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Sussex Bancorp Announces a 62% Increase in EPS for the Third Quarter of 2015 and Declares Quarterly Cash Dividend

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ROCKAWAY, N.J., Oct. 29, 2015 (GLOBE NEWSWIRE) -- Sussex Bancorp (the "Company") (Nasdaq: SBBX), the holding company for Sussex Bank (the "Bank"), today announced reported net income of $951 thousand, or $0.21 per basic and diluted share, for the quarter ended September 30, 2015, as compared to net income of $592 thousand, or $0.13 per basic and diluted share, for the same period last year. This increase equates to a 61.5% increase in net income per diluted common share for the quarter ended September 30, 2015, as compared to the same period last year. The improvement for the third quarter of 2015 was driven by loan and deposit growth, an increase in pre-tax income generated from our insurance subsidiary and a decline in credit quality costs (provision for loan losses, loan collection costs and expenses and write-downs related to foreclosed real estate). For the first nine months ended September 30, 2015, the Company reported net income of $2.8 million, or $0.61 per basic and diluted share, an increase of over 48% as compared to the same period last year.

"I am pleased to report that our strong organic growth continued in the third quarter. Our loan portfolio grew 4.6% or 18.5% annualized on $54.2 million of gross loan production, our deposits grew at an annualized rate of 12.0%, predominately in non-interest bearing deposits and our insurance subsidiary had a strong quarter, increasing their pre-tax income 477%," said Anthony Labozzetta, President and Chief Executive Officer of Sussex Bank. Mr. Labozzetta also stated, "While spreads in our industry are tightening due in part to the present hyper-competitive environment, the contributions from all of our business lines not only helped keep our net interest margin relatively stable, but also produced the positive operating leverage necessary to drive our improved financial performance."

In addition, Mr. Labozzetta stated, "We are excited about opening our next branch in Oradell, NJ which is scheduled for the first quarter of 2016. Comparable to our successful Astoria location, the Oradell branch will utilize our new model that includes more technology, a smaller footprint and a new approach to staffing."

Declaration of Quarterly Dividend

The Company's Board of Directors declared a quarterly cash dividend of $0.04 per share, which is payable on November 25, 2015 to common shareholders of record as of the close of business on November 11, 2015.

Financial Performance

Net Income. For the quarter ended September 30, 2015, the Company reported net income of $951 thousand, or $0.21 per basic and diluted share, as compared to net income of $592 thousand, or $0.13 per basic and diluted share, for the same period last year. The increase in net income for the quarter ended September 30, 2015 was primarily due to an increase in net interest income of $508 thousand, a decline in the provision for loan losses of $377 thousand and an increase in pre-tax income from our insurance subsidiary, Tri-State Insurance Agency, Inc., which increased $143 thousand to $173 thousand for the third quarter of 2015 as compared to the same period in 2014. The aforementioned were partially offset by an increase in non-interest expenses of $504 thousand, largely due to a $265 thousand increase in expenses and write-downs related to foreclosed real estate associated with the sale and pending sales of $1.3 million of foreclosed real estate in the third quarter of 2015. 

For the nine months ended September 30, 2015, the Company reported net income of $2.8 million, or $0.61 per basic and diluted share, as compared to net income of $1.9 million, or $0.41 per basic and diluted share, for the same period last year. The increase in net income for the nine months ended September 30, 2015 was largely due to increases in net interest income of $1.5 million, non-interest income of $507 thousand, and a decline in the provision for loan losses of $725 thousand, which were partially offset by an increase in non-interest expenses of $1.3 million and income tax expense of $519 thousand. Tri-State Insurance Agency, Inc. pre-tax income increased $175 thousand, or 41.5% to $601 thousand for the nine months ended September 30, 2015 as compared to the same period in 2014.    

