Sussex Bancorp Announces Fourth Quarter and Full Year Results for 2010

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| Source: Sussex Bancorp

FRANKLIN, N.J., Jan. 31, 2011 (GLOBE NEWSWIRE) -- Sussex Bancorp (the "Company") (Nasdaq:SBBX), the holding company for Sussex Bank (the "Bank") today announced net income available to shareholders of $2.2 million, or $0.66 per diluted share, for the year ended December 31, 2010, which amounted to an 8.2% increase in net income over the same period in 2009. The Company attributed the increase in net income to a 9.4% increase in net interest income, which was largely due to a stronger net interest margin.

For the quarter ended December 31, 2010, the Company reported net income of $597 thousand, an increase of $331 thousand, or 124.7%, as compared to the same period in 2009. Basic and diluted earnings per share were $0.18 in the fourth quarter of 2010 compared to $0.08 for same period in 2009. The Company attributed the increase in net income to a $905 thousand decrease in provision for loan losses and a 9.3% increase in net interest income.

Mr. Anthony Labozzetta, Sussex's President and Chief Executive Officer, commented that "In what can be described as a transition year, I am pleased with the advancements that our Company has made in 2010. I am encouraged with the progress in identifying and resolving our non-performing assets, which have shown signs of stabilization. We have also made substantial enhancements to our credit and risk management culture and improved our operational effectiveness. Simultaneously, we have implemented a sales and performance culture to improve and build each of our lines of business, which will improve our core operating performance."

Mr. Labozzetta also stated that "despite the resources and effort used to enhance our culture and operations as well as the efforts and costs to work through our non-performing assets, the Company reported an 8.2% increase in earnings and a return on average assets of 0.46%." 

2010 Highlights

  • Net interest income (tax equivalent basis) increased $1.4 million to $17.0 million in 2010.
  • Net interest margin (tax equivalent basis) was 3.81% for 2010, up from 3.60% in 2009. The improvement was due to a decline in funding costs for 2010.
  • Provision for loan losses decreased $124 thousand, or 3.6%, for 2010 as compared to the same period last year.
  • Non-interest income decreased $904 thousand, or 16.4%, to $4.6 million for 2010.  The decrease was driven by declines in gain on the sales of securities, fixed assets and foreclosed real estate in 2009, which were lower in total by $455 thousand for 2010 as compared to 2009. In addition, the Company recorded an other-than-temporary impairment charge on equity securities during the second quarter in 2010 of $171 thousand and insurance commissions were lower by $213 thousand for 2010 due in part to market softness.
  • Non-interest expense increased $378 thousand to $15.0 million for 2010. The increase was largely attributed to higher employee related costs, resulting from increases in salary expense of 4.3% and a 14.7% increase in benefits costs.
  • Credit quality shows signs of stabilizing:
  • Nonperforming assets as a percent of total assets was 5.57% and 5.70% at December 31, 2010 and 2009, respectively.
  • Nonperforming assets increased by $453 thousand, or 1.8%, to $26.4 million at December 31, 2010.
  • Net charge-offs for 2010 declined $1.3 million to $2.4 million for 2010.
  • The allowance for loan losses totaled $6.4 million at December 31, 2010, or 1.89% of total loans, as compared to $5.5 million, or 1.65% of total loans, at December 31, 2009.
  • Return on Average Assets of 0.46% for 2010 and 0.43% for 2009.
  • Capital Adequacy: At December 31, 2010 the leverage, Tier I and Total Risk Based Capital ratios for Sussex Bank were 9.04%, 12.37% and 13.63%, respectively, all in excess of the ratios required to be deemed "well-capitalized".

Full Year 2010 Financial Results

Net Interest Income

Net interest income, on a fully taxable equivalent basis, increased $1.4 million, or 8.9%, to $17.0 million for the year ended December 31, 2010, as compared to $15.6 million for 2009. The increase in net interest income was driven by a 21 basis point improvement in the Company's net interest margin to 3.81% for the year ended December 31, 2010. The improvement in the net interest margin was largely due to a 67 basis point decrease in the average rate paid on interest bearing liabilities. In addition, total average earning assets increased by $12.8 million to $445.9 million from $433.1 million for the year ended December 31, 2009. The aforementioned improvement in net interest income was partially offset by a decline in the average rate earned on total earning assets, which decreased 40 basis points to 5.06% in 2010 from 5.46% for 2009.   

