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200 Munsonhurst Road

Franklin, NJ 07416

 

 

 

SUSSEX BANCORP REPORTS IMPROVEMENT IN ASSET QUALITY FOR 2012

 

FRANKLIN, NEW JERSEY – January 31, 2013 – Sussex Bancorp (the “Company”) (NasdaqGM: SBBX), the holding company for Sussex Bank (the “Bank”) today announced an improvement of 30.1% in non-performing assets (“NPAs”) for 2012. In addition, overall problem assets are down 44.4% from their historical high at March 31, 2010 and the ratio of NPAs to total assets improved to 4.6% at December 31, 2012 from 6.7% at December 31, 2011. The Company also reported full year results for net income of $735 thousand, or $0.23 per basic share and $0.22 per diluted share, for fiscal year 2012 as compared to $2.5 million, or $0.76 per basic share and $0.74 per diluted share, for the same period last year.

 

“We have made significant progress towards reducing our legacy problem assets, which was one of our primary goals for 2012. This quarter, we have reduced our non-performing assets by 30.1% and our total problem assets by 29.5% as compared to the same period last year. With the prospective sales of several foreclosed real estate properties we are hopeful that this momentum will continue into 2013”, said Anthony Labozzetta, President and Chief Executive Officer of Sussex Bank. “Our operating results have been negatively affected by high levels of credit quality costs related to legacy problem assets. As we continue to reduce our problem assets, we will further improve our financial performance,” added Mr. Labozzetta.

 

Operating Performance

 

For the quarter ended December 31, 2012, the Company reported a net loss of $97 thousand, or $(0.03) per basic and diluted share, as compared to $515 thousand, or $0.16 per basic share and $0.15 per diluted share, for the same period last year. The decrease for the quarter ended December 31, 2012 in net income was largely due to higher expenses and write-downs related to foreclosed real estate of $988 thousand and to higher provision for loan losses of $790 thousand as compared to the same period last year. The aforementioned increases in expenses were partly offset by a $659 thousand increase in gain on the sale of securities.

 

The Company attributed the decrease in net income of $1.7 million, or 70.2%, to $735 thousand for the year ended December 31, 2012, as compared to the same period last year, to an increase in expenses and write-downs related to foreclosed real estate (+$1.7 million), greater provision for loan losses (+$1.0 million), higher operating costs resulting from growth initiatives of the Company and a decline in the net interest margin. These increases in expenses were partly offset by increases in gains on the sale of securities (+$1.2 million) and higher Tri-State Insurance Agency, Inc. net income before taxes of $109 thousand, or 71.5%, for the year ended December 31, 2012 as compared to the same period last year.

 

Net Interest Income. Net interest income on a fully tax equivalent basis declined $149 thousand, or 3.5%, to $4.1 million for the fourth quarter of 2012 as compared to $4.3 million for same period in 2011. The decrease in net interest income was largely due to the Company’s net interest margin declining 18 basis points to 3.41% for the fourth quarter of 2012 compared to the same period last year. The decline in the net interest margin was mostly due to a 33 basis point decline in the average rate earned on loans. This decline in net interest income was partially offset by a decrease in the average rate paid on total interest bearing liabilities, which decreased 22 basis points to 0.84% for the fourth quarter of 2012 from 1.06% for the same period in 2011 and a $9.1 million, or 1.9%, increase in average interest earning assets, principally securities.

 

Net interest income, on a fully tax equivalent basis, decreased $762 thousand, or 4.4%, to $16.8 million for the year ended December 31, 2012, as compared to $17.5 million for same period in 2011. The Company’s net interest margin declined 35 basis points to 3.52% for the year ended December 31, 2012, compared to 3.87% for the same period last year. The decline was mostly attributed to a 34 basis point decline in the average rate earned on loans to 5.19%, which was partly offset by a 19 basis point decrease in the average rate paid on interest bearing liabilities to 0.90% for the year ended December 31, 2012, as compared to the same period last year and a $23.5 million, or 5.2%, increase in average interest earning assets, principally securities.