Net Interest Income. Net interest income on a fully tax equivalent basis increased $508 thousand, or 10.9%, to $5.2 million for the third quarter of 2015, as compared to $4.7 million for the same period in 2014. The increase in net interest income was largely due to a $64.7 million, or 12.1%, increase in average interest earning assets, principally loans receivable, which increased $51.2 million, or 11.7%. The improvement in net interest income was partly offset by a decline in the net interest margin of 4 basis points to 3.43% for the third quarter of 2015 as compared to the same period in 2014. The decline in the net interest margin was mostly attributed to a 10 basis point decrease in the average rate earned on loans. 

Net interest income on a fully tax equivalent basis increased $1.4 million, or 10.6%, to $15.1 million for the first nine months of 2015 as compared to $13.7 million for the same period in 2014. The increase in net interest income was largely due to a $60.0 million, or 11.5%, increase in average interest earning assets, principally loans receivable, which increased $58.1 million, or 13.8%. The improvement in net interest income was partly offset by a decline in the net interest margin of 3 basis points to 3.47% for the nine months ended September 30, 2015 as compared to the same period in 2014. The decline in the net interest margin was mostly attributed to a 14 basis point decrease in the average rate earned on loans.

Provision for Loan Losses. Provision for loan losses decreased $377 thousand, or 99.7%, to $1 thousand for the third quarter of 2015, as compared to $378 thousand for the same period in 2014.

Provision for loan losses decreased $725 thousand, or 58.9%, to $506 thousand for the first nine months of 2015, as compared to $1.2 million for the same period in 2014.

Non-interest Income. Non-interest income increased $154 thousand, or 10.3%, to $1.7 million for the third quarter of 2015, as compared to the same period last year. For the third quarter of 2015, insurance commissions and fees and other income increased $214 thousand and $73 thousand, respectively, as compared to the same period in 2014. The increases were partia1ly offset by declines in gain on securities transactions and service fees on deposit accounts of $153 thousand and $25 thousand, respectively, for the third quarter of 2015, as compared to the same period in 2014.

The Company reported an increase in non-interest income of $507 thousand, or 11.1%, to $5.1 million for the first nine months of 2015 as compared to the same period last year. The increase in non-interest income was largely due to increases in insurance commissions and fees and other income of $436 thousand and $127 thousand, respectively, which were partially offset by a decrease in service fees on deposit accounts of $128 thousand for the first nine months of 2015, as compared to the same period in 2014.

Non-interest Expense. The Company's non-interest expenses increased $504 thousand, or 10.4%, to $5.4 million for the third quarter of 2015, as compared to the same period last year. The increase for the third quarter of 2015, as compared to the same period in 2014, was largely due to increases in salaries and employee benefits of $288 thousand, expenses and write-downs related to foreclosed real estate of $265 thousand, furniture and equipment expenses of $121 thousand and other expenses of $121 thousand, which were partially offset by decreases in data processing costs of $81 thousand, FDIC fees of $63 thousand and occupancy expenses of $49 thousand. 

The Company's non-interest expenses increased $1.3 million, or 9.2%, to $15.4 million for the first nine months of 2015 as compared to the same period last year. The increase for the first nine months of 2015, as compared to the same period in 2014, was largely due to increases in salaries and employee benefits of $998 thousand, furniture and equipment expenses of $269 thousand, other expenses of $230 thousand and expenses and write-downs related to foreclosed real estate of $203 thousand, which were partially offset by decreases in FDIC fees of $166 thousand, loan collection costs of $124 thousand and data processing of $110 thousand.

The increases for the third quarter and nine month periods for 2015 as compared to 2014 in salaries and employee benefits expense were due in part to an increase in personnel to support our growth initiative in new markets, including the opening of our Astoria branch in the first quarter of 2015, additional staffing for business development and a temporary increase in staffing costs related to the development of a digital banking division. The increases for the third quarter and nine month periods for 2015 as compared to 2014 in furniture and equipment expenses were mostly related to costs associated with our new core application system, which was implemented in the third quarter of 2014.

