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200 Munsonhurst Road

Franklin, NJ 07416

 

 

 

SUSSEX BANCORP REPORTS THIRD QUARTER RESULTS AND IMPROVED ASSET QUALITY FOR 2012

 

FRANKLIN, NEW JERSEY – November 7, 2012 – Sussex Bancorp (the “Company”) (NasdaqGM: SBBX), the holding company for Sussex Bank (the “Bank”) today announced net income of $546 thousand, or $0.17 per basic and diluted share, for the quarter-ended September 30, 2012, a 6.3% earnings per share growth, as compared to $534 thousand, or $0.16 per basic and diluted share, for the same period last year. The increase in net income was largely due to improved non-interest income resulting from an increase in gains on sale of securities and insurance commissions and fees, which was largely offset by higher provision for loan losses and expenses and write-downs related to foreclosed real estate.

 

For the nine months ended September 30, 2012, the Company reported net income of $832 thousand, or $0.26 per basic share and $0.25 per diluted share, as compared to $2.0 million, or $0.60 per basic and diluted share, for the same period last year. The Company attributed the decrease in net income for the nine months ended September 30, 2012, largely to expenses and write-downs related to the prospective sales of several foreclosed real estate properties. In addition, expenses related to additional commercial lending staff, technology upgrades, increased advertising and promotion and FDIC assessment costs (due to deposit growth) also added to the decrease in net income. The aforementioned declines were partly offset by improved non-interest income resulting from increases in gains on sale of securities and insurance commissions and fees.

 

The Company’s overall credit quality continues to improve as total problem assets (total classified/criticized/foreclosed real estate) have declined $20.3 million, or 33.3%, to $42.5 million at September 30, 2012, from a historical high of $62.8 million at March 31, 2010, and have decreased 14.4% since December 31, 2011. Included in our overall total problem assets are non-performing assets (“NPAs”), which declined 12.3% to $29.8 million at September 30, 2012, from $34.0 million at December 31, 2011.

 

We continue to make progress towards reducing our legacy problem assets, which was a primary goal for 2012. This quarter, we have reduced our non-performing assets by 13.2% and our total problem assets by 16.9% as compared to the same period last year. With the pending 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 continue to be 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

 

The Company reported net income of $546 thousand, up 2.3% for the third quarter of 2012, as compared to $534 thousand for the same period in 2011. The improvement in net income was largely due to increased gains on sale of securities (+$570 thousand), which was primarily offset by higher provision for loan losses (+$367 thousand) and expenses and write-downs related to foreclosed real estate (+$160 thousand). Contributing to the Company’s quarterly earnings improvement was the performance of its insurance subsidiary, Tri-state Insurance Agency, Inc. (“Tri-state”), which reported a 25.5% increase in revenues and $106 thousand in net income before taxes for the third quarter of 2012 as compared to a net loss before taxes of $4 thousand for the same period last year.

 

The Company reported net income of $832 thousand for the nine months ended September 30, 2012, as compared to $2.0 million for the same period in 2011. The decline in net income was largely due to an increase in expenses and write-downs related to foreclosed real estate (+$722 thousand), higher operating costs resulting from growth initiatives of the Company and a decline in the net interest margin. The aforementioned declines were partly offset by increases in gains on sale of securities (+$495 thousand) and higher Tri-state net income before taxes of $62 thousand, or 40.6%, for the nine months ended September 30, 2012 as compared to the same period last year.

 

Operating performance continues to be adversely impacted by the costs to resolve legacy problem assets. Income before provision for income taxes was $652 thousand and $738 thousand for the three and nine months ended September 30, 2012, respectively, which included total costs (provision for loan losses, loan collection costs and expenses and write-downs related to foreclosed real estate) and lost interest income from problem assets that totaled approximately $2 million and $6 million for the three and nine months ended September 30, 2012, respectively. Despite the high costs of resolving legacy problem assets, the Company continues to place an equal focus on strengthening its core operations and performance as return on average assets was 0.43% and 0.44% for the quarters ended September 30, 2012 and 2011, respectively, and 0.22% and 0.55% for the nine months ended September 30, 2012 and 2011, respectively.

