EXHIBIT 99(a)
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Press Release
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Sussex Bancorp Contact: Candace Leatham
399 Route 23 Senior VP/Treasurer
Franklin, NJ 07416 (973) 827-2914
SUSSEX BANCORP ANNOUNCES
HIGHER EARNINGS; NET INCOME INCREASES 45%;
ASSETS INCREASED TO $226 MILLION
Franklin, NJ, January 23, 2003-Sussex Bancorp (AMEX "SBB") announced net income
of $1,156,000 for the year ended December 31, 2002, compared to net income of
$795,000 for the prior year, an increase of 45.4%. Basic and diluted earnings
per share for the year ended December 31, 2002 were $.69 and $.67, respectively,
compared to basic and diluted earnings per share of $.48 and $.46, respectively,
for the year ended December 31, 2001. Basic earnings per share increased by
43.7% and diluted earnings per share increased by 45.6% year over year. Weighted
average number of basic shares outstanding was 1,663,170 for 2002 and 1,643,258
for 2001. Weighted average number of diluted shares was 1,734,023 for 2002 and
1,664,859 for 2001.
Donald L. Kovach, the Company's Chairman and CEO, stated: " I am very pleased
with our 2002 performance. Although the current low rate environment has meant a
high level of loan refinancings, we have successfully managed our interest
expense to benefit from lower rates. Our acquisition of Tri-State Insurance has
also continued to pay dividends and diversify our income away from net interest
margin."
The Company's total interest income decreased to $10,860,000 for the year ended
December 31, 2002 from $11,589,000 for the same period last year, reflecting a
decrease in the rate earned on assets as the Company's earning assets continued
to reprice to lower current market rates. The decrease in interest income was
more than offset by a reduction in interest expense. The Company's interest
expense decreased to $3,536,000 for the year ended December 31, 2002 from
$5,688,000 for the same period last year. Despite the reduction in interest
expense, the Company's total deposits increased to $189.9 million at December
31, 2002 from $178.6 million at December 31, 2001.
For the year ended December 31, 2002, the Company's non-interest income
increased by $1,664,000 or 102.2%, to $3,292,000 from $1,628,000. The increase
in non-interest income reflects the contribution of Tri-State Insurance Agency,
Inc., which the Company acquired on October 1, 2001. Tri-State produced
$1,689,000 in commission revenue for the year ended December 31, 2002, its first
full year of operations as an indirect subsidiary of the Company.
The loan loss provision for the year ended December 31, 2002 increased to
$300,000 from $252,000 for the same period last year.
The Company's total non-interest expense increased by $2,469,000, reflecting an
additional $1,523,000 in non-interest expense from the operation of Tri-State
and other increases associated with the Company's continued growth.
At December 31, 2002 the Company had total assets of $226 million, compared to
total assets of $203 million at December 31, 2001.
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The Company's total stockholders' equity at December 31, 2002 was $13,680,000.
The Company maintained regulatory capital ratios of 11.77 % for Tier 1 capital
to risk weighted assets, and 6.66% for its leverage ratio.
Sussex Bancorp also announced that its Board of Directors declared a cash
dividend of $.07 per share, payable on February 24, 2003 to shareholders of
record as of February 3, 2003. The Company has recently expanded its insurance
operations, as its Tri-State Insurance Agency subsidiary acquired the Sussex
County based Garrera Insurance Agency, adding carriers and products to its
existing offerings. Mr. Joseph E Garrera, the principal of the Garrera Agency,
has joined Tri-State.
Sussex Bancorp is the holding company of the 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. The Bank owns
Tri-State Insurance Agency, Inc., a full service insurance agency located in
Augusta, New Jersey.
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