Provision for Loan Losses

Provision for loan losses decreased $124 thousand to $3.3 million for the year ended December 31, 2010, as compared to $3.4 million for the same period in 2009. The decline in the provision for loan losses was largely due to non-performing asset levels that were relatively flat for 2010 and a decline in net charge-offs, which decreased  $1.3 million to $2.4 million for 2010.

Non-interest Income

The Company reported non-interest income of $4.6 million for the year ended December 31, 2010 as compared to $5.5 million for the same period in 2009. The decline of $904 thousand was largely due to lower insurance commissions of $213 thousand, a decline in other income of $213 thousand partly attributed to a decrease of $72 thousand in mortgage banking fee income, and a non-cash other than temporary impairment charge of $171 thousand related to an equity portfolio fund during the second quarter of 2010. Also contributing to the decrease in non-interest income for 2010 were declines in gains on the sale of fixed assets, foreclosed assets and securities, which were lower by $203 thousand, $172 thousand, and $82 thousand, respectively, for 2010 as compared to 2009. The aforementioned decline was partly offset by an increase in bank owned life insurance income of $157 thousand for 2010 as compared to 2009. 

Non-interest Expense

The Company's non-interest expenses increased $378 thousand, or 2.6%, to $15.0 million for the year ended December 31, 2010. The growth for 2010 was largely due to an increase of $432 thousand in salaries and employee benefits and an increase in loan collection costs of $54 thousand, or 12.1%, as compared to 2009. The growth in salaries and employee benefits resulted from increases in salary expense of $272 thousand, or 4.3%, and higher benefits costs of $159 thousand, or 14.3%, for 2010 as compared to the prior year. The increase in benefit costs was due in part to higher medical insurance premiums and recruiting costs. The above mentioned increase was partly offset by a decline in write-downs on foreclosed real estate of $215 thousand. 

Fourth Quarter 2010 Financial Results

Net Interest Income

Net interest income, on a fully taxable equivalent basis, increased $379 thousand, or 9.2%, to $4.5 million for the quarter ended December 31, 2010, as compared to $4.1 million for same period in 2009. The increase in net interest income was largely due to growth of $29.9 million in total average earning assets to $453.0 million for the quarter ended December 31, 2010 from $423.1 million for the quarter ended December 31, 2009. In addition, the Company's net interest margin improved 8 basis points to 3.95% for the quarter ended December 31, 2010, which was largely due to a 45 basis point decrease in the average rate paid on interest bearing liabilities. This improvement in net interest income was partially offset by a decline in the average rate earned on total earning assets, which decreased 32 basis points to 5.02% for the fourth quarter of 2010 from 5.46% for the same period in 2009.

Provision for Loan Losses

Provision for loan losses decreased $905 thousand to $916 thousand for the quarter ended December 31, 2010, as compared to $1.8 million for the same period in 2009. The decrease was largely due to two non-performing loans that required an additional $1.0 million in allowance during the fourth quarter of 2009.

Non-interest Income

The Company reported non-interest income of $1.1 million for the quarter ended December 31, 2010, as compared to $1.4 million for the same period in 2009, which amounted to a $334 thousand decrease. The decrease in non-interest income was largely due to declines in gains on the sale of foreclosed assets and securities, which were lower by $224 thousand and $79 thousand, respectively, for the fourth quarter of 2010, as compared to the same period in 2009. In addition, insurance commissions declined $78 thousand for the fourth quarter of 2010, as compared to the same period in 2009. The aforementioned decline was partly offset by an increase in bank-owned life insurance income of $82 thousand for 2010, as compared to 2009. 

Non-interest Expense

The Company's non-interest expenses increased $423 thousand, or 12.5%, to $3.8 million for the quarter ended December 31, 2010. The growth for fourth quarter of 2010 versus the same period in 2009 was largely due to an increase of $191 thousand in salaries and employee benefits and an increase in loan collection costs of $85 thousand, or 77.3%, as compared to 2009.

