||||||||||
| Net interest margin (tax equivalent) | 3.52 | % | 3.56 | % | 3.87 | % | (9.1 | )% | ||||||||||||
| SHARE INFORMATION: | ||||||||||||||||||||
| Book value per common share | $ | 11.88 | $ | 12.12 | $ | 11.83 | 0.4 | % | (2.0 | )% | ||||||||||
| Outstanding shares- period ending | 3,397,873 | 3,397,873 | 3,372,949 | 0.7 | % | - | % | |||||||||||||
| Average diluted shares outstanding (year to date) | 3,287,017 | 3,282,226 | 3,327,379 | (1.2 | )% | 0.1 | % | |||||||||||||
| CAPITAL RATIOS: | ||||||||||||||||||||
| Total equity to total assets | 7.84 | % | 8.17 | % | 7.87 | % | (0.4 | )% | (4.0 | )% | ||||||||||
| Leverage ratio (b) | 9.27 | % | 9.36 | % | 9.29 | % | (0.2 | )% | (1.0 | )% | ||||||||||
| Tier 1 risk-based capital ratio (b) | 12.93 | % | 13.18 | % | 12.98 | % | (0.4 | )% | (1.9 | )% | ||||||||||
| Total risk-based capital ratio (b) | 14.18 | % | 14.44 | % | 14.24 | % | (0.4 | )% | (1.8 | )% | ||||||||||
| ASSET QUALITY AND RATIOS: | ||||||||||||||||||||
| Non-accrual loans | $ | 17,871 | $ | 23,993 | $ | 24,283 | (26.4 | )% | (25.5 | )% | ||||||||||
| Loans 90 days past due and still accruing | 209 | 59 | 803 | (74.0 | )% | 254.2 | % | |||||||||||||
| Troubled debt restructured loans (c) | 608 | 603 | 3,411 | (82.2 | )% | 0.8 | % | |||||||||||||
| Foreclosed real estate | 5,066 | 5,158 | 5,509 | (8.0 | )% | (1.8 | )% | |||||||||||||
| Non-performing assets | $ | 23,754 | $ | 29,813 | $ | 34,006 | (30.1 | )% | (20.3 | )% | ||||||||||
| Foreclosed real estate, criticized and classified assets | $ | 34,946 | $ | 42,462 | $ | 49,584 | (29.5 | )% | (17.7 | )% | ||||||||||
| Loans past due 30 to 89 days | $ | 2,754 | $ | 7,040 | $ | 7,319 | (62.4 | )% | (60.9 | )% | ||||||||||
| Charge-offs, net (quarterly) | $ | 3,146 | $ | 619 | $ | 803 | 291.8 | % | 408.2 | % | ||||||||||
| Charge-offs, net as a % of average loans (annualized) | 3.70 | % | 0.72 | % | 0.96 | % | 286.7 | % | 411.7 | % | ||||||||||
| Non-accrual loans to total loans | 5.14 | % | 7.05 | % | 7.15 | % | (28.1 | )% | (27.1 | )% | ||||||||||
| Non-performing assets to total assets | 4.61 | % | 5.91 | % | 6.71 | % | (31.2 | )% | (21.9 | )% | ||||||||||
| Allowance for loan losses as a % of non-performing loans | 26.93 | % | 27.33 | % | 26.03 | % | 3.4 | % | (1.5 | )% | ||||||||||
| Allowance for loan losses to total loans | 1.43 | % | 1.97 | % | 2.12 | % | (32.6 | )% | (27.5 | )% | ||||||||||
(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) | ||||||||
| ASSETS | December 31, 2012 | December 31, 2011 | ||||||
| Cash and due from banks | $ | 6,268 | $ | 3,903 | ||||
| Interest-bearing deposits with other banks | 5,400 | 33,597 | ||||||
| Cash and cash equivalents | 11,668 | 37,500 | ||||||
| Interest bearing time deposits with other banks | 100 | 100 | ||||||
| Securities available for sale, at fair value | 118,881 | 96,361 | ||||||
| Securities held to maturity | 5,221 | 4,220 | ||||||
| Federal Home Loan Bank Stock, at cost | 1,980 | 1,837 | ||||||
| Loans receivable, net of unearned income | 347,736 | 339,705 | ||||||
| Less: allowance for loan losses | 4,976 | 7,210 | ||||||
| Net loans receivable | 342,760 | 332,495 | ||||||
| Foreclosed real estate | 5,066 | 5,509 | ||||||
| Premises and equipment, net | 6,476 | 6,778 | ||||||
| Accrued interest receivable | 1,741 | 1,735 | ||||||
| Goodwill | 2,820 | 2,820 | ||||||
| Bank owned life insurance | 11,536 | 11,142 | ||||||
| Other assets | 6,485 | 6,456 | ||||||
| Total Assets | $ | 514,734 | $ | 506,953 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Liabilities: | ||||||||
| Deposits: | ||||||||
| Non-interest bearing | $ | 48,375 | $ | 44,762 | ||||
| Interest bearing | 384,061 | 380,614 | ||||||
