200 Munsonhurst Road

Franklin, NJ 07416

SUSSEX BANCORP ANNOUNCES A 13.5% INCREASE IN EARNINGS FOR 2011 

 

FRANKLIN, NEW JERSEY – January 27, 2012– Sussex Bancorp (the “Company”) (NasdaqGM: SBBX), the holding company for Sussex Bank (the “Bank”) today announced a 13.5% increase in net income to $2.5 million, or $0.74 per diluted share, for the year ended December 31, 2011, over the same period in 2010. The Company attributed the increase in net income to growth in non-interest income and net interest income, which was partly offset by higher non-interest expenses. During the fourth quarter of 2011, the Company opened a commercial loan production office and a satellite office for Tri-State Insurance, our insurance subsidiary, in Rochelle Park, New Jersey. The Company’s overall asset credit quality continues to exhibit signs of improvement as total classified/criticized/foreclosed assets have declined 21.0% from a historical high at March 31, 2010. Non-performing assets were slightly down on a linked quarter basis, however increased in 2011 as compared to 2010. Management continues to focus on strengthening the Company’s core operations as well as resolving and mitigating the Company’s credit exposures.

 

“We continued to enhance our Companies capabilities in 2011, with the addition of talented and successful bankers to our team; which has helped build our business, produce double digit earnings growth, manage risk and reduce our overall problem credits 15% in 2011 and 21%, from a historic high in 2010,” said Anthony Labozzetta, President and Chief Executive Officer of Sussex Bank.

 

“While the economic environment remains uncertain and we continue to have high credit costs related to our nonperforming assets; I am encouraged by the productivity of our diverse business lines.  Particularly our commercial lending division, which has experienced a substantial lift in new loans that had begun to close during the final months of the year,” noted Mr. Labozzetta.

 

Mr. Labozzetta added, “While we made significant progress in a number of areas this year, reducing our problem assets will remain our primary focus in 2012.”

 

2011 Highlights

·	Net interest income (tax equivalent basis) increased $548 thousand, or 3.2%, to $17.5 million in 2011.
·	Net interest margin (tax equivalent basis) was 3.87% for 2011, up from 3.81% in 2010.  The improvement was driven by a 30 basis points reduction in funding costs for 2011.
·	Provision for loan losses increased $26 thousand, or 0.8%, to $3.3 million for 2011 as compared to 2010.
·	Non-interest income increased $672 thousand, or 14.6%, to $5.3 million for 2011.  The increase was driven by higher gains on the sales of securities and insurance commissions and fees, which grew by $593 thousand and $199 thousand, respectively, for 2011 as compared to 2010.  Lower service charges on deposits of $116 thousand for 2011 partly offset the aforementioned increases.
·	Non-interest expense increased $755 thousand, or 5.0% to $15.8 million for 2011.  The increase was largely attributed to higher employee related costs of $745 thousand, resulting from a 6.3% increase in salary expense and a 26.7% increase in benefit costs, and higher loan collection costs of $322 thousand.  The aforementioned increases were in part offset by a decline in FDIC assessments of $211 thousand.

·	Segment reporting

o

Our insurance subsidiary, Tri-state Insurance Agency, Inc. (“Tri-State”), reported net income before taxes of $152 thousand for 2011 as compared to a $68 thousand net loss before taxes for the same period last year.

·	Balance sheet

		o	Total assets increased 6.9% as compared to last year.
		o	Gross loans are up 1.1% over last year.
		o	Total deposits increased $39.4 million, or 10.2%, as core deposits increased $20.9 million, or 7.1%, and time deposits grew by $18.5 million, or 20.0%, over last year.

 

 

·	Credit quality

		o	Total classified/criticized/foreclosed assets declined $8.8 million, or 15.1%, to $49.6 million at December 31, 2011 from $58.4 million at December 31, 2010 and have declined 21.0% from a historical high of $62.8 million at March 31, 2010.
		o	Non-performing assets were slightly down on a linked quarter basis, however increased $6.8 million, or 25.8%, for December 31, 2011 as compared to December 31, 2010.  Non-performing assets as a percent of total assets were 6.5% and 5.6% at December 31, 2011 and December 31, 2010, respectively.
		o	The allowance for loan losses totaled $7.2 million at December 31, 2011, or 2.11% of total loans, as compared to $6.4 million, or 1.89% of total loans, at December 31, 2010.

