EXHIBIT 99.1
Sussex Bancorp Announces Second Quarter and Year to Date Results for 2013
FRANKLIN, N.J., July 29, 2013 (GLOBE NEWSWIRE) -- Sussex Bancorp (the "Company") (Nasdaq:SBBX), the holding company for Sussex Bank (the "Bank") today announced reported net income of $134 thousand, or $0.04 per basic and diluted share, for the quarter ended June 30, 2013, as compared to net income of $481 thousand, or $0.15 per basic and $0.14 per diluted share, for the same period last year. For the six months ended June 30, 2013, the Company reported net income of $232 thousand, or $0.07 per basic and diluted share, as compared to net income of $286 thousand, or $0.09 per basic and diluted share, for the same period last year.
"We have made substantial progress in reducing our legacy problem assets and building our business. As of the end of this quarter, our non-accrual loans decreased $9.8 million, or 40.6% and our delinquent loans are down 78.0%, as compared to the same period last year," said Anthony Labozzetta, President and Chief Executive Officer of Sussex Bank. "We still have more work to do on the legacy problem assets, but our progress has allowed us to focus more energy on building our business, which is demonstrated by the $26.5 million growth in loans for the second quarter of 2013, an annualized growth rate of 30%," added Mr. Labozzetta. "Carrying costs related to our legacy problem assets should begin to decline and combined with the growth in our loan portfolio will have a positive impact on our operating performance," added Mr. Labozzetta.
The Company continued to improve its asset credit quality as total problem assets and non-performing assets ("NPAs") continued to decline. Overall problem assets are down 38.9% from June 30, 2012, and 58.4% from their historical high at March 31, 2010, and the ratio of NPAs to total assets improved to 3.49% at June 30, 2013, from 4.61% at December 31, 2012. Non-accrual loans to total assets fell to 2.73% at June 30, 2013, which is the lowest level since 2007. In addition, total NPAs and loans past due 30 to 89 days decreased 39.7% and 78.0%, respectively, compared to June 30, 2012, and foreclosed real estate declined 33.0% from December 31, 2012.
The Company saw strong loan growth as total loans receivable, net of unearned income, increased $28.4 million, or 8.2%, to $376.2 million at June 30, 2013, as compared to $347.7 million at December 31, 2012. The increase in loans was primarily in the commercial real estate portfolio, which increased $20.4 million, or 9.1%, to $245.8 million at June 30, 2013, as compared to $225.3 million at December 31, 2012. The Company also saw increases in the residential real estate and commercial and industrial portfolios of $3.3 million and $2.8 million, respectively, at June 30, 2013 as compared to December 31, 2012.
For the quarter ended June 30, 2013, the Company reported net income of $134 thousand, or $0.04 per basic and diluted share, as compared to net income of $481 thousand, or $0.15 per basic and $0.14 per diluted share, for the same period last year. The decline in net income for the quarter ended June 30, 2013 was largely due to an increase in salary and benefits expense and higher credit quality costs, which increased $197 thousand and $153 thousand, respectively. Total credit quality costs (provision for loan losses, loan collection costs and expenses and write-downs related to foreclosed real estate) was approximately $1.4 million for the second quarter of 2013 as compared to $1.3 million for the same period in 2012.
For the six months ended June 30, 2013, the Company reported net income of $232 thousand, or $0.07 per basic and diluted share, as compared to net income of $286 thousand, or $0.09 per basic and diluted share, for the same period last year. The decline in net income for the six months ended June 30, 2013 was attributed to an increase in non-interest expenses of $295 thousand, or 3.3%, and a decrease in net interest income of $215 thousand, or 2.6% as compared to the same period in 2012. The decrease in net interest income was partly offset by an increase of $508 thousand, or 18.5% in non-interest income, which was primarily due to stronger revenues produced by our insurance subsidiary, Tri-State Insurance Agency, Inc. and an increase in gains on securities transactions. Total credit quality costs (provision for loan losses, loan collection costs and expenses and write-downs related to foreclosed real estate) was slightly higher at $3.1 million for the first six months of 2013 as compared to $3.0 million for the same period in 2012.