| Total Deposits | 432,436 | 425,376 | ||||||
| Borrowings | 26,000 | 26,000 | ||||||
| Accrued interest payable and other liabilities | 3,039 | 2,788 | ||||||
| Junior subordinated debentures | 12,887 | 12,887 | ||||||
| Total Liabilities | 474,362 | 467,051 | ||||||
| Total Stockholders' Equity | 40,372 | 39,902 | ||||||
| Total Liabilities and Stockholders' Equity | $ | 514,734 | $ | 506,953 | ||||
| SUSSEX BANCORP | ||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
| (Dollars In Thousands Except Per Share Data) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| INTEREST INCOME | ||||||||||||||||
| Loans receivable, including fees | $ | 4,354 | $ | 4,588 | $ | 17,646 | $ | 18,798 | ||||||||
| Securities: | ||||||||||||||||
| Taxable | 154 | 325 | 1,148 | 1,314 | ||||||||||||
| Tax-exempt | 311 | 289 | 1,138 | 1,168 | ||||||||||||
| Federal funds sold | - | 1 | - | 4 | ||||||||||||
| Interest bearing deposits | 5 | 24 | 35 | 56 | ||||||||||||
| Total Interest Income | 4,824 | 5,227 | 19,967 | 21,340 | ||||||||||||
| INTEREST EXPENSE | ||||||||||||||||
| Deposits | 556 | 799 | 2,494 | 3,141 | ||||||||||||
| Borrowings | 268 | 267 | 1,065 | 1,064 | ||||||||||||
| Junior subordinated debentures | 58 | 58 | 241 | 222 | ||||||||||||
| Total Interest Expense | 882 | 1,124 | 3,800 | 4,427 | ||||||||||||
| Net Interest Income | 3,942 | 4,103 | 16,167 | 16,913 | ||||||||||||
| PROVISION FOR LOAN LOSSES | 1,408 | 618 | 4,330 | 3,306 | ||||||||||||
| Net Interest Income after Provision for Loan Losses | 2,534 | 3,485 | 11,837 | 13,607 | ||||||||||||
| OTHER INCOME | ||||||||||||||||
| Service fees on deposit accounts | 299 | 322 | 1,141 | 1,290 | ||||||||||||
| ATM and debit card fees | 174 | 145 | 627 | 545 | ||||||||||||
| Bank owned life insurance | 94 | 105 | 394 | 419 | ||||||||||||
| Insurance commissions and fees | 592 | 546 | 2,484 | 2,270 | ||||||||||||
| Investment brokerage fees | 27 | 42 | 145 | 145 | ||||||||||||
| Gain on sale of loans, held for sale | - | - | 47 | - | ||||||||||||
| Gain on securities transactions | 1,036 | 377 | 1,799 | 645 | ||||||||||||
| Loss on sale of premises and equipment | (3 | ) | - | (9 | ) | - | ||||||||||
| Gain (loss) on sale of foreclosed real estate | 34 | (36 | ) | 39 | (38 | ) | ||||||||||
| Impairment write-downs on equity securities | - | (231 | ) | - | (231 | ) | ||||||||||
| Other | 82 | 61 | 373 | 238 | ||||||||||||
| Total Other Income | 2,335 | 1,331 | 7,040 | 5,283 | ||||||||||||
| OTHER EXPENSES | ||||||||||||||||
| Salaries and employee benefits | 2,243 | 2,316 | 8,987 | 8,528 | ||||||||||||
| Occupancy, net | 379 | 357 | 1,450 | 1,412 | ||||||||||||
| Furniture, equipment and data processing | 313 | 306 | 1,327 | 1,177 | ||||||||||||
| Advertising and promotion | 63 | 31 | 285 | 172 | ||||||||||||
| Professional fees | 199 | 222 | 677 | 661 | ||||||||||||
| Director fees | 85 | 32 | 321 | 176 | ||||||||||||
| FDIC assessment | 165 | 165 | 681 | 700 | ||||||||||||
| Insurance | 61 | 53 | 240 | 216 | ||||||||||||
| Stationary and supplies | 48 | 62 | 176 | 184 | ||||||||||||
| Loan collection costs | 174 | 218 | 713 | 824 | ||||||||||||
| Expenses and write-downs related to foreclosed real estate | 1,080 | 92 | 2,124 | 414 | ||||||||||||
| Amortization of intangible assets | 1 | 2 | 5 | 10 | ||||||||||||
| Other | 390 | 343 | 1,485 | 1,309 | ||||||||||||
| Total Other Expenses | 5,201 | 4,199 | 18,471 | 15,783 | ||||||||||||
| (Loss) Income before Income Taxes | (332 | ) | 617 | 406 | 3,107 | |||||||||||
| PROVISION (BENEFIT) FOR INCOME TAXES | (235 | ) | 102 | (329 | ) | 637 | ||||||||||
| Net (Loss) Income | $ | (97 | ) | $ | 515 | $ | 735 | $ | 2,470 | |||||||
| OTHER COMPREHENSIVE INCOME: | ||||||||||||||||
