FRANKLIN, N.J., Oct. 31, 2013 (GLOBE NEWSWIRE) -- Sussex Bancorp (the "Company") (Nasdaq:SBBX), the holding company for Sussex Bank (the "Bank") today announced reported net income of $575 thousand, or $0.14 per basic and diluted share, for the quarter ended September 30, 2013, as compared to net income of $546 thousand, or $0.17 per basic and diluted share, for the same period last year. For the nine months ended September 30, 2013, the Company reported net income of $807 thousand, or $0.23 per basic and diluted share, as compared to net income of $832 thousand, or $0.26 per basic and $0.25 per diluted share, for the same period last year. Net income benefited from strong growth in loans, which increased $44.6 million or 12.8% at September 30, 2013 as compared to December 31, 2012, and declines of 44.5% and 12.9%, in credit quality costs (provision for loan losses, loan collection costs and expenses and write-downs related to foreclosed real estate) for the quarter and year to date for 2013, respectively, as compared to the same periods in the prior year. The declines in credit quality costs were driven by a significant improvement in credit quality as non-performing assets ("NPAs") to total assets improved to 3.2%, which is the lowest level since 2007.
During both reported periods for 2013, net income benefited as credit quality continued to improve. For the three and nine months ended September 30, 2013, credit quality costs declined $686 thousand, or 44.5%, and $582 thousand, or 12.9%, respectively, as compared to the same periods in 2012. Excluding credit quality costs and gain on securities transactions, income before income taxes was $1.6 million and $4.3 million, respectively, for the three and nine months ended September 30, 2013.
Also during the third quarter, the Company successfully completed a rights offering that was fully subscribed and resulted in gross proceeds totaling approximately $7.2 million and the issuance of an additional 1,198,300 shares of Company common stock. Including standby commitments of approximately $2.4 million, the Company had total commitments of approximately $16.6 million to purchase the Company's common stock.
"We continue to grow our principal business lines, despite the challenging operating environment, which is exemplified by a 20% annualized growth rate in our commercial loan portfolio. The organically generated loan production enhanced our net interest margin and grew our net interest income, which improved our core earnings for the quarter," said Anthony Labozzetta, President and Chief Executive Officer of Sussex Bank. Mr. Labozzetta also stated, "We have reduced our legacy problem assets considerably and as of the end of this quarter, our NPAs were $17.3 million or 3.23% of total assets, a decrease of $12.5 million, or 42.0% as compared to the same period last year." Additionally, Mr. Labozzetta noted that, "Included in the $17.3 million of NPAs are $4.3 million of loans that have already been restructured and that are currently performing in accordance with their modified terms, leaving $13.0 million or 2.4% of total assets left to be resolved at September 30, 2013."
Financial Performance
Net Income. For the quarter ended September 30, 2013, the Company reported net income of $575 thousand, or $0.14 per basic and diluted share, as compared to net income of $546 thousand, or $0.17 per basic and diluted share, for the same period last year. The increase in net income for the quarter ended September 30, 2013 was largely due to decreases in credit quality costs, which decreased $686 thousand or 44.5%, which was partially offset by a decrease in gain on securities transactions of $569 thousand.
For the nine months ended September 30, 2013, the Company reported net income of $807 thousand, or $0.23 per basic and diluted share, as compared to net income of $832 thousand, or $0.26 per basic and $0.25 per diluted share, for the same period last year. The decline in net income for the nine months ended September 30, 2013 was primarily attributed to an increase in non-interest expenses of $437 thousand, or 3.3%, which was partially offset by a decrease in the provision for loan losses of $580 thousand, or 19.8%.