Financial Condition

At September 30, 2015, the Company's total assets were $644.0 million, an increase of $48.1 million, or 8.1%, as compared to total assets of $595.9 million at December 31, 2014. The increase in total assets was largely driven by growth in loan receivable of $29.2 million, or 6.3% and the securities portfolio of $16.6 million, or 19.7%. 

Total loans receivable, net of unearned income, increased $29.2 million, or 6.2%, to $501.2 million at September 30, 2015, as compared to $472.0 million at December 31, 2014. During the first nine months of 2015, the Company had $102.7 million in commercial loan production, which was largely offset by $27.4 million in commercial loan prepayments, an increase in commercial line of credit pay downs and the sale of $18.3 million in commercial loan participations to mitigate concentration risk. During the third quarter of 2015, total loans receivable, net of unearned income, increased $22.1 million, or 18.5% annualized, to $501.2 million at September 30, 2015, as compared to $479.1 million at June 30, 2015. 

The Company's total deposits increased $44.2 million, or 9.7%, to $502.5 million at September 30, 2015, from $458.3 million at December 31, 2014. The increase in deposits was due to increases in both non-interest bearing deposits of $28.8 million, or 40.9%, and interest bearing deposits of $15.4 million, or 4.0%, for September 30, 2015, as compared to December 31, 2014. Included in the aforementioned increase is $21.9 million in new deposits with a cost of under 0.50% attributed to our newest branch in Astoria, New York, which opened in mid-March of 2015. During the third quarter of 2015, total deposits increased $14.8 million, or 12.0% annualized, to $502.5 million at September 30, 2015, as compared to $487.7 million at June 30, 2015 and was largely attributed to growth in non-interest bearing deposits.

At September 30, 2015, the Company's total stockholders' equity was $53.1 million, an increase of $1.9 million when compared to December 31, 2014. The increase was largely due to net income for the nine months ended September 30, 2015. At September 30, 2015, the leverage, Tier I risk-based capital, total risk-based capital and common equity Tier I capital ratios for the Bank were 9.82%, 12.39%, 13.52% and 12.39%, respectively, all in excess of the ratios required to be deemed "well-capitalized."

Asset and Credit Quality

The ratio of 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, to total assets improved to 1.64% at September 30, 2015 from 2.02% at December 31, 2014. NPAs decreased $1.5 million, or 12.2%, to $10.6 million at September 30, 2015, as compared to $12.0 million at December 31, 2014. Non-accrual loans decreased $242 thousand, or 4.1%, to $5.7 million at September 30, 2015, as compared to $5.9 million at December 31, 2014. The top five non-accrual loan relationships total $3.4 million, which equates to 59.9% of total non-accrual loans and 32.1% of total NPAs at September 30, 2015. The remaining non-accrual loans at September 30, 2015 have an average loan balance of $91 thousand. Loans past due 30 to 89 days decreased $3.2 million, or 56.8%, to $2.4 million at September 30, 2015, as compared to $5.6 million at December 31, 2014. 

The Company continues to actively market its foreclosed real estate properties, which decreased $1.1 million to $3.3 million at September 30, 2015, as compared to $4.4 million at December 31, 2014. The decrease was primarily due to the sale of $2.0 million in foreclosed real estate properties and write-downs of $314 thousand during 2015, which were partially offset by $1.2 million in new foreclosed real estate properties. At September 30, 2015, the Company's foreclosed real estate properties had an average carrying value of approximately $278 thousand per property.

The allowance for loan losses remained flat at $5.6 million, or 1.13% of total loans, at September 30, 2015, compared to $5.6 million, or 1.20% of total loans, at December 31, 2014. The Company recorded $506 thousand in provision for loan losses, which was partially offset by $506 thousand in net charge-offs for the nine months ended September 30, 2015. The allowance for loan losses as a percentage of non-accrual loans increased to 99.3% at September 30, 2015 from 95.2% at December 31, 2014.