Financial Performance
Net Interest Income. Net interest income on a fully tax equivalent basis declined $95 thousand, or 2.2%, to $4.2 million for the second quarter of 2013 as compared to $4.3 million for same period in 2012. The decrease in net interest income was largely due to the Company's net interest margin declining 15 basis points to 3.44% for the second quarter of 2013 compared to the same period last year. The decline in the net interest margin was mostly due to a 31 basis point decline in the average rate earned on interest earning assets. This decline in net interest income was partially offset by a decrease in the average rate paid on total interest bearing liabilities, which decreased 16 basis points to 0.74% for the second quarter of 2013 from 0.90% for the same period in 2012, and a $8.0 million, or 1.6%, increase in average interest earning assets, principally loans receivable.
Net interest income on a fully tax equivalent basis declined $233 thousand, or 2.8%, to $8.2 million for the first six months of 2013 as compared to $8.4 million for same period in 2012. The decrease in net interest income was largely due to the Company's net interest margin declining 18 basis points to 3.37% for the first six months of 2013 compared to the same period last year. The decline in the net interest margin was mostly due to a 35 basis point decline in the average rate earned on interest earning assets. This decline in net interest income was partially offset by a decrease in the average rate paid on total interest bearing liabilities, which decreased 18 basis points to 0.77% for the first six months of 2013 from 0.95% for the same period in 2012, and a $12.7 million, or 2.7%, increase in average interest earning assets, principally loans receivable and securities.
Provision for Loan Losses. Provision for loan losses decreased $258 thousand to $700 thousand for the second quarter of 2013, as compared to $958 thousand for the same period in 2012.
Provision for loan losses remained flat at $1.8 million for the second quarter of 2013, as compared to the same period in 2012.
Non-interest Income. The Company reported a decrease in non-interest income of $55 thousand, or 3.9%, to $1.4 million for the second quarter of 2013 as compared to the same period last year. The decrease in non-interest income was largely due to a decrease in gains on securities transactions of $106 thousand, which was partially offset by an increase in insurance commissions and fees of $38 thousand.
The Company reported an increase in non-interest income of $508 thousand, or 18.5%, to $3.2 million for the first six months of 2013 as compared to the same period last year. The increase in non-interest income was primarily due to higher insurance commissions and fees and increases in gains on securities transactions of $281 thousand and $205 thousand, respectively. Proceeds from the sale of securities were primarily used to fund loan growth.
Non-interest Expense. The Company's non-interest expenses increased $625 thousand, or 15.4%, to $4.7 million for the second quarter of 2013 as compared to the same period last year. The increase for the second quarter of 2013 versus the same period in 2012 was largely due to increases in expenses related to foreclosed real estate and salaries and employee benefits expense, which increased $496 thousand and $197 thousand, respectively. The aforementioned increases were partly offset by decreases in directors' fees and loan collection costs of $87 thousand and $85 thousand, respectively. The decrease in directors' fees is principally due to the impact on the directors' deferred stock plan resulting from fluctuations in the Company's stock price, which decreased $1.35 per share, or 18.0%, at June 30, 2013, as compared to March 31, 2013.
The Company's non-interest expenses increased $295 thousand, or 3.3%, to $9.3 million for the first six months of 2013 as compared to the same period last year. The increase for the first six months of 2013 versus the same period in 2012 was primarily due to increases in expenses related to foreclosed real estate and other expenses of $201 thousand and $94 thousand, respectively, which was partially offset by decreases in loan collection costs of $121 thousand.
Financial Condition
At June 30, 2013, the Company's total assets were $526.8 million, an increase of $12.0 million, or 2.3%, as compared to total assets of $514.7 million at December 31, 2012. The increase in total assets was largely driven by net loans receivable growth of $27.8 million, or 8.1%, which was partially offset by a decline in the securities portfolio of $13.7 million, or 11.0%.
Total loans receivable, net of unearned income, increased $28.4 million, or 8.2%, to $376.2 million at June 30, 2013, from $347.7 million at year-end 2012. The Company's securities portfolio, which includes securities available for sale and securities held to maturity, decreased $13.7 million to $110.4 million at June 30, 2013, as compared to $124.1 million at December 31, 2012.
The Company's total deposits decreased $3.2 million, or 0.7%, to $429.3 million at June 30, 2013, from $432.4 million at December 31, 2012. The decline in deposits was due to a decrease in interest bearing core deposits and time deposits of $6.4 million each, which was partially offset by an increase in non-interest bearing deposits of $9.7 million, or 20.1%, for June 30, 2013 as compared to December 31, 2012. The Company's funding mix continues to improve as low cost deposits grow.
