Market Overview

Sussex Bancorp Announces a 42% Increase in EPS Driven by Loan and Deposit Growth for Fiscal 2015 and Declares Quarterly Cash Dividend

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ROCKAWAY, N.J., Jan. 28, 2016 (GLOBE NEWSWIRE) -- Sussex Bancorp (the "Company") (Nasdaq: SBBX), the holding company for Sussex Bank (the "Bank"), today announced a 42.1% increase in net income per diluted common share to $0.81 for the year ended December 31, 2015 as compared to $0.57 for the same period last year. The improvement for 2015 was driven by an 11.5% increase in net interest income as a result of strong growth in loans and deposits, which increased $71.5 million, or 15.1%, and $59.6 million, or 13.0%, respectively.  Additionally, the improvement in net income per diluted common share also benefited from a 58.6% decline in provision for loan losses, which was in part offset by higher non-interest expenses.

For the quarter ended December 31, 2015, the Company reported net income of $913 thousand, or $0.20 per basic and diluted share, as compared to net income of $723 thousand, or $0.16 per basic and diluted share, for the same period last year.  The improvement for the fourth 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).  During the fourth quarter of 2015, the Company incurred a one-time $138 thousand pre-tax charge on disposal of computer hardware as part of outsourcing its core system processing, which resulted in a reduction of net income per diluted share of $0.02.

"Growing our business responsibly continues to be our focus.  To that end, I am pleased to report that in the fourth quarter we were able to achieve our strongest business production of the year.  Our commercial loan portfolio grew 10.8% or 43.2% annualized on $50.0 million of gross loan production, our average deposits grew at an annualized rate of 14.5%, predominately in non-interest bearing deposits and our insurance subsidiary had a strong year, increasing their pre-tax income by 33.7%,"  said Anthony Labozzetta, President and Chief Executive Officer of Sussex Bank.  Mr. Labozzetta also stated, "As I recently noted, spreads continue to tighten due in part to the present hyper-competitive environment, nevertheless our strong business line productivity continues to build our net interest income and other income, which enhances our operating leverage and improves our financial performance."     

In addition, Mr. Labozzetta stated, "In the first quarter of 2016, we will open our next branch in Oradell, NJ.  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.  Furthermore, we are very excited about the advanced business activity surrounding the new location."

Declaration of Quarterly Dividend
The Company's Board of Directors declared a quarterly cash dividend of $0.04 per share, which is payable on February 25, 2016 to common shareholders of record as of the close of business on February 11, 2016. 

Financial Performance
Net Income. For the quarter ended December 31, 2015, the Company reported net income of $913 thousand, or $0.20 per basic and diluted share, as compared to net income of $723 thousand, or $0.16 per basic and diluted share, for the same period last year.  The increase in net income for the quarter ended December 31, 2015 was primarily due to an increase in net interest income of $582 thousand and a decline in the provision for loan losses of $176 thousand.  The aforementioned were partially offset by an increase in non-interest expenses of $433 thousand, which was largely due to a $429 thousand increase in salary and employee benefits associated with an increase in personnel to support our growth initiative in new markets, and a $120 thousand increase in income tax expense.  The decline in non-interest income was due to a one-time $138 thousand pre-tax charge on disposal of computer hardware as part of outsourcing the Company's core system processing, which resulted in a reduction of net income per diluted share of $0.02. 

For the year ended December 31, 2015, the Company reported net income of $3.7 million, or $0.81 per basic and diluted share, as compared to net income of $2.6 million, or $0.57 per basic and diluted share, for the same period last year.  The increase in net income for the year ended December 31, 2015 was largely due to an increase in net interest income of $2.1 million, a decline in the provision for loan losses of $901 thousand and higher non-interest income of $492 thousand, which were partially offset by increases in non-interest expenses of $1.7 million and income tax expense of $639 thousand. Part of the increase in pre-tax income was due to Tri-State Insurance Agency, Inc. which increased $169 thousand, or 33.7% to $670 thousand for the year ended December 31, 2015 as compared to the same period in 2014.   

Net Interest Income.  Net interest income on a fully tax equivalent basis increased $636 thousand, or 13.3%, to $5.4 million for the fourth quarter of 2015, as compared to $4.8 million for the same period in 2014.  The increase in net interest income was largely due to an $85.6 million, or 15.6%, increase in average interest earning assets, principally loans receivable, which increased $64.1 million, or 14.0%.  The improvement in net interest income was partly offset by a decline in the net interest margin of 7 basis points to 3.39% for the fourth quarter of 2015 as compared to the same period in 2014. The decline in the net interest margin was mostly attributed to a 16 basis point decrease in the average rate earned on loans. 