 

·	Capital adequacy

o

At December 31, 2011, the leverage, Tier I risk-based capital and total risk based capital ratios for the Bank were 9.29%, 12.98% and 14.24%, respectively, all in excess of the ratios required to be deemed “well-capitalized.”

 

Fourth Quarter 2011 Financial Results

 

The Company reported net income of $515 thousand for the fourth quarter of 2011, a decrease of $82 thousand, or 13.7%, from net income of $597 thousand for the same period in 2010. Basic and diluted earnings per share for the three months ended December 31, 2011 were $0.16 and $0.15, respectively, compared to the basic and diluted earnings per share of $0.18 for the comparable period of 2010. The decrease in net income was largely due to an increase in non-interest expenses of $389 thousand and a decline in net interest income of $263 thousand, which was in part offset by lower provision for loan losses of $298 thousand and higher non-interest income of $220 thousand for the fourth quarter of 2011 as compared to the same period last year. Fourth quarter results reflected an increase in non-interest expenses largely attributed to higher salaries and employee benefits expenses due in part to the expansion of our commercial lending group and an accrual for an early termination of an employment agreement of $88 thousand. The decline in the net interest income was adversely impacted by a 36 basis point decline in the net interest margin due in part to lower loan yields.

 

Net Interest Income

 

Net interest income, on a fully tax equivalent basis, decreased $260 thousand, or 5.8%, to $4.3 million for the quarter ended December 31, 2011, as compared to the same period in 2010. The decrease in net interest income was largely due to a decline in the net interest margin of 36 basis points to 3.59% for the fourth quarter of 2011 as compared to the same period in 2010. The decline in the net interest margin was mostly due to lower loan yields and an increase in cash balances (other interest earning assets with average rate of 0.22%) resulting from deposit growth ($17.3 million on average) outpacing loan growth ($1.0 million on average) for the fourth quarter 2011 as compared to the same period last year. Total average interest earning assets increased $16.2 million, or 3.6%, for the fourth quarter of 2011 as compared to the same period last year.

 

Provision for Loan Losses

 

Provision for loan losses decreased $298 thousand, or 32.5%, to $618 thousand for the quarter ended December 31, 2011, as compared to $916 thousand for the same period in 2010.

 

Non-interest Income

 

The Company reported an increase in non-interest income of $220 thousand, or 19.8%, to $1.3 million for the quarter ended December 31, 2011. The increase in non-interest income was largely due to $377 thousand in security gains and a $97 thousand, or 21.6%, growth in insurance commissions and fees from Tri-State. The security gains recognized in the fourth quarter of 2011 was largely driven by the execution of two security strategies. The Company sold $5.7 million in municipal securities with long maturities, which generated $236 thousand in net gains, and also sold 24 mortgaged backed securities with an average balance of $96 thousand (total $2.3 million) for a net gain of $141 thousand. The aforementioned increases were partly offset by a $231 thousand impairment write-down on an equity fund and an equity security during the fourth quarter of 2011.

 

Non-interest Expense

 

The Company’s non-interest expenses increased $389 thousand, or 10.2%, to $4.2 million for the quarter ended December 31, 2011. The increase for the fourth quarter of 2011 versus the same period in 2010 was largely due to a $398 thousand increase in salaries and employee benefits. The increase in salaries and employee benefits was mostly attributed to the hiring of more commercial lenders, an accrual for the early termination of an employment agreement and higher medical premium expenses for the fourth quarter of 2011 as compared to the same quarter in 2010.

 

 

Full Year 2011 Financial Results

 

The Company reported net income of $2.5 million for 2011, an increase of $294 thousand, or 13.5%, from net income of $2.2 million for 2010. The increase in net income was largely due to growth in non-interest income of $672 thousand, or 14.6%, and higher net interest income (tax equivalent) of $548 thousand, or 3.2%, for 2011 as compared to 2010. The aforementioned increases were in part offset by higher non-interest expenses. Full year results for 2011 reflected an increase in non-interest expenses of $755 thousand, or 5.0%, for 2011 as compared to 2010, which was largely attributed to higher employee salaries and benefits expenses resulting in part to the expansion of our commercial lending group.

