Exhibit 99.1

 

100 Enterprise Dr.

Rockaway, NJ 07866

 

SUSSEX BANCORP ANNOUNCES A 62% INCREASE IN EPS FOR THE THIRD QUARTER OF 2015
AND DECLARES QUARTERLY CASH DIVIDEND

 

ROCKAWAY, NEW JERSEY – October 29, 2015 – Sussex Bancorp (the “Company”) (Nasdaq: SBBX), the holding company for Sussex Bank (the “Bank”), today announced reported net income of $951 thousand, or $0.21 per basic and diluted share, for the quarter ended September 30, 2015, as compared to net income of $592 thousand, or $0.13 per basic and diluted share, for the same period last year. This increase equates to a 61.5% increase in net income per diluted common share for the quarter ended September 30, 2015, as compared to the same period last year. The improvement for the third quarter of 2015 was driven by loan and deposit growth, an increase in pre-tax income generated from our insurance subsidiary and a decline in credit quality costs (provision for loan losses, loan collection costs and expenses and write-downs related to foreclosed real estate). For the first nine months ended September 30, 2015, the Company reported net income of $2.8 million, or $0.61 per basic and diluted share, an increase of over 48% as compared to the same period last year.

 

“I am pleased to report that our strong organic growth continued in the third quarter. Our loan portfolio grew 4.6% or 18.5% annualized on $54.2 million of gross loan production, our deposits grew at an annualized rate of 12.0%, predominately in non-interest bearing deposits and our insurance subsidiary had a strong quarter, increasing their pre-tax income 477%,” said Anthony Labozzetta, President and Chief Executive Officer of Sussex Bank. Mr. Labozzetta also stated, “While spreads in our industry are tightening due in part to the present hyper-competitive environment, the contributions from all of our business lines not only helped keep our net interest margin relatively stable, but also produced the positive operating leverage necessary to drive our improved financial performance.”

 

In addition, Mr. Labozzetta stated, “We are excited about opening our next branch in Oradell, NJ which is scheduled for the first quarter of 2016. Comparable to our successful Astoria location, the Oradell branch will utilize our new model that includes more technology, a smaller footprint and a new approach to staffing.”

 

Declaration of Quarterly Dividend

The Company’s Board of Directors declared a quarterly cash dividend of $0.04 per share, which is payable on November 25, 2015 to common shareholders of record as of the close of business on November 11, 2015.

 

Financial Performance

Net Income. For the quarter ended September 30, 2015, the Company reported net income of $951 thousand, or $0.21 per basic and diluted share, as compared to net income of $592 thousand, or $0.13 per basic and diluted share, for the same period last year. The increase in net income for the quarter ended September 30, 2015 was primarily due to an increase in net interest income of $508 thousand, a decline in the provision for loan losses of $377 thousand and an increase in pre-tax income from our insurance subsidiary, Tri-State Insurance Agency, Inc., which increased $143 thousand to $173 thousand for the third quarter of 2015 as compared to the same period in 2014. The aforementioned were partially offset by an increase in non-interest expenses of $504 thousand, largely due to a $265 thousand increase in expenses and write-downs related to foreclosed real estate associated with the sale and pending sales of $1.3 million of foreclosed real estate in the third quarter of 2015.

 

For the nine months ended September 30, 2015, the Company reported net income of $2.8 million, or $0.61 per basic and diluted share, as compared to net income of $1.9 million, or $0.41 per basic and diluted share, for the same period last year. The increase in net income for the nine months ended September 30, 2015 was largely due to increases in net interest income of $1.5 million, non-interest income of $507 thousand, and a decline in the provision for loan losses of $725 thousand, which were partially offset by an increase in non-interest expenses of $1.3 million and income tax expense of $519 thousand. Tri-State Insurance Agency, Inc. pre-tax income increased $175 thousand, or 41.5% to $601 thousand for the nine months ended September 30, 2015 as compared to the same period in 2014.