Net interest income on a fully tax equivalent basis increased $2.1 million, or 11.3%, to $20.5 million for the year ended December 31, 2015 as compared to $18.4 million for the same period in 2014.  The increase in net interest income was largely due to a $66.5 million, or 12.6%, increase in average interest earning assets, principally loans receivable, which increased $59.6 million, or 13.9%. The improvement in net interest income was partly offset by a decline in the net interest margin of 4 basis points to 3.45% for the year ended December 31, 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 $176 thousand, or 57.5%, to $130 thousand for the fourth quarter of 2015, as compared to $306 thousand for the same period in 2014.

Provision for loan losses decreased $901 thousand, or 58.6%, to $636 thousand for the year ended December 31, 2015, as compared to $1.5 million for the same period in 2014.

Non-interest Income. Non-interest income decreased $15 thousand, or 1.1%, to $1.4 million for the fourth quarter of 2015, as compared to the same period last year.  The decrease was largely due to an increase in loss on disposal of fixed assets and decline of gains on securities transactions of $133 thousand and $27 thousand, respectively, for the fourth quarter of 2015, as compared to the same period in 2014.  The decline was partly offset by increases in insurance commissions and fees and other income, which increased $111 thousand and $39 thousand, respectively, for the fourth quarter of 2015 as compared to the same period in 2014. 

The Company reported an increase in non-interest income of $492 thousand, or 8.3%, to $6.5 million for the year ended December 31, 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 $547 thousand and $166 thousand, respectively, which were partially offset by a decrease in service fees on deposit accounts of $141 thousand and an increase in loss on disposal of fixed assets of $125 thousand for the year ended December 31, 2015, as compared to the same period in 2014.

Non-interest Expense. The Company's non-interest expenses increased $433 thousand, or 9.1%, to $5.2 million for the fourth quarter of 2015, as compared to the same period last year.  The increase for the fourth quarter of 2015, as compared to the same period in 2014, was largely due to increases in salaries and employee benefits of $429 thousand and in other expenses of $106 thousand, which were partially offset by a decrease in expenses and write-downs related to foreclosed real estate of $100 thousand. 

The Company's non-interest expenses increased $1.7 million, or 9.2%, to $20.6 million for the year ended December 31, 2015 as compared to the same period last year.  The increase for the year ended December 31, 2015, as compared to the same period in 2014, was largely due to increases in salaries and employee benefits of $1.4 million, other expenses of $336 thousand, furniture and equipment expenses of $136 thousand, occupancy expenses, net of $127 thousand, and expenses and write-downs related to foreclosed real estate of $103 thousand, which were partially offset by decreases in loan collection costs of $173 thousand, FDIC fees of $161 thousand, and data processing of $61 thousand.

The increases for the three and twelve months ended December 31, 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 three and twelve months ended December 31, 2015 as compared to 2014 in various categories, including occupancy, furniture and equipment, and other expenses were mostly related to the opening of our Astoria branch in the first quarter of 2015 and costs associated with our new core application system, which was implemented in the third quarter of 2014.

Financial Condition
At December 31, 2015, the Company's total assets were $684.5 million, an increase of $88.6 million, or 14.9%, as compared to total assets of $595.9 million at December 31, 2014.  The increase in total assets was largely driven by growth in loans receivable of $71.5 million, or 15.1% and the securities portfolio of $16.6 million, or 19.8%. 

Total loans receivable, net of unearned income, increased $71.5 million, or 15.1%, to $543.4 million at December 31, 2015, as compared to $472.0 million at December 31, 2014.  During the year ended December 31, 2015, the Company had $158.1 million in commercial loan production, which was partly offset by $34.4 million in commercial loan prepayments, including 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 fourth quarter of 2015, total loans receivable, net of unearned income, increased $42.2 million, or 33.7% annualized, to $543.4 million at December 31, 2015, as compared to $501.2 million at September 30, 2015. 