About Sussex Bancorp

Sussex Bancorp is the holding company for Sussex Bank, which operates through its regional offices and corporate centers in Wantage and Rockaway, New Jersey, its eleven branch offices located in Andover, Augusta, Franklin, Hackettstown, Newton, Montague, Sparta, Vernon and Wantage, New Jersey, and Port Jervis and Astoria, New York, and 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. 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, 2014 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)
           
        9/30/2015 VS.
  9/30/2015 12/31/2014 9/30/2014 9/30/2014 12/31/2014
BALANCE SHEET HIGHLIGHTS - Period End Balances           
Total securities   $ 100,559  $ 83,982  $ 76,783  31.0%   19.7% 
Total loans  501,203 471,973 442,731  13.2%   6.2% 
Allowance for loan losses   (5,641)  (5,641)  (5,709)  (1.2)%   -- % 
Total assets  644,019 595,915 568,033  13.4%   8.1% 
Total deposits  502,509 458,270 454,541  10.6%   9.7% 
Total borrowings and junior subordinated debt   84,187  82,387  58,887  43.0%   2.2% 
Total shareholders' equity   53,146  51,229  50,416  5.4%   3.7% 
           
FINANCIAL DATA - QUARTER ENDED:           
Net interest income (tax equivalent) (a)   $ 5,166  $ 4,778  $ 4,658  10.9%   8.1% 
Provision for loan losses  1 306 378  (99.7)%   (99.7)% 
Total other income  1,655 1,411 1,501  10.3%   17.3% 
Total other expenses  5,363 4,765 4,859  10.4%   12.5% 
Income before provision for income taxes (tax equivalent)   1,457  1,118  922  58.0%   30.3% 
Provision for income taxes  390 330 214  82.2%   18.2% 
Taxable equivalent adjustment (a)  116 65 116  -- %   78.5% 
Net income   $ 951  $ 723  $ 592  60.6%   31.5% 
           
Net income per common share - Basic   $ 0.21  $ 0.16  $ 0.13  61.5%   31.3% 
Net income per common share - Diluted   $ 0.21  $ 0.16  $ 0.13  61.5%   31.3% 
           
Return on average assets   0.60%   0.50%   0.42%   43.9%   20.9% 
Return on average equity   7.22%   5.65%   4.70%   53.7%   27.9% 
Net interest margin (tax equivalent)   3.43%   3.46%   3.47%   (1.2)%   (0.9)% 
Avg. interest earning assets/Avg. interest bearing liabilities   1.24  1.22  1.21   2.7%   1.9% 
           
FINANCIAL DATA - YEAR TO DATE:           
Net interest income (tax equivalent) (a)   $ 15,111    $ 13,667  10.6%   
Provision for loan losses  506   1,231  (58.9)%   
Total other income   5,057    4,550  11.1%   
Total other expenses  15,355   14,064  9.2%   
Income before provision for income taxes (tax equivalent)   4,307    2,922  47.4%   
Provision for income taxes   1,190    671  77.3%   
Taxable equivalent adjustment (a)   330    374  (11.8)%   
Net income   $ 2,787    $ 1,877  48.5%   
           
Net income per common share - Basic   $ 0.61    $ 0.41  48.8%   
Net income per common share - Diluted   $ 0.61    $ 0.41  48.8%   
           
Return on average assets   0.60%     0.45%   33.7%   
Return on average equity   7.10%     5.12%   38.7%   
Efficiency ratio (b)   77.40%     78.82%   (1.8)%   
Net interest margin (tax equivalent)   3.47%     3.50%   (0.9)%   
Avg. interest earning assets/Avg. interest bearing liabilities   1.22    1.19  2.7%   
           
SHARE INFORMATION:           
Book value per common share   $ 11.44  $ 10.99  $ 10.81  5.9%   4.1% 
Outstanding shares- period ending 4,645,387 4,662,606 4,664,856  (0.4)%   (0.4)% 
Average diluted shares outstanding (year to date) 4,591,700 4,580,350 4,574,663  0.4%   0.2% 
           