At June 30, 2013, the Company's total stockholders' equity was $38.2 million, a decrease of $2.1 million when compared to December 31, 2012. The decrease was largely due to a $2.5 million decline in accumulated other comprehensive income relating to net unrealized losses on available for sale securities. At June 30, 2013, the leverage, Tier I risk-based capital and total risk-based capital ratios for the Bank were 9.12%, 12.13% and 13.38%, 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 to improve through June 30, 2013, as our total problem assets, which is comprised of foreclosed real estate, criticized assets and classified assets, declined $8.8 million, or 25.2%, to $26.1 million at June 30, 2013, from $34.9 million at December 31, 2012. Our total problem assets declined 58.4% from a historical high of $62.8 million at March 31, 2010, as compared to June 30, 2013.
NPAs, which include non-accrual loans, loans 90 days past due and still accruing, troubled debt restructured loans currently performing in accordance with renegotiated terms and foreclosed real estate, decreased $5.4 million, or 22.5%, to $18.4 million at June 30, 2013, as compared to $23.8 million at December 31, 2012. The ratios of NPAs to total assets for June 30, 2013 and December 31, 2012 were 3.5% and 4.6%, respectively. Non-accrual loans decreased $3.5 million, or 19.5%, to $14.4 million at June 30, 2013, as compared to $17.9 million at December 31, 2012, and declined 40.6% since June 30, 2012. Non-accrual loans to total assets fell to 2.73% at June 30, 2013, which is the lowest level since 2007.
The Company continues to actively market its foreclosed real estate properties, which decreased $1.7 million to $3.4 million at June 30, 2013, as compared to $5.1 million at December 31, 2012. The decrease was primarily due to the sale of foreclosed real estate properties and write-downs on foreclosed real estate of $3.7 million and $742 thousand, respectively, which was partially offset by the addition of $2.7 million in new foreclosed real estate properties during the first six months of 2013. At June 30, 2013, the Company's foreclosed real estate properties had an average book value of approximately $242 thousand per property.
The allowance for loan losses was $5.6 million, or 1.5% of total loans, at June 30, 2013, compared to $5.0 million, or 1.4% of total loans, at December 31, 2012. The increase in the allowance for loan losses was largely attributed to $1.8 million in provision for loan losses, which was in partly offset by $1.2 million in net charge-offs for the first six months of 2013.
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, 2012, 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) |
| | | | | | |
| | | | | 6/30/2013 VS. |
| | 6/30/2013 | 12/31/2012 | 6/30/2012 | 6/30/2012 | 12/31/2012 |
| BALANCE SHEET HIGHLIGHTS - Period End Balances | | | | | |
| Total securities | $ 110,436 | $ 124,102 | $ 120,676 | (8.5) % | (11.0) % |
| Total loans | 376,183 | 347,736 | 346,884 | 8.4 % | 8.2 % |
| Allowance for loan losses | (5,647) | (4,976) | (6,260) | (9.8) % | 13.5 % |
| Total assets | 526,757 | 514,734 | 512,190 | 2.8 % | 2.3 % |
| Total deposits | 429,282 | 432,436 | 430,082 | (0.2) % | (0.7) % |
| Total borrowings and junior subordinated debt | 56,387 | 38,887 | 38,887 | 45.0 % | 45.0 % |