 

 

Net Interest Income. Net interest income on a fully tax equivalent basis increased $508 thousand, or 10.9%, to $5.2 million for the third quarter of 2015, as compared to $4.7 million for the same period in 2014. The increase in net interest income was largely due to a $64.7 million, or 12.1%, increase in average interest earning assets, principally loans receivable, which increased $51.2 million, or 11.7%. The improvement in net interest income was partly offset by a decline in the net interest margin of 4 basis points to 3.43% for the third quarter of 2015 as compared to the same period in 2014. The decline in the net interest margin was mostly attributed to a 10 basis point decrease in the average rate earned on loans.

 

Net interest income on a fully tax equivalent basis increased $1.4 million, or 10.6%, to $15.1 million for the first nine months of 2015 as compared to $13.7 million for the same period in 2014. The increase in net interest income was largely due to a $60.0 million, or 11.5%, increase in average interest earning assets, principally loans receivable, which increased $58.1 million, or 13.8%. The improvement in net interest income was partly offset by a decline in the net interest margin of 3 basis points to 3.47% for the nine months ended September 30, 2015 as compared to the same period in 2014. The decline in the net interest margin was mostly attributed to a 14 basis point decrease in the average rate earned on loans.

 

Provision for Loan Losses. Provision for loan losses decreased $377 thousand, or 99.7%, to $1 thousand for the third quarter of 2015, as compared to $378 thousand for the same period in 2014.

 

Provision for loan losses decreased $725 thousand, or 58.9%, to $506 thousand for the first nine months of 2015, as compared to $1.2 million for the same period in 2014.

 

Non-interest Income. Non-interest income increased $154 thousand, or 10.3%, to $1.7 million for the third quarter of 2015, as compared to the same period last year. For the third quarter of 2015, insurance commissions and fees and other income increased $214 thousand and $73 thousand, respectively, as compared to the same period in 2014. The increases were partia1ly offset by declines in gain on securities transactions and service fees on deposit accounts of $153 thousand and $25 thousand, respectively, for the third quarter of 2015, as compared to the same period in 2014.

 

The Company reported an increase in non-interest income of $507 thousand, or 11.1%, to $5.1 million for the first nine months of 2015 as compared to the same period last year. The increase in non-interest income was largely due to increases in insurance commissions and fees and other income of $436 thousand and $127 thousand, respectively, which were partially offset by a decrease in service fees on deposit accounts of $128 thousand for the first nine months of 2015, as compared to the same period in 2014.

 

Non-interest Expense. The Company’s non-interest expenses increased $504 thousand, or 10.4%, to $5.4 million for the third quarter of 2015, as compared to the same period last year. The increase for the third quarter of 2015, as compared to the same period in 2014, was largely due to increases in salaries and employee benefits of $288 thousand, expenses and write-downs related to foreclosed real estate of $265 thousand, furniture and equipment expenses of $121 thousand and other expenses of $121 thousand, which were partially offset by decreases in data processing costs of $81 thousand, FDIC fees of $63 thousand and occupancy expenses of $49 thousand.

 

The Company’s non-interest expenses increased $1.3 million, or 9.2%, to $15.4 million for the first nine months of 2015 as compared to the same period last year. The increase for the first nine months of 2015, as compared to the same period in 2014, was largely due to increases in salaries and employee benefits of $998 thousand, furniture and equipment expenses of $269 thousand, other expenses of $230 thousand and expenses and write-downs related to foreclosed real estate of $203 thousand, which were partially offset by decreases in FDIC fees of $166 thousand, loan collection costs of $124 thousand and data processing of $110 thousand.

 

The increases for the third quarter and nine month periods for 2015 as compared to 2014 in salaries and employee benefits expense were due in part to an increase in personnel to support our growth initiative in new markets, including the opening of our Astoria branch in the first quarter of 2015, additional staffing for business development and a temporary increase in staffing costs related to the development of a digital banking division. The increases for the third quarter and nine month periods for 2015 as compared to 2014 in furniture and equipment expenses were mostly related to costs associated with our new core application system, which was implemented in the third quarter of 2014.