Net Interest Income. Net interest income on a fully tax equivalent basis increased $108 thousand, or 2.5%, to $4.3 million for the third quarter of 2013 as compared to $4.2 million for same period in 2012. The increase in net interest income was largely due to a $29.8 million, or 6.3%, increase in average interest earning assets, principally loans receivable. The aforementioned increase was partly offset by a 13 basis point decline in the net interest margin to 3.44% for the third quarter of 2013 as compared to the same period last year. The decline in the net interest margin was mostly due to a 31 basis point decline in the average rate earned on interest earning assets. This decline was partially offset by a decrease in the average rate paid on total interest bearing liabilities, which decreased 16 basis points to 0.71% for the third quarter of 2013 from 0.87% for the same period in 2012,
Net interest income on a fully tax equivalent basis declined $125 thousand, or 1.0%, to $12.5 million for the first nine months of 2013 as compared to $12.7 million for same period in 2012. The decrease in net interest income was largely due to the Company's net interest margin declining 17 basis points to 3.39% for the first nine months of 2013 compared to the same period last year. The decline in the net interest margin was mostly due to a 34 basis point decline in the average rate earned on interest earning assets. This decline was partially offset by a decrease in the average rate paid on total interest bearing liabilities, which decreased 18 basis points to 0.75% for the first nine months of 2013 from 0.93% for the same period in 2012, and a $18.5 million, or 3.9%, increase in average interest earning assets, principally loans receivable and securities.
Provision for Loan Losses. Provision for loan losses decreased $604 thousand to $500 thousand for the third quarter of 2013, as compared to $1.1 million for the same period in 2012.
Provision for loan losses decreased $580 thousand to $2.3 million for the first nine months of 2013, as compared to $2.9 million for the same period in 2012.
Non-interest Income. The Company reported a decrease in non-interest income of $526 thousand, or 26.8%, to $1.4 million for the third quarter of 2013 as compared to the same period last year. The decrease in non-interest income was largely due to a decrease in gains on securities transactions of $569 thousand, which was partially offset by an increase in insurance commissions and fees of $72 thousand, or 10.5%.
The Company reported a decrease in non-interest income of $18 thousand, or 0.4%, to $4.7 million for the first nine months of 2013 as compared to the same period last year. The decrease in non-interest income was primarily due to a decrease in gains on securities transactions of $364 thousand, which was partially offset by an increase in insurance commissions and fees of $353 thousand, or 18.7%.
Non-interest Expense. The Company's non-interest expenses increased $142 thousand, or 3.3%, to $4.4 million for the third quarter of 2013 as compared to the same period last year. The increase for the third quarter of 2013 versus the same period in 2012 was largely due to increases in salaries and employee benefits expense and expenses related to foreclosed real estate, which increased $191 thousand and $85 thousand, respectively. The aforementioned increases were partly offset by decreases in loan collection costs and professional fees of $167 thousand and $22 thousand, respectively.
The Company's non-interest expenses increased $437 thousand, or 3.3%, to $13.7 million for the first nine months of 2013 as compared to the same period last year. The increase for the first nine months of 2013 versus the same period in 2012 was primarily due to increases in expenses related to foreclosed real estate, salaries and employee benefits expense and other expenses of $286 thousand, $199 thousand and $118 thousand, respectively, which was partially offset by decreases in loan collection costs of $288 thousand.
Financial Condition
At September 30, 2013, the Company's total assets were $534.9 million, an increase of $20.2 million, or 3.9%, as compared to total assets of $514.7 million at December 31, 2012. The increase in total assets was largely driven by net loans receivable growth of $43.9 million, or 12.8%, which was partially offset by a decline in the securities portfolio of $22.9 million, or 18.5%.
The Company saw strong loan growth as total loans receivable, net of unearned income, increased $44.6 million, or 12.8%, to $392.3 million at September 30, 2013, as compared to $347.7 million at December 31, 2012. The increase in loans was primarily in the commercial real estate portfolio, which increased $31.6 million, or 14.0%, to $257.0 million at September 30, 2013, as compared to $225.3 million at December 31, 2012. The Company also saw increases in the residential real estate, construction and commercial and industrial portfolios of $8.1 million, $2.6 million and $1.8 million, respectively, at September 30, 2013, as compared to December 31, 2012.
The Company's total deposits increased $4.5 million, or 1.0%, to $437.0 million at September 30, 2013, from $432.4 million at December 31, 2012. The increase in deposits was due to an increase in non-interest bearing deposits of $11.1 million, or 22.9%, partially offset by a decrease in interest bearing deposits of $6.5 million, or 1.7%, for September 30, 2013, as compared to December 31, 2012. The Company's funding mix continues to improve as low cost deposits grow.