| Total shareholders' equity | 38,225 | 40,372 | 40,522 | (5.7) % | (5.3) % |
| | | | | | |
| FINANCIAL DATA - QUARTER ENDED: | | | | | |
| Net interest income (tax equivalent) (a) | $ 4,205 | $ 4,102 | $ 4,300 | (2.2) % | 2.5 % |
| Provision for loan losses | 700 | 1,408 | 958 | (26.9) % | (50.3) % |
| Total other income | 1,363 | 2,335 | 1,418 | (3.9) % | (41.6) % |
| Total other expenses | 4,689 | 5,201 | 4,064 | 15.4 % | (9.8) % |
| Income before provision for income taxes (tax equivalent) | 179 | (172) | 696 | (74.3) % | (204.1) % |
| Provision for income taxes | (82) | (235) | 65 | (226.2) % | (65.1) % |
| Taxable equivalent adjustment (a) | 127 | 160 | 150 | (15.3) % | (20.6) % |
| Net income (loss) | $ 134 | $ (97) | $ 481 | (72.1) % | (238.1) % |
| | | | | | |
| Net income (loss) per common share - Basic | $ 0.04 | $ (0.03) | $ 0.15 | (72.9) % | (235.6) % |
| Net income (loss) per common share - Diluted | $ 0.04 | $ (0.03) | $ 0.14 | (71.2) % | (234.3) % |
| | | | | | |
| Return on average assets | 0.10 % | (0.08) % | 0.37 % | (72.6) % | (235.2) % |
| Return on average equity | 1.35 % | (0.94) % | 4.76 % | (71.8) % | (243.2) % |
| Net interest margin (tax equivalent) | 3.44% | 3.41 % | 3.59 % | (4.2) % | 0.8 % |
| | | | | | |
| FINANCIAL DATA - YEAR TO DATE: | | | | | |
| Net interest income (tax equivalent) (a) | $ 8,179 | | $ 8,412 | (2.8) % | |
| Provision for loan losses | 1,842 | | 1,818 | 1.3 % | |
| Total other income | 3,248 | | 2,740 | 18.5 % | |
| Total other expenses | 9,267 | | 8,972 | 3.3 % | |
| Income before provision for income taxes (tax equivalent) | 318 | | 362 | (12.2) % | |
| Provision for income taxes | (172) | | (200) | (14.0) % | |
| Taxable equivalent adjustment (a) | 258 | | 276 | (6.5) % | |
| Net income | $ 232 | | $ 286 | (18.9) % | |
| | | | | | |
| Net income per common share - Basic | $ 0.07 | | $ 0.09 | (21.6) % | |
| Net income per common share - Diluted | $ 0.07 | | $ 0.09 | (22.3) % | |
| | | | | | |
| Return on average assets | 0.09 % | | 0.11 % | (20.9) % | |
| Return on average equity | 1.16 % | | 1.42 % | (18.7) % | |
| Net interest margin (tax equivalent) | 3.37 % | | 3.55 % | (5.1) % | |
| | | | | | |
| SHARE INFORMATION: | | | | | |
| Book value per common share | $ 11.14 | $ 11.88 | $ 11.92 | (6.6) % | (6.2) % |
| Outstanding shares- period ending | 3,430,813 | 3,397,873 | 3,398,124 | 1.0 % | 1.0 % |
| Average diluted shares outstanding (year to date) | 3,319,538 | 3,287,017 | 3,341,161 | (0.6) % | 1.0 % |
| | | | | | |
| CAPITAL RATIOS: | | | | | |
| Total equity to total assets | 7.26 % | 7.84 % | 7.91 % | (8.3) % | (7.5) % |
| Leverage ratio (b) | 9.12 % | 9.27 % | 9.10 % | 0.2 % | (1.6) % |
| Tier 1 risk-based capital ratio (b) | 12.13 % | 12.93 % | 12.77 % | (5.0) % | (6.2) % |
| Total risk-based capital ratio (b) | 13.38 % | 14.18 % | 14.02 % | (4.6) % | (5.6) % |
| | | | | | |
| ASSET QUALITY AND RATIOS: | | | | | |
| Non-accrual loans | $ 14,394 | $ 17,871 | $ 24,243 | (40.6) % | (19.5) % |
| Loans 90 days past due and still accruing | -- | 209 | 118 | (100.0) % | (100.0) % |
| Troubled debt restructured loans ("TDRs") (c) | 614 | 608 | 604 | 1.7 % | 1.0 % |
| Foreclosed real estate | 3,392 | 5,066 | 5,566 | (39.1) % | (33.0) % |
| Non-performing assets ("NPAs") | $ 18,400 | $ 23,754 | $ 30,531 | (39.7) % | (22.5) % |
| | | | | | |