Financial Condition Comparison for 2010 versus 2009

Balance Sheet

At December 31, 2010, the Company's total assets were $474.0 million, an increase of $19.2 million, or 4.2%, as compared to total assets of $454.8 million at December 31, 2009. The increase in assets was largely driven by growth in deposits. The Company's total deposits increased $13.9 million, or 3.7%, to $386.0 million at December 31, 2010 from $372.1 million at December 31, 2009. The growth in deposits was primarily in core deposits, (non-interest demand, NOW, savings and money market accounts), which increased $23.3 million, or 8.6%, at December 31, 2010, as compared to December 31, 2009. 

The growth in deposits was used to fund loan growth and excess funds were invested into securities and the purchase of additional bank owned life insurance in 2010. The Company's loan portfolio increased $5.2 million to $338.2 million at December 31, 2010 from $333.0 million at December 31, 2009. The Company's security portfolio increased $16.3 million, or 21.4%, to $92.6 million at December 31, 2010, as compared to $76.3 million at December 31, 2009. Bank-owned life insurance increased to $10.1 million at December 31, 2010 due to the Company's purchase of an additional $6.5 million during 2010.  

Capital

At December 31, 2010, the Company's total stockholders' equity was $36.7 million, an increase of $2.2 million, or 6.2%, as compared $34.5 million at December 31, 2009. 

Asset and Credit Quality

Non-performing assets, which include non-accrual loans, renegotiated loans and foreclosed real estate, increased by $453 thousand, or 1.8%, to $26.4 million at December 31, 2010, as compared to $25.9 million at December 31, 2009. On a linked quarter basis, non-performing assets decreased $638 thousand, or 2.4%, from $27.0 million at September 30, 2010. The ratio of non-performing assets to total assets for December 31, 2010 and December 31, 2009 were 5.57% and 5.70%, respectively. The allowance for loan losses was $6.4 million, or 1.89% of total loans, at December 31, 2010, as compared to $5.5 million, or 1.65% of total loans, at December 31, 2009.   

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, and for the Tri-State Insurance Agency, Inc., a full service insurance agency located in Sussex County, New Jersey. For additional information, please visit the company's Web site 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, 2009, 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.

SUSSEX BANCORP
SUMMARY FINANCIAL HIGHLIGHTS
(Dollars in Thousands, Except Percentages and Per Share Data)
(Unaudited)
           
        Q/E 12/31/10 VS.
  12/31/2010 9/30/2010 12/31/2009 Q/E 9/30/10 Q/E 12/31/09
 BALANCE SHEET HIGHLIGHTS - Period End Balances           
 Total securities   $ 92,615  $ 87,779  $ 76,315 5.5% 21.4%
 Total loans  338,234 333,607 332,959 1.4% 1.6%
 Allowance for loan losses   (6,397)   (6,097)  (5,496) 4.9% 16.4%
 Total assets  474,024 484,195 454,841 (2.1)% 4.2%
 Total deposits  385,967 398,737 372,075 (3.2)% 3.7%
 Total borrowings and junior subordinated debt   48,887  45,933  45,977 6.4% 6.3%
 Total shareholders' equity   36,666  36,959  34,527 (0.8)% 6.2%
           
 FINANCIAL DATA - QUARTER ENDED:           
 Net interest income (tax equivalent) (a)   $ 4,511  $ 4,273  $ 4,130 5.6% 9.2%
 Provision for loan losses  916 662 1,821 38.4% (49.7)%
 Total other income   1,111  1,176  1,445 (5.5)% (23.1)%
 Total other expenses  3,810 3,844 3,387 (0.9)% 12.5%
 Provision (benefit) for income taxes  154 168  (33) (8.2)% (567.4)%
 Taxable equivalent adjustment (a )  145 144 134 0.4% 7.7%
 Net income   $ 597  $ 631  $ 266 (5.4)% 124.8%
             
 Net income per common share - Basic   $ 0.18  $ 0.19  $ 0.08 (5.3)% 125.0%
 Net income per common share - Diluted   $ 0.18  $ 0.19  $ 0.08 (5.3)% 125.0%
             