| Unrealized gains on available for sale securities arising during the period | $ | (220 | ) | $ | 109 | $ | 1,193 | $ | 1,534 | |||||||
| Reclassification adjustment for gain on sales included in net income | (1,036 | ) | (146 | ) | (1,799 | ) | (414 | ) | ||||||||
| Income tax benefit (expense) related to other comprehensive income | 503 | 15 | 244 | (448 | ) | |||||||||||
| Other comprehensive (loss) income, net of income taxes | (753 | ) | (22 | ) | (363 | ) | 672 | |||||||||
| Comprehensive (loss) income | $ | (850 | ) | $ | 493 | $ | 373 | $ | 3,142 | |||||||
| (LOSS) EARNINGS PER SHARE | ||||||||||||||||
| Basic | $ | (0.03 | ) | $ | 0.16 | $ | 0.23 | $ | 0.76 | |||||||
| Diluted | $ | (0.03 | ) | $ | 0.15 | $ | 0.22 | $ | 0.74 | |||||||
| SUSSEX BANCORP | ||||||||||||||||||||||||
| COMPARATIVE AVERAGE BALANCES AND AVERAGE INTEREST RATES | ||||||||||||||||||||||||
| (Dollars In Thousands) | ||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||
| Three Months Ended December 31, | ||||||||||||||||||||||||
| 2012 | 2011 | |||||||||||||||||||||||
| Average | Average | Average | Average | |||||||||||||||||||||
| Balance | Interest (1) | Rate (2) | Balance | Interest (1) | Rate (2) | |||||||||||||||||||
| Earning Assets: | ||||||||||||||||||||||||
| Securities: | ||||||||||||||||||||||||
| Tax exempt (3) | $ | 37,215 | $ | 471 | 5.03 | % | $ | 28,890 | $ | 439 | 6.03 | % | ||||||||||||
| Taxable | 91,467 | 154 | 0.67 | % | 60,439 | 324 | 2.13 | % | ||||||||||||||||
| Total securities | 128,682 | 625 | 1.93 | % | 89,329 | 763 | 3.39 | % | ||||||||||||||||
| Total loans receivable (4) | 340,190 | 4,354 | 5.09 | % | 335,753 | 4,589 | 5.42 | % | ||||||||||||||||
| Other interest-earning assets | 9,394 | 6 | 0.25 | % | 44,064 | 24 | 0.22 | % | ||||||||||||||||
| Total earning assets | 478,266 | 4,985 | 4.15 | % | 469,146 | 5,376 | 4.55 | % | ||||||||||||||||
| Non-interest earning assets | 40,958 | 39,951 | ||||||||||||||||||||||
| Allowance for loan losses | (6,654 | ) | (7,570 | ) | ||||||||||||||||||||
| Total Assets | $ | 512,570 | $ | 501,527 | ||||||||||||||||||||
| Sources of Funds: | ||||||||||||||||||||||||
| Interest bearing deposits: | ||||||||||||||||||||||||
| NOW | $ | 101,954 | 35 | 0.14 | % | $ | 88,645 | 81 | 0.36 | % | ||||||||||||||
| Money market | 13,570 | 7 | 0.21 | % | 17,485 | 22 | 0.50 | % | ||||||||||||||||
| Savings | 158,245 | 114 | 0.29 | % | 164,887 | 241 | 0.58 | % | ||||||||||||||||
| Time | 103,342 | 401 | 1.54 | % | 109,877 | 455 | 1.64 | % | ||||||||||||||||
| Total interest bearing deposits | 377,111 | 557 | 0.59 | % | 380,894 | 799 | 0.83 | % | ||||||||||||||||
| Borrowed funds | 26,016 | 268 | 4.10 | % | 26,000 | 268 | 4.09 | % | ||||||||||||||||
| Junior subordinated debentures | 12,887 | 58 | 1.79 | % | 12,887 | 58 | 1.79 | % | ||||||||||||||||
| Total interest bearing liabilities | 416,014 | 883 | 0.84 | % | 419,781 | 1,125 | 1.06 | % | ||||||||||||||||
| Non-interest bearing liabilities: | ||||||||||||||||||||||||
| Demand deposits | 50,846 | 40,108 | ||||||||||||||||||||||
| Other liabilities | 4,399 | 2,118 | ||||||||||||||||||||||
| Total non-interest bearing liabilities | 55,245 | 42,226 | ||||||||||||||||||||||
| Stockholders' equity | 41,311 | 39,520 | ||||||||||||||||||||||
| Total Liabilities and Stockholders' Equity | $ | 512,570 | $ | 501,527 | ||||||||||||||||||||
| Net Interest Income and Margin (5) | 4,102 | 3.41 | % | 4,251 | 3.59 | % | ||||||||||||||||||
| Tax-equivalent basis adjustment | (160 | ) | (148 | ) | ||||||||||||||||||||
| Net Interest Income | $ | 3,942 | $ | 4,103 | ||||||||||||||||||||
(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 on a tax equivalent basis.