The Company's total deposits increased $59.6 million, or 13.0%, to $517.9 million at December 31, 2015, from $458.3 million at December 31, 2014.  The increase in deposits was due to increases in both interest bearing deposits of $42.9 million, or 11.1%, and non-interest bearing deposits of $16.7 million, or 23.7%, at December 31, 2015, as compared to December 31, 2014.  Included in the aforementioned increase is $21.4 million in average new deposits with a cost of under 0.55% attributed to our newest branch in Astoria, New York, which opened in mid-March of 2015.  During the fourth quarter of 2015, total deposits increased $15.3 million, or 12.2% annualized, to $517.9 million at December 31, 2015, as compared to $502.5 million at September 30, 2015.

At December 31, 2015, the Company's total stockholders' equity was $53.9 million, an increase of $2.7 million when compared to December 31, 2014.  The increase was largely due to net income for the year ended December 31, 2015.  At December 31, 2015, the leverage, Tier I risk-based capital, total risk-based capital and common equity Tier I capital ratios for the Bank were 9.45%, 11.74%, 12.79% and 11.74%, 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 1.49% at December 31, 2015 from 2.02% at December 31, 2014.  NPAs decreased $1.8 million, or 15.2%, to $10.2 million at December 31, 2015, as compared to $12.0 million at December 31, 2014.  Non-accrual loans decreased $613 thousand, or 10.3%, to $5.3 million at December 31, 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 63.8% of total non-accrual loans and 33.1% of total NPAs at December 31, 2015.  The remaining non-accrual loans at December 31, 2015 have an average loan balance of $92 thousand.  Loans past due 30 to 89 days decreased $2.8 million, or 49.9%, to approximately $2.8 million at December 31, 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 $3.4 million at December 31, 2015, as compared to $4.4 million at December 31, 2014.  The decrease was primarily due to the sale of $2.2 million in foreclosed real estate properties and write-downs of $314 thousand during 2015, which were partially offset by $1.4 million in new foreclosed real estate properties.  At December 31, 2015, the Company's foreclosed real estate properties had an average carrying value of approximately $279 thousand per property.

The allowance for loan losses remained flat at $5.6 million, or 1.03% of total loans, at December 31, 2015, compared to $5.6 million, or 1.20% of total loans, at December 31, 2014. The Company recorded $636 thousand in provision for loan losses, which was partially offset by $687 thousand in net charge-offs for the year ended December 31, 2015. The allowance for loan losses as a percentage of non-accrual loans increased to 105.3% at December 31, 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) 
                   
         12/31/2015 VS. 
  12/31/2015 9/30/2015 12/31/2014 12/31/2014 9/30/2015 
BALANCE SHEET HIGHLIGHTS - Period End Balances                
Total securities $ 100,610  $ 100,559  $ 83,982      19.8 %     0.1 % 
Total loans   543,423    501,203    471,973      15.1 %     8.4 % 
Allowance for loan losses     (5,590)     (5,641)     (5,641)     (0.9)%     (0.9)% 
Total assets   684,503    644,019    595,915      14.9 %     6.3 % 
Total deposits   517,856    502,509    458,270      13.0 %     3.1 % 
Total borrowings and junior subordinated debt     108,537      84,187      82,387      31.7 %     28.9 % 
Total shareholders' equity     53,941      53,146      51,229      5.3 %     1.5 % 
                   
FINANCIAL DATA - QUARTER ENDED:                   
Net interest income (tax equivalent) (a) $ 5,414  $ 5,166  $ 4,778      13.3 %     4.8 % 
Provision for loan losses   130    1    306      (57.5)%    12,900.0 % 
Total other income   1,396    1,655    1,411      (1.1)%     (15.6)% 
Total other expenses   5,198    5,363    4,765      9.1 %     (3.1)% 
Income before provision for income taxes (tax equivalent)     1,482      1,457      1,118      32.6 %     1.7 % 
Provision for income taxes   450    390    330      36.4 %     15.4 % 
Taxable equivalent adjustment (a)   119    116    65      83.1 %     2.6 % 
Net income $ 913  $ 951  $ 723      26.3 %     (4.0)% 
                   
Net income per common share - Basic $ 0.20  $ 0.21  $ 0.16      25.0 %     (4.8)% 
Net income per common share - Diluted $ 0.20  $ 0.21  $ 0.16      25.0 %     (4.8)% 
                   
Return on average assets     0.55 %   0.60 %   0.50 %   10.0 %     (9.1)% 
Return on average equity     6.79 %   7.22 %   5.65 %   20.2 %     (6.0)% 
Net interest margin (tax equivalent)     3.39 %   3.43 %   3.46 %   (2.0)%     (1.2)% 
Avg. interest earning assets/Avg. interest bearing liabilities     1.24      1.24      1.22      1.8 %     (0.1)% 
                   