 

Net Interest Income

 

Net interest income, on a fully taxable equivalent basis, increased $548 thousand, or 3.2%, to $17.5 million for the year ended December 31, 2011, as compared to $17.0 million for same period in 2010. The increase in net interest income was attributed to a stronger net interest margin, which improved 6 basis points to 3.87%, and a $6.5 million increase in average interest earning assets for the 2011 as compared to 2010. The improvement in the net interest margin was mostly attributed to a 30 basis point decline in the average rate paid on interest bearing liabilities to 1.10%, which was partly offset by a 21 basis point decrease in the average rate on earning assets to 4.85% for the year ended December 31, 2011 as compared to the same period last year.

 

Provision for Loan Losses

 

Provision for loan losses increased $26 thousand, or 0.8%, to $3.3 million for 2011, as compared to 2010. Additional information is discussed below under the caption “Asset and Credit Quality.”

 

Non-interest Income

 

The Company reported an increase in non-interest income of $672 thousand, or 14.6%, to $5.3 million for the year ended December 31, 2011. The increase in non-interest income was largely due to higher gains on sale of securities, growth in insurance commissions and fees and bank-owned life insurance income of $593 thousand, $199 thousand (9.6%), and $106 thousand (33.8%), respectively, as compared to the same period last year. The security gains during the fourth quarter of 2011 resulted from the execution of strategies aimed at improving the Company’s interest rate risk profile and the sales of mortgaged-backed securities that have significantly paid down since their original purchase date. The aforementioned increases were partly offset by a decline in service fees on deposits, which decreased $116 thousand for 2011 as compared to 2010.

 

Non-interest Expense

 

The Company’s non-interest expenses increased $755 thousand, or 5.0%, to $15.8 million for 2011 as compared to 2010. The increase for 2011 was largely due to an increase in salaries and benefits and loan collection costs of $745 thousand, or 9.6%, and $322 thousand, or 64.2%, respectively. The increase was partly offset by a $211 thousand decline in FDIC assessment costs. The increase in salary and benefits expenses was due in part to the hiring of more commercial lenders, higher medical premiums, 401k costs and recruiting costs. Total salary expense, excluding benefits, increased $414 thousand, or 6.3%, while benefits increased $331 thousand, or 26.7%, for 2011 compared to the same period in 2010. The remaining other expenses declined by 1.7% for 2011 compared to 2010.

 

Financial Condition Comparison

 

At December 31, 2011, the Company’s total assets were $507.0 million, an increase of $32.9 million, or 6.9%, as compared to total assets of $474.0 million at December 31, 2010. The increase in total assets was largely driven by deposit growth resulting in higher interest-bearing deposits with other banks. The Company’s total deposits increased 10.2% to $425.4 million at December 31, 2011 from $386.0 million at December 31, 2010. The increase in deposits was driven by growth in core deposits (non-interest bearing deposits, NOW, savings and money market accounts) of $20.9 million, or 7.1%, and higher time deposits of $18.5 million, or 20.0%, for December 31, 2011 as compared to December 31, 2010.

 

Total loans receivable, net of unearned income, increased $3.4 million, or 1.0%, to $341.6 million at December 31, 2011 from $338.2 million at year-end 2010. The Company’s security portfolio, which includes securities available for sale and securities held to maturity, increased $10.2 million, or 11.3%, to $100.6 million at December 31, 2011, as compared to $90.4 million at December 31, 2010.

 

At December 31, 2011, the Company’s total stockholders’ equity was $39.9 million, an increase of $3.2 million, or 8.8%, as compared to $36.7 million at December 31, 2010.

