FRANKLIN, N.J., July 16, 2008 (PRIME NEWSWIRE) -- Sussex Bancorp (Nasdaq:SBBX) today announced its financial results for the quarter and the six months ending June 30, 2008.
For the quarter ended June 30, 2008, the Company earned net income of $359,000 compared to net income of $294,000 reported for the second quarter of 2007. For the six months ended June 30, 2008, the Company earned net income of $996,000, a decline from the $1,018,000 earned for the same period last year. Basic earnings per share for the three and six months ended June 30, 2008 were $0.12 and $0.32, respectively, compared to $0.09 and $0.32 for the respective comparable periods of 2007. Diluted earnings per share were $0.12 and $0.32 respectively for the three and six months ended June 30, 2008, compared to $0.09 and $0.32 in the respective comparable periods of 2007.
The Company's net interest income increased to $2,922,000 for the quarter ended June 30, 2008 from $2,894,000 for the second quarter of 2007. The Company's interest income decreased to $5,494,000 for the quarter ended June 30, 2008 from $5,613,000 for the second quarter of 2007. The decline primarily reflects a decline in interest income on the Company's loan portfolio related to the increase in non-accrual loans during the second half of 2007. However, this decrease was offset by a decline in the Company's interest expense, to $2,572,000 for the three months ended June 30, 2008 from $2,719,000 for the second quarter of 2007. For the six months ended June 30, 2008, the Company's net interest income increased to $5,813,000 from the $5,743,000 earned for the same period last year. For the six months ended June 30, 2008, the Company's interest income increased to $11,090,000 from $11,005,000 for the period ended June 30, 2007, while the Company's interest expense increased to $5,277,000 from $5,262,000 for the six months ended June 30, 2007. As a result of these changes, the Company's net interest margin declined to 3.15% and 3.22% for the three and six months ended June 30, 2008, respectively, from 3.46% and 3.53% for the three and six months ended June 30, 2007, respectively.
The Company reported non-interest income of $1,228,000 and $2,907,000 for the current three and six month periods ended June 30, 2008, respectively, compared to non-interest income of $1,235,000 and $2,821,000 for the three and six month periods ending June 30, 2007.
The Company's other expenses increased in the three and six month periods of 2008 compared to the prior year periods. For the three month period ending June 30, 2008 other expenses increased by $231,000, or 6.9%, while other expenses increased by $464,000, or 7.1%, for the six months ended June 30, 2008 compared to the prior year periods.
At June 30, 2008 the Company had total assets of $432.5 million, compared to total assets of $387.3 million at June 30, 2007. The Company's total deposits increased to $346.3 million at June 30, 2008 from $311.3 million at June 30, 2007, and the Company's total loan portfolio, net of unearned income, increased to $305.4 million at June 30, 2008 from $284.6 million at June 30, 2007.
Sussex Bancorp is the holding company for 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, Port Jervis and Warwick, New York and for the Tri-State Insurance Agency, Inc., a full service insurance agency located in Sussex County, New Jersey.
CONSOLIDATED BALANCE SHEETS
(Dollars In Thousands)
(Unaudited)
June 30, June 30, Dec. 31,
ASSETS 2008 2007 2007
------ ------------------------------
Cash and due from banks $11,409 $9,240 $7,985
Federal funds sold 30,735 16,795 3,790
-------- -------- --------
Cash and cash equivalents 42,144 26,035 11,775
Interest bearing time deposits
with other banks 100 100 100
Trading securities 14,104 12,282 14,259
Securities available for sale 48,539 45,703 48,397
Federal Home Loan Bank Stock, at cost 2,111 1,358 2,032
Loans receivable, net of
unearned income 305,366 284,640 300,646
Less: allowance for loan losses 4,831 3,860 5,140
-------- -------- --------
Net loans receivable 300,535 280,780 295,506
Foreclosed real estate 3,437 -- --
Premises and equipment, net 8,868 8,606 9,112
Accrued interest receivable 1,862 1,804 2,035
Goodwill 2,820 2,820 2,820
Other assets 7,943 7,766 7,496
-------- -------- --------
Total Assets $432,463 $387,254 $393,532
======== ======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Liabilities:
Deposits:
Non-interest bearing $43,750 $37,818 $36,625
Interest bearing 302,546 273,517 271,913
-------- -------- --------
