Sussex Bancorp Announces 2009 Earnings

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| Source: Sussex Bancorp

FRANKLIN, N.J., Feb. 1, 2010 (GLOBE NEWSWIRE) -- Sussex Bancorp (Nasdaq:SBBX) today announced its results of operations for the year ended December 31, 2009. For 2009, the Company earned $2.0 million, or $0.62 per basic and diluted share, compared to a net loss of $1.0 million, or ($0.32) per basic and diluted share for the prior year. The Company’s return to profitability in 2009 primarily reflects an increase in net interest income of $3.2 million as well as the absence of impairment charges in 2009, as the Company recorded an impairment charge of $3.5 million in 2008 related to certain FNMA and Freddie Mac securities.

The Company’s total interest income increased to $23.1 million for the year ended December 31, 2009 from $22.7 million for the same period last year, as total interest expense decreased to $8.1 million for the year ended December 31, 2009 from $10.8 million for the year ended December 31, 2008. As a result, for the year ended December 31, 2009 the Company’s net interest income increased to $15.0 million from the $11.8 million earned last year. The improvement in the net interest income is reflective of the improvement in the Company’s net interest margin, which increased by 48 basis points from 3.12% in 2008 to 3.60% in 2009.

The Company’s average earning assets increased by $39.5 millionin 2009 over 2008, while the average yield declined by 42 basis points, to 5.46% in 2009 from 5.88% in 2008.The Company’s average interest bearing liabilities increased by $45.1 million for the year ended December 31, 2009 compared to the prior year. The Company’s cost of interest bearing liabilities decreased by 108 basis points to 2.07% in 2009 from 3.15% in 2008.

For the year ended December 31, 2009, the Company’s non-interest income increased by $3.5 million from $2.0 million for year ended December 31, 2008 to $5.5 million for year ended December 31, 2009. The improvement is attributable to an impairment write-down of $3.5 million on equity securities that the Company incurred in 2008, while the Company experienced no such impairment charges in 2009. Non-interest expense was flat year over year, increasing by $90 thousand to $14.7 million for the year ended December 31, 2009 compared to $14.6 million one year earlier. This increase is due to $551 thousand in increased FDIC assessment charges, while salaries and employee benefit expenses declined by approximately $194 thousand.

The Company’s loan loss provision for the year ended December 31, 2009 was $3.4 million compared to $1.4 million for the same period last year. The increase in the provision is primarily attributable to a decline in real estate collateral values and adverse economic conditions in the Company’s trade area. As a result of these conditions, the Company’s non-performing loan balance increased to $20.4 million at December 31, 2009 from $11.0 million at December 31, 2008.  The Company believes these loans are adequately provided for in its loan loss provision or are sufficiently secured at December 31, 2009.  Non-performing loans as a percentage of total gross loans at December 31, 2009 were 6.13%, compared to 3.44% one year earlier. 

At December 31, 2009 the Company had total assets of $454.8 million, compared to total assets of $440.6 million at December 31, 2008. The Company had total deposits of $372.1 million at December 31, 2009, compared to total deposits of $360.1 million at December 31, 2008.

Sussex Bancorp is the holding company for Sussex Bank, which services its customers through ten branch offices, eight located in Sussex County, New Jersey and two in Orange County, New York and for Tri-State Insurance Agency, Inc, a full service insurance agency located in Sussex County, New Jersey.

SUSSEX BANCORP
CONSOLIDATED BALANCE SHEETS
(Dollars In Thousands)
     
ASSETS December 31, 2009 December 31, 2008
  (Unaudited)  
     
Cash and due from banks $8,779 $7,602
Federal funds sold 14,300 13,310
Cash and cash equivalents 23,079 20,912
     
Interest bearing time deposits with other banks 100 100
Trading securities 2,955 13,290
Securities available for sale 71,315 62,272
Federal Home Loan Bank Stock, at cost 2,045 1,975
     
Loans receivable, net of unearned income 332,959 320,880
Less:allowance for loan losses 5,496 5,813
Net loans receivable 327,463 315,067
     
Foreclosed real estate 3,843 3,864
Premises and equipment, net 7,065 8,526
Accrued interest receivable 1,943 2,115
Goodwill 2,820 2,820
Other assets 12,213 9,654
     
Total Assets $454,841 $440,595
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
     
Liabilities:    
Deposits:    
Non-interest bearing $34,155 $34,784
Interest bearing 337,920 325,297
Total Deposits 372,075 360,081
     
Borrowings 33,090 33,146
Accrued interest payable and other liabilities 2,262 2,571
Junior subordinated debentures 12,887 12,887
     