 

 

Asset and Credit Quality

 

The overall credit quality of the Company is showing signs of improvement as our classified/criticized/foreclosed assets declined $8.8 million, or 15.1%, to $49.6 million at December 31, 2011 from $58.4 million at December 31, 2010 and have declined 21.0% from a historical high of $62.8 million at March 31, 2010. Loans internally rated “Substandard,” “Doubtful” or “Loss” are considered classified assets, while loans rated as “Special Mention” are considered criticized. Such risk ratings are consistent with the classification system used by regulatory agencies and are consistent with industry practices.

 

Non-performing assets were slightly down on a linked quarter basis, however increased from the prior year largely due to increases in foreclosed assets and performing troubled debt restructured loans. Non-performing assets, which include non-accrual loans, performing troubled debt restructured loans and foreclosed assets, increased $6.8 million, or 25.8%, to $33.2 million at December 31, 2011, as compared to $26.4 million at December 31, 2010. The ratio of non-performing assets to total assets for December 31, 2011 and December 31, 2010 were 6.5% and 5.6%, respectively.

 

The increase in non-performing assets occurred in:

 

·	non-accrual loans, which increased $1.6 million, or 7.1%, to $24.3 million at December 31, 2011- the average loan balance was approximately $357 thousand at December 31, 2011 as compared to $384 thousand at December 31, 2010.
·	performing troubled debt restructured loans increased $2.1 million largely due to one loan of $1.5 million, which has been performing since the loan was restructured during the second quarter of 2011.
·	foreclosed assets increased $3.1 million and the average recorded investment for each property is approximately $424 thousand.

 

The allowance for loan losses was $7.2 million, or 2.11% of total loans, at December 31, 2011 compared to $6.4 million, or 1.89% of total loans at December 31, 2010.

 

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 Web site at www.sussexbank.com.

 

Forward-Looking Statements

This press release contains statements that are forward looking and are made pursuant to the “safe-harbor” provisions of the Private Securities Litigation Reform Act of 1995 (the “Reform Act”). Such statements may be identified by the use of words such as "expect," "estimate," “assume,” "believe," "anticipate," "will," "forecast," "plan," "project," or similar words. Such statements are based on the Company’s current expectations and are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others, changes to interest rates, the ability to control costs and expenses, general economic conditions, the success of the Company’s efforts to diversify its revenue base by developing additional sources of non-interest income while continuing to manage its existing fee based business, risks associated with the quality of the Company’s assets and the ability of its borrowers to comply with repayment terms.  Further information about these and other relevant risks and uncertainties may be found in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2010, 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.

 

Contacts: Anthony Labozzetta, President/CEO

  Steven Fusco, SVP/CFO

  973-827-2914

 

 

SUSSEX BANCORP

SUMMARY FINANCIAL HIGHLIGHTS

(In Thousands, Except Percentages and Per Share Data)

(Unaudited)

 