Total Deposits 346,296 311,335 308,538
Borrowings 36,173 20,226 35,200
Accrued interest payable and
other liabilities 2,547 2,663 2,467
Junior subordinated debentures 12,887 18,042 12,887
-------- -------- --------
Total Liabilities 397,903 352,266 359,092
Total Stockholders' Equity 34,560 34,988 34,440
-------- -------- --------
Total Liabilities and
Stockholders' Equity $432,463 $387,254 $393,532
======== ======== ========
SUSSEX BANCORP
CONSOLIDATED STATEMENTS OF INCOME
(Dollars In Thousands)
(Unaudited)
Three Months Six Months
Ended Ended
June 30, June 30,
--------------- ---------------
2008 2007 2008 2007
------ ------ ------ ------
INTEREST INCOME
Loans receivable, including fees $4,637 $4,881 $9,448 $9,534
Securities:
Taxable 543 404 1,067 800
Tax-exempt 226 257 462 507
Federal funds sold 88 69 112 161
Interest bearing deposits -- 2 1 3
------ ------ ------ ------
Total Interest Income 5,494 5,613 11,090 11,005
------ ------ ------ ------
INTEREST EXPENSE
Deposits 2,068 2,355 4,198 4,563
Borrowings 373 243 755 465
Junior subordinated debentures 131 121 324 234
------ ------ ------ ------
Total Interest Expense 2,572 2,719 5,277 5,262
------ ------ ------ ------
Net Interest Income 2,922 2,894 5,813 5,743
PROVISION FOR LOAN LOSSES 117 436 290 544
------ ------ ------ ------
Net Interest Income after
Provision for Loan Losses 2,805 2,458 5,523 5,199
------ ------ ------ ------
OTHER INCOME
Service fees on deposit accounts 351 335 702 654
ATM and debit card fees 120 104 225 191
Insurance commissions and fees 653 664 1,396 1,518
Investment brokerage fees 48 56 95 213
Holding gains (losses) on
trading securities (196) (48) 21 (2)
Gain on sale of securities,
available for sale 68 -- 152 --
Other 184 124 316 247
------ ------ ------ ------
Total Other Income 1,228 1,235 2,907 2,821
------ ------ ------ ------
OTHER EXPENSES
Salaries and employee benefits 1,976 1,829 3,855 3,611
Occupancy, net 304 300 662 613
Furniture, equipment and
data processing 374 356 747 694
Stationary and supplies 48 46 91 92
Professional fees 88 165 197 304
Advertising and promotion 161 137 287 241
Insurance 47 48 85 94
FDIC assessment 90 9 185 18
Postage and freight 46 48 84 88
Amortization of intangible assets 14 26 29 63
Other 419 372 818 758
------ ------ ------ ------
Total Other Expenses 3,567 3,336 7,040 6,576
------ ------ ------ ------
Income before Income Taxes 466 357 1,390 1,444
PROVISION FOR INCOME TAXES 107 63 394 426
------ ------ ------ ------
Net Income $359 $294 $996 $1,018
====== ====== ====== ======
SUSSEX BANCORP
COMPARATIVE AVERAGE BALANCES AND AVERAGE INTEREST RATES
(Dollars In Thousands)
(Unaudited)
Six Months Ended June 30,
2008 2007
-------------------------------------------------
Average Average
Average Interest Rate Average Interest Rate
Earning Assets: Balance (1) (2) Balance (1) (2)
-------------- -------------------------------------------------
Securities:
Tax exempt(3) $22,287 $690 6.23% $24,030 $663 5.57%
Taxable 41,339 1,067 5.19% 34,135 800 4.73%
-------------------------------------------------
Total securities 63,626 1,757 5.55% 58,166 1,463 5.07%
Total loans
receivable (4) 303,192 9,448 6.27% 272,678 9,534 7.05%
Other
interest-earning
assets 10,153 113 2.24% 6,397 164 5.16%
-------------------------------------------------
Total earning assets 376,971 $11,318 6.04% 337,242 $11,161 6.67%
Non-interest earning
assets 30,054 28,098
Allowance for
loan losses (5,305) (3,496)
-------- --------
Total Assets $401,720 $361,844
======== ========
Sources of Funds:
-----------------
Interest bearing
deposits:
NOW $58,426 $429 1.48% $58,221 $642 2.22%
Money market 29,588 354 2.41% 36,731 704 3.87%
Savings 53,995 551 2.05% 39,655 178 0.91%
Time 134,773 2,864 4.27% 127,386 3,039 4.81%
-------------------------------------------------
Total interest
bearing deposits 276,782 4,198 3.05% 261,993 4,563 3.51%
Borrowed funds 35,914 755 4.16% 19,565 465 4.73%
Junior
subordinated
debentures 12,887 324 4.97% 5,366 234 8.66%
-------------------------------------------------
Total interest
bearing
liabilities 325,583 $5,277 3.26% 286,924 $5,262 3.70%
Non-interest bearing
liabilities:
Demand deposits 39,286 37,647
Other liabilities 2,069 2,218
-------- -------
Total non-interest
bearing liabilities 41,355 39,865
Stockholders' equity 34,782 35,055
-------- --------
Total Liabilities
and Stockholders'
Equity $401,720 $361,844
======== ========
------------- -------------
Net Interest Income
and Margin (5) $6,041 3.22% $5,899 3.53%
============= =============
(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