CAPITAL RATIOS:           
Total equity to total assets   8.25%  8.60%   8.88%   (7.0)%   (4.0)% 
Leverage ratio (c)  9.82% 10.19% 10.31%  (4.8)%   (3.6)% 
Tier 1 risk-based capital ratio (c)  12.39% 12.79% 13.36%  (7.3)%   (3.1)% 
Total risk-based capital ratio (c)  13.52% 14.02% 14.61%  (7.5)%   (3.6)% 
Common equity Tier 1 capital ratio (c)  12.39%  -- %   -- %   -- %   -- % 
           
ASSET QUALITY:           
Non-accrual loans   $ 5,682  $ 5,924  $ 8,056  (29.5)%   (4.1)% 
Loans 90 days past due and still accruing   --   85  33  --   (100.0)% 
Troubled debt restructured loans ("TDRs") (d)   1,562  1,590  1,601  (2.4)%   (1.8)% 
Foreclosed real estate   3,335  4,449  2,854  16.9%   (25.0)% 
Non-performing assets ("NPAs")   $ 10,579  $ 12,048  $ 12,544  (15.7)%   (12.2)% 
           
Foreclosed real estate, criticized and classified assets   $ 20,167  $ 21,899  $ 21,229  (5.0)%   (7.9)% 
Loans past due 30 to 89 days   $ 2,436  $ 5,635  $ 2,855  (14.7)%   (56.8)% 
Charge-offs, net (quarterly)   $ 112  $ 374  $ 523  (78.6)%   (70.1)% 
Charge-offs, net as a % of average loans (annualized)   0.09%   0.33%   0.48%   (80.8)%   (71.9)% 
Non-accrual loans to total loans   1.13%   1.26%   1.82%   (37.7)%   (9.7)% 
NPAs to total assets   1.64%   2.02%   2.21%   (25.6)%   (18.8)% 
NPAs excluding TDR loans (d) to total assets   1.40%   1.75%   1.93%   (27.3)%   (20.2)% 
Non-accrual loans to total assets   0.88%   0.99%   1.42%   (37.8)%   (11.2)% 
Allowance for loan losses as a % of non-accrual loans   99.28%   95.22%   70.87%   40.1%   4.3% 
Allowance for loan losses to total loans   1.13%   1.20%   1.29%   (12.7)%   (5.8)% 
           
(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) Troubled debt restructured loans currently performing in accordance with renegotiated terms       
 
SUSSEX BANCORP
CONSOLIDATED BALANCE SHEETS
(Dollars In Thousands)
     
ASSETS September 30, 2015 December 31, 2014
  (Unaudited)  
Cash and due from banks  $ 3,104  $ 2,953
Interest-bearing deposits with other banks  5,067  2,906
Cash and cash equivalents  8,171  5,859
     
Interest bearing time deposits with other banks  100  100
Securities available for sale, at fair value  94,702  77,976
Securities held to maturity  5,857  6,006
Federal Home Loan Bank Stock, at cost  4,015  3,908
     
Loans receivable, net of unearned income  501,203  471,973
Less: allowance for loan losses  5,641  5,641
Net loans receivable  495,562  466,332
     
Foreclosed real estate  3,335  4,449
Premises and equipment, net  8,773  8,650
Accrued interest receivable  1,996  1,796
Goodwill  2,820  2,820
Bank-owned life insurance  12,446  12,211
Other assets  6,242  5,808
     
Total Assets  $ 644,019  $ 595,915
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
     
Liabilities:    
Deposits:    
Non-interest bearing  $ 99,316  $ 70,490
Interest bearing  403,193  387,780
Total Deposits  502,509  458,270
     
