FRANKLIN, N.J., Jan. 18, 2007 (PRIME NEWSWIRE) -- Sussex Bancorp (Nasdaq:SBBX) today announced its results of operations for the year ended December 31, 2006. For the year, the Company had net income $2,464,000, or $0.78 per basic share compared to net income of $2,399,000, or $0.77 per basic share, for the prior year. During the year ended December 31, 2006, the Company achieved the following highlights:
* The Company acquired the Port Jervis, New York branch of
NBT Bank, establishing its first branch outside of Sussex
County, New Jersey. The Company opened on December 18, 2006
its second New York branch in Warwick, New York;
* The Company has applied for regulatory approval to establish
a branch in Pike County, Pennsylvania. The branch is expected
to open in the third quarter of 2007; and
* The Company increased its loan to deposit ratio to 88.7% at
December 31, 2006, compared to 82.2% at year end 2005 and 68.3%
at year end 2004. The Company's loan portfolio increased by
24.1% during 2006.
For the year ended December 31, 2006, the Company earned net income of $2,464,000 an increase of approximately 2.7% over net income of $2,399,000 for the same period last year. Basic and diluted earnings per share for the year ended December 31, 2006 were $0.78 and $0.77 respectively, compared to $0.77 and $0.75 respectively, in the year ago period. During 2006, the Company had 3,152,374 shares outstanding, compared to 3,153,004 shares outstanding in the prior year period.
The Company's total interest income increased to $20.0 million for the year ended December 31, 2006 from $15.5 million for the same period last year, reflecting the increase in the loan portfolio yields and average balances. During 2006, the Company's average yield on its loan portfolio increased to 7.09% from 6.66% during 2005, while the average balance of the loan portfolio increased to $239.8 million from $185.3 million in 2005. For the year ended December 31, 2006, the Company's non-interest income increased by $371,000 or 7.6%, to $5.2 million from $4.9 million for the same period last year.
The Company's interest expense increased to $8.2 million for the year ended December 31, 2006 from $4.3 million for the same period last year. The increase reflects both an increase in the average volume of interest bearing liabilities to $254.2 million for 2006 from $219.1 for 2005 and an increase in the cost of interest bearing liabilities to 3.24% from 1.97% in 2005. The Company's total non-interest expense increased by $1.0 million reflecting increases associated with the Company's growth. The loan loss provision for the year ended December 31, 2006 decreased to $733,000 from $1,138,000, reflecting reduced charge-offs in 2006 over 2005. At December 31, 2006 the Company had total loans of $262.3 million, compared to total loans of $211.3 million at December 31, 2005.
At December 31, 2006 the Company had total assets of $356.3 million, compared to total assets of $313.2 million at December 31, 2005. In addition, the Company had total deposits of $295.8 million, compared to total deposits of $256.8 million at December 31, 2005.
Sussex Bancorp also announced that its Board of Director's declared a cash dividend of $0.07 per share, payable February 22, 2007 to shareholders of record as of February 2, 2007.
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, Wantage, New Jersey; Port Jervis and Warwick, New York; and for Tri-State Insurance Agency, Inc, Augusta, New Jersey.
SUSSEX BANCORP
CONSOLIDATED BALANCE SHEETS
(Dollars In Thousands)
December 31,
ASSETS 2006 2005
------ -------- --------
Cash and due from banks $ 10,170 $ 11,395
Federal funds sold 11,995 13,385
-------- --------
Cash and cash equivalents 22,165 24,780
Interest bearing time deposits with other banks 100 500
Securities available for sale 54,635 61,180
Federal Home Loan Bank Stock, at cost 1,188 1,025
Loans receivable, net of unearned income 262,276 211,335
Less: allowance for loan losses 3,340 2,615
-------- --------
Net loans receivable 258,936 208,720
Premises and equipment, net 7,794 6,619
Accrued interest receivable 1,910 1,778
Other assets 9,569 8,580
-------- --------
Total Assets $356,297 $313,182
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Liabilities:
Deposits:
Non-interest bearing $ 40,083 $ 42,142
Interest bearing 255,687 214,705
-------- --------
Total Deposits 295,770 256,847
Borrowings 18,251 16,300
Accrued interest payable and other liabilities 2,529 1,956
Junior subordinated debentures 5,155 5,155
-------- --------
Total Liabilities 321,705 280,258
Total Stockholders' Equity 34,592 32,924
-------- --------
Total Liabilities and Stockholders' Equity $356,297 $313,182
======== ========
SUSSEX BANCORP
CONSOLIDATED STATEMENTS OF INCOME
(Dollars In Thousands Except Per Share Data)