At September 30, 2013, the Company's total stockholders' equity was $46.0 million, an increase of $5.6 million when compared to December 31, 2012. The increase was largely due to an increase in capital due to the successful completion of a rights offering in the third quarter, which was partially offset by a decrease in accumulated other comprehensive income relating to net unrealized losses on available for sale securities. At September 30, 2013, the leverage, Tier I risk-based capital and total risk-based capital ratios for the Bank were 10.39%, 13.75% and 15.01%, respectively, all in excess of the ratios required to be deemed "well-capitalized."
Asset and Credit Quality
The Company continued to improve its asset credit quality as total problem assets and NPAs continued to decline. Overall problem assets (foreclosed real estate, criticized assets and classified assets) are down 14.8% from December 31, 2012, and 52.8% from their historical high at March 31, 2010, and the ratio of NPAs to total assets improved to 3.23% at September 30, 2013, from 4.61% at December 31, 2012. Non-accrual loans to total loans fell to 3.42% at September 30, 2013, which is the lowest level since 2007. In addition, total NPAs and loans past due 30 to 89 days decreased 27.2% and 26.2%, respectively, compared to December 31, 2012, and foreclosed real estate declined 39.3% from December 31, 2012.
NPAs, which include non-accrual loans, loans 90 days past due and still accruing, troubled debt restructured loans currently performing in accordance with renegotiated terms and foreclosed real estate, decreased $6.5 million, or 27.2%, to $17.3 million at September 30, 2013, as compared to $23.8 million at December 31, 2012. Non-accrual loans decreased $4.5 million, or 25.0%, to $13.4 million at September 30, 2013, as compared to $17.9 million at December 31, 2012, and declined 44.1% since September 30, 2012.
The Company continues to actively market its foreclosed real estate properties, which decreased $2.0 million to $3.1 million at September 30, 2013, as compared to $5.1 million at December 31, 2012. The decrease was primarily due to the sale of foreclosed real estate properties and write-downs on foreclosed real estate of $3.9 million and $995 thousand, respectively, which was partially offset by the addition of $2.9 million in new foreclosed real estate properties during the first nine months of 2013. At September 30, 2013, the Company's foreclosed real estate properties had an average value of approximately $220 thousand per property.
The allowance for loan losses was $5.7 million, or 1.4% of total loans, at September 30, 2013, compared to $5.0 million, or 1.4% of total loans, at December 31, 2012. The increase in the allowance for loan losses was largely attributed to $2.3 million in provision for loan losses, which was in partly offset by $1.7 million in net charge-offs for the first nine months of 2013.
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.
| SUSSEX BANCORP | |||||
| SUMMARY FINANCIAL HIGHLIGHTS | |||||
| (In Thousands, Except Percentages and Per Share Data) | |||||
| (Unaudited) | |||||
| 9/30/2013 VS. | |||||
| 9/30/2013 | 12/31/2012 | 9/30/2012 | 9/30/2012 | 12/31/2012 | |
| BALANCE SHEET HIGHLIGHTS - Period End Balances | |||||
| Total securities | $ 101,202 | $ 124,102 | $ 124,595 | (18.8)% | (18.5)% |