 

 

Financial Condition

At September 30, 2015, the Company’s total assets were $644.0 million, an increase of $48.1 million, or 8.1%, as compared to total assets of $595.9 million at December 31, 2014. The increase in total assets was largely driven by growth in loan receivable of $29.2 million, or 6.3% and the securities portfolio of $16.6 million, or 19.7%.

 

Total loans receivable, net of unearned income, increased $29.2 million, or 6.2%, to $501.2 million at September 30, 2015, as compared to $472.0 million at December 31, 2014. During the first nine months of 2015, the Company had $102.7 million in commercial loan production, which was largely offset by $27.4 million in commercial loan prepayments, an increase in commercial line of credit pay downs and the sale of $18.3 million in commercial loan participations to mitigate concentration risk. During the third quarter of 2015, total loans receivable, net of unearned income, increased $22.1 million, or 18.5% annualized, to $501.2 million at September 30, 2015, as compared to $479.1 million at June 30, 2015.

 

The Company’s total deposits increased $44.2 million, or 9.7%, to $502.5 million at September 30, 2015, from $458.3 million at December 31, 2014. The increase in deposits was due to increases in both non-interest bearing deposits of $28.8 million, or 40.9%, and interest bearing deposits of $15.4 million, or 4.0%, for September 30, 2015, as compared to December 31, 2014. Included in the aforementioned increase is $21.9 million in new deposits with a cost of under 0.50% attributed to our newest branch in Astoria, New York, which opened in mid-March of 2015. During the third quarter of 2015, total deposits increased $14.8 million, or 12.0% annualized, to $502.5 million at September 30, 2015, as compared to $487.7 million at June 30, 2015 and was largely attributed to growth in non-interest bearing deposits.

 

At September 30, 2015, the Company’s total stockholders’ equity was $53.1 million, an increase of $1.9 million when compared to December 31, 2014. The increase was largely due to net income for the nine months ended September 30, 2015. At September 30, 2015, the leverage, Tier I risk-based capital, total risk-based capital and common equity Tier I capital ratios for the Bank were 9.82%, 12.39%, 13.52% and 12.39%, respectively, all in excess of the ratios required to be deemed “well-capitalized.”

 

Asset and Credit Quality

The ratio of 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, to total assets improved to 1.64% at September 30, 2015 from 2.02% at December 31, 2014. NPAs decreased $1.5 million, or 12.2%, to $10.6 million at September 30, 2015, as compared to $12.0 million at December 31, 2014. Non-accrual loans decreased $242 thousand, or 4.1%, to $5.7 million at September 30, 2015, as compared to $5.9 million at December 31, 2014. The top five non-accrual loan relationships total $3.4 million, which equates to 59.9% of total non-accrual loans and 32.1% of total NPAs at September 30, 2015. The remaining non-accrual loans at September 30, 2015 have an average loan balance of $91 thousand. Loans past due 30 to 89 days decreased $3.2 million, or 56.8%, to $2.4 million at September 30, 2015, as compared to $5.6 million at December 31, 2014.

 

The Company continues to actively market its foreclosed real estate properties, which decreased $1.1 million to $3.3 million at September 30, 2015, as compared to $4.4 million at December 31, 2014. The decrease was primarily due to the sale of $2.0 million in foreclosed real estate properties and write-downs of $314 thousand during 2015, which were partially offset by $1.2 million in new foreclosed real estate properties. At September 30, 2015, the Company’s foreclosed real estate properties had an average carrying value of approximately $278 thousand per property.

 

The allowance for loan losses remained flat at $5.6 million, or 1.13% of total loans, at September 30, 2015, compared to $5.6 million, or 1.20% of total loans, at December 31, 2014. The Company recorded $506 thousand in provision for loan losses, which was partially offset by $506 thousand in net charge-offs for the nine months ended September 30, 2015. The allowance for loan losses as a percentage of non-accrual loans increased to 99.3% at September 30, 2015 from 95.2% at December 31, 2014.