 

 
 

 

Mr. Labozzetta stated, “Our core operations are performing well, which is demonstrated by the 0.43% return on average assets, despite the extraordinary levels of credit quality related costs, adjusting for those costs our return on average assets would be over 1.00%.”

 

Net Interest Income. Net interest income on a fully tax equivalent basis declined $100 thousand, or 2.3%, to $4.2 million for the third 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 23 basis points to 3.57% for the third quarter of 2012 compared to the same period last year. The decline in the net interest margin was mostly due to a 30 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 24 basis points to 0.87% for the third quarter of 2012 from 1.11% for the same period in 2011. The decline was in part offset by a $19.0 million, or 4.2%, increase in average interest earning assets, principally securities.

 

Net interest income, on a fully taxable equivalent basis, decreased $612 thousand, or 4.6%, to $12.7 million for the nine months ended September 30, 2012, as compared to $13.3 million for same period in 2011. The Company’s net interest margin declined 41 basis points to 3.56% for the nine months ended September 30, 2012, compared to 3.97% for the same period last year. The decline was mostly attributed to a 35 basis point decline in the average rate earned on loans to 5.22%, which was partly offset by a 18 basis point decrease in the average rate paid on interest bearing liabilities to 0.93% for the nine month period ended September 30, 2012, as compared to the same period last year. The decline was in part offset by a $28.3 million, or 6.3%, increase in average interest earning assets, principally securities.

 

Provision for Loan Losses. Provision for loan losses increased $367 thousand to $1.1 million for the third quarter of 2012, as compared to $737 thousand for the same period in 2011.

 

Provision for loan losses increased $234 thousand to $2.9 million for the nine month period ended September 30, 2012, as compared to $2.7 million for the same period last year.

 

Non-interest Income. The Company reported an increase in non-interest income of $756 thousand, or 62.7%, to $2.0 million for the third quarter of 2012 as compared to the same period last year. The increase in non-interest income was largely due to a $570 thousand increase in gain on the sale of securities and a $139 thousand, or 25.5%, growth in insurance commissions and fees.

 

The Company reported an increase in non-interest income of $753 thousand, or 19.1%, to $4.7 million for the nine months ended September 30, 2012, as compared to the same period last year. The increase in non-interest income was largely due increases in gain on sale of securities, insurance commissions and fees and other income, which increased $495 thousand, $168 thousand and $114 thousand, respectively.

 

Non-interest Expense. The Company’s non-interest expenses increased $270 thousand, or 6.7%, to $4.3 million for the third quarter of 2012 as compared to the same period last year. The increase for the third 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 $160 thousand and $67 thousand, respectively.

 

The Company’s non-interest expenses increased $1.7 million, or 14.6%, to $13.3 million for the nine months ended September 30, 2012, as compared to the same period last year. The increase during the first nine months of 2012 compared to the same period in 2011 was largely due to increases in expenses and write-downs related to foreclosed real estate and salaries and benefits of $722 thousand and $532 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 of 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 September 30, 2012, the Company’s total assets were $504.3 million, a decrease of $2.7 million, or 0.5%, as compared to total assets of $507.0 million at December 31, 2011. The decrease in total assets was largely driven by a decline in cash and cash equivalents of $27.1 million, or 72.2%, which was mostly offset by securities growth of $24.0 million, or 23.9%.

 

Total loans receivable, net of unearned income, increased $690 thousand, or 0.2%, to $340.4 million at September 30, 2012, from $339.7 million at year-end 2011. During the nine months ended September 30, 2012, the Company originated approximately $40.0 million in new loans. The loan volume for 2012 was largely offset by pay-offs of non-performing loans, potential problem loans, loans repurchased from a participation bank, loan charge-offs and unanticipated loan prepayments. During the third quarter of 2012, there were $5.8 million in loans that the Company sold back to the participating bank that had originated the loans. The $5.8 million in loans repurchased included $1.7 million in non-accrual loans and was 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 next 4 months. Such loans were originated and sold to the Company between the years of 2003 and 2009.

 

 
 

  

The Company’s security portfolio, which includes securities available for sale and securities held to maturity, increased $24.0 million, or 23.9%, to $124.6 million at September 30, 2012, as compared to $100.6 million at December 31, 2011.