| Foreclosed real estate, Criticized and Classified Assets | $ 26,133 | $ 34,946 | $ 42,736 | (38.9) % | (25.2) % |
| Loans past due 30 to 89 days | 1,711 | 2,754 | 7,775 | (78.0) % | (37.9) % |
| Charge-offs, net (quarterly) | 358 | 3,146 | 2,306 | (84.5) % | (88.6) % |
| Charge-offs, net as a % of average loans (annualized) | 0.39 % | 3.70 % | 2.70 % | (85.4) % | (89.4) % |
| Non-accrual loans to total loans | 3.83 % | 5.14 % | 6.99 % | (45.3) % | (25.5) % |
| NPAs to total assets | 3.49 % | 4.61 % | 5.96 % | (41.4) % | (24.3) % |
| NPAs excluding TDR loans (c) to total assets | 3.38 % | 4.50 % | 5.84 % | (42.2) % | (24.9) % |
| Non-accrual loans to total assets | 2.73 % | 3.47 % | 4.73 % | (42.3) % | (21.3) % |
| Allowance for loan losses as a % of non-performing loans | 37.63 % | 26.93 % | 25.19 % | 49.3 % | 39.7 % |
| Allowance for loan losses to total loans | 1.50 % | 1.43 % | 1.80 % | (16.8) % | 4.9 % |
| | | | | | |
| (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) |
| |
| | | |
| ASSETS | June 30, 2013 | December 31, 2012 |
| | (Unaudited) | |
| Cash and due from banks | $ 7,124 | $ 6,268 |
| Interest-bearing deposits with other banks | 1,181 | 5,400 |
| Cash and cash equivalents | 8,305 | 11,668 |
| | | |
| Interest bearing time deposits with other banks | 100 | 100 |
| Securities available for sale, at fair value | 105,197 | 118,881 |
| Securities held to maturity | 5,239 | 5,221 |
| Federal Home Loan Bank Stock, at cost | 2,885 | 1,980 |
| | | |
| Loans receivable, net of unearned income | 376,183 | 347,736 |
| Less: allowance for loan losses | 5,647 | 4,976 |
| Net loans receivable | 370,536 | 342,760 |
| | | |
| Foreclosed real estate | 3,392 | 5,066 |
| Premises and equipment, net | 6,684 | 6,476 |
| Accrued interest receivable | 1,717 | 1,741 |
| Goodwill | 2,820 | 2,820 |
| Bank owned life insurance | 11,718 | 11,536 |
| Other assets | 8,164 | 6,485 |
| | | |
| Total Assets | $ 526,757 | $ 514,734 |
| | | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | | |
| | | |
| Liabilities: | | |
| Deposits: | | |
| Non-interest bearing | $ 58,084 | $ 48,375 |
| Interest bearing | 371,198 | 384,061 |
| Total Deposits | 429,282 | 432,436 |
| | | |
| Borrowings | 43,500 | 26,000 |
| Accrued interest payable and other liabilities | 2,863 | 3,039 |
| Junior subordinated debentures | 12,887 | 12,887 |
| | | |
| Total Liabilities | 488,532 | 474,362 |
| | | |
| Total Stockholders' Equity | 38,225 | 40,372 |
| | | |
| Total Liabilities and Stockholders' Equity | $ 526,757 | $ 514,734 |
| |
| SUSSEX BANCORP |
| CONSOLIDATED STATEMENTS OF INCOME |
| (Dollars In Thousands Except Per Share Data) |
| (Unaudited) |
| | Three Months Ended June 30, | Six Months Ended June 30, |
| | 2013 | 2012 | 2013 | 2012 |
| INTEREST INCOME | | | | |
| Loans receivable, including fees | $ 4,485 | $ 4,375 | $ 8,761 | $ 8,825 |
| Securities: | | | | |
| Taxable | 126 | 433 | 280 | 753 |
| Tax-exempt | 246 | 290 | 508 | 535 |
| Interest bearing deposits | 2 | 9 | 7 | 26 |
| Total Interest Income | 4,859 | 5,107 | 9,556 | 10,139 |
| | | | | |
| INTEREST EXPENSE | | | | |
| Deposits | 453 | 632 | 991 | 1,351 |
| Borrowings | 273 | 264 | 535 | 529 |
| Junior subordinated debentures | 55 | 61 | 109 | 123 |
| Total Interest Expense | 781 | 957 | 1,635 | 2,003 |
| | | | | |
| Net Interest Income | 4,078 | 4,150 | 7,921 | 8,136 |
