EXHIBIT 99
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Sussex Bancorp
399 Route 23
Franklin, NJ 07416
SUSSEX BANCORP ANNOUNCES INCREASED SECOND QUARTER 2003 EARNINGS
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DECLARES QUARTERLY CASH DIVIDEND OF $ .07 PER SHARE
FRANKLIN, NEW JERSEY - July 10, 2003- Sussex Bancorp (AMEX:"SBB") today
announced its financial results for the second quarter of 2003 ending June 30,
2003.
Second Quarter 2003 Highlights:
o Quarterly net income growth of 9% from same quarter in 2002
o Company deposits increase to over $200 million, up 8% over June 30,
2002
o Quarterly non-interest income increases approximately 23% over same
quarter in 2002
o Declares cash dividend, marking the 26th consecutive year in which the
Company has paid a cash dividend
For the quarter ended June 30, 2003, the Company earned net income of
$360,000, an increase of approximately 9 percent over net income of $331,000
reported for the second quarter of 2002. For the six months ended June 30, 2003,
the Company earned net income of $673,000, an increase of $111,000, or
approximately 20 percent, from the $562,000 earned for the same period last
year. Basic earnings per share for the three and six months ended June 30, 2003
were $0.21 and $0.40 respectively, compared to $0.20 and $0.34 for the
respective comparable periods of 2002. Diluted earnings per share were $0.21 and
$0.39, respectively, for the three and six months ended June 30, 2003, compared
to $0.19 and $0.33 in the respective periods of 2002.
The Company's net interest income increased to $1,951,000 for the
quarter ended June 30, 2003 from $1,825,000 for the second quarter of 2002. The
Company's interest expense decreased to $744,000 for the quarter ended June 30,
2003 from $835,000 for the second quarter of 2002, reflecting reduced market
rates of interest. The Company's total deposits increased to $200.4 million at
June 30, 2003 from $185.9 million at June 30, 2002. At June 30, 2003, the
Company had total assets of $235.4 million, compared to total assets of $211.2
million at June 30, 2002. The loan loss provision for the second quarter was
$120,000 compared with $75,000 for the same period last year.
The Company also experienced substantial increases in non-interest
income in both the current quarter and year to date periods compared to 2002.
The Company reported non interest income of $1,022,000 and $2,017,000 for the
current three and six month periods, respectively, compared to non- interest
income of $832,000 and $1,597,000 for the three and six month periods ended June
30, 2002. For the three and six month periods ended June 30, 2003, $523,000 and
$1,087,000 of the non-interest income was commission income from the Company's
subsidiary, Tri-State Insurance Agency, Inc.
Mr. Donald L. Kovach, Chairman and Chief Executive Officer of Sussex
Bancorp, stated: " I am particularly proud of our results given the difficult
interest rate environment we, and all other banks, continue to face. Our efforts
to improve our non-interest income continue to show results and are clear
evidence that our strategy to build a complimentary product offering will
benefit our shareholders. We are seeing strong cross selling opportunities
across all our lines of business. In addition, we continue to see strong
opportunities for growth in our commercial and residential lending business as
well as our expanded product offerings in our core and surrounding markets."
Sussex Bancorp also announced that its Board of Directors declared a
$.07 per share cash dividend payable on August 5, 2003 to shareholders of record
as of July 28, 2003.
Sussex Bancorp is the holding company for 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 and
for Tri-State Insurance Agency, Inc, a full service insurance agency located in
Augusta, New Jersey.
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SUSSEX BANCORP
CONSOLIDATED STATEMENTS OF INCOME
For the Three Months For the Six Months
Ended June 30, Ended June 30,
(In thousands, except
share and per share data)
2003 2002 2003 2002
---- ---- ---- ----
Interest income $ 2,695 $ 2,660 $ 5,380 $ 5,267
Interest expense 744 835 1,516 1,788
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Net interest income 1,951 1,825 3,864 3,479
Provision for loan losses 120 75 245 150
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Net interest income after
provision for loan losses 1,831 1,750 3,619 3,329
Non-interest income 1,022 832 2,017 1,597
Non-interest expense (2,366) (2,107) (4,723) (4,127)
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Income before tax expense 487 475 913 799
Tax expense 127 144 240 237
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Net income $ 360 $ 331 $ 673 $ 562
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Basic earnings per share $ 0.21 $ 0.20 $ 0.40 $ 0.34
Diluted earnings per share 0.21 0.19 0.39 0.33
Shares outstanding:
Basic 1,698,579 1,654,857 1,695,571 1,656,788
Diluted 1,754,828 1,730,581 1,750,137 1,731,812
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SUSSEX BANCORP
CONSOLIDATED BALANCE SHEETS
Balances as of
June 30,
(In thousands) 2003 2002
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Cash and due from banks $ 12,238 $ 10,481
Federal funds sold 9,140 21,215
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Cash and cash equivalents 21,378 31,696
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Interest bearing time deposits with other banks 3,500 6,100
Securities available for sale, at fair value 74,709 55,639
Federal Home Loan Bank stock, at cost 760 667
Loans 125,702 107,616
Allowance for loan losses (1,590) (1,292)
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Net loans 124,112 106,324
Accrued interest receivable 1,208 1,190
Premises and equipment, net 4,469 4,814
Goodwill, net 1,932 1,757
Other assets 3,331 3,030
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Total assets $ 235,399 $ 211,217
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Deposits 200,427 185,866
Borrowings 13,000 10,000
Other liabilities 2,546 2,548
Mandatory redeemable capital debentures 5,000 --
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Total liabilities 220,973 198,414
Total shareholders' equity 14,426 12,803
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Total liabilities and shareholders' equity $ 235,399 $ 211,217
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