| Total loans | 392,300 | 347,736 | 340,395 | 15.2% | 12.8% |
| Allowance for loan losses | (5,655) | (4,976) | (6,721) | (15.9)% | 13.6% |
| Total assets | 534,886 | 514,734 | 504,294 | 6.1% | 3.9% |
| Total deposits | 436,974 | 432,436 | 417,341 | 4.7% | 1.0% |
| Total borrowings and junior subordinated debt | 48,887 | 38,887 | 38,887 | 25.7% | 25.7% |
| Total shareholders' equity | 46,013 | 40,372 | 41,182 | 11.7% | 14.0% |
| FINANCIAL DATA - QUARTER ENDED: | |||||
| Net interest income (tax equivalent) (a) | $ 4,347 | $ 4,102 | $ 4,239 | 2.5% | 6.0% |
| Provision for loan losses | 500 | 1,408 | 1,104 | (54.7)% | (64.5)% |
| Total other income | 1,434 | 2,301 | 1,960 | (26.8)% | (37.7)% |
| Total other expenses | 4,435 | 5,167 | 4,293 | 3.3% | (14.2)% |
| Income before provision for income taxes (tax equivalent) | 846 | (172) | 802 | 5.5% | (591.9)% |
| Provision for income taxes | 143 | (235) | 106 | 34.9% | (160.9)% |
| Taxable equivalent adjustment (a) | 128 | 160 | 150 | (14.7)% | (20.0)% |
| Net income (loss) | $ 575 | $ (97) | $ 546 | 5.3% | (692.8)% |
| Net income (loss) per common share - Basic | $ 0.14 | $ (0.03) | $ 0.17 | (16.1)% | (575.5)% |
| Net income (loss) per common share - Diluted | $ 0.14 | $ (0.03) | $ 0.17 | (16.8)% | (571.3)% |
| Return on average assets | 0.43% | (0.08)% | 0.43% | 0.9% | (672.6)% |
| Return on average equity | 5.40% | (0.94)% | 5.32% | 1.5% | (674.8)% |
| Net interest margin (tax equivalent) | 3.44% | 3.41% | 3.57% | (3.6)% | 0.8% |
| FINANCIAL DATA - YEAR TO DATE: | |||||
| Net interest income (tax equivalent) (a) | $ 12,526 | $ 12,651 | (1.0)% | ||
| Provision for loan losses | 2,342 | 2,922 | (19.8)% | ||
| Total other income | 4,682 | 4,700 | (0.4)% | ||
| Total other expenses | 13,702 | 13,265 | 3.3% | ||
| Income before provision for income taxes (tax equivalent) | 1,164 | 1,164 | -- % | ||
| Provision for income taxes | (29) | (94) | (69.1)% | ||
| Taxable equivalent adjustment (a) | 386 | 426 | (9.4)% | ||
| Net income | $ 807 | $ 832 | (3.0)% | ||
| Net income per common share - Basic | $ 0.23 | $ 0.26 | (12.3)% | ||
| Net income per common share - Diluted | $ 0.23 | $ 0.25 | (9.6)% | ||
| Return on average assets | 0.20% | 0.22% | (6.0)% | ||
| Return on average equity | 2.63% | 2.74% | (4.1)% | ||
| Net interest margin (tax equivalent) | 3.39% | 3.56% | (4.8)% | ||
| SHARE INFORMATION: | |||||
| Book value per common share | $ 9.94 | $ 11.88 | $ 12.12 | (18.0)% | (16.3)% |
| Outstanding shares- period ending | 4,629,113 | 3,397,873 | 3,397,873 | 36.2% | 36.2% |
| Average diluted shares outstanding (year to date) | 3,570,163 | 3,287,017 | 3,282,226 | 8.8% | 8.6% |
| CAPITAL RATIOS: | |||||
| Total equity to total assets | 8.60% | 7.84% | 8.17% | 5.3% | 9.7% |
| Leverage ratio (b) | 10.39% | 9.27% | 9.36% | 11.0% | 12.1% |
| Tier 1 risk-based capital ratio (b) | 13.78% | 12.93% | 13.18% | 4.6% | 6.6% |
| Total risk-based capital ratio (b) | 15.04% | 14.18% | 14.44% | 4.2% | 6.1% |
| ASSET QUALITY AND RATIOS: | |||||
| Non-accrual loans | $ 13,406 | $ 17,871 | $ 23,993 | (44.1)% | (25.0)% |
| Loans 90 days past due and still accruing | 197 | 208 | 59 | 233.9% | (5.3)% |
| Troubled debt restructured loans ("TDRs") (c) | 612 | 608 | 603 | 1.5% | 0.7% |
| Foreclosed real estate | 3,077 | 5,066 | 5,158 | (40.3)% | (39.3)% |