| PROVISION FOR LOAN LOSSES | 700 | 958 | 1,842 | 1,818 |
| Net Interest Income after Provision for Loan Losses | 3,378 | 3,192 | 6,079 | 6,318 |
| | | | | |
| OTHER INCOME | | | | |
| Service fees on deposit accounts | 271 | 275 | 557 | 550 |
| ATM and debit card fees | 178 | 151 | 338 | 288 |
| Bank owned life insurance | 89 | 101 | 181 | 204 |
| Insurance commissions and fees | 647 | 609 | 1,489 | 1,208 |
| Investment brokerage fees | 54 | 36 | 99 | 72 |
| Gain on sale of loans, held for sale | -- | -- | -- | 47 |
| Gain on securities transactions | 29 | 135 | 399 | 194 |
| Gain on sale of fixed assets | -- | (7) | -- | (6) |
| Other | 95 | 118 | 185 | 183 |
| Total Other Income | 1,363 | 1,418 | 3,248 | 2,740 |
| | | | | |
| OTHER EXPENSES | | | | |
| Salaries and employee benefits | 2,321 | 2,124 | 4,556 | 4,548 |
| Occupancy, net | 347 | 354 | 741 | 716 |
| Furniture, equipment and data processing | 331 | 334 | 657 | 688 |
| Advertising and promotion | 95 | 88 | 135 | 159 |
| Professional fees | 198 | 145 | 383 | 303 |
| Director fees | (13) | 74 | 193 | 180 |
| FDIC assessment | 178 | 172 | 347 | 339 |
| Insurance | 63 | 58 | 139 | 111 |
| Stationary and supplies | 51 | 39 | 100 | 84 |
| Loan collection costs | 116 | 201 | 214 | 335 |
| Expenses and write-downs related to foreclosed real estate | 597 | 101 | 1,008 | 807 |
| Amortization of intangible assets | -- | 1 | 1 | 3 |
| Other | 405 | 373 | 793 | 699 |
| Total Other Expenses | 4,689 | 4,064 | 9,267 | 8,972 |
| | | | | |
| Income before Income Taxes | 52 | 546 | 60 | 86 |
| INCOME TAX (BENEFIT) EXPENSE | (82) | 65 | (172) | (200) |
| Net Income | $ 134 | $ 481 | $ 232 | $ 286 |
| | | | | |
| OTHER COMPREHENSIVE INCOME: | | | | |
| Unrealized (losses) gains on available for sale securities arising during the period | $ (3,112) | $ 303 | $ (3,756) | $ 720 |
| Reclassification adjustment for gain on sales included in net income | (29) | (135) | (399) | (194) |
| Income tax benefit (expense) related to other comprehensive income | 1,257 | (67) | 1,662 | (210) |
| Other comprehensive (loss) income, net of income taxes | (1,884) | 101 | (2,493) | 316 |
| Comprehensive (loss) income | $ (1,750) | $ 582 | $ (2,261) | $ 602 |
| | | | | |
| EARNINGS PER SHARE | | | | |
| Basic | $ 0.04 | $ 0.15 | $ 0.07 | $ 0.09 |
| Diluted | $ 0.04 | $ 0.14 | $ 0.07 | $ 0.09 |
| |
| SUSSEX BANCORP |
| COMPARATIVE AVERAGE BALANCES AND AVERAGE INTEREST RATES |
| (Dollars In Thousands) |
| (Unaudited) |
| | | | | | | |
| | Three Months Ended June 30, |
| | 2013 | 2012 |
| | Average
Balance | Interest (1) | Average
Rate (2) | Average
Balance | Interest (1) | Average
Rate (2) |
| Earning Assets: | | | | | | |
| Securities: | | | | | | |
| Tax exempt (3) | $ 29,579 | $ 373 | 5.06% | $ 31,416 | $ 440 | 5.63% |
| Taxable | 94,286 | 126 | 0.54% | 90,026 | 433 | 1.93% |
| Total securities | 123,865 | 499 | 1.62% | 121,442 | 873 | 2.89% |
| Total loans receivable (4) | 363,996 | 4,485 | 4.94% | 341,426 | 4,375 | 5.15% |
| Other interest-earning assets | 2,122 | 2 | 0.38% | 19,162 | 9 | 0.19% |
| Total earning assets | 489,983 | 4,986 | 4.08% | 482,030 | 5,257 | 4.39% |
| | | | | | | |
| Non-interest earning assets | 39,409 | | | 41,691 | | |
| Allowance for loan losses | (5,777) | | | (7,798) | | |
| Total Assets | $ 523,615 | | | $ 515,923 | | |
| | | | | | | |