FINANCIAL DATA - YEAR TO DATE:                   
Net interest income (tax equivalent) (a) $ 20,525     $ 18,445      11.3 %     
Provision for loan losses   636       1,537      (58.6)%     
Total other income     6,453         5,961      8.3 %     
Total other expenses   20,553       18,829      9.2 %     
Income before provision for income taxes (tax equivalent)     5,789         4,040      43.3 %     
Provision for income taxes     1,640         1,001      63.8 %     
Taxable equivalent adjustment (a)     449         439      2.3 %     
Net income $   3,700     $   2,600      42.3 %     
                   
Net income per common share - Basic $ 0.81     $ 0.57      42.1 %     
Net income per common share - Diluted $ 0.81     $ 0.57      42.1 %     
                   
Return on average assets     0.59 %      0.46 %   27.0 %     
Return on average equity     7.02 %      5.25 %   33.6 %     
Efficiency ratio (b)     77.47 %      78.56 %   (1.4)%     
Net interest margin (tax equivalent)     3.45 %      3.49 %   (1.1)%     
Avg. interest earning assets/Avg. interest bearing liabilities     1.23         1.20      2.6 %     
                   
SHARE INFORMATION:                   
Book value per common share $   11.61  $   11.44  $   10.99      5.7 %     1.5 % 
Outstanding shares- period ending   4,646,238    4,645,387    4,662,606      (0.4)%     0.0 % 
Average diluted shares outstanding (year to date)   4,591,822    4,591,700    4,580,350      0.3 %     0.0 % 
                   
CAPITAL RATIOS:                   
Total equity to total assets     7.88 %   8.25 %   8.60 %   (8.4)%     (4.5)% 
Leverage ratio (c)   9.45 % 9.82 % 10.19 %   (7.3)%     (3.8)% 
Tier 1 risk-based capital ratio (c)   11.74 % 12.39 % 12.79 %   (8.2)%     (5.2)% 
Total risk-based capital ratio (c)   12.79 % 13.52 % 14.02 %   (8.8)%     (5.4)% 
Common equity Tier 1 capital ratio (c)   11.74 % 12.39 %   -  %   -  %     (5.2)% 
                   
ASSET QUALITY:                   
Non-accrual loans $ 5,311  $ 5,682  $ 5,924      (10.3)%     (6.5)% 
Loans 90 days past due and still accruing     -       -       85      -  %     -  % 
Troubled debt restructured loans ("TDRs") (d)     1,553      1,562      1,590      (2.3)%     (0.6)% 
Foreclosed real estate     3,354      3,335      4,449      (24.6)%     0.6 % 
Non-performing assets ("NPAs") $ 10,218  $ 10,579  $ 12,048      (15.2)%     (3.4)% 
                   
Foreclosed real estate, criticized and classified assets $ 20,778  $ 20,167  $ 21,899      (5.1)%     3.0 % 
Loans past due 30 to 89 days $ 2,823  $ 2,436  $ 5,635      (49.9)%     15.9 % 
Charge-offs, net (quarterly) $   181  $   112  $   374      (51.6)%     61.6 % 
Charge-offs, net as a % of average loans (annualized)     0.14 %   0.09 %   0.33 %   (57.6)%     51.2 % 
Non-accrual loans to total loans     0.98 %   1.13 %   1.26 %   (22.1)%     (13.8)% 
NPAs to total assets     1.49 %   1.64 %   2.02 %   (26.2)%     (9.1)% 
NPAs excluding TDR loans (d) to total assets     1.27 %   1.40 %   1.75 %   (27.9)%     (9.6)% 
Non-accrual loans to total assets     0.78 %   0.88 %   0.99 %   (22.0)%     (12.1)% 
Allowance for loan losses as a % of non-accrual loans     105.25 %   99.28 %   95.22 %   10.5 %     6.0 % 
Allowance for loan losses to total loans     1.03 %   1.13 %   1.20 %   (13.9)%     (8.6)% 
                   
 (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) Troubled debt restructured loans currently performing in accordance with renegotiated terms             
                   

 

SUSSEX BANCORP 
CONSOLIDATED BALANCE SHEETS 
(Dollars In Thousands) 
      
ASSETSDecember 31, 2015  December 31, 2014 
     
Cash and due from banks$  2,914   $  2,953  
Interest-bearing deposits with other banks   3,206      2,906  
Cash and cash equivalents   6,120      5,859  
      
