FRANKLIN, N.J., Aug. 6, 2013 (GLOBE NEWSWIRE) -- Sussex Bancorp (the "Company") (Nasdaq:SBBX), the holding company for Sussex Bank (the "Bank"), announced today the completion of its rights offering on August 5, 2013. The rights offering, which expired at 5:00 p.m. Eastern time on July 29, 2013, was fully subscribed and resulted in gross proceeds totaling approximately $7.2 million before expenses. In total, including standby commitments of approximately $2.4 million from standby purchasers, the Company had total commitments of approximately $16.6 million to purchase the Company's stock. Over-subscription privilege requests were three times greater than what was available to issue.
"We are very pleased with the overwhelming confidence and support from our shareholders, which resulted in a successful, over-subscribed rights offering. The over-subscription demand validates the progress we have made over the last three years and to an extent substantiates the strategic direction of our Company," said Anthony Labozzetta, President and Chief Executive Officer of the Company and the Bank. "We are accomplishing a great turnaround at Sussex Bank as we continue to simultaneously reduce our legacy problem assets and execute our growth strategy," added Edward Leppert, Chairman of the Board of the Company and the Bank.
Shareholders exercised basic subscription rights and over-subscription privileges to purchase 1,198,300 shares of its common stock at a subscription price of $6.00 per share. As a result, the total number of shares of the Company's common stock outstanding is now 4,629,113, and, as of June 30, 2013, the Company's proforma tangible book value per share, inclusive of the additional shares and capital from the rights offering, was approximately $9.14. All excess subscription payments will be returned, without interest or penalty, as soon as practicable. Further, since the offering was fully subscribed, the Company did not utilize the standby commitments from the standby purchasers to purchase up to 404,161 shares of common stock.
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; 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 (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, 2012, 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.