 

 

About Sussex Bancorp

Sussex Bancorp is the holding company for Sussex Bank, which operates through its regional offices and corporate centers in Wantage and Rockaway, New Jersey, its eleven branch offices located in Andover, Augusta, Franklin, Hackettstown, Newton, Montague, Sparta, Vernon and Wantage, New Jersey, and Port Jervis and Astoria, New York, and 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. 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, 2014 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, SEVP/CFO

844-256-7328

 

 

 

 

SUSSEX BANCORP

SUMMARY FINANCIAL HIGHLIGHTS

(In Thousands, Except Percentages and Per Share Data)

(Unaudited)

 

														9/30/2015 VS.
		9/30/2015				12/31/2014				9/30/2014				9/30/2014								12/31/2014
BALANCE SHEET HIGHLIGHTS - Period End Balances
Total securities		$	100,559			$	83,982			$	76,783				31.0				%				19.7				%
Total loans			501,203				471,973				442,731				13.2				%				6.2				%
Allowance for loan losses			(5,641	)			(5,641	)			(5,709	)			(1.2	)			%				-				%
Total assets			644,019				595,915				568,033				13.4				%				8.1				%
Total deposits			502,509				458,270				454,541				10.6				%				9.7				%
Total borrowings and junior subordinated debt			84,187				82,387				58,887				43.0				%				2.2				%
Total shareholders' equity			53,146				51,229				50,416				5.4				%				3.7				%
FINANCIAL DATA - QUARTER ENDED:
Net interest income (tax equivalent) (a)		$	5,166			$	4,778			$	4,658				10.9				%				8.1				%
Provision for loan losses			1				306				378				(99.7	)			%				(99.7	)			%
Total other income			1,655				1,411				1,501				10.3				%				17.3				%
Total other expenses			5,363				4,765				4,859				10.4				%				12.5				%
Income before provision for income taxes (tax equivalent)			1,457				1,118				922				58.0				%				30.3				%
Provision for income taxes			390				330				214				82.2				%				18.2				%
Taxable equivalent adjustment (a)			116				65				116				-				%				78.5				%
Net income		$	951			$	723			$	592				60.6				%				31.5				%
Net income per common share - Basic		$	0.21			$	0.16			$	0.13				61.5				%				31.3				%
Net income per common share - Diluted		$	0.21			$	0.16			$	0.13				61.5				%				31.3				%
Return on average assets			0.60	%			0.50	%			0.42	%							43.9	%							20.9	%
Return on average equity			7.22	%			5.65	%			4.70	%							53.7	%							27.9	%
Net interest margin (tax equivalent)			3.43	%			3.46	%			3.47	%							(1.2	)%							(0.9	)%
Avg. interest earning assets/Avg. interest bearing liabilities			1.24				1.22				1.21				2.7				%				1.9				%
FINANCIAL DATA - YEAR TO DATE:
Net interest income (tax equivalent) (a)		$	15,111							$	13,667				10.6				%
Provision for loan losses			506								1,231				(58.9	)			%
Total other income			5,057								4,550				11.1				%
Total other expenses			15,355								14,064				9.2				%
Income before provision for income taxes (tax equivalent)			4,307								2,922				47.4				%
Provision for income taxes			1,190								671				77.3				%
Taxable equivalent adjustment (a)			330								374				(11.8	)			%
Net income		$	2,787							$	1,877				48.5				%
Net income per common share - Basic		$	0.61							$	0.41				48.8				%
Net income per common share - Diluted		$	0.61							$	0.41				48.8				%
Return on average assets			0.60	%							0.45	%							33.7	%
Return on average equity			7.10	%							5.12	%							38.7	%
Efficiency ratio (b)			77.40	%							78.82	%							(1.8	)%
Net interest margin (tax equivalent)			3.47	%							3.50	%							(0.9	)%
Avg. interest earning assets/Avg. interest bearing liabilities			1.22								1.19				2.7				%
SHARE INFORMATION:
Book value per common share		$	11.44			$	10.99			$	10.81				5.9				%				4.1				%
Outstanding shares- period ending			4,645,387				4,662,606				4,664,856				(0.4	)			%				(0.4	)			%
Average diluted shares outstanding (year to date)			4,591,700				4,580,350				4,574,663				0.4				%				0.2				%
CAPITAL RATIOS:
Total equity to total assets			8.25	%			8.60	%			8.88	%							(7.0	)%							(4.0	)%
Leverage ratio (c)			9.82	%			10.19	%			10.31	%							(4.8	)%							(3.6	)%
Tier 1 risk-based capital ratio (c)			12.39	%			12.79	%			13.36	%							(7.3	)%							(3.1	)%
Total risk-based capital ratio (c)			13.52	%			14.02	%			14.61	%							(7.5	)%							(3.6	)%
Common equity Tier 1 capital ratio (c)			12.39	%			-	%			-	%							-	%							-	%
ASSET QUALITY:
Non-accrual loans		$	5,682			$	5,924			$	8,056				(29.5	)			%				(4.1	)			%
Loans 90 days past due and still accruing			-				85				33				-				%				(100.0	)			%
Troubled debt restructured loans ("TDRs") (d)			1,562				1,590				1,601				(2.4	)			%				(1.8	)			%
Foreclosed real estate			3,335				4,449				2,854				16.9				%				(25.0	)			%
Non-performing assets ("NPAs")		$	10,579			$	12,048			$	12,544				(15.7	)			%				(12.2	)			%
Foreclosed real estate, criticized and classified assets		$	20,167			$	21,899			$	21,229				(5.0	)			%				(7.9	)			%
Loans past due 30 to 89 days		$	2,436			$	5,635			$	2,855				(14.7	)			%				(56.8	)			%
Charge-offs, net (quarterly)		$	112			$	374			$	523				(78.6	)			%				(70.1	)			%
Charge-offs, net as a % of average loans (annualized)			0.09	%			0.33	%			0.48	%							(80.8	)%							(71.9	)%
Non-accrual loans to total loans			1.13	%			1.26	%			1.82	%							(37.7	)%							(9.7	)%
NPAs to total assets			1.64	%			2.02	%			2.21	%							(25.6	)%							(18.8	)%
NPAs excluding TDR loans (d) to total assets			1.40	%			1.75	%			1.93	%							(27.3	)%							(20.2	)%
Non-accrual loans to total assets			0.88	%			0.99	%			1.42	%							(37.8	)%							(11.2	)%
Allowance for loan losses as a % of non-accrual loans			99.28	%			95.22	%			70.87	%							40.1	%							4.3	%
Allowance for loan losses to total loans			1.13	%			1.20	%			1.29	%							(12.7	)%							(5.8	)%

