Exhibit 99.1

 

100 Enterprise Dr.

Rockaway, NJ 07866

 

 

SUSSEX BANCORP REPORTS FIRST QUARTER 2018 RESULTS

 

ROCKAWAY, NEW JERSEY – April 25, 2018 – Sussex Bancorp (the “Company”) (Nasdaq: SBBX), the holding company for Sussex Bank (the “Bank”), today reported net income of $1.3 million, or $0.17 per basic and diluted share, for the quarter ended March 31, 2018, as compared to $2.0 million, or $0.43 per basic and diluted share, for the same period last year.  The decrease in net income was mainly attributable to merger-related costs associated with the January 4^th merger of Community Bank of Bergen County (“Community Bank”), NJ with and into the Bank, partially offset by an increase in net income due to the addition of Community Bank’s operations following the merger. As of January 4, 2018, Community Bank had total assets, loans and deposits of $343.8 million, $236.1 million and $301.2 million, respectively. The first quarter of 2018 included the independent operations and expenses of both, the Company and Community Bank, until March 26, 2018 when the Company completed all systems integrations and are now operating under one company platform.

 

The Company’s net income, adjusted for tax effected merger-related expenses of $2.4 million, increased $1.7 million, or 82.8%, to $3.7 million, or $0.47 per basic and diluted share, for the quarter ended March 31, 2018, as compared to the same period last year. The Company’s return on average assets, adjusted for tax effected merger-related expenses of $2.4 million, for the quarter ended March 31, 2018, was 1.10%, an increase from 0.94% for the quarter ended March 31, 2017.

 

The Company announced a new name and brand identity following its recent partnership with Community Bank of Bergen County, NJ.   The new name, “SB One Bancorp”, is being presented for shareholder vote at its Annual Meeting scheduled for later today.  The Company is also rebranding the name and logo of its subsidiary Bank to “SB One Bank” as well as the Bank’s wholly owned subsidiary “SB One Insurance Agency”.

 

“Our merger was built upon a shared vision, and in coming together we made a choice to do so under one name,” said Anthony Labozzetta, President and Chief Executive Officer of Sussex Bancorp. “This merger created opportunities for us to refresh and elevate our brand, and we wholeheartedly embraced the process. We are excited to share these details with our customers; however, we want to reinforce that despite our new name and shiny new exterior, we are the same bank that our customers have come to trust.”

 

Mr. Labozzetta also stated, “I am very excited to report on our solid first quarter results inclusive of our merger with Community Bank as well as another quarter of strong performance by all of our business lines.  Our growth continues to be organically generated and our production pipelines remain robust, which support future targeted growth expectations on a larger balance sheet.  Mr. Labozzetta went on to say, “I’m also pleased to report that our 15^th banking center, which will be located in a great market in Weehawken NJ (Hudson County), is anticipated to open during the third quarter of this year.”

 

 

Financial Performance

 

Net Income. For the quarter ended March 31, 2018, the Company reported net income of $1.3 million, or $0.17 per basic and diluted share, as compared to net income of $2.0 million, or $0.43 per basic and diluted share, for the same period last year. The decrease in net income for the quarter ended March 31, 2018 was driven by a $5.6 million, or 94.0%, increase in non-interest expenses largely due to merger-related expenses of $3.3 million. The aforementioned decrease was partially offset by a $4.0 million, or 59.5%, increase in net interest income resulting from strong loan and deposit growth, a $380 thousand increase in non-interest income, and a $616 thousand decrease in income tax expense. The increases and decreases were largely attributable to the merger with Community Bank.

 

The Company’s net income, adjusted for tax effected merger-related expenses of $2.4 million, increased $1.7 million, or 82.8%, to $3.7 million, or $0.47 per basic and diluted share, for the quarter ended March 31, 2018, as compared to the same period last year.

 

Net Interest Income. Net interest income on a fully tax equivalent basis increased $4.1 million, or 58.7%, to $11.0 million for the first quarter of 2018, as compared to $6.9 million for the same period in 2017. The increase in net interest income was largely due to a $423.1 million, or 51.3%, increase in average interest earning assets, principally loans receivable, which increased $361.9 million, or 51.6%. The net interest margin increased by 17 basis points to 3.56% for the first quarter of 2018, as compared to the same period in 2017. These increases were largely attributable to the merger with Community Bank.

 

Provision for Loan Losses. Provision for loan losses increased $101 thousand to $508 thousand for the first quarter of 2018, as compared to $407 thousand for the same period in 2017.