 

The Company’s total deposits decreased $8.0 million, or 1.9%, to $417.3 million at September 30, 2012, from $425.4 million at December 31, 2011. The decrease in deposits was due to a $7.4 million, or 6.7%, decline in time deposits for September 30, 2012 as compared to December 31, 2011. The decline was partly offset by a $2.0 million, or 4.6%, increase in non-interest bearing deposits.

 

At September 30, 2012, the Company’s total stockholders’ equity was $41.2 million, an increase of $1.3 million when compared to December 31, 2011. At September 30, 2012, the leverage, Tier I risk-based capital and total risk-based capital ratios for the Bank were 9.36%, 13.18% and 14.44%, respectively, all in excess of the ratios required to be deemed “well-capitalized.”

 

Asset and Credit Quality

 

The overall credit quality of the Company continues to show positive trends at September 30, 2012, as our classified/criticized/foreclosed real estate declined $7.1 million, or 14.4%, from December 31, 2011. Our classified/criticized/foreclosed real estate totaled $42.5 million at September 30, 2012, as compared to $49.6 million at December 31, 2011, and has declined 33.3% 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, 90 days past due and still accruing, performing troubled debt restructured loans and foreclosed real estate, decreased $4.2 million, or 12.3%, to $29.8 million at September 30, 2012, as compared to $34.0 million at December 31, 2011. The ratio of NPAs to total assets for September 30, 2012 and December 31, 2011 were 5.9% and 6.7%, respectively. The Company has been actively marketing its foreclosed real estate properties, which amounted to $5.2 million at September 30, 2012, with an average book value of approximately $350 thousand per property. Approximately $2.2 million, or 42.3%, of the Company’s total foreclosed real estate at September 30, 2012, are under contract for sale and are anticipated to close in the fourth quarter of this year. The increase of $722 thousand, or 224.2%, in expenses and write-downs related to foreclosed real estate for the nine months ended September 30, 2012, as compared to the same period last year was largely attributed to the properties that are under contract for sale.

 

The allowance for loan losses was $6.7 million, or 2.0% of total loans, at September 30, 2012, compared to $7.2 million, or 2.1% of total loans, at December 31, 2011.

 

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)

 

               9/30/12 VS. 
   9/30/2012   12/31/2011   9/30/2011   9/30/2011   12/31/2011 
BALANCE SHEET HIGHLIGHTS - Period End Balances                    
Total securities  $124,595   $100,581   $83,737    48.8%   23.9%
Total loans   340,395    339,705    337,794    0.8%   0.2%
Allowance for loan losses   (6,721)   (7,210)   (7,401)   (9.2)%   (6.8)%
Total assets   504,294    506,953    495,884    1.7%   (0.5)%
Total deposits   417,341    425,376    415,050    0.6%   (1.9)%
Total borrowings and junior subordinated debt   38,887    38,887    38,887    -%   -%
Total shareholders' equity   41,182    39,902    39,388    4.6%   3.2%
                          
FINANCIAL DATA - QUARTER ENDED:                         
Net interest income (tax equivalent) (a)  $4,239   $4,251   $4,339    (2.3)%   (0.3)%
Provision for loan losses   1,104    618    737    49.8%   78.6%
Total other income   1,962    1,331    1,206    62.7%   47.4%
Total other expenses   4,295    4,199    4,025    6.7%   2.3%
Income before provision for income taxes (tax equivalent)   802    765    783    2.4%   4.8%
Provision for income taxes   106    102    97    9.3%   3.9%
Taxable equivalent adjustment (a)   150    148    152    (1.6)%   1.3%
Net income  $546   $515   $534    2.3%   6.0%
                          
Net income per common share - Basic  $0.17   $0.16   $0.16    6.3%   6.2%
Net income per common share - Diluted  $0.17   $0.15   $0.16    6.3%   13.3%
                          
Return on average assets   0.43%   0.41%   0.44%   (2.1)%   4.5%
Return on average equity   5.32%   5.22%   5.49%   (3.1)%   2.0%
Net interest margin (tax equivalent)   3.57%   3.59%   3.80%   (6.0)%   (0.6)%
                          