Interest bearing time deposits with other banks   100      100  
Securities available for sale, at fair value   93,776      77,976  
Securities held to maturity   6,834      6,006  
Federal Home Loan Bank Stock, at cost   5,165      3,908  
      
Loans receivable, net of unearned income   543,423      471,973  
Less:  allowance for loan losses   5,590      5,641  
Net loans receivable   537,833      466,332  
      
Foreclosed real estate   3,354      4,449  
Premises and equipment, net   8,879      8,650  
Accrued interest receivable   1,764      1,796  
Goodwill   2,820      2,820  
Bank-owned life insurance   12,524      12,211  
Other assets   5,334      5,808  
      
Total Assets$  684,503   $  595,915  
      
LIABILITIES AND STOCKHOLDERS' EQUITY     
      
Liabilities:     
Deposits:     
Non-interest bearing$  87,209   $  70,490  
Interest bearing   430,647      387,780  
Total Deposits   517,856      458,270  
      
Borrowings   95,650      69,500  
Accrued interest payable and other liabilities   4,169      4,029  
Junior subordinated debentures   12,887      12,887  
      
Total Liabilities   630,562      544,686  
      
Total Stockholders' Equity   53,941      51,229  
      
Total Liabilities and Stockholders' Equity$  684,503   $  595,915  
      

 

SUSSEX BANCORP
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(Dollars In Thousands Except Per Share Data)
(Unaudited)
 Three Months Ended December 31, Twelve Months Ended December 31,
  2015   2014   2015   2014 
INTEREST INCOME        
Loans receivable, including fees$  5,660  $  5,149  $  21,497  $  19,512 
Securities:       
Taxable   349     215     1,239     854 
Tax-exempt   239     183     899     923 
Interest bearing deposits   1     -     9     11 
Total Interest Income   6,249     5,547     23,644     21,300 
        
INTEREST EXPENSE       
Deposits   470     419     1,772     1,648 
Borrowings   426     362     1,576     1,434 
Junior subordinated debentures   58     53     220     212 
Total Interest Expense   954     834     3,568     3,294 
        
Net Interest Income   5,295     4,713     20,076     18,006 
PROVISION FOR LOAN LOSSES   130     306     636     1,537 
Net Interest Income after Provision for Loan Losses   5,165     4,407     19,440     16,469 
        
OTHER INCOME       
Service fees on deposit accounts   250     263     906     1,047 
ATM and debit card fees   203     192     776     726 
Bank owned life insurance   78     79     313     322 
Insurance commissions and fees   840     729     3,686     3,139 
Investment brokerage fees   27     29     130     108 
Gain on securities transactions   4     31     271     289 
(Loss) on disposal of fixed assets   (138)    (5)    (130)    (5)
Other   132     93     501     335 
Total Other Income   1,396     1,411     6,453     5,961 
        
OTHER EXPENSES       
Salaries and employee benefits   3,018     2,589     11,506     10,079 
Occupancy, net   421     399     1,751     1,624 
Furniture and equipment   220     269     865     729 
Advertising and promotion   101     70     326     281 
Professional fees   174     220     654     737 
Director fees   126     96     544     475 
FDIC assessment   78     73     446     607 
Insurance   82     70     271     288 
Stationary and supplies   43     50     197     221 
Loan collection costs   32     81     207     380 
Data processing   402     353     1,653     1,714 
Expenses and write-downs related to foreclosed real estate   59     159     535     432 
Other   442     336     1,598     1,262 
Total Other Expenses   5,198     4,765     20,553     18,829 
        
Income before Income Taxes   1,363     1,053     5,340     3,601 
 INCOME TAX EXPENSE    450     330     1,640     1,001 
Net Income $  913  $  723  $  3,700  $  2,600 
        
OTHER COMPREHENSIVE INCOME (LOSS):       
Unrealized (losses) gains on available for sale securities arising during the
period
$  (40) $  291  $  134  $  4,155 
Reclassification adjustment for net gain on securities transactions
included in net income
   (4)    (31)    (271)    (289)
Income tax benefit (expense) related to items of other comprehensive
income (loss)
   17     (104)    54     (1,546)
Other comprehensive (loss) income, net of income taxes   (27)    156     (83)    2,320 
Comprehensive income$  886  $  879  $  3,617  $  4,920 
        
EARNINGS PER SHARE       
Basic$  0.20  $  0.16  $  0.81  $  0.57 
Diluted$  0.20  $  0.16  $  0.81  $  0.57 
        