 

Non-interest Income. Non-interest income increased $380 thousand, or 15.3%, to $2.9 million for the first quarter of 2018, as compared to the same period last year. The increase was principally due to growth of $148 thousand in insurance commissions and fees relating to Tri-State Insurance Agency, an increase of $133 thousand in other income and an increase of $79 thousand in bank owned life insurance. The aforementioned was partly offset by a reduction in gain on sales of securities of approximately $107 thousand.

 

Non-interest Expense. The Company’s non-interest expenses increased $5.6 million, or 94.0%, to $11.6 million for the first quarter of 2018, as compared to the same period last year. The increase was largely due to merger-related expenses of $3.3 million related to the acquisition of Community Bank and increases in salaries and employee benefits of $1.5 millionas a result of the merger with Community Bank.

 

Income Tax Expense. The Company’s income tax expenses decreased $616 thousand, or 74.1% to $215 thousand for the first quarter of 2018, as compared to the same period last year. The Company’s effective tax rate for the first quarter of 2018 was 14.1% , as compared to 29.2% for the first quarter of 2017. The decrease in the Company’s tax rate was largely due to the Tax Act and the merger with Community Bank which resulted in the Company’s tax free income becoming a larger percentage of its overall income.

 

 

Financial Condition

 

At March 31, 2018, the Company’s total assets were $1.4 billion, an increase of $397.2 million, or 40.6%, as compared to total assets of $979.4 million at December 31, 2017. The increase was largely attributable to the merger with Community Bank.

 

Total loans receivable, net of unearned income, increased $267.7 million, or 32.6%, to $1.1 billion at March 31, 2018, as compared to $820.7 million at December 31, 2017. The merger with Community Bank resulted in an increase in total loans of $236.1 million. During the three months ended March 31, 2018, the Company also had $33.1 million of commercial loan production, which was partly offset by $12.6 million in commercial loan payoffs.

 

The Company’s total deposits increased $280.8 million, or 36.8%, to $1.0 billion at March 31, 2018, from $762.5 million at December 31, 2017, primarily driven by the merger with Community Bank. The growth in deposits was mostly due to an increase in interest bearing deposits of $208.6 million, or 33.8%, and non-interest bearing deposits of $72.3 million, or 49.4%, at March 31, 2018, as compared to December 31, 2017, respectively.

 

At March 31, 2018, the Company’s total stockholders’ equity was $146.2 million, an increase of $52.0 million when compared to December 31, 2017, largely due to the merger with Community Bank. The Company completed the merger on January 4, 2018 which was the primary driver in an increase in book value per common share of 18.2% from $15.59 at December 31, 2017 to $18.43 at March 31, 2018. At March 31, 2018, the leverage, Tier I risk-based capital, total risk-based capital and common equity Tier I capital ratios for the Bank were 10.90%, 13.58%, 14.33% and 13.58%, respectively, all in excess of the ratios required to be deemed “well-capitalized.”

 

Asset and Credit Quality

 

The ratio of non-performing assets (“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 increased to 1.07% at March 31, 2018 from 0.94% December 31, 2017. NPAs exclude $3.7 million of Purchased Credit-Impaired (“PCI”) loans acquired through the merger with Community Bank. NPAs increased $5.5 million, or 60.1%, to $14.8 million at March 31, 2018, as compared to $9.2 million at December 31, 2017. Non-accrual loans, excluding $3.7 million of PCI loans, increased $3.1 million, or 51.1%, to $9.1 million at March 31, 2018, as compared to $6.0 million at December 31, 2017. Loans past due 30 to 89 days totaled $13.6 million at March 31, 2018, representing an increase of $7.1 million, or 109.3%, as compared to $6.5 million at December 31, 2017.

 

The Company continues to actively market its foreclosed real estate properties, the value of which increased $1.3 million to $3.5 million at March 31, 2018 as compared to $2.3 million at December 31, 2017. At March 31, 2018, the Company’s foreclosed real estate properties had an average carrying value of approximately $253 thousand per property.

 

The allowance for loan losses increased $493 thousand, or 6.7%, to $7.8 million, or 0.72% of total loans, at March 31, 2018, compared to $7.3 million, or 0.89% of total loans, at December 31, 2017. The decline in allowance coverage was primarily driven by the addition of Community Bank acquired loans with no allowance for loan losses; such loans were recorded at fair value at the acquisition date. The Company recorded $508 thousand in provision for loan losses for the three months ended March 31, 2018 as compared to $407 thousand for the three months ended March 31, 2017. Additionally, the Company recorded net charge-offs of $15 thousand for the three months ended March 31, 2018, as compared to $306 thousand in net charge-offs for the three months ended March 31, 2017. The allowance for loan losses as a percentage of non-accrual loans decreased to 86.1% at March 31, 2018 from 121.8% at December 31, 2017.