 Return on average assets  0.49% 0.52% 0.23% (5.7)% 111.1%
 Return on average equity  6.44% 6.96% 3.04% (7.4)% 111.9%
 Efficiency ratio (b)  69.56% 72.46% 62.25% (4.0)% 11.7%
 Net interest margin (tax equivalent)  3.95% 3.78% 3.87% 4.5% 2.0%
             
 FINANCIAL DATA - YEAR TO DATE:           
 Net interest income (tax equivalent) (a)   $ 16,967  $ 12,457  $ 15,585   8.9%
 Provision for loan losses  3,280 2,364 3,404   (3.6)%
 Total other income   4,611  3,500  5,515   (16.4)%
 Total other expenses  15,028 11,218 14,650   2.6%
 Provision for income taxes   542  388  452   20.0%
 Taxable equivalent adjustment (a )   552  408  583    
 Net income   $ 2,176  $ 1,579  $ 2,011   8.2%
             
 Net income per common share - Basic   $ 0.67  $ 0.49  $ 0.62   8.1%
 Net income per common share - Diluted   $ 0.66  $ 0.48  $ 0.62   6.5%
             
 Return on average assets  0.46% 0.44% 0.43%   5.0%
 Return on average equity  6.04% 5.91% 6.02%   0.4%
 Efficiency ratio (b)  71.47% 72.15% 71.40%   0.1%
 Net interest margin (tax equivalent)  3.81% 3.76% 3.60%   5.7%
             
 SHARE INFORMATION:           
 Book value per common share   $ 10.94  $ 11.03  $ 10.59 (0.8)% 3.3%
Outstanding shares - period ending 3,352 3,352 3,260 -% 2.8%
Average diluted shares outstanding (Year to date) 3,300 3,294 3,259 0.2% 1.3%
             
 CAPITAL RATIOS:           
 Total equity to total assets  7.74% 7.63% 7.59% 1.3% 1.9%
 Leverage ratio (c)  9.04% 8.94% 9.07% 1.1% (0.3)%
 Tier 1 risk-based capital ratio (c)  12.37% 12.29% 11.91% 0.7% 3.9%
 Total risk-based capital ratio (c)  13.63% 13.55% 13.17% 0.6% 3.5%
             
 ASSET QUALITY AND RATIOS:           
 Non-accrual loans   $ 22,682  $ 22,403  $ 20,216 1.2% 12.2%
 Renegotiated loans (d)  1,318 2,537 1,885 (48.0)% (30.1)%
 Foreclosed real estate   2,397  2,095  3,843 14.4% (37.6)%
 Non-performing assets   $ 26,397  $ 27,035  $ 25,944 (2.4)% 1.7%
           
 Loans 90 days past due and still accruing   $ 49  $ 330  $ 1,392 (85.2)% (96.5)%
 Charge-offs, net (12 months)   $ 2,379    $ 3,721   (36.1)%
 Charge-offs, net as a % of average loans (12 months)  0.72%   1.14%   (36.98)%
 Non-accrual loans to total loans  6.71% 6.72% 6.07% (0.14)% 10.45%
 Non-performing assets to total assets  5.57% 5.58% 5.70% (0.3)% (2.4)%
 Allowance for loan losses as a % of non-performing  loans  26.65% 24.45% 24.87% 9.03% 7.18%
 Allowance for loan losses to total loans  1.89% 1.83% 1.65% 3.5% 14.6%
           
(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 income 
(c) Sussex Bank capital ratios 
(d) Renegotiated loans currently performing in accordance with renegotiated terms 
 
SUSSEX BANCORP
CONSOLIDATED BALANCE SHEETS
(Dollars In Thousands)
(Unaudited)
     
ASSETS December 31, 2010 December 31, 2009
     
Cash and due from banks $4,672 $4,909
Interest-bearing deposits with other banks 10,077 3,870
Federal funds sold 3,000 14,300
 Cash and cash equivalents 17,749 23,079
     
Interest bearing time deposits with other banks 600 100
Trading securities -- 2,955
Securities available for sale 89,380 71,315
Securities held to maturity 1,000 --
Federal Home Loan Bank Stock, at cost 2,235 2,045
     