Year Ended December 31,
------------------------------
2006 2005 2004
-------- -------- --------
INTEREST INCOME
Loans receivable, including fees $ 17,009 $ 12,331 $ 8,954
Securities:
Taxable 1,455 1,650 1,812
Tax-exempt 1,032 1,145 869
Federal funds sold 490 359 97
Interest bearing deposits 12 62 59
-------- -------- --------
Total Interest Income 19,998 15,547 11,791
-------- -------- --------
INTEREST EXPENSE
Deposits 7,097 3,286 2,032
Borrowings 707 686 522
Junior subordinated debentures 445 356 260
-------- -------- --------
Total Interest Expense 8,249 4,328 2,814
-------- -------- --------
Net Interest Income 11,749 11,219 8,977
PROVISION FOR LOAN LOSSES 733 1,138 558
-------- -------- --------
Net Interest Income after
Provision for Loan Losses 11,016 10,081 8,419
-------- -------- --------
OTHER INCOME
Service fees on deposit accounts 1,370 1,225 748
ATM fees 374 347 324
Insurance commissions and fees 2,576 2,327 2,195
Mortgage broker fees 4 212 620
Investment brokerage fees 265 291 292
Net realized gain on sale
of securities 90 35 16
Net gain on sale of fixed assets 5 -- --
Net (loss) gain on sale of
foreclosed real estate -- 6 (5)
Other 560 430 352
-------- -------- --------
Total Other Income 5,244 4,873 4,542
-------- -------- --------
OTHER EXPENSES
Salaries and employee benefits 6,872 6,340 6,208
Occupancy, net 1,077 989 854
Furniture, equipment and
data processing 1,210 1,078 902
Stationary and supplies 199 179 181
Professional fees 668 545 356
Advertising and promotion 518 507 411
Insurance 197 170 167
Postage and freight 208 171 175
Amortization of intangible assets 150 250 200
Other 1,549 1,374 1,335
-------- -------- --------
Total Other Expenses 12,648 11,603 10,789
-------- -------- --------
Income before Income Taxes 3,612 3,351 2,172
PROVISION FOR INCOME TAXES 1,148 952 581
-------- -------- --------
Net Income $ 2,464 $ 2,399 $ 1,591
======== ======== ========
EARNINGS PER SHARE
-------- -------- --------
Basic $ 0.78 $ 0.77 $ 0.81
======== ======== ========
Diluted $ 0.77 $ 0.75 $ 0.78
======== ======== ========
SUSSEX BANCORP
COMPARATIVE AVERAGE BALANCES AND AVERAGE INTEREST RATES
(Dollars In Thousands)
(Unaudited)
Years Ended December 31,
(dollars in ----------------------------------------------------
thousands) 2006 2005
------------------------------------------- --------------------------
Average Interest Average Average Interest Average
Earning Assets: Balance (a) Rate(b) Balance (a) Rate(b)
----------------------------------------------------------------------
Securities:
Tax exempt(c) $ 24,018 $ 1,383 5.76% $ 26,716 $ 1,614 6.04%
Taxable 35,687 1,455 4.08% 44,849 1,650 3.68%
----------------------------------------------------------------------
Total securities 59,705 2,838 4.75% 71,565 3,264 4.56%
Total loans
receivable(d) 239,831 17,009 7.09% 185,287 12,331 6.66%
Other interest-
earning assets 10,244 502 4.90% 12,600 421 3.34%
----------------------------------------------------------------------
Total earning
assets 309,780 $20,349 6.57% 269,452 $16,016 5.94%
Non-interest
earning assets 26,126 24,146
Allowance for
loan losses (2,994) (2,230)
-------------------------- --------
Total Assets $332,912 $291,368
========================== ========
Sources of Funds:
Interest bearing
deposits:
NOW $57,974 $1,306 2.25% $43,939 $ 299 0.68%
Money market 30,773 1,200 3.90% 22,083 534 2.42%
Savings 45,916 401 0.87% 62,025 456 0.74%
Time 100,061 4,190 4.19% 71,174 1,997 2.81%
----------------------------------------------------------------------
Total interest
bearing
deposits 234,724 7,097 3.02% 199,221 3,286 1.65%
Borrowed funds 14,359 707 4.92% 14,771 686 4.64%
Junior
subordinated
debentures 5,155 445 8.63% 5,155 356 6.91%
----------------------------------------------------------------------
Total interest
bearing
liabilities 254,238 $8,249 3.24% 219,147 $ 4,328 1.97%
Non-interest
bearing
liabilities:
Demand
deposits 43,036 38,068
Other
liabilities 1,928 1,785
-------------------------- --------
Total non-interest
bearing
liabilities 44,964 39,853
Stockholders'
equity 33,710 32,368
-------------------------- --------
Total Liabilities
and Stockholders'
Equity $332,912 $291,368
========================== ========
---------------- ---------------- ---------------
Net Interest
Income and
Margin(e) $ 12,100 3.91% $ 11,688 4.34%
================ ================ ===============
(a) Includes loan fee income
(b) Average rates on securities are calculated on amortized costs
(c) Full taxable equivalent basis, using a 39% effective tax rate
and adjusted for TEFRA (Tax and Equity Fiscal Responsibility Act)
interest expense disallowance
(d) Loans outstanding include non-accrual loans
(e) Represents the difference between interest earned and interest
paid, divided by average total interest-earning assets