 

SUSSEX BANCORP
COMPARATIVE AVERAGE BALANCES AND AVERAGE INTEREST RATES
(Dollars In Thousands)
(Unaudited)
             
  Three Months Ended December 31,
  2015
 2014
    Average   Average    Average   Average 
   Balance  Interest Rate (2)  Balance  Interest Rate (2)
Earning Assets:            
Securities:            
Tax exempt (3) $  35,581  $  358   3.99% $  25,860  $  248   3.80%
Taxable    70,262     349   1.97%    53,771     215   1.59%
Total securities    105,843     707   2.65%    79,631     463   2.31%
Total loans receivable (1) (4)    521,047     5,660   4.31%    456,950     5,149   4.47%
Other interest-earning assets    6,259     1   0.06%    10,959     -   0.00%
Total earning assets    633,149     6,368   3.99%  547,540     5,612   4.07%
             
Non-interest earning assets    37,462         37,275     
Allowance for loan losses    (5,636)        (5,699)    
Total Assets $  664,975      $  579,116     
             
Sources of Funds:            
Interest bearing deposits:            
NOW $  136,156  $  65   0.19% $  124,613  $  53   0.17%
Money market    20,121     12   0.24%    12,971     5   0.15%
Savings    137,017     70   0.20%    140,619     72   0.20%
Time    125,877     323   1.02%    107,566     289   1.07%
Total interest bearing deposits    419,171     470   0.44%  385,769     419   0.43%
Borrowed funds  78,720   426   2.15%  51,105     362   2.81%
Junior subordinated debentures  12,887   58   1.79%  12,887     53   1.63%
Total interest bearing liabilities    510,778     954   0.74%  449,761     834   0.74%
             
Non-interest bearing liabilities:            
Demand deposits    96,772         73,986     
Other liabilities    3,618         4,151     
Total non-interest bearing liabilities    100,390         78,137     
Stockholders' equity    53,807         51,218     
Total Liabilities and Stockholders' Equity $  664,975      $  579,116     
             
Net Interest Income and Margin (5)      5,414   3.39%      4,778   3.46%
Tax-equivalent basis adjustment      (119)        (65)  
Net Interest Income   $  5,295      $  4,713   
             
(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,
   2015
  2014
    Average   Average    Average   Average 
   Balance  Interest Rate (2)  Balance  Interest Rate (2)
Earning Assets:            
Securities:            
Tax exempt (3) $  33,688  $  1,348   4.00% $  31,079  $  1,362   4.38%
Taxable    65,402     1,239   1.89%    59,774     854   1.43%
Total securities    99,090     2,587   2.61%    90,853     2,216   2.44%
Total loans receivable (1) (4)    488,963     21,497   4.40%    429,320     19,512   4.54%
Other interest-earning assets    7,109     9   0.13%    8,519     11   0.13%
Total earning assets  595,162     24,093   4.05%  528,692     21,739   4.11%
             
Non-interest earning assets    37,834         36,881     
Allowance for loan losses    (5,698)        (5,688)    
Total Assets $  627,298      $  559,885     
             
Sources of Funds:            
Interest bearing deposits:            
NOW $  130,569  $  227   0.17% $  118,913  $  184   0.15%
Money market    17,287     35   0.20%    11,901     17   0.14%
Savings    139,120     282   0.20%    143,965     296   0.21%
Time    119,256     1,228   1.03%    105,748     1,151   1.09%
Total interest bearing deposits  406,232     1,772   0.44%  380,527     1,648   0.43%
Borrowed funds  65,600     1,576   2.40%  48,246     1,434   2.97%
Junior subordinated debentures  12,887     220   1.71%  12,887     212   1.65%
Total interest bearing liabilities  484,719     3,568   0.74%  441,660     3,294   0.75%
             
Non-interest bearing liabilities:            
Demand deposits    86,016         65,720     
Other liabilities    3,848         3,011     
Total non-interest bearing liabilities    89,864         68,731     
Stockholders' equity    52,715         49,494     
Total Liabilities and Stockholders' Equity $  627,298      $  559,885     
             
Net Interest Income and Margin (5)      20,525   3.45%      18,445   3.49%
Tax-equivalent basis adjustment      (449)        (439)  
Net Interest Income   $  20,076      $  18,006   
             
(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    
             


Contacts: Anthony Labozzetta, President/CEO Steven Fusco, SEVP/CFO 844-256-7328

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