 

Provision for Loan Losses. Provision for loan losses increased $790 thousand to $1.4 million for the fourth quarter of 2012, as compared to $618 thousand for the same period in 2011.

 

Provision for loan losses increased $1.0 million to $4.3 million for the year ended December 31, 2012, as compared to $3.3 million for the same period last year. The increases in the provision for loan losses for the quarter and year-ended December 31, 2012 were largely attributed to an increase in charge-offs related to the resolution of problem loans.

 

Non-interest Income. The Company reported an increase in non-interest income of $1.0 million, or 75.4%, to $2.3 million for the fourth quarter of 2012 as compared to the same period last year. The increase in non-interest income was largely due to increases of $659 thousand and $70 thousand in gains on the sale of securities and gains on the sale of foreclosed real estate, respectively. Additionally, there was a $231 thousand impairment write-down on equity securities that occurred in the same period last year that did not recur in 2012.

 

 
 

  

The Company reported an increase in non-interest income of $1.8 million, or 33.3%, to $7.0 million for the year ended December 31, 2012, as compared to the same period last year. The increase in non-interest income was largely due to increases in gains on sale of securities, insurance commissions and fees and other income, which increased $1.2 million, $214 thousand and $135 thousand, respectively. Additionally, there was a $231 thousand impairment write-down on equity securities that occurred in the same period last year that did not recur in 2012.

 

Non-interest Expense. The Company’s non-interest expenses increased $1.0 million, or 23.9%, to $5.2 million for the fourth quarter of 2012 as compared to the same period last year. The increase for the fourth quarter of 2012 versus the same period in 2011 was largely due to an increase in expenses related to foreclosed real estate and other expenses, which increased $988 thousand and $47 thousand, respectively.

 

The Company’s non-interest expenses increased $2.7 million, or 17.0%, to $18.5 million for the year ended December 31, 2012, as compared to the same period last year. The increase during 2012 compared to 2011 was largely due to increases in expenses and write-downs related to foreclosed real estate and salaries and benefits of $1.7 million and $459 thousand, respectively. The increase in expenses and write-downs related to foreclosed real estate was principally due to the prospective sales of foreclosed real estate properties. The increase in salaries and employee benefits was mostly attributed to costs related to the hiring of additional commercial lenders and support staff, higher medical benefit costs and severance costs of $110 thousand for a former executive during the first quarter of 2012.

 

Financial Condition Comparison

 

At December 31, 2012, the Company’s total assets were $514.7 million, an increase of $7.8 million, or 1.5%, as compared to total assets of $507.0 million at December 31, 2011. The increase in total assets was largely driven by securities growth of $23.5 million, or 23.4%, and net loans receivable growth of $10.3 million or 3.1%, which was partially offset by a decline in cash and cash equivalents of $25.8 million, or 68.9%.

 

Total loans receivable, net of unearned income, increased $8.0 million, or 2.4%, to $347.7 million at December 31, 2012, from $339.7 million at year-end 2011. During the year ended December 31, 2012, the Company originated approximately $70.0 million in new loans. The loan volume for 2012 was largely offset by pay-offs of non-performing loans and potential problem loans, loans repurchased from a participating bank, and loan charge-offs. During 2012, there were approximately $9.0 million in loans that the Company sold back to the participating bank that had originated the loans. The loans sold included $1.7 million in non-accrual loans and were part of approximately $12.0 million in loans that the Company had negotiated the full pay-off of all contractual amounts due (principal and interest plus $45,000 in fees). The remaining loans are scheduled to be sold back to the participating bank during the first quarter of 2013. Such loans were originated and purchased by the Company between the years of 2003 and 2009.

 

The Company’s securities portfolio, which includes securities available for sale and securities held to maturity, increased $23.5 million, or 23.4%, to $124.1 million at December 31, 2012, as compared to $100.6 million at December 31, 2011.