														12/31/11 VS.
		12/31/2011				9/30/2011				12/31/2010				12/31/2010				9/30/2011
BALANCE SHEET HIGHLIGHTS - Period End Balances
Total securities		$	102,418			$	83,737			$	92,615				10.6	%			22.3	%
Total loans			341,632				337,794				338,234				1.0	%			1.1	%
Allowance for loan losses			(7,210	)			(7,401	)			(6,397	)			12.7	%			(2.6	)%
Total assets			506,953				495,884				474,024				6.9	%			2.2	%
Total deposits			425,376				415,050				385,967				10.2	%			2.5	%
Total borrowings and junior subordinated debt			38,887				38,887				48,887				(20.5	)%			-	%
Total shareholders' equity			39,902				39,388				36,666				8.8	%			1.3	%
FINANCIAL DATA - QUARTER ENDED:
Net interest income (tax equivalent) (a)		$	4,251			$	4,339			$	4,511				(5.8	)%			(2.0	)%
Provision for loan losses			618				737				916				(32.5	)%			(16.1	)%
Total other income			1,331				1,206				1,111				19.8	%			10.4	%
Total other expenses			4,199				4,025				3,810				10.2	%			4.3	%
Provision for income taxes			102				97				154				(33.9	)%			5.2	%
Taxable equivalent adjustment (a)			148				152				145				2.4	%			(2.9	)%
Net income		$	515			$	534			$	597				(13.7	)%			(3.5	)%
Net income per common share - Basic		$	0.16			$	0.16			$	0.18				(11.1	)%			0.0	%
Net income per common share - Diluted		$	0.15			$	0.16			$	0.18				(16.7	)%			(6.2	)%
Return on average assets			0.41	%			0.44	%			0.49	%			(16.7	)%			(6.3	)%
Return on average equity			5.22	%			5.49	%			6.44	%			(19.1	)%			(5.0	)%
Efficiency ratio (b)			77.27	%			74.64	%			69.56	%			11.1	%			3.5	%
Net interest margin (tax equivalent)			3.59	%			3.80	%			3.95	%			(9.0	)%			(5.4	)%
FINANCIAL DATA - YEAR TO DATE:
Net interest income (tax equivalent) (a)		$	17,515			$	13,263			$	16,967				3.2	%
Provision for loan losses			3,306				2,688				3,280				0.8	%
Total other income			5,283				3,952				4,611				14.6	%
Total other expenses			15,783				11,584				15,028				5.0	%
Income before provision for income taxes (tax equivalent)			3,709				2,943				3,270				13.4	%
Provision for income taxes			637				535				542				17.5	%
Taxable equivalent adjustment (a)			602				453				552				9.0	%
Net income		$	2,470			$	1,955			$	2,176				13.5	%
Net income per common share - Basic		$	0.76			$	0.60			$	0.67				13.4	%
Net income per common share - Diluted		$	0.74			$	0.59			$	0.66				12.1	%
Return on average assets			0.51	%			0.55	%			0.46	%			12.1	%
Return on average equity			6.44	%			6.86	%			6.04	%			6.5	%
Efficiency ratio (b)			71.11	%			69.11	%			71.47	%			(0.5	)%
Net interest margin (tax equivalent)			3.87	%			3.97	%			3.81	%			1.7	%
SHARE INFORMATION:
Book value per common share		$	11.83			$	11.68			$	10.94				8.1	%			1.3	%
Outstanding shares- period ending			3,373				3,373				3,352				0.6	%			-	%
Average diluted shares outstanding (Year to date)			3,326				3,326				3,300				0.8	%			-	%
CAPITAL RATIOS:
Total equity to total assets			7.87	%			7.94	%			7.74	%			1.8	%			(0.9	)%
Leverage ratio (c)			9.29	%			9.42	%			9.04	%			2.8	%			(1.4	)%
Tier 1 risk-based capital ratio (c)			12.98	%			13.11	%			12.37	%			4.9	%			(1.0	)%
Total risk-based capital ratio (c)			14.24	%			14.37	%			13.63	%			4.5	%			(0.9	)%
ASSET QUALITY AND RATIOS:
Non-accrual loans		$	24,283			$	27,493			$	22,682				7.1	%			(11.7	)%
Troubled debt restructured loans (d)			3,411				1,313				1,318				158.8	%			159.8	%
Foreclosed real estate			5,509				4,545				2,397				129.8	%			21.2	%
Non-performing assets		$	33,203			$	33,351			$	26,397				25.8	%			(0.4	)%
Loans 90 days past due and still accruing		$	803			$	998			$	49				1,538.8	%			(19.5	)%
Charge-offs, net (quarterly)		$	803			$	872			$	616				30.4	%			(7.9	)%
Charge-offs, net as a % of average loans (annualized)			0.96	%			1.03	%			0.74	%			30.0	%			(7.2	)%
Non-accrual loans to total loans			7.11	%			8.14	%			6.71	%			5.99	%			(12.67	)%
Non-performing assets to total assets			6.55	%			6.73	%			5.57	%			17.6	%			(2.6	)%
Allowance for loan losses as a % of non-performing loans			26.03	%			25.69	%			26.65	%			(2.33	)%			1.33	%
Allowance for loan losses to total loans			2.11	%			2.19	%			1.89	%			11.6	%			(3.7	)%

 

(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) 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)

(Unaudited)

 