 

 

About Sussex Bancorp

 

Sussex Bancorp (Nasdaq: SBBX) is the holding company for Sussex Bank which is headquartered in Sussex County, New Jersey and operates regionally with fourteen branch locations throughout Bergen, Sussex and Warren counties in New Jersey and in Astoria, New York. In addition to its branch locations, Sussex Bancorp offers a loan production office in Oradell, New Jersey and a full-service insurance agency, the Tri-State Insurance Agency, Inc., with locations in Augusta and Oradell, New Jersey.

 

In 2017, Sussex Bancorp was recognized as one of the top 29 banks and thrifts nationwide and one of three from New Jersey that comprise the Sandler O’Neill Sm-All Stars Class of 2017. Sussex Bancorp is one of the 50 Fastest Growing Companies in New Jersey as ranked by NJBIZ Magazine. Sussex Bancorp President and Chief Executive Officer, Anthony Labozzetta, was named one of America’s Business Leaders in Banking by Forbes magazine and American Banker’s Community Banker of the Year in 2016.

 

For more details on Sussex Bank, please visit: 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, the ability of its borrowers to comply with repayment terms, the inability to realize expected cost savings or to implement integration plans and other adverse consequences associated with the acquisition of Community Bank of Bergen County, NJ (“Community Bank”), the inability to retain Community Bank’s customers, the risk that the businesses of Community and the Bank may not be combined successfully or may take longer than expected, and the diversion of management’s time on issues relating to integration of Community Bank.  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, 2017 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, SEVP/CFO

844-256-7328

 

 

SUSSEX BANCORP

SUMMARY FINANCIAL HIGHLIGHTS

(In Thousands, Except Percentages and Per Share Data)

(Unaudited)

 

														3/31/2018 VS.
		3/31/2018				12/31/2017				3/31/2017				3/31/2017				12/31/2017
BALANCE SHEET HIGHLIGHTS - Period End Balances
Total securities		$	179,635			$	104,034			$	108,427				65.7	%			72.7	%
Total loans			1,088,429				820,700				718,800				51.4	%			32.6	%
Allowance for loan losses			(7,828	)			(7,335	)			(6,797	)			15.2	%			6.7	%
Total assets			1,376,625				979,383				872,282				57.8	%			40.6	%
Total deposits			1,043,331				762,491				696,576				49.8	%			36.8	%
Total borrowings and junior subordinated debt			182,876				118,198				108,641				68.3	%			54.7	%
Total shareholders' equity			146,159				94,193				62,422				134.1	%			55.2	%
FINANCIAL DATA - QUARTER ENDED:
Net interest income (tax equivalent) (a)		$	10,962			$	8,038			$	6,906				58.7	%			36.4	%
Provision for loan losses			508				459				407				24.8	%			10.7	%
Total other income			2,857				1,961				2,477				15.3	%			45.7	%
Total other expenses			11,594				6,820				5,977				94.0	%			70.0	%
Income before provision for income taxes (tax equivalent)			1,717				2,720				2,999				(42.7	)%			(36.9	)%
Provision for income taxes			215				2,039				831				(74.1	)%			(89.5	)%
Taxable equivalent adjustment (a)			194				168				157				23.6	%			15.5	%
Net income		$	1,308			$	513			$	2,011				(35.0	)%			155.0	%
Net income per common share - Basic		$	0.17			$	0.09			$	0.43				(60.7	)%			87.8	%
Net income per common share - Diluted		$	0.17			$	0.09			$	0.43				(61.0	)%			86.5	%
Return on average assets			0.39	%			0.21	%			0.94	%			(58.3	)%			83.3	%
Return on average equity			3.64	%			2.16	%			13.07	%			(72.2	)%			68.6	%
Efficiency ratio (b)			85.09	%			69.37	%			64.78	%			31.3	%			22.7	%
Net interest margin (tax equivalent)			3.56	%			3.46	%			3.39	%			5.0	%			2.9	%
Avg. interest earning assets/Avg. interest bearing liabilities			1.27				1.29				1.23				3.0	%			(1.6	)%
SHARE INFORMATION:
Book value per common share		$	18.43			$	15.59			$	13.04				41.3	%			18.2	%
Tangible book value per common share			15.12				15.13				12.46				21.4	%			(0.0	)%
Outstanding shares- period ending			7,929,613				6,040,564				4,785,159				65.7	%			31.3	%
Average diluted shares outstanding (year to date)			7,791,736				5,404,381				4,727,333				64.8	%			44.2	%
CAPITAL RATIOS:
Total equity to total assets			10.62	%			9.62	%			7.16	%			48.4	%			10.4	%
Leverage ratio (c)			10.90	%			11.87	%			10.41	%			4.7	%			(8.2	)%
Tier 1 risk-based capital ratio (c)			13.58	%			14.28	%			12.93	%			5.0	%			(4.9	)%
Total risk-based capital ratio (c)			14.33	%			15.19	%			13.91	%			3.0	%			(5.7	)%
Common equity Tier 1 capital ratio (c)			13.58	%			14.28	%			12.93	%			5.0	%			(4.9	)%
ASSET QUALITY:
Non-accrual loans (e)		$	9,096			$	6,020			$	5,448				67.0	%			51.1	%
Loans 90 days past due and still accruing			—				—				104				—	%			—	%
Troubled debt restructured loans ("TDRs") (d)			2,134				932				587				263.5	%			129.0	%
Foreclosed real estate			3,546				2,275				2,464				43.9	%			55.9	%
Non-performing assets ("NPAs")		$	14,776			$	9,227			$	8,603				71.8	%			60.1	%
Foreclosed real estate, criticized and classified assets (e)		$	34,361			$	18,992			$	20,494				67.7	%			80.9	%
Loans past due 30 to 89 days		$	13,593			$	6,495			$	2,166				527.6	%			109.3	%
Charge-offs (Recoveries) , net (quarterly)		$	15			$	626			$	306				(95.1	)%			(97.6	)%
Charge-offs (Recoveries) , net as a % of average loans (annualized)			0.01	%			0.31	%			0.17	%			(96.8	)%			(98.2	)%
Non-accrual loans to total loans			0.84	%			0.73	%			0.76	%			10.3	%			13.9	%
NPAs to total assets			1.07	%			0.94	%			0.99	%			8.8	%			13.9	%
NPAs excluding TDR loans (d) to total assets			0.92	%			0.85	%			0.92	%			(0.1	)%			8.4	%
Non-accrual loans to total assets			0.66	%			0.61	%			0.62	%			5.8	%			7.5	%
Allowance for loan losses as a % of non-accrual loans			86.06	%			121.84	%			124.76	%			(31.0	)%			(29.4	)%
Allowance for loan losses to total loans			0.72	%			0.89	%			0.95	%			(23.9	)%			(19.5	)%