Borrowings  71,300  69,500
Accrued interest payable and other liabilities  4,177  4,029
Junior subordinated debentures  12,887  12,887
     
Total Liabilities  590,873  544,686
     
Total Stockholders' Equity  53,146  51,229
     
Total Liabilities and Stockholders' Equity  $ 644,019  $ 595,915
 
SUSSEX BANCORP
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(Dollars In Thousands Except Per Share Data)
(Unaudited)
  Three Months Ended September 30, Nine Months Ended September 30,
  2015 2014 2015 2014
INTEREST INCOME        
Loans receivable, including fees  $ 5,390  $ 4,940  $ 15,837  $ 14,363
Securities:        
Taxable  321  208  890  639
Tax-exempt  231  231  660  740
Interest bearing deposits  1  4  8  11
Total Interest Income  5,943  5,383  17,395  15,753
         
INTEREST EXPENSE        
Deposits  448  424  1,302  1,229
Borrowings  390  363  1,150  1,072
Junior subordinated debentures  55  54  162  159
Total Interest Expense  893  841  2,614  2,460
         
Net Interest Income  5,050  4,542  14,781  13,293
PROVISION FOR LOAN LOSSES  1  378  506  1,231
Net Interest Income after Provision for Loan Losses  5,049  4,164  14,275  12,062
         
OTHER INCOME        
Service fees on deposit accounts  230  255  656  784
ATM and debit card fees  198  182  573  534
Bank owned life insurance  78  78  235  243
Insurance commissions and fees  955  741  2,846  2,410
Investment brokerage fees  40  11  103  79
Gain on securities transactions  11  164  267  258
Gain on sale of fixed assets  --  --  8  --
Other  143  70  369  242
Total Other Income  1,655  1,501  5,057  4,550
         
OTHER EXPENSES        
Salaries and employee benefits  2,919  2,631  8,488  7,490
Occupancy, net  410  459  1,330  1,309
Furniture and equipment  221  100  645  376
Advertising and promotion  65  89  225  211
Professional fees  161  153  480  517
Director fees  105  137  418  379
FDIC assessment  120  183  368  534
Insurance  69  70  189  218
Stationary and supplies  49  64  154  171
Loan collection costs  19  53  175  299
Data processing  468  549  1,251  1,361
Expenses and write-downs related to foreclosed real estate  277  12  476  273
Other  480  359  1,156  926
Total Other Expenses  5,363  4,859  15,355  14,064
         
Income before Income Taxes  1,341  806  3,977  2,548
INCOME TAX EXPENSE  390  214  1,190  671
Net Income  $ 951  $ 592  $ 2,787  $ 1,877
         
OTHER COMPREHENSIVE INCOME (LOSS):        
Unrealized (losses) gains on available for sale securities arising during the period  $ 1,024  $ 511  $ 174  $ 3,864
Reclassification adjustment for net gain on securities transactions included in net income  (11)  (164)  (267)  (258)
Income tax benefit (expense) related to items of other comprehensive income (loss)  (405)  (138)  37  (1,442)
Other comprehensive (loss) income, net of income taxes  608  209  (56)  2,164
Comprehensive income  $ 1,559  $ 801  $ 2,731  $ 4,041
         
EARNINGS PER SHARE        
Basic  $ 0.21  $ 0.13  $ 0.61  $ 0.41
Diluted  $ 0.21  $ 0.13  $ 0.61  $ 0.41
 
SUSSEX BANCORP
COMPARATIVE AVERAGE BALANCES AND AVERAGE INTEREST RATES
(Dollars In Thousands)
(Unaudited)
             
  Three Months Ended September 30,
  2015 2014
  Average   Average Average   Average
  Balance Interest Rate (2) Balance Interest Rate (2)
Earning Assets:            
Securities:            
Tax exempt (3)  $ 34,371  $ 347 4.01%  $ 31,047  $ 347 4.43%
Taxable  69,546  321 1.83%  55,260  208 1.49%
Total securities  103,917  668 2.55%  86,307  555 2.55%
Total loans receivable (1) (4)  487,545  5,390 4.39%  436,395  4,940 4.49%
Other interest-earning assets  6,236  1 0.06%  10,249  4 0.15%
Total earning assets  597,698  6,059 4.02% 532,951  5,499 4.09%
             