| SUSSEX BANCORP | ||||||||||||||||||||||||
| COMPARATIVE AVERAGE BALANCES AND AVERAGE INTEREST RATES | ||||||||||||||||||||||||
| (Dollars In Thousands) | ||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||
| Twelve Months Ended December 31, | ||||||||||||||||||||||||
| 2012 | 2011 | |||||||||||||||||||||||
| Average | Average | Average | Average | |||||||||||||||||||||
| Balance | Interest (1) | Rate (2) | Balance | Interest (1) | Rate (2) | |||||||||||||||||||
| Earning Assets: | ||||||||||||||||||||||||
| Securities: | ||||||||||||||||||||||||
| Tax exempt (3) | $ | 31,397 | $ | 1,724 | 5.49 | % | $ | 29,692 | $ | 1,770 | 5.96 | % | ||||||||||||
| Taxable | 86,456 | 1,148 | 1.33 | % | 54,425 | 1,314 | 2.41 | % | ||||||||||||||||
| Total securities | 117,853 | 2,872 | 2.44 | % | 84,117 | 3,084 | 3.67 | % | ||||||||||||||||
| Total loans receivable (4) | 339,927 | 17,646 | 5.19 | % | 339,770 | 18,798 | 5.53 | % | ||||||||||||||||
| Other interest-earning assets | 18,154 | 35 | 0.19 | % | 28,547 | 60 | 0.21 | % | ||||||||||||||||
| Total earning assets | 475,934 | 20,553 | 4.32 | % | 452,434 | 21,942 | 4.85 | % | ||||||||||||||||
| Non-interest earning assets | 41,795 | 38,507 | ||||||||||||||||||||||
| Allowance for loan losses | (7,164 | ) | (7,314 | ) | ||||||||||||||||||||
| Total Assets | $ | 510,565 | $ | 483,627 | ||||||||||||||||||||
| Sources of Funds: | ||||||||||||||||||||||||
| Interest bearing deposits: | ||||||||||||||||||||||||
| NOW | $ | 96,432 | 164 | 0.17 | % | $ | 81,374 | 386 | 0.47 | % | ||||||||||||||
| Money market | 16,110 | 54 | 0.34 | % | 15,505 | 83 | 0.54 | % | ||||||||||||||||
| Savings | 162,052 | 606 | 0.37 | % | 168,233 | 1,122 | 0.67 | % | ||||||||||||||||
| Time | 106,372 | 1,670 | 1.57 | % | 98,673 | 1,550 | 1.57 | % | ||||||||||||||||
| Total interest bearing deposits | 380,966 | 2,494 | 0.65 | % | 363,785 | 3,141 | 0.86 | % | ||||||||||||||||
| Borrowed funds | 26,053 | 1,065 | 4.09 | % | 26,642 | 1,064 | 3.99 | % | ||||||||||||||||
| Junior subordinated debentures | 12,887 | 241 | 1.87 | % | 12,887 | 222 | 1.72 | % | ||||||||||||||||
| Total interest bearing liabilities | 419,906 | 3,800 | 0.90 | % | 403,314 | 4,427 | 1.10 | % | ||||||||||||||||
| Non-interest bearing liabilities: | ||||||||||||||||||||||||
| Demand deposits | 47,180 | 39,596 | ||||||||||||||||||||||
| Other liabilities | 2,759 | 2,348 | ||||||||||||||||||||||
| Total non-interest bearing liabilities | 49,939 | 41,944 | ||||||||||||||||||||||
| Stockholders' equity | 40,720 | 38,369 | ||||||||||||||||||||||
| Total Liabilities and Stockholders' Equity | $ | 510,565 | $ | 483,627 | ||||||||||||||||||||
| Net Interest Income and Margin (5) | 16,753 | 3.52 | % | 17,515 | 3.87 | % | ||||||||||||||||||
| Tax-equivalent basis adjustment | (586 | ) | (602 | ) | ||||||||||||||||||||
| Net Interest Income | $ | 16,167 | $ | 16,913 | ||||||||||||||||||||
(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 on a tax equivalent basis.