FINANCIAL DATA - YEAR TO DATE:                         
Net interest income (tax equivalent) (a)  $12,651        $13,263    (4.6)%     
Provision for loan losses   2,922         2,688    8.7%     
Total other income   4,705         3,952    19.1%     
Total other expenses   13,270         11,584    14.6%     
Income before provision for income taxes (tax equivalent)   1,164         2,943    (60.5)%     
Provision for income taxes   (94)        535    (117.6)%     
Taxable equivalent adjustment (a)   426         453    (6.0)%     
Net income  $832        $1,955    (57.5)%     
                          
Net income per common share - Basic  $0.26        $0.60    (56.7)%     
Net income per common share - Diluted  $0.25        $0.60    (58.3)%     
                          
Return on average assets   0.22%        0.55%   (60.1)%     
Return on average equity   2.74%        6.86%   (60.1)%     
Net interest margin (tax equivalent)   3.56%        3.97%   (10.4)%     
                          
SHARE INFORMATION:                         
Book value per common share  $12.12   $11.83   $11.68    3.8%   2.5%
Outstanding shares- period ending   3,397,873    3,372,949    3,372,688    0.7%   0.7%
Average diluted shares outstanding (year to date)   3,282,226    3,278,358    3,279,496    0.1%   0.1%
                          
CAPITAL RATIOS:                         
Total equity to total assets   8.17%   7.87%   7.94%   2.8%   3.8%
Leverage ratio (b)   9.36%   9.29%   9.42%   (0.6)%   0.8%
Tier 1 risk-based capital ratio (b)   13.18%   12.98%   13.11%   0.5%   1.5%
Total risk-based capital ratio (b)   14.44%   14.24%   14.37%   0.5%   1.4%
                          
ASSET QUALITY AND RATIOS:                         
Non-accrual loans  $23,993   $24,283   $27,493    (12.7)%   (1.2)%
Loans 90 days past due and still accruing   59    803    998    (94.1)%   (92.7)%
Troubled debt restructured loans (c)   603    3,411    1,313    (54.1)%   (82.3)%
Foreclosed real estate   5,158    5,509    4,545    13.5%   (6.4)%
Non-performing assets  $29,813   $34,006   $34,349    (13.2)%   (12.3)%
                          
Foreclosed real estate, Criticized and Classified Assets   42,462    49,584    51,108    (16.9)%   (14.4)%
                          
Charge-offs, net (quarterly)  $619   $803   $872    (29.0)%   (22.9)%
Charge-offs, net as a % of average loans (annualized)   0.72%   0.96%   1.03%   (29.9)%   (24.4)%
Non-accrual loans to total loans   7.05%   7.15%   8.14%   (13.4)%   (1.4)%
Non-performing assets to total assets   5.91%   6.71%   6.73%   (12.1)%   (11.9)%
Allowance for loan losses as a % of non-performing loans   27.33%   26.03%   25.69%   6.4%   5.0%
Allowance for loan losses to total loans   1.97%   2.12%   2.19%   (9.9)%   (7.0)%

 

(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  September 30, 2012   December 31, 2011 
           
Cash and due from banks  $6,513   $3,903 
Interest-bearing deposits with other banks   3,917    33,597 
  Cash and cash equivalents   10,430    37,500 
           
Interest bearing time deposits with other banks   100    100 
Securities available for sale, at fair value   119,002    96,361 
Securities held to maturity   5,593    4,220 
Federal Home Loan Bank Stock, at cost   1,943    1,837 
           
Loans receivable, net of unearned income   340,395    339,705 
  Less:  allowance for loan losses   6,721    7,210 
       Net loans receivable   333,674    332,495 
           
Foreclosed real estate   5,158    5,509 
Premises and equipment, net   6,630    6,778 
Accrued interest receivable   1,861    1,735 
Goodwill   2,820    2,820 
Bank owned life insurance   11,442    11,142 
Other assets   5,641    6,456 
           
Total Assets  $504,294   $506,953 
           
LIABILITIES AND STOCKHOLDERS' EQUITY          
           
Liabilities:          
  Deposits:          
     Non-interest bearing  $46,813   $44,762 
     Interest bearing   370,528    380,614 
  Total Deposits   417,341    425,376 
           