 

(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) Efficiency ratio calculated non-interest expense divided by net interest income plus non-interest

(c) Sussex Bank capital ratios

(d) Troubled debt restructured loans currently performing in accordance with renegotiated terms

 

 

SUSSEX BANCORP

CONSOLIDATED BALANCE SHEETS

(Dollars In Thousands)

 

ASSETS		September 30, 2015				December 31, 2014
		(Unaudited)
Cash and due from banks		$	3,104			$	2,953
Interest-bearing deposits with other banks			5,067				2,906
Cash and cash equivalents			8,171				5,859
Interest bearing time deposits with other banks			100				100
Securities available for sale, at fair value			94,702				77,976
Securities held to maturity			5,857				6,006
Federal Home Loan Bank Stock, at cost			4,015				3,908
Loans receivable, net of unearned income			501,203				471,973
Less:  allowance for loan losses			5,641				5,641
Net loans receivable			495,562				466,332
Foreclosed real estate			3,335				4,449
Premises and equipment, net			8,773				8,650
Accrued interest receivable			1,996				1,796
Goodwill			2,820				2,820
Bank-owned life insurance			12,446				12,211
Other assets			6,242				5,808
Total Assets		$	644,019			$	595,915
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits:
Non-interest bearing		$	99,316			$	70,490
Interest bearing			403,193				387,780
Total Deposits			502,509				458,270
Borrowings			71,300				69,500
Accrued interest payable and other liabilities			4,177				4,029
Junior subordinated debentures			12,887				12,887
Total Liabilities			590,873				544,686
Total Stockholders' Equity			53,146				51,229
Total Liabilities and Stockholders' Equity		$	644,019			$	595,915