 

The Company’s total deposits increased $7.0 million, or 1.7%, to $432.4 million at December 31, 2012, from $425.4 million at December 31, 2011. The increase in deposits was due to an increase in non-interest bearing deposits of $3.6 million, or 8.1%, and an increase in interest bearing core deposits of $10.7 million, or 4.0%, which was partially offset by a decrease in time deposits of $7.2 million, or 6.5%, for December 31, 2012 as compared to December 31, 2011. The Company’s funding mix continues to improve as low cost deposits grow.

 

At December 31, 2012, the Company’s total stockholders’ equity was $40.4 million, an increase of $470 thousand when compared to December 31, 2011. At December 31, 2012, the leverage, Tier I risk-based capital and total risk-based capital ratios for the Bank were 9.27%, 12.93% and 14.18%, respectively, all in excess of the ratios required to be deemed “well-capitalized.”

 

Asset and Credit Quality

 

The overall credit quality of the Company continued positive trends through December 31, 2012, as our total problem assets declined $14.6 million, or 29.5%, from December 31, 2011. Our total problem assets totaled $34.9 million at December 31, 2012, as compared to $49.6 million at December 31, 2011, and have declined 44.4% 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.

 

 
 

  

NPAs, which include non-accrual loans, loans 90 days past due and still accruing, performing troubled debt restructured loans and foreclosed real estate, decreased $10.3 million, or 30.1%, to $23.8 million at December 31, 2012, as compared to $34.0 million at December 31, 2011. The ratios of NPAs to total assets for December 31, 2012 and December 31, 2011 were 4.6% and 6.7%, respectively. The Company has been actively marketing its foreclosed real estate properties, which amounted to $5.1 million at December 31, 2012, with an average book value of approximately $267 thousand per property. Approximately $2.0 million, or 40%, of the Company’s total foreclosed real estate properties at December 31, 2012, are under contract for sale or are under letters of intent (“LOI”) to purchase. The increase of $1.7 million, or 413.0%, in expenses and write-downs related to foreclosed real estate for the year ended December 31, 2012, as compared to the same period last year was largely attributed to the foreclosed properties that are under contract for sale or under an LOI. In addition, the Company had a 62.4% improvement in loans past due 30 to 89 days to $2.8 million at December 31, 2012 as compared to December 31, 2011, which is the lowest level it has been in the last three years.

 

The allowance for loan losses was $5.0 million, or 1.4% of total loans, at December 31, 2012, compared to $7.2 million, or 2.1% of total loans, at December 31, 2011. The decline in the allowance for loan losses was largely attributed to $6.6 million in net charge-offs, which was in part offset by $4.3 million in provision for loan losses for the twelve months ended December 31, 2012.

 

About Sussex Bancorp

Sussex Bancorp is the holding company for Sussex Bank, which operates through its main office in Franklin, New Jersey and through its nine branch offices located in Andover, Augusta, Newton, Montague, Sparta, Vernon and Wantage, New Jersey, Port Jervis and Warwick, New York; a loan production office in Rochelle Park, New Jersey and for the Tri-State Insurance Agency, Inc., a full service insurance agency with locations in Augusta and Rochelle Park, New Jersey. For additional information, please visit the Company’s website at www.sussexbank.com.

 

Forward-Looking Statements

This press release contains statements that are forward looking and are made pursuant to the “safe-harbor” provisions of the Private Securities Litigation Reform Act of 1995 (the “Reform Act”). Such statements may be identified by the use of words such as "expect," "estimate," “assume,” "believe," "anticipate," "will," "forecast," "plan," "project," or similar words. Such statements are based on the Company’s current expectations and are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others, changes to interest rates, the ability to control costs and expenses, general economic conditions, the success of the Company’s efforts to diversify its revenue base by developing additional sources of non-interest income while continuing to manage its existing fee based business, risks associated with the quality of the Company’s assets and the ability of its borrowers to comply with repayment terms.  Further information about these and other relevant risks and uncertainties may be found in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2011, 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)
                     