Non-interest earning assets  37,918      36,948    
Allowance for loan losses  (5,677)      (5,748)    
Total Assets  $ 629,939      $ 564,151    
             
Sources of Funds:            
Interest bearing deposits:            
NOW  $ 129,487  $ 57 0.17%  $ 120,200  $ 49 0.16%
Money market  18,504  10 0.21%  9,371  4 0.17%
Savings  138,020  70 0.20%  144,274  75 0.21%
Time  120,397  311 1.02%  108,241  296 1.08%
Total interest bearing deposits  406,408  448 0.44% 382,086  424 0.44%
Borrowed funds 62,586 390 2.47% 46,378  363 3.11%
Junior subordinated debentures 12,887 55 1.69% 12,887  54 1.66%
Total interest bearing liabilities  481,881  893 0.74% 441,351  841 0.76%
             
Non-interest bearing liabilities:            
Demand deposits  91,454      67,910    
Other liabilities  3,934      4,512    
Total non-interest bearing liabilities  95,388      72,422    
Stockholders' equity  52,670      50,378    
Total Liabilities and Stockholders' Equity  $ 629,939      $ 564,151    
             
Net Interest Income and Margin (5)    5,166 3.43%    4,658 3.47%
Tax-equivalent basis adjustment    (116)      (116)  
Net Interest Income    $ 5,050      $ 4,542  
             
(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,
  2015 2014
  Average   Average Average   Average
  Balance Interest Rate (2) Balance Interest Rate (2)
Earning Assets:            
Securities:            
Tax exempt (3)  $ 33,050  $ 990 4.00%  $ 32,837  $ 1,114 4.54%
Taxable  63,765  890 1.87%  61,796  639 1.38%
Total securities  96,815  1,880 2.60%  94,633  1,753 2.48%
Total loans receivable (1) (4)  478,151  15,837 4.43%  420,009  14,363 4.57%
Other interest-earning assets  7,396  8 0.14%  7,697  11 0.19%
Total earning assets 582,362  17,725 4.07% 522,339  16,127 4.13%
             
Non-interest earning assets  37,958      36,749    
Allowance for loan losses  (5,719)      (5,684)    
Total Assets  $ 614,601      $ 553,404    
             
Sources of Funds:            
Interest bearing deposits:            
NOW  $ 128,686  $ 162 0.17%  $ 116,992  $ 131 0.15%
Money market  16,332  23 0.19%  11,018  12 0.15%
Savings  139,828  212 0.20%  145,093  224 0.21%
Time  117,025  905 1.03%  105,136  862 1.10%
Total interest bearing deposits 401,871  1,302 0.43% 378,239  1,229 0.43%
Borrowed funds 61,179  1,150 2.51% 47,282  1,072 3.03%
Junior subordinated debentures 12,887  162 1.68% 12,887  159 1.65%
Total interest bearing liabilities 475,937  2,614 0.73% 438,408  2,460 0.75%
             
Non-interest bearing liabilities:            
Demand deposits  82,391      62,934    
Other liabilities  3,926      3,149    
Total non-interest bearing liabilities  86,317      66,083    
Stockholders' equity  52,347      48,913    
Total Liabilities and Stockholders' Equity  $ 614,601      $ 553,404    
             
Net Interest Income and Margin (5)    15,111 3.47%    13,667 3.50%
Tax-equivalent basis adjustment    (330)      (374)  
Net Interest Income    $ 14,781      $ 13,293  
             
(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  
CONTACT: Anthony Labozzetta, President/CEO Steven Fusco, SEVP/CFO 844-256-7328

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