Loans receivable, net of unearned income 338,234 332,959
 Less: allowance for loan losses 6,397 5,496
 Net loans receivable 331,837 327,463
     
Foreclosed real estate 2,397 3,843
Premises and equipment, net 6,749 7,065
Accrued interest receivable 1,916 1,943
Goodwill 2,820 2,820
Bank-owned life insurance 10,173 3,360
Other assets 7,168 8,853
     
Total Assets $474,024 $454,841
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
     
Liabilities:    
 Deposits:    
 Non-interest bearing  $35,362 $34,155
 Interest bearing  350,605 337,920
 Total Deposits 385,967 372,075
     
Borrowings 36,000 33,090
Accrued interest payable and other liabilities 2,504 2,262
Junior subordinated debentures 12,887 12,887
     
Total Liabilities 437,358 420,314
     
Total Stockholders' Equity 36,666 34,527
     
Total Liabilities and Stockholders' Equity $474,024 $454,841
 
SUSSEX BANCORP
CONSOLIDATED STATEMENTS OF INCOME
(Dollars In Thousands Except Per Share Data)
(Unaudited)
         
  Three Months Ended December 31, Fiscal Year Ended December 31,
  2010 2009 2010 2009
INTEREST INCOME         
 Loans receivable, including fees $4,863 $4,739 $19,057 $19,259
 Securities:        
 Taxable  418 555 1,796 2,587
 Tax-exempt  290 267 1,110 1,164
 Federal funds sold  2 4 22 30
 Interest bearing deposits  13  --  43 15
 Total Interest Income  5,586 5,565 22,028 23,055
         
INTEREST EXPENSE        
 Deposits  837 1,155 3,995 6,321
 Borrowings  328 359 1,393 1,426
 Junior subordinated debentures  55 55 225 306
 Total Interest Expense  1,220 1,569 5,613 8,053
         
 Net Interest Income  4,366 3,996 16,415 15,002
PROVISION FOR LOAN LOSSES  916 1,821 3,280 3,404
 Net Interest Income after Provision for Loan Losses  3,450 2,175 13,135 11,598
         
OTHER INCOME        
 Service fees on deposit accounts  357 372 1,406 1,467
 ATM and debit card fees  131 126 501 480
 Bank-owned life insurance  94 12 313  156
 Insurance commissions and fees  449 527 2,071 2,284
 Investment brokerage fees  33 26 166 137
 Realized holding gains (losses) on trading securities  --  (16) 7 5
 Gain on sale of securities, available for sale  --   79  52 134
 Gain on sale of fixed assets  --   --   2  203
 Gain on sale of foreclosed real estate  1  225 18  190
 Impairment write-downs on equity securities  --   --  (171)  -- 
 Other  46 94 246 459
 Total Other Income  1,111 1,445 4,611 5,515
         
OTHER EXPENSES        
 Salaries and employee benefits  1,918 1,727 7,783 7,351
 Occupancy, net  334 321 1,345 1,300
 Furniture, equipment and data processing  315 295 1,234 1,286
 Advertising and promotion  40 45 178 190
 Professional fees  209 138 607 554
 Director Fees  82 51 265 233
 FDIC assessment  230 249 911 936
 Insurance  55 54 222 194
 Stationary and supplies  47 51 194 179
 Loan collection costs  195 110 502 448
 Write-down on foreclosed real estate  32  --  241  456
 Expenses related to foreclosed real estate   48  45 270  240
 Amortization of intangible assets  3 4 14 18
 Other   302 297 1,262 1,265
 Total Other Expenses  3,810 3,387 15,028 14,650
         
 Income before Income Taxes  751 233 2,718 2,463
PROVISION (BENEFIT) FOR INCOME TAXES  154 (33) 542 452
 Net Income $597 $266 $2,176 $2,011
         
EARNINGS PER SHARE        
 Basic $0.18 $0.08 $0.67 $0.62
 Diluted $0.18 $0.08 $0.66 $0.62
 
SUSSEX BANCORP
COMPARATIVE AVERAGE BALANCES AND AVERAGE INTEREST RATES
(Dollars In Thousands)
(Unaudited)
             