               12/31/12 VS. 
   12/31/2012   9/30/2012   12/31/2011   12/31/2011   9/30/2012 
BALANCE SHEET HIGHLIGHTS - Period End Balances                    
Total securities  $124,102   $124,595   $100,581    23.4%   (0.4)%
Total loans   347,736    340,395    339,705    2.4%   2.2%
Allowance for loan losses   (4,976)   (6,721)   (7,210)   (31.0)%   (26.0)%
Total assets   514,734    504,294    506,953    1.5%   2.1%
Total deposits   432,436    417,341    425,376    1.7%   3.6%
Total borrowings and junior subordinated debt   38,887    38,887    38,887    -%   -%
Total shareholders' equity   40,372    41,182    39,902    1.2%   (2.0)%
                          
FINANCIAL DATA - QUARTER ENDED:                         
Net interest income (tax equivalent) (a)  $4,102   $4,239   $4,251    (3.5)%   (3.2)%
Provision for loan losses   1,408    1,104    618    127.8%   27.5%
Total other income   2,335    1,962    1,331    75.4%   19.0%
Total other expenses   5,201    4,295    4,199    23.9%   21.1%
(Loss) income before provision for income taxes (tax equivalent)   (172)   802    765    (122.5)%   (121.4)%
(Benefit) provision for income taxes   (235)   106    102    (330.4)%   (321.7)%
Taxable equivalent adjustment (a)   160    150    148    8.1%   6.7%
Net (loss) income  $(97)  $546   $515    (118.8)%   (117.8)%
                          
Net income per common share - Basic  $(0.03)  $0.17   $0.16    (118.8)%   (117.6)%
Net income per common share - Diluted  $(0.03)  $0.17   $0.15    (120.0)%   (117.6)%
                          
Return on average assets   (0.08)%   0.43%   0.41%   (118.4)%   (117.6)%
Return on average equity   (0.94)%   5.32%   5.22%   (118.0)%   (117.7)%
Net interest margin (tax equivalent)   3.41%   3.57%   3.59%   (5.1)%   (4.5)%
                          
FINANCIAL DATA - YEAR TO DATE:                         
Net interest income (tax equivalent) (a)  $16,753   $12,651   $17,515    (4.4)%     
Provision for loan losses   4,330    2,922    3,306    31.0%     
Total other income   7,040    4,705    5,283    33.3%     
Total other expenses   18,471    13,270    15,783    17.0%     
Income before provision for income taxes (tax equivalent)   992    1,164    3,709    (73.3)%     
(Benefit) provision for income taxes   (329)   (94)   637    (151.6)%     
Taxable equivalent adjustment (a)   586    426    602    (2.6)%     
Net income  $735   $832   $2,470    (70.2)%     
                          
Net income per common share - Basic  $0.23   $0.26   $0.76    (69.7)%     
Net income per common share - Diluted  $0.22   $0.25   $0.74    (70.3)%     
                          
Return on average assets   0.19%   0.22%   0.51%   (62.4)%     
Return on average equity   2.41%   2.74%   6.44%   (62.6)%     
Net interest margin (tax equivalent)   3.52%   3.56%   3.87%   (9.1)%     
                          
SHARE INFORMATION:                         
Book value per common share  $11.88   $12.12   $11.83    0.4%   (2.0)%
Outstanding shares- period ending   3,397,873    3,397,873    3,372,949    0.7%   -%
Average diluted shares outstanding (year to date)   3,287,017    3,282,226    3,327,379    (1.2)%   0.1%
                          
CAPITAL RATIOS:                         
Total equity to total assets   7.84%   8.17%   7.87%   (0.4)%   (4.0)%
Leverage ratio (b)   9.27%   9.36%   9.29%   (0.2)%   (1.0)%
Tier 1 risk-based capital ratio (b)   12.93%   13.18%   12.98%   (0.4)%   (1.9)%
Total risk-based capital ratio (b)   14.18%   14.44%   14.24%   (0.4)%   (1.8)%
                          