 

 

 

SUSSEX BANCORP

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(Dollars In Thousands Except Per Share Data)

(Unaudited)

 

		Three Months Ended September 30,								Nine Months Ended September 30,
		2015				2014				2015				2014
INTEREST INCOME
Loans receivable, including fees		$	5,390			$	4,940			$	15,837			$	14,363
Securities:
Taxable			321				208				890				639
Tax-exempt			231				231				660				740
Interest bearing deposits			1				4				8				11
Total Interest Income			5,943				5,383				17,395				15,753
INTEREST EXPENSE
Deposits			448				424				1,302				1,229
Borrowings			390				363				1,150				1,072
Junior subordinated debentures			55				54				162				159
Total Interest Expense			893				841				2,614				2,460
Net Interest Income			5,050				4,542				14,781				13,293
PROVISION FOR LOAN LOSSES			1				378				506				1,231
Net Interest Income after Provision for Loan Losses			5,049				4,164				14,275				12,062
OTHER INCOME
Service fees on deposit accounts			230				255				656				784
ATM and debit card fees			198				182				573				534
Bank owned life insurance			78				78				235				243
Insurance commissions and fees			955				741				2,846				2,410
Investment brokerage fees			40				11				103				79
Gain on securities transactions			11				164				267				258
Gain on sale of fixed assets			-				-				8				-
Other			143				70				369				242
Total Other Income			1,655				1,501				5,057				4,550
OTHER EXPENSES
Salaries and employee benefits			2,919				2,631				8,488				7,490
Occupancy, net			410				459				1,330				1,309
Furniture and equipment			221				100				645				376
Advertising and promotion			65				89				225				211
Professional fees			161				153				480				517
Director fees			105				137				418				379
FDIC assessment			120				183				368				534
Insurance			69				70				189				218
Stationary and supplies			49				64				154				171
Loan collection costs			19				53				175				299
Data processing			468				549				1,251				1,361
Expenses and write-downs related to foreclosed real estate			277				12				476				273
Other			480				359				1,156				926
Total Other Expenses			5,363				4,859				15,355				14,064
Income before Income Taxes			1,341				806				3,977				2,548
INCOME TAX EXPENSE			390				214				1,190				671
Net Income		$	951			$	592			$	2,787			$	1,877
OTHER COMPREHENSIVE INCOME (LOSS):
Unrealized (losses) gains on available for sale securities arising during the period		$	1,024			$	511			$	174			$	3,864
Reclassification adjustment for net gain on securities transactions included in net income			(11	)			(164	)			(267	)			(258	)
Income tax benefit (expense) related to items of other comprehensive income (loss)			(405	)			(138	)			37				(1,442	)
Other comprehensive (loss) income, net of income taxes			608				209				(56	)			2,164
Comprehensive income		$	1,559			$	801			$	2,731			$	4,041
EARNINGS PER SHARE
Basic		$	0.21			$	0.13			$	0.61			$	0.41
Diluted		$	0.21			$	0.13			$	0.61			$	0.41

 

 

SUSSEX BANCORP

COMPARATIVE AVERAGE BALANCES AND AVERAGE INTEREST RATES

(Dollars In Thousands)

(Unaudited)

 