| Non-performing assets ("NPAs") | $ 17,292 | $ 23,753 | $ 29,813 | (42.0)% | (27.2)% |
| Foreclosed real estate, Criticized and Classified Assets | $ 29,783 | $ 34,946 | $ 42,462 | (29.9)% | (14.8)% |
| Loans past due 30 to 89 days | $ 2,033 | $ 2,754 | $ 7,040 | (71.1)% | (26.2)% |
| Charge-offs, net (quarterly) | $ 492 | $ 3,146 | $ 643 | (23.5)% | (84.4)% |
| Charge-offs, net as a % of average loans (annualized) | 0.51% | 3.70% | 0.75% | (31.7)% | (86.1)% |
| Non-accrual loans to total loans | 3.42% | 5.14% | 7.05% | (51.5)% | (33.5)% |
| NPAs to total assets | 3.23% | 4.61% | 5.91% | (45.3)% | (29.9)% |
| NPAs excluding TDR loans (c) to total assets | 3.12% | 4.50% | 5.79% | (46.2)% | (30.6)% |
| Non-accrual loans to total assets | 2.51% | 3.47% | 4.76% | (47.3)% | (27.8)% |
| Allowance for loan losses as a % of non-performing loans | 39.78% | 26.63% | 27.26% | 45.9% | 49.4% |
| Allowance for loan losses to total loans | 1.44% | 1.43% | 1.97% | (27.0)% | 0.7% |
| (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) Sussex Bank capital ratios |
| (c) Troubled debt restructured loans currently performing in accordance with renegotiated terms |
| SUSSEX BANCORP | ||
| CONSOLIDATED BALANCE SHEETS | ||
| (Dollars In Thousands) | ||
| ASSETS | September 30, 2013 | December 31, 2012 |
| (Unaudited) | ||
| Cash and due from banks | $ 7,784 | $ 6,268 |
| Interest-bearing deposits with other banks | 3,256 | 5,400 |
| Cash and cash equivalents | 11,040 | 11,668 |
| Interest bearing time deposits with other banks | 100 | 100 |
| Securities available for sale, at fair value | 95,378 | 118,881 |
| Securities held to maturity | 5,824 | 5,221 |
| Federal Home Loan Bank Stock, at cost | 2,480 | 1,980 |
| Loans receivable, net of unearned income | 392,300 | 347,736 |
| Less: allowance for loan losses | 5,655 | 4,976 |
| Net loans receivable | 386,645 | 342,760 |
| Foreclosed real estate | 3,077 | 5,066 |
| Premises and equipment, net | 6,556 | 6,476 |
| Accrued interest receivable | 1,695 | 1,741 |
| Goodwill | 2,820 | 2,820 |
| Bank owned life insurance | 11,803 | 11,536 |
| Other assets | 7,468 | 6,485 |
| Total Assets | $ 534,886 | $ 514,734 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Liabilities: | ||
| Deposits: | ||
| Non-interest bearing | $ 59,438 | $ 48,375 |
| Interest bearing | 377,536 | 384,061 |
| Total Deposits | 436,974 | 432,436 |
| Borrowings | 36,000 | 26,000 |
| Accrued interest payable and other liabilities | 3,012 | 3,039 |
| Junior subordinated debentures | 12,887 | 12,887 |
| Total Liabilities | 488,873 | 474,362 |
| Total Stockholders' Equity | 46,013 | 40,372 |
| Total Liabilities and Stockholders' Equity | $ 534,886 | $ 514,734 |
| SUSSEX BANCORP | ||||
| CONSOLIDATED STATEMENTS OF INCOME | ||||
| (Dollars In Thousands Except Per Share Data) | ||||
| (Unaudited) | ||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||
| 2013 | 2012 | 2013 | 2012 | |
| INTEREST INCOME | ||||
| Loans receivable, including fees | $ 4,599 | $ 4,467 | $ 13,360 | $ 13,292 |
| Securities: | ||||
| Taxable | 130 | 241 | 410 | 994 |
| Tax-exempt | 254 | 292 | 762 | 827 |
| Interest bearing deposits | 2 | 4 | 9 | 30 |
| Total Interest Income | 4,985 | 5,004 | 14,541 | 15,143 |
| INTEREST EXPENSE | ||||
| Deposits | 419 | 587 | 1,410 | 1,938 |
| Borrowings | 293 | 268 | 828 | 797 |