ASSET QUALITY AND RATIOS:                         
Non-accrual loans  $17,871   $23,993   $24,283    (26.4)%   (25.5)%
Loans 90 days past due and still accruing   209    59    803    (74.0)%   254.2%
Troubled debt restructured loans (c)   608    603    3,411    (82.2)%   0.8%
Foreclosed real estate   5,066    5,158    5,509    (8.0)%   (1.8)%
Non-performing assets  $23,754   $29,813   $34,006    (30.1)%   (20.3)%
                          
Foreclosed real estate, criticized and classified assets  $34,946   $42,462   $49,584    (29.5)%   (17.7)%
Loans past due 30 to 89 days  $2,754   $7,040   $7,319    (62.4)%   (60.9)%
Charge-offs, net (quarterly)  $3,146   $619   $803    291.8%   408.2%
Charge-offs, net as a % of average loans (annualized)   3.70%   0.72%   0.96%   286.7%   411.7%
Non-accrual loans to total loans   5.14%   7.05%   7.15%   (28.1)%   (27.1)%
Non-performing assets to total assets   4.61%   5.91%   6.71%   (31.2)%   (21.9)%
Allowance for loan losses as a % of non-performing loans   26.93%   27.33%   26.03%   3.4%   (1.5)%
Allowance for loan losses to total loans   1.43%   1.97%   2.12%   (32.6)%   (27.5)%

 

(a) Full taxable equivalent basis, using a 39% effective tax rate and adjusted for TEFRA (Tax and Equity Fiscal Responsibility Act) interest expense disallowance

(b) Sussex Bank capital ratios

(c) Troubled debt restructured loans currently performing in accordance with renegotiated terms

 

 
 

 

SUSSEX BANCORP
CONSOLIDATED BALANCE SHEETS
(Dollars In Thousands)
(Unaudited)
         
ASSETS  December 31, 2012   December 31, 2011 
         
Cash and due from banks  $6,268   $3,903 
Interest-bearing deposits with other banks   5,400    33,597 
Cash and cash equivalents   11,668    37,500 
           
Interest bearing time deposits with other banks   100    100 
Securities available for sale, at fair value   118,881    96,361 
Securities held to maturity   5,221    4,220 
Federal Home Loan Bank Stock, at cost   1,980    1,837 
           
Loans receivable, net of unearned income   347,736    339,705 
Less: allowance for loan losses   4,976    7,210 
Net loans receivable   342,760    332,495 
           
Foreclosed real estate   5,066    5,509 
Premises and equipment, net   6,476    6,778 
Accrued interest receivable   1,741    1,735 
Goodwill   2,820    2,820 
Bank owned life insurance   11,536    11,142 
Other assets   6,485    6,456 
           
Total Assets  $514,734   $506,953 
           
LIABILITIES AND STOCKHOLDERS' EQUITY          
           
Liabilities:          
Deposits:          
Non-interest bearing  $48,375   $44,762 
Interest bearing   384,061    380,614 
Total Deposits   432,436    425,376 
           
Borrowings   26,000    26,000 
Accrued interest payable and other liabilities   3,039    2,788 
Junior subordinated debentures   12,887    12,887 
           
Total Liabilities   474,362    467,051 
           
Total Stockholders' Equity   40,372    39,902 
           
Total Liabilities and Stockholders' Equity  $514,734   $506,953 

 

 
 

 

SUSSEX BANCORP
CONSOLIDATED STATEMENTS OF INCOME
(Dollars In Thousands Except Per Share Data)
(Unaudited)
                 