Borrowings   26,000    26,000 
Accrued interest payable and other liabilities   6,884    2,788 
Junior subordinated debentures   12,887    12,887 
           
Total Liabilities   463,112    467,051 
           
Total Stockholders' Equity   41,182    39,902 
           
Total Liabilities and Stockholders' Equity  $504,294   $506,953 

 

 
 

 

 

SUSSEX BANCORP
CONSOLIDATED STATEMENTS OF INCOME
(Dollars In Thousands Except Per Share Data)
(Unaudited)
                 
   Three Months Ended September 30,   Nine  Months Ended September 30, 
   2012   2011   2012   2011 
INTEREST INCOME                    
  Loans receivable, including fees  $4,467   $4,687   $13,292   $14,210 
  Securities:                    
     Taxable   241    313    994    989 
     Tax-exempt   292    296    827    879 
  Federal funds sold   -    -    -    3 
  Interest bearing deposits   4    20    30    32 
        Total Interest Income   5,004    5,316    15,143    16,113 
                     
INTEREST EXPENSE                    
  Deposits   587    806    1,938    2,342 
  Borrowings   268    268    797    797 
  Junior subordinated debentures   60    55    183    164 
       Total Interest Expense   915    1,129    2,918    3,303 
                     
       Net Interest Income   4,089    4,187    12,225    12,810 
PROVISION FOR LOAN LOSSES   1,104    737    2,922    2,688 
       Net Interest Income after Provision for Loan Losses   2,985    3,450    9,303    10,122 
                     
OTHER INCOME                    
  Service fees on deposit accounts   292    324    842    968 
  ATM and debit card fees   165    140    453    400 
  Bank owned life insurance   96    105    300    314 
  Insurance commissions and fees   684    545    1,892    1,724 
  Investment brokerage fees   46    33    118    103 
  Gain on sale of loans, held for sale   -    -    47    - 
  Gain (loss) on securities transactions   569    (1)   763    268 
  Loss on sale of fixed assets   -    -    (6)   - 
  Gain (loss) on sale of foreclosed real estate   2    2    5    (2)
  Other   108    58    291    177 
     Total Other Income   1,962    1,206    4,705    3,952 
                     
OTHER EXPENSES                    
  Salaries and employee benefits   2,196    2,219    6,744    6,212 
  Occupancy, net   355    338    1,071    1,055 
  Furniture, equipment and data processing   326    283    1,014    871 
  Advertising and promotion   63    52    222    141 
  Professional fees   175    163    478    439 
  Director fees   56    5    236    144 
  FDIC assessment   177    153    516    535 
  Insurance   68    53    179    163 
  Stationary and supplies   44    39    128    122 
  Loan collection costs   204    314    539    606 
  Expenses and write-downs related to foreclosed real estate   234    74    1,044    322 
  Amortization of intangible assets   1    3    4    8 
  Other   396    329    1,095    966 
     Total Other Expenses   4,295    4,025    13,270    11,584 
                     
      Income before Income Taxes   652    631    738    2,490 
PROVISION (BENEFIT) FOR INCOME TAXES   106    97    (94)   535 
     Net Income  $546   $534   $832   $1,955 
                     
OTHER COMPREHENSIVE INCOME:                    
  Unrealized gains on available for sale securities arising during the period  $693   $353   $1,413   $1,425 
  Reclassification adjustment for gain on sales included in net income   (569)   1    (763)   (268)
  Income tax expense related to other comprehensive income   (49)   (142)   (259)   (463)
     Other comprehensive income, net of income taxes   75    212    391    694 
     Comprehensive income  $621   $746   $1,223   $2,649 
                     
EARNINGS PER SHARE                    
  Basic  $0.17   $0.16   $0.26   $0.60 
  Diluted  $0.17   $0.16   $0.25   $0.60 

 

 
 

 

 

 

SUSSEX BANCORP
COMPARATIVE AVERAGE BALANCES AND AVERAGE INTEREST RATES
(Dollars In Thousands)
(Unaudited)
                         