| Sources of Funds: | | | | | | |
| Interest bearing deposits: | | | | | | |
| NOW | $ 108,523 | $ 35 | 0.13% | $ 95,817 | $ 42 | 0.18% |
| Money market | 13,950 | 6 | 0.17% | 18,849 | 15 | 0.32% |
| Savings | 155,156 | 83 | 0.21% | 164,106 | 154 | 0.38% |
| Time | 98,482 | 329 | 1.34% | 108,124 | 421 | 1.57% |
| Total interest bearing deposits | 376,111 | 453 | 0.48% | 386,896 | 632 | 0.66% |
| Borrowed funds | 34,549 | 273 | 3.17% | 26,000 | 264 | 4.08% |
| Junior subordinated debentures | 12,887 | 55 | 1.71% | 12,887 | 61 | 1.90% |
| Total interest bearing liabilities | 423,547 | 781 | 0.74% | 425,783 | 957 | 0.90% |
| | | | | | | |
| Non-interest bearing liabilities: | | | | | | |
| Demand deposits | 58,411 | | | 47,801 | | |
| Other liabilities | 1,806 | | | 1,931 | | |
| Total non-interest bearing liabilities | 60,217 | | | 49,732 | | |
| Stockholders' equity | 39,851 | | | 40,408 | | |
| Total Liabilities and Stockholders' Equity | $ 523,615 | | | $ 515,923 | | |
| | | | | | | |
| Net Interest Income and Margin (5) | | 4,205 | 3.44% | | 4,300 | 3.59% |
| Tax-equivalent basis adjustment | | (127) | | | (150) | |
| Net Interest Income | | $ 4,078 | | | $ 4,150 | |
| | | | | | | |
| (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, |
| | 2013 | 2012 |
| | Average
Balance | Interest (1) | Average
Rate (2) | Average
Balance | Interest (1) | Average
Rate (2) |
| Earning Assets: | | | | | | |
| Securities: | | | | | | |
| Tax exempt (3) | $ 30,881 | $ 766 | 5.00% | $ 28,051 | $ 811 | 5.81% |
| Taxable | 96,824 | 280 | 0.58% | 83,766 | 753 | 1.81% |
| Total securities | 127,705 | 1,046 | 1.65% | 111,817 | 1,564 | 2.81% |
| Total loans receivable (4) | 356,778 | 8,761 | 4.95% | 338,492 | 8,825 | 5.24% |
| Other interest-earning assets | 5,033 | 7 | 0.28% | 26,499 | 26 | 0.20% |
| Total earning assets | 489,516 | 9,814 | 4.04% | 476,808 | 10,415 | 4.39% |
| | | | | | | |
| Non-interest earning assets | 39,932 | | | 41,447 | | |
| Allowance for loan losses | (5,541) | | | (7,670) | | |
| Total Assets | $ 523,907 | | | $ 510,585 | | |
| | | | | | | |
| Sources of Funds: | | | | | | |
| Interest bearing deposits: | | | | | | |
| NOW | $ 110,410 | $ 71 | 0.13% | $ 94,055 | $ 93 | 0.20% |
| Money market | 14,424 | 15 | 0.21% | 18,204 | 36 | 0.40% |
| Savings | 156,524 | 194 | 0.25% | 163,619 | 359 | 0.44% |
| Time | 100,967 | 711 | 1.42% | 109,037 | 863 | 1.59% |
| Total interest bearing deposits | 382,325 | 991 | 0.52% | 384,915 | 1,351 | 0.71% |
| Borrowed funds | 30,597 | 535 | 3.53% | 26,000 | 529 | 4.09% |
| Junior subordinated debentures | 12,887 | 109 | 1.71% | 12,887 | 123 | 1.92% |
| Total interest bearing liabilities | 425,809 | 1,635 | 0.77% | 423,802 | 2,003 | 0.95% |
| | | | | | | |
| Non-interest bearing liabilities: | | | | | | |
| Demand deposits | 54,158 | | | 44,557 | | |
| Other liabilities | 3,796 | | | 1,972 | | |
| Total non-interest bearing liabilities | 57,954 | | | 46,529 | | |
| Stockholders' equity | 40,144 | | | 40,254 | | |
| Total Liabilities and Stockholders' Equity | $ 523,907 | | | $ 510,585 | | |
| | | | | | | |
| Net Interest Income and Margin (5) | | 8,179 | 3.37% | | 8,412 | 3.55% |
| Tax-equivalent basis adjustment | | (258) | | | (276) | |
| Net Interest Income | | $ 7,921 | | | $ 8,136 | |
| | | | | | | |
| (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