   Three Months Ended December 31,   Twelve Months Ended December 31, 
   2012   2011   2012   2011 
INTEREST INCOME                    
Loans receivable, including fees  $4,354   $4,588   $17,646   $18,798 
Securities:                    
Taxable   154    325    1,148    1,314 
Tax-exempt   311    289    1,138    1,168 
Federal funds sold   -    1    -    4 
Interest bearing deposits   5    24    35    56 
Total Interest Income   4,824    5,227    19,967    21,340 
                     
INTEREST EXPENSE                    
Deposits   556    799    2,494    3,141 
Borrowings   268    267    1,065    1,064 
Junior subordinated debentures   58    58    241    222 
Total Interest Expense   882    1,124    3,800    4,427 
                     
Net Interest Income   3,942    4,103    16,167    16,913 
PROVISION FOR LOAN LOSSES   1,408    618    4,330    3,306 
Net Interest Income after Provision for Loan Losses   2,534    3,485    11,837    13,607 
                     
OTHER INCOME                    
Service fees on deposit accounts   299    322    1,141    1,290 
ATM and debit card fees   174    145    627    545 
Bank owned life insurance   94    105    394    419 
Insurance commissions and fees   592    546    2,484    2,270 
Investment brokerage fees   27    42    145    145 
Gain on sale of loans, held for sale   -    -    47    - 
Gain on securities transactions   1,036    377    1,799    645 
Loss on sale of premises and equipment   (3)   -    (9)   - 
Gain (loss) on sale of foreclosed real estate   34    (36)   39    (38)
Impairment write-downs on equity securities   -    (231)   -    (231)
Other   82    61    373    238 
Total Other Income   2,335    1,331    7,040    5,283 
                     
OTHER EXPENSES                    
Salaries and employee benefits   2,243    2,316    8,987    8,528 
Occupancy, net   379    357    1,450    1,412 
Furniture, equipment and data processing   313    306    1,327    1,177 
Advertising and promotion   63    31    285    172 
Professional fees   199    222    677    661 
Director fees   85    32    321    176 
FDIC assessment   165    165    681    700 
Insurance   61    53    240    216 
Stationary and supplies   48    62    176    184 
Loan collection costs   174    218    713    824 
Expenses and write-downs related to foreclosed real estate   1,080    92    2,124    414 
Amortization of intangible assets   1    2    5    10 
Other   390    343    1,485    1,309 
Total Other Expenses   5,201    4,199    18,471    15,783 
                     
(Loss) Income before Income Taxes   (332)   617    406    3,107 
PROVISION (BENEFIT) FOR INCOME TAXES   (235)   102    (329)   637 
Net (Loss) Income  $(97)  $515   $735   $2,470 
                     
OTHER COMPREHENSIVE INCOME:                    
Unrealized gains on available for sale securities arising during the period  $(220)  $109   $1,193   $1,534 
Reclassification adjustment for gain on sales included in net income   (1,036)   (146)   (1,799)   (414)
Income tax benefit (expense) related to other comprehensive income   503    15    244    (448)
Other comprehensive (loss) income, net of income taxes   (753)   (22)   (363)   672 
Comprehensive (loss) income  $(850)  $493   $373   $3,142 
                     
(LOSS) EARNINGS PER SHARE                    
Basic  $(0.03)  $0.16   $0.23   $0.76 
Diluted  $(0.03)  $0.15   $0.22   $0.74 

 
 

 

SUSSEX BANCORP
COMPARATIVE AVERAGE BALANCES AND AVERAGE INTEREST RATES
(Dollars In Thousands)
(Unaudited)
                         
   Three Months Ended December 31, 
   2012   2011 
   Average       Average   Average       Average 
   Balance   Interest (1)   Rate (2)   Balance   Interest (1)   Rate (2) 
Earning Assets:                              
Securities:                              
Tax exempt (3)  $37,215   $471    5.03%  $28,890   $439    6.03%
Taxable   91,467    154    0.67%   60,439    324    2.13%
Total securities   128,682    625    1.93%   89,329    763    3.39%
Total loans receivable (4)   340,190    4,354    5.09%   335,753    4,589    5.42%
Other interest-earning assets   9,394    6    0.25%   44,064    24    0.22%
Total earning assets   478,266    4,985    4.15%   469,146    5,376    4.55%
                               