   Three Months Ended September 30, 
   2012   2011 
   Average       Average   Average       Average 
   Balance   Interest (1)   Rate (2)   Balance   Interest (1)   Rate (2) 
Earning Assets:                              
Securities:                              
     Tax exempt (3)  $32,199   $442    5.46%  $30,059   $448    5.90%
     Taxable   86,766    241    1.10%   48,890    313    2.54%
Total securities   118,965    683    2.28%   78,949    761    3.82%
Total loans receivable (4)   342,502    4,467    5.19%   338,393    4,687    5.49%
Other interest-earning assets   10,405    4    0.15%   35,530    20    0.22%
Total earning assets   471,872   $5,154    4.35%   452,872   $5,468    4.79%
                               
Non-interest earning assets   43,319              41,159           
Allowance for loan losses   (6,671)             (7,261)          
Total Assets  $508,520             $486,770           
                               
Sources of Funds:                              
Interest bearing deposits:                              
     NOW  $95,611   $36    0.15%  $77,676   $85    0.44%
     Money market   14,506    11    0.30%   16,564    23    0.55%
     Savings   162,762    133    0.33%   168,419    287    0.68%
     Time   104,128    407    1.55%   102,725    411    1.59%
Total interest bearing deposits   377,007    587    0.62%   365,384    806    0.88%
     Borrowed funds   26,196    268    4.07%   26,000    268    4.09%
     Junior subordinated debentures   12,887    60    1.85%   12,887    55    1.69%
Total interest bearing liabilities   416,090   $915    0.87%   404,271   $1,129    1.11%
                               
Non-interest bearing liabilities:                              
     Demand deposits   48,702              41,012           
     Other liabilities   2,676              2,613           
Total non-interest bearing liabilities   51,378              43,625           
Stockholders' equity   41,052              38,874           
Total Liabilities and Stockholders' Equity  $508,520             $486,770           
                               
Net Interest Income and Margin (5)        4,239    3.57%        4,339    3.80%
Tax-equivalent basis adjustment        (150)             (152)     
Net Interest Income       $4,089             $4,187      
                               

 

(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)
                         
   Nine Months Ended September 30, 
   2012    2011 
   Average       Average   Average       Average 
   Balance   Interest (1)   Rate (2)   Balance   Interest (1)   Rate (2) 
Earning Assets:                              
Securities:                              
     Tax exempt (3)  $29,444   $1,253    5.68%  $29,962   $1,332    5.94%
     Taxable   84,774    994    1.57%   52,398    989    2.52%
Total securities   114,218    2,247    2.63%   82,360    2,321    3.77%
Total loans receivable (4)   339,839    13,292    5.22%   341,123    14,210    5.57%
Other interest-earning assets   21,095    30    0.19%   23,319    35    0.20%
Total earning assets   475,152   $15,569    4.38%   446,802   $16,566    4.96%
                               
Non-interest earning assets   42,076              38,020           
Allowance for loan losses   (7,335)             (7,227)          
Total Assets  $509,893             $477,595           
                               
Sources of Funds:                              
Interest bearing deposits:                              
     NOW  $94,578   $129    0.18%  $78,923   $305    0.52%
     Money market   16,962    47    0.37%   14,838    61    0.55%
     Savings   163,331    492    0.40%   169,360    881    0.70%
     Time   107,389    1,270    1.58%   94,898    1,095    1.54%
Total interest bearing deposits   382,260    1,938    0.68%   358,019    2,342    0.87%
     Borrowed funds   26,066    797    4.08%   26,859    797    3.97%
     Junior subordinated debentures   12,887    183    1.90%   12,887    164    1.70%
Total interest bearing liabilities   421,213   $2,918    0.93%   397,765   $3,303    1.11%
                               
Non-interest bearing liabilities:                              
     Demand deposits   45,949              39,423           
     Other liabilities   2,209              2,427           
Total non-interest bearing liabilities   48,158              41,850           
Stockholders' equity   40,522              37,980           
Total Liabilities and Stockholders' Equity  $509,893             $477,595           
                               
Net Interest Income and Margin (5)       $12,651    3.56%       $13,263    3.97%
Tax-equivalent basis adjustment        (426)             (453)     
Net Interest Income       $12,225             $12,810      

 

(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