		December 31, 2011				December 31, 2010
ASSETS
Cash and due from banks		$	3,903			$	4,672
Interest-bearing deposits with other banks			31,670				10,077
Federal funds sold			-				3,000
Cash and cash equivalents			35,573				17,749
Interest bearing time deposits with other banks			100				600
Securities available for sale, at fair value			96,361				89,380
Securities held to maturity			4,220				1,000
Federal Home Loan Bank Stock, at cost			1,837				2,235
Loans receivable, net of unearned income			341,632				338,234
Less:  allowance for loan losses			7,210				6,397
Net loans receivable			334,422				331,837
Foreclosed real estate			5,509				2,397
Premises and equipment, net			6,778				6,749
Accrued interest receivable			1,735				1,916
Goodwill			2,820				2,820
Bank owned life insurance			11,142				10,173
Other assets			6,456				7,168
Total Assets		$	506,953			$	474,024
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits:
Non-interest bearing		$	44,762			$	35,362
Interest bearing			380,614				350,605
Total Deposits			425,376				385,967
Borrowings			26,000				36,000
Accrued interest payable and other liabilities			2,788				2,504
Junior subordinated debentures			12,887				12,887
Total Liabilities			467,051				437,358
Total Stockholders' Equity			39,902				36,666
Total Liabilities and Stockholders' Equity		$	506,953			$	474,024

 

 

SUSSEX BANCORP

CONSOLIDATED STATEMENTS OF INCOME

(Dollars In Thousands Except Per Share Data)

(Unaudited)

 

		Three Months Ended December 31,								Fiscal Year Ended December 31,
		2011				2010				2011				2010
INTEREST INCOME
Loans receivable, including fees		$	4,588			$	4,863			$	18,798			$	19,057
Securities:
Taxable			325				418				1,314				1,796
Tax-exempt			289				290				1,168				1,110
Federal funds sold			1				2				4				22
Interest bearing deposits			24				13				56				43
Total Interest Income			5,227				5,586				21,340				22,028
INTEREST EXPENSE
Deposits			799				837				3,141				3,995
Borrowings			267				328				1,064				1,393
Junior subordinated debentures			58				55				222				225
Total Interest Expense			1,124				1,220				4,427				5,613
Net Interest Income			4,103				4,366				16,913				16,415
PROVISION FOR LOAN LOSSES			618				916				3,306				3,280
Net Interest Income after Provision for Loan Losses			3,485				3,450				13,607				13,135
OTHER INCOME
Service fees on deposit accounts			322				357				1,290				1,406
ATM and debit card fees			145				131				545				501
Bank owned life insurance			105				94				419				313
Insurance commissions and fees			546				449				2,270				2,071
Investment brokerage fees			42				33				145				166
Realized holding gains on trading securities			-				-				-				7
Gain on sale of securities, available for sale			377				-				645				52
Gain on sale of fixed assets			-				-				-				2
Gain (loss) on sale of foreclosed real estate			(36	)			1				(38	)			18
Impairment write-downs on equity securities			(231	)			-				(231	)			(171	)
Other			61				46				238				246
Total Other Income			1,331				1,111				5,283				4,611
OTHER EXPENSES
Salaries and employee benefits			2,316				1,918				8,528				7,783
Occupancy, net			357				334				1,412				1,345
Furniture, equipment and data processing			306				315				1,177				1,234
Advertising and promotion			31				40				172				178
Professional fees			222				209				661				607
Director Fees			32				82				176				265
FDIC assessment			165				230				700				911
Insurance			53				55				216				222
Stationary and supplies			62				47				184				194
Loan collection costs			218				195				824				502
Write-down on foreclosed real estate			-				32				145				241
Expenses related to foreclosed real estate			92				48				269				270
Amortization of intangible assets			2				3				10				14
Other			343				302				1,309				1,262
Total Other Expenses			4,199				3,810				15,783				15,028
Income before Income Taxes			617				751				3,107				2,718
PROVISION FOR INCOME TAXES			102				154				637				542
Net Income		$	515			$	597			$	2,470			$	2,176
EARNINGS PER SHARE
Basic		$	0.16			$	0.18			$	0.76			$	0.67
Diluted		$	0.15			$	0.18			$	0.74			$	0.66

 

 

SUSSEX BANCORP

COMPARATIVE AVERAGE BALANCES AND AVERAGE INTEREST RATES

(Dollars In Thousands)