		Three Months Ended September 30,
		2015												2014
		Average								Average				Average								Average
		Balance				Interest				Rate (2)				Balance				Interest				Rate (2)
Earning Assets:
Securities:
Tax exempt (3)		$	34,371			$	347				4.01	%		$	31,047			$	347				4.43	%
Taxable			69,546				321				1.83	%			55,260				208				1.49	%
Total securities			103,917				668				2.55	%			86,307				555				2.55	%
Total loans receivable (1) (4)			487,545				5,390				4.39	%			436,395				4,940				4.49	%
Other interest-earning assets			6,236				1				0.06	%			10,249				4				0.15	%
Total earning assets			597,698				6,059				4.02	%			532,951				5,499				4.09	%
Non-interest earning assets			37,918												36,948
Allowance for loan losses			(5,677	)											(5,748	)
Total Assets		$	629,939											$	564,151
Sources of Funds:
Interest bearing deposits:
NOW		$	129,487			$	57				0.17	%		$	120,200			$	49				0.16	%
Money market			18,504				10				0.21	%			9,371				4				0.17	%
Savings			138,020				70				0.20	%			144,274				75				0.21	%
Time			120,397				311				1.02	%			108,241				296				1.08	%
Total interest bearing deposits			406,408				448				0.44	%			382,086				424				0.44	%
Borrowed funds			62,586				390				2.47	%			46,378				363				3.11	%
Junior subordinated debentures			12,887				55				1.69	%			12,887				54				1.66	%
Total interest bearing liabilities			481,881				893				0.74	%			441,351				841				0.76	%
Non-interest bearing liabilities:
Demand deposits			91,454												67,910
Other liabilities			3,934												4,512
Total non-interest bearing liabilities			95,388												72,422
Stockholders' equity			52,670												50,378
Total Liabilities and Stockholders' Equity		$	629,939											$	564,151
Net Interest Income and Margin (5)							5,166				3.43	%							4,658				3.47	%
Tax-equivalent basis adjustment							(116	)											(116	)
Net Interest Income						$	5,050											$	4,542

 

(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,
		2015												2014
		Average								Average				Average								Average
		Balance				Interest				Rate (2)				Balance				Interest				Rate (2)
Earning Assets:
Securities:
Tax exempt (3)		$	33,050			$	990				4.00	%		$	32,837			$	1,114				4.54	%
Taxable			63,765				890				1.87	%			61,796				639				1.38	%
Total securities			96,815				1,880				2.60	%			94,633				1,753				2.48	%
Total loans receivable (1) (4)			478,151				15,837				4.43	%			420,009				14,363				4.57	%
Other interest-earning assets			7,396				8				0.14	%			7,697				11				0.19	%
Total earning assets			582,362				17,725				4.07	%			522,339				16,127				4.13	%
Non-interest earning assets			37,958												36,749
Allowance for loan losses			(5,719	)											(5,684	)
Total Assets		$	614,601											$	553,404
Sources of Funds:
Interest bearing deposits:
NOW		$	128,686			$	162				0.17	%		$	116,992			$	131				0.15	%
Money market			16,332				23				0.19	%			11,018				12				0.15	%
Savings			139,828				212				0.20	%			145,093				224				0.21	%
Time			117,025				905				1.03	%			105,136				862				1.10	%
Total interest bearing deposits			401,871				1,302				0.43	%			378,239				1,229				0.43	%
Borrowed funds			61,179				1,150				2.51	%			47,282				1,072				3.03	%
Junior subordinated debentures			12,887				162				1.68	%			12,887				159				1.65	%
Total interest bearing liabilities			475,937				2,614				0.73	%			438,408				2,460				0.75	%
Non-interest bearing liabilities:
Demand deposits			82,391												62,934
Other liabilities			3,926												3,149
Total non-interest bearing liabilities			86,317												66,083
Stockholders' equity			52,347												48,913
Total Liabilities and Stockholders' Equity		$	614,601											$	553,404
Net Interest Income and Margin (5)							15,111				3.47	%							13,667				3.50	%
Tax-equivalent basis adjustment							(330	)											(374	)
Net Interest Income						$	14,781											$	13,293

 

(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