 

(a)

Full taxable equivalent basis, using a 21% 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

(e)

PCI loans acquired through merger with Community Bank excluded from non-accrual loans and criticized and classified assets totaled $3.7 million

 

SUSSEX BANCORP

CONSOLIDATED BALANCE SHEETS

(Dollars In Thousands)

 

		March 31, 2018				December 31, 2017
ASSETS
Cash and due from banks		$	6,428			$	3,270
Interest-bearing deposits with other banks			8,652				8,376
Cash and cash equivalents			15,080				11,646
Interest bearing time deposits with other banks			200				100
Securities available for sale, at fair value			174,101				98,730
Securities held to maturity			5,534				5,304
Federal Home Loan Bank Stock, at cost			8,358				4,925
Loans receivable, net of unearned income			1,088,429				820,700
Less:  allowance for loan losses			7,828				7,335
Net loans receivable			1,080,601				813,365
Foreclosed real estate			3,546				2,275
Premises and equipment, net			18,672				8,389
Accrued interest receivable			5,085				2,472
Goodwill and intangibles			26,249				2,820
Bank-owned life insurance			30,202				22,054
Other assets			8,997				7,303
Total Assets		$	1,376,625			$	979,383
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits:
Non-interest bearing		$	218,433			$	146,167
Interest bearing			824,898				616,324
Total Deposits			1,043,331				762,491
Borrowings			155,025				90,350
Accrued interest payable and other liabilities			4,259				4,501
Subordinated debentures			27,851				27,848
Total Liabilities			1,230,466				885,190
Total Stockholders' Equity			146,159				94,193
Total Liabilities and Stockholders' Equity		$	1,376,625			$	979,383

 

 

SUSSEX BANCORP

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(Dollars In Thousands Except Per Share Data)

(Unaudited)

 