(Unaudited)

 

		Three Months Ended December 31,
		2011												2010
		Average								Average				Average								Average
Earning Assets:		Balance				Interest (1)				Rate (2)				Balance				Interest (1)				Rate (2)
Securities:
Tax exempt (3)		$	28,890			$	439				6.02	%		$	30,173			$	435				5.72	%
Taxable			60,439				324				2.13	%			61,509				418				2.69	%
Total securities			89,329				763				3.39	%			91,682				853				3.69	%
Total loans receivable (4)			335,753				4,589				5.42	%			334,770				4,863				5.76	%
Other interest-earning assets			44,064				24				0.22	%			26,500				15				0.23	%
Total earning assets			469,146			$	5,376				4.55	%			452,952			$	5,731				5.02	%
Non-interest earning assets			39,951												37,609
Allowance for loan losses			(7,570	)											(6,394	)
Total Assets		$	501,527											$	484,167
Sources of Funds:
Interest bearing deposits:
NOW		$	88,645			$	81				0.36	%		$	77,782			$	126				0.64	%
Money market			17,485				22				0.50	%			14,175				19				0.54	%
Savings			164,887				241				0.58	%			173,981				311				0.71	%
Time			109,877				454				1.64	%			97,696				381				1.55	%
Total interest bearing deposits			380,893				799				0.83	%			363,634				837				0.91	%
Borrowed funds			26,000				268				4.03	%			31,189				328				4.12	%
Junior subordinated debentures			12,887				58				1.77	%			12,887				55				1.68	%
Total interest bearing liabilities			419,780			$	1,125				1.06	%			407,710			$	1,220				1.19	%
Non-interest bearing liabilities:
Demand deposits			40,108												37,602
Other liabilities			2,117												1,791
Total non-interest bearing liabilities			42,226												39,393
Stockholders' equity			39,520												37,064
Total Liabilities and Stockholders' Equity		$	501,527											$	484,167
Net Interest Income and Margin (5)						$	4,251				3.59	%						$	4,511				3.95	%

 

(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,
		2011												2010
		Average								Average				Average								Average
Earning Assets:		Balance				Interest (1)				Rate (2)				Balance				Interest (1)				Rate (2)
Securities:
Tax exempt (3)		$	29,692			$	1,770				5.96	%		$	28,871			$	1,662				5.76	%
Taxable			54,425				1,314				2.41	%			52,766				1,796				3.40	%
Total securities			84,117				3,084				3.67	%			81,637				3,458				4.24	%
Total loans receivable (4)			339,770				18,798				5.53	%			331,457				19,057				5.75	%
Other interest-earning assets			28,547				60				0.21	%			32,793				65				0.20	%
Total earning assets			452,434			$	21,942				4.85	%			445,887			$	22,580				5.06	%
Non-interest earning assets			38,507												37,945
Allowance for loan losses			(7,314	)											(6,093	)
Total Assets		$	483,627											$	477,739
Sources of Funds:
Interest bearing deposits:
NOW		$	81,374			$	386				0.47	%		$	67,729			$	512				0.76	%
Money market			15,505				83				0.54	%			13,189				93				0.71	%
Savings			168,233				1,122				0.67	%			174,208				1,709				0.98	%
Time			98,673				1,549				1.57	%			101,354				1,681				1.66	%
Total interest bearing deposits			363,785				3,141				0.86	%			356,480				3,995				1.12	%
Borrowed funds			26,642				1,064				3.99	%			32,593				1,393				4.27	%
Junior subordinated debentures			12,887				222				1.72	%			12,887				225				1.75	%
Total interest bearing liabilities			403,314			$	4,427				1.10	%			401,960			$	5,613				1.40	%
Non-interest bearing liabilities:
Demand deposits			39,596												38,255
Other liabilities			2,349												1,525
Total non-interest bearing liabilities			41,944												39,780
Stockholders' equity			38,369												35,999
Total Liabilities and Stockholders' Equity		$	483,627											$	477,739
Net Interest Income and Margin (5)						$	17,515				3.87	%						$	16,967				3.81	%

 

(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