| Junior subordinated debentures | 54 | 60 | 163 | 183 |
| Total Interest Expense | 766 | 915 | 2,401 | 2,918 |
| Net Interest Income | 4,219 | 4,089 | 12,140 | 12,225 |
| PROVISION FOR LOAN LOSSES | 500 | 1,104 | 2,342 | 2,922 |
| Net Interest Income after Provision for Loan Losses | 3,719 | 2,985 | 9,798 | 9,303 |
| OTHER INCOME | ||||
| Service fees on deposit accounts | 283 | 292 | 840 | 842 |
| ATM and debit card fees | 181 | 165 | 519 | 453 |
| Bank owned life insurance | 85 | 96 | 267 | 300 |
| Insurance commissions and fees | 756 | 684 | 2,245 | 1,892 |
| Investment brokerage fees | 37 | 46 | 136 | 118 |
| Gain on sale of loans, held for sale | -- | -- | -- | 47 |
| Gain on securities transactions | -- | 569 | 399 | 763 |
| Gain on sale of fixed assets | -- | -- | -- | (6) |
| Other | 92 | 108 | 276 | 291 |
| Total Other Income | 1,434 | 1,960 | 4,682 | 4,700 |
| OTHER EXPENSES | ||||
| Salaries and employee benefits | 2,387 | 2,196 | 6,943 | 6,744 |
| Occupancy, net | 342 | 355 | 1,083 | 1,071 |
| Furniture, equipment and data processing | 326 | 326 | 983 | 1,014 |
| Advertising and promotion | 63 | 63 | 198 | 222 |
| Professional fees | 153 | 175 | 536 | 478 |
| Director fees | 106 | 56 | 299 | 236 |
| FDIC assessment | 176 | 177 | 523 | 516 |
| Insurance | 65 | 68 | 204 | 179 |
| Stationary and supplies | 43 | 44 | 143 | 128 |
| Loan collection costs | 37 | 204 | 251 | 539 |
| Expenses and write-downs related to foreclosed real estate | 317 | 232 | 1,325 | 1,039 |
| Amortization of intangible assets | -- | 1 | 1 | 4 |
| Other | 420 | 396 | 1,213 | 1,095 |
| Total Other Expenses | 4,435 | 4,293 | 13,702 | 13,265 |
| Income before Income Taxes | 718 | 652 | 778 | 738 |
| INCOME TAX (BENEFIT) EXPENSE | 143 | 106 | (29) | (94) |
| Net Income | $ 575 | $ 546 | $ 807 | $ 832 |
| OTHER COMPREHENSIVE INCOME: | ||||
| Unrealized (losses) gains on available for sale securities arising during the period | $ 430 | $ 693 | $ (3,327) | $ 1,413 |
| Reclassification adjustment for gain on sales included in net income | -- | (569) | (399) | (763) |
| Income tax benefit (expense) related to other comprehensive income | (173) | (49) | 1,490 | (259) |
| Other comprehensive (loss) income, net of income taxes | 257 | 75 | (2,236) | 391 |
| Comprehensive (loss) income | $ 832 | $ 621 | $ (1,429) | $ 1,223 |
| EARNINGS PER SHARE | ||||
| Basic | $ 0.14 | $ 0.17 | $ 0.23 | $ 0.26 |
| Diluted | $ 0.14 | $ 0.17 | $ 0.23 | $ 0.25 |
| SUSSEX BANCORP | ||||||
| COMPARATIVE AVERAGE BALANCES AND AVERAGE INTEREST RATES | ||||||
| (Dollars In Thousands) | ||||||
| (Unaudited) | ||||||
| Three Months Ended September 30, | ||||||
| 2013 | 2012 | |||||
| Average | Average | Average | Average | |||
| Balance | Interest (1) | Rate (2) | Balance | Interest (1) | Rate (2) | |
| Earning Assets: | ||||||
| Securities: | ||||||
| Tax exempt (3) | $ 30,413 | $ 382 | 4.98% | $ 32,199 | $ 442 | 5.46% |
| Taxable | 81,765 | 130 | 0.63% | 86,766 | 241 | 1.10% |
| Total securities | 112,178 | 512 | 1.81% | 118,965 | 683 | 2.28% |
| Total loans receivable (4) | 383,690 | 4,599 | 4.76% | 342,502 | 4,467 | 5.19% |
| Other interest-earning assets | 5,807 | 2 | 0.14% | 10,405 | 4 | 0.15% |
| Total earning assets | 501,675 | 5,113 | 4.04% | 471,872 | 5,154 | 4.35% |
| Non-interest earning assets | 35,011 | 43,319 | ||||