Total Liabilities 420,314 408,685
     
Total Stockholders' Equity 34,527 31,910
     
Total Liabilities and Stockholders' Equity $454,841 $440,595

 

SUSSEX BANCORP
CONSOLIDATED STATEMENTS OF INCOME
(Dollars In Thousands)
     
  Years Ended December 31,
  2009 2008
  (Unaudited)  
INTEREST INCOME    
Loans receivable, including fees $19,259 $19,150
Securities:    
Taxable 2,587 2,266
Tax-exempt 1,164 976
Federal funds sold 30 259
Interest bearing deposits 15 2
Total Interest Income 23,055 22,653
     
INTEREST EXPENSE    
Deposits 6,321 8,746
Borrowings 1,426 1,507
Junior subordinated debentures 306 590
Total Interest Expense 8,053 10,843
     
Net Interest Income 15,002 11,810
PROVISION FOR LOAN LOSSES 3,404 1,350
Net Interest Income after Provision for Loan Losses 11,598 10,460
     
OTHER INCOME    
Service fees on deposit accounts 1,467 1,534
ATM fees 480 464
Insurance commissions and fees 2,284 2,507
Investment brokerage fees 137 151
Holding gains on trading securities 5 199
Gain on sale of securities, available for sale 134 150
Gain on sale of fixed assets 203 --
Gain (loss) on sale of foreclosed real estate 190 (58)
Impairment write-downs on equity securities -- (3,526)
Other 644 570
Total Other Income 5,544 1,991
     
OTHER EXPENSES    
Salaries and employee benefits 7,351 7,545
Occupancy, net 1,302 1,299
Furniture, equipment and data processing 1,286 1,481
Stationary and supplies 178 192
Professional fees 768 621
Advertising and promotion 179 469
Insurance 194 171
FDIC Assessment 936 385
Postage and freight 139 155
Amortization of intangible assets 18 49
Write-down on foreclosed real estate 456 437
Foreclosed real estate 347 255
Other 1,525 1,530
Total Other Expenses 14,679 14,589
     
Income (Loss) before Income Taxes 2,463 (2,138)
PROVISION (BENEFIT) FOR INCOME TAXES 452 (1,096)
Net Income (Loss) $2,011 ($1,042)

 

SUSSEX BANCORP
COMPARATIVE AVERAGE BALANCES AND AVERAGE INTEREST RATES
(Dollars In Thousands)
(Unaudited)
             
  Twelve Months Ended December 31,
(Dollars in thousands) 2009 2008
  Average   Average Average   Average
Earning Assets: Balance Interest (1) Rate (2) Balance Interest (1) Rate (2)
Securities:            
Tax exempt(3) $28,102 $1,747 6.22% $23,720 $1,458 6.15%
Taxable 59,035 2,587 4.38% 47,234 2,266 4.80%
Total securities 87,137 4,334 4.97% 70,954 3,724 5.25%
Total loans receivable (4) 326,740 19,259 5.89% 307,845 19,150 6.22%
Other interest-earning assets 19,208 45 0.23% 14,749 261 1.77%
Total earning assets 433,085 $23,638 5.46% 393,548 $23,135 5.88%
             
Non-interest earning assets 36,355     31,359    
Allowance for loan losses (5,824)     (5,182)    
Total Assets $463,616     $419,725    
             
Sources of Funds:            
Interest bearing deposits:            
NOW $57,928 $582 1.00% $58,878 $798 1.36%
Money market 14,709 177 1.21% 23,769 527 2.22%
Savings 169,541 2,759 1.63% 85,707 2,350 2.74%
Time 101,565 2,803 2.76% 127,475 5,071 3.98%
Total interest bearing deposits 343,743 6,321 1.84% 295,829 8,746 2.96%
Borrowed funds 33,139 1,426 4.30% 35,971 1,507 4.19%
Junior subordinated debentures 12,887 306 2.38% 12,887 590 4.57%
Total interest bearing liabilities 389,769 $8,053 2.07% 344,687 $10,843 3.15%
             
Non-interest bearing liabilities:            
Demand deposits 38,154     39,303    
Other liabilities 2,303     2,036    
Total non-interest bearing liabilities 40,457     41,339    
Stockholders' equity 33,390     33,699    
Total Liabilities and Stockholders' Equity $463,616     $419,725    
             
Net Interest Income and Margin (5)   $15,585 3.60%   $12,292 3.12%
             
(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
Donald L. Kovach, Chairman
(973) 827-2914