		Three Months Ended March 31,
		2018				2017
INTEREST INCOME
Loans receivable, including fees		$	11,900			$	7,598
Securities:
Taxable			736				341
Tax-exempt			381				313
Interest bearing deposits			30				16
Total Interest Income			13,047				8,268
INTEREST EXPENSE
Deposits			1,458				717
Borrowings			506				481
Junior subordinated debentures			315				321
Total Interest Expense			2,279				1,519
Net Interest Income			10,768				6,749
PROVISION FOR LOAN LOSSES			508				407
Net Interest Income after Provision for Loan Losses			10,260				6,342
OTHER INCOME
Service fees on deposit accounts			328				253
ATM and debit card fees			213				180
Bank owned life insurance			185				106
Insurance commissions and fees			1,895				1,747
Investment brokerage fees			22				3
(Loss) gain on securities transactions			-				107
Other			214				81
Total Other Income			2,857				2,477
OTHER EXPENSES
Salaries and employee benefits			5,058				3,558
Occupancy, net			602				500
Data processing			791				557
Furniture and equipment			281				240
Advertising and promotion			56				106
Professional fees			329				277
Director fees			147				107
FDIC assessment			110				51
Insurance			95				66
Stationary and supplies			57				32
Merger-related expenses			3,293				-
Loan collection costs			61				24
Expenses and write-downs related to foreclosed real estate			207				45
Amortization of intangible assets			61				-
Other			446				414
Total Other Expenses			11,594				5,977
Income before Income Taxes			1,523				2,842
INCOME TAX EXPENSE			215				831
Net Income		$	1,308			$	2,011
OTHER COMPREHENSIVE INCOME (LOSS):
Unrealized (loss) gains on available for sale securities arising during the period			(2,167	)		$	676
Fair value adjustments on derivatives			(1,451	)			40
Reclassification adjustment for net loss (gain) on securities transactions included in net income			-				(107	)
Income tax related to items of other comprehensive income (loss)			1,448				(244	)
Other comprehensive income, net of income taxes			(2,170	)			365
Comprehensive (loss) income			(862	)		$	2,376
EARNINGS PER SHARE
Basic		$	0.17			$	0.43
Diluted		$	0.17			$	0.43

 

 

 

SUSSEX BANCORP

COMPARATIVE AVERAGE BALANCES AND AVERAGE INTEREST RATES

(Dollars In Thousands)

(Unaudited)

 

		Three Months Ended March 31,
		2018												2017
		Average								Average				Average								Average
		Balance				Interest				Rate (2)				Balance				Interest				Rate (2)
Earning Assets:
Securities:
Tax exempt (3)		$	54,987			$	575				4.24	%		$	47,443			$	470				4.02	%
Taxable			120,776				736				2.47	%			62,767				341				2.20	%
Total securities			175,763				1,311				3.03	%			110,210				811				2.98	%
Total loans receivable (1) (4)			1,063,727				11,900				4.54	%			701,862				7,598				4.39	%
Other interest-earning assets			8,662				30				1.40	%			12,940				16				0.50	%
Total earning assets			1,248,152				13,241				4.30	%			825,012				8,425				4.14	%
Non-interest earning assets			99,984												41,062
Allowance for loan losses			(7,505	)											(6,723	)
Total Assets		$	1,340,631											$	859,351
Sources of Funds:
Interest bearing deposits:
NOW		$	259,677			$	398				0.62	%		$	177,107			$	119				0.27	%
Money market			96,463				248				1.04	%			73,935				124				0.68	%
Savings			221,946				77				0.14	%			137,742				71				0.21	%
Time			265,139				735				1.12	%			166,670				403				0.98	%
Total interest bearing deposits			843,225				1,458				0.70	%			555,454				717				0.52	%
Borrowed funds			111,886				506				1.83	%			85,919				481				2.27	%
Subordinated debentures			27,849				315				4.59	%			27,840				321				4.68	%
Total interest bearing liabilities			982,960				2,279				0.94	%			669,213				1,519				0.92	%
Non-interest bearing liabilities:
Demand deposits			208,694												124,991
Other liabilities			5,112												3,591
Total non-interest bearing liabilities			213,806												128,582
Stockholders' equity			143,865												61,556
Total Liabilities and Stockholders' Equity		$	1,340,631											$	859,351
Net Interest Income and Margin (5)							10,962				3.56	%							6,906				3.39	%
Tax-equivalent basis adjustment							(194	)											(157	)
Net Interest Income						$	10,768											$	6,749

 

(1)

Includes loan fee income

(2)

Average rates on securities are calculated on amortized costs

(3)

Full taxable equivalent basis, using a 21% 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

Segment Reporting

(Dollars In Thousands)

(Unaudited)

 

		Three Months Ended and as of March 31, 2018												Three Months Ended and as of March 31, 2017
		Banking and												Banking and
		Financial				Insurance								Financial				Insurance
		Services				Services				Total				Services				Services				Total
Net interest income from external sources		$	10,768			$	-			$	10,768			$	6,749			$	-			$	6,749
Other income from external sources			925				1,932				2,857				730				1,747				2,477
Depreciation and amortization			427				6				433				267				6				273
Income