| Allowance for loan losses | (6,019) | (6,671) | ||||
| Total Assets | $ 530,667 | $ 508,520 | ||||
| Sources of Funds: | ||||||
| Interest bearing deposits: | ||||||
| NOW | $ 114,972 | $ 38 | 0.13% | $ 95,611 | $ 36 | 0.15% |
| Money market | 15,044 | 8 | 0.21% | 14,506 | 11 | 0.30% |
| Savings | 152,168 | 80 | 0.21% | 162,762 | 133 | 0.33% |
| Time | 96,396 | 293 | 1.21% | 104,128 | 407 | 1.55% |
| Total interest bearing deposits | 378,580 | 419 | 0.44% | 377,007 | 587 | 0.62% |
| Borrowed funds | 36,598 | 293 | 3.18% | 26,196 | 268 | 4.07% |
| Junior subordinated debentures | 12,887 | 54 | 1.66% | 12,887 | 60 | 1.85% |
| Total interest bearing liabilities | 428,065 | 766 | 0.71% | 416,090 | 915 | 0.87% |
| Non-interest bearing liabilities: | ||||||
| Demand deposits | 58,591 | 48,702 | ||||
| Other liabilities | 1,405 | 2,676 | ||||
| Total non-interest bearing liabilities | 59,996 | 51,378 | ||||
| Stockholders' equity | 42,606 | 41,052 | ||||
| Total Liabilities and Stockholders' Equity | $ 530,667 | $ 508,520 | ||||
| Net Interest Income and Margin (5) | 4,347 | 3.44% | 4,239 | 3.57% | ||
| Tax-equivalent basis adjustment | (128) | (150) | ||||
| Net Interest Income | $ 4,219 | $ 4,089 | ||||
| (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) | ||||||
| Nine Months Ended September 30, | ||||||
| 2013 | 2012 | |||||
| Average | Average | Average | Average | |||
| Balance | Interest (1) | Rate (2) | Balance | Interest (1) | Rate (2) | |
| Earning Assets: | ||||||
| Securities: | ||||||
| Tax exempt (3) | $ 30,723 | $ 1,148 | 5.00% | $ 29,444 | $ 1,253 | 5.68% |
| Taxable | 91,750 | 410 | 0.60% | 84,774 | 994 | 1.57% |
| Total securities | 122,473 | 1,558 | 1.70% | 114,218 | 2,247 | 2.63% |
| Total loans receivable (4) | 365,847 | 13,360 | 4.88% | 339,839 | 13,292 | 5.22% |
| Other interest-earning assets | 5,294 | 9 | 0.23% | 21,095 | 30 | 0.19% |
| Total earning assets | 493,614 | 14,927 | 4.04% | 475,152 | 15,569 | 4.38% |
| Non-interest earning assets | 38,274 | 42,076 | ||||
| Allowance for loan losses | (5,702) | (7,335) | ||||
| Total Assets | $ 526,186 | $ 509,893 | ||||
| Sources of Funds: | ||||||
| Interest bearing deposits: | ||||||
| NOW | $ 111,947 | $ 109 | 0.13% | $ 94,578 | $ 129 | 0.18% |
| Money market | 14,633 | 23 | 0.21% | 16,962 | 47 | 0.37% |
| Savings | 155,056 | 274 | 0.24% | 163,331 | 492 | 0.40% |
| Time | 99,426 | 1,004 | 1.35% | 107,389 | 1,270 | 1.58% |
| Total interest bearing deposits | 381,062 | 1,410 | 0.49% | 382,260 | 1,938 | 0.68% |
| Borrowed funds | 32,619 | 828 | 3.39% | 26,066 | 797 | 4.08% |
| Junior subordinated debentures | 12,887 | 163 | 1.69% | 12,887 | 183 | 1.90% |
| Total interest bearing liabilities | 426,568 | 2,401 | 0.75% | 421,213 | 2,918 | 0.93% |
| Non-interest bearing liabilities: | ||||||
| Demand deposits | 55,652 | 45,949 | ||||
| Other liabilities | 2,992 | 2,209 | ||||
| Total non-interest bearing liabilities | 58,644 | 48,158 | ||||
| Stockholders' equity | 40,974 | 40,522 | ||||
| Total Liabilities and Stockholders' Equity | $ 526,186 | $ 509,893 | ||||
| Net Interest Income and Margin (5) | 12,526 | 3.39% | 12,651 | 3.56% | ||
| Tax-equivalent basis adjustment | (386) | (426) | ||||
| Net Interest Income | $ 12,140 | $ 12,225 | ||||
| (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 |