  Three Months Ended December 31,
  2010 2009
   Average   Average   Average   Average 
Earning Assets:  Balance  Interest (1) Rate (2)  Balance  Interest (1) Rate (2)
Securities:            
 Tax exempt (3) $30,173 $435 5.72% $25,995 $401 6.12%
 Taxable  61,509 418 2.69% 51,342 555 4.28%
Total securities 91,682 853 3.69% 77,337 956 4.90%
Total loans receivable (4) 334,770 4,863 5.76% 332,508 4,739 5.65%
Other interest-earning assets 26,500 15 0.23% 13,219 4 0.14%
Total earning assets 452,952 $5,731 5.02% 423,064 $5,699 5.34%
             
Non-interest earning assets 37,609     36,609    
Allowance for loan losses (6,394)     (5,127)    
Total Assets $484,167     $454,546    
             
Sources of Funds:            
Interest bearing deposits:            
 NOW  $77,782 $126 0.64% $60,361 $150 0.98%
 Money market  14,175 19 0.54% 13,465 33 0.98%
 Savings  173,981 311 0.71% 164,726 494 1.19%
 Time  97,696 381 1.55% 95,164 478 1.99%
Total interest bearing deposits 363,634 837 0.91% 333,716 1,155 1.37%
 Borrowed funds 31,189 328 4.12% 33,184 359 4.23%
 Junior subordinated debentures 12,887 55 1.68% 12,887 55 1.68%
Total interest bearing liabilities 407,710 $1,220 1.19% 379,787 $1,569 1.64%
             
Non-interest bearing liabilities:            
 Demand deposits 37,602     37,094    
 Other liabilities 1,791     2,732    
Total non-interest bearing liabilities 39,393     39,826    
Stockholders' equity 37,064     34,933    
Total Liabilities and Stockholders' Equity $484,167     $454,546    
             
Net Interest Income and Margin (5)   $4,511 3.95%   $4,130 3.87%
             
(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)
             
  Twelve Months Ended December 31,
  2010 2009
   Average   Average   Average   Average 
Earning Assets:  Balance  Interest (1) Rate (2)  Balance  Interest (1) Rate (2)
Securities:            
 Tax exempt (3) $28,871 $1,662 5.76% $28,102 $1,747 6.22%
 Taxable  52,766 1,796 3.40% 59,035 2,587 4.38%
Total securities 81,637 3,458 4.24% 87,137 4,334 4.97%
Total loans receivable (4) 331,457 19,057 5.75% 326,740 19,259 5.89%
Other interest-earning assets 32,793 65 0.20% 19,208 45 0.23%
Total earning assets 445,887 $22,580 5.06% 433,085 $23,638 5.46%
             
Non-interest earning assets 37,945     36,355    
Allowance for loan losses (6,093)     (5,824)    
Total Assets $477,739     $463,616    
             
Sources of Funds:            
Interest bearing deposits:            
 NOW  $67,729 $512 0.76% $57,928 $582 1.00%
 Money market  13,189 93 0.71% 14,709 177 1.21%
 Savings  174,208 1,709 0.98% 169,541 2,759 1.63%
 Time  101,354 1,681 1.66% 101,565 2,803 2.76%
Total interest bearing deposits 356,480 3,995 1.12% 343,743 6,321 1.84%
 Borrowed funds 32,593 1,393 4.27% 33,139 1,426 4.30%
 Junior subordinated debentures 12,887 225 1.75% 12,887 306 2.38%
Total interest bearing liabilities 401,960 $5,613 1.40% 389,769 $8,053 2.07%
             
Non-interest bearing liabilities:            
 Demand deposits 38,255     38,154    
 Other liabilities 1,525     2,303    
Total non-interest bearing liabilities 39,780     40,457    
Stockholders' equity 35,999     33,390    
Total Liabilities and Stockholders' Equity $477,739     $463,616    
             
Net Interest Income and Margin (5)   $16,967 3.81%   $15,585 3.60%
             
(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
Anthony Labozzetta, President/CEO
Steven Fusco, SVP/CFO
973-827-2914