Non-interest earning assets   40,958              39,951           
Allowance for loan losses   (6,654)             (7,570)          
Total Assets  $512,570             $501,527           
                               
Sources of Funds:                              
Interest bearing deposits:                              
NOW  $101,954    35    0.14%  $88,645    81    0.36%
Money market   13,570    7    0.21%   17,485    22    0.50%
Savings   158,245    114    0.29%   164,887    241    0.58%
Time   103,342    401    1.54%   109,877    455    1.64%
Total interest bearing deposits   377,111    557    0.59%   380,894    799    0.83%
Borrowed funds   26,016    268    4.10%   26,000    268    4.09%
Junior subordinated debentures   12,887    58    1.79%   12,887    58    1.79%
Total interest bearing liabilities   416,014    883    0.84%   419,781    1,125    1.06%
                               
Non-interest bearing liabilities:                              
Demand deposits   50,846              40,108           
Other liabilities   4,399              2,118           
Total non-interest bearing liabilities   55,245              42,226           
Stockholders' equity   41,311              39,520           
Total Liabilities and Stockholders' Equity  $512,570             $501,527           
                               
Net Interest Income and Margin (5)        4,102    3.41%        4,251    3.59%
Tax-equivalent basis adjustment        (160)             (148)     
Net Interest Income       $3,942             $4,103      

 

(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 on a tax equivalent basis.

 

 
 

 

SUSSEX BANCORP
COMPARATIVE AVERAGE BALANCES AND AVERAGE INTEREST RATES
(Dollars In Thousands)
(Unaudited)
                         
   Twelve Months Ended December 31, 
   2012   2011 
   Average       Average   Average       Average 
   Balance   Interest (1)   Rate (2)   Balance   Interest (1)   Rate (2) 
Earning Assets:                              
Securities:                              
Tax exempt (3)  $31,397   $1,724    5.49%  $29,692   $1,770    5.96%
Taxable   86,456    1,148    1.33%   54,425    1,314    2.41%
Total securities   117,853    2,872    2.44%   84,117    3,084    3.67%
Total loans receivable (4)   339,927    17,646    5.19%   339,770    18,798    5.53%
Other interest-earning assets   18,154    35    0.19%   28,547    60    0.21%
Total earning assets   475,934    20,553    4.32%   452,434    21,942    4.85%
                               
Non-interest earning assets   41,795              38,507           
Allowance for loan losses   (7,164)             (7,314)          
Total Assets  $510,565             $483,627           
                               
Sources of Funds:                              
Interest bearing deposits:                              
NOW  $96,432    164    0.17%  $81,374    386    0.47%
Money market   16,110    54    0.34%   15,505    83    0.54%
Savings   162,052    606    0.37%   168,233    1,122    0.67%
Time   106,372    1,670    1.57%   98,673    1,550    1.57%
Total interest bearing deposits   380,966    2,494    0.65%   363,785    3,141    0.86%
Borrowed funds   26,053    1,065    4.09%   26,642    1,064    3.99%
Junior subordinated debentures   12,887    241    1.87%   12,887    222    1.72%
Total interest bearing liabilities   419,906    3,800    0.90%   403,314    4,427    1.10%
                               
Non-interest bearing liabilities:                              
Demand deposits   47,180              39,596           
Other liabilities   2,759              2,348           
Total non-interest bearing liabilities   49,939              41,944           
Stockholders' equity   40,720              38,369           
Total Liabilities and Stockholders' Equity  $510,565             $483,627           
                               
Net Interest Income and Margin (5)        16,753    3.52%        17,515    3.87%
Tax-equivalent basis adjustment        (586)             (602)     
Net Interest Income       $16,167             $16,913      

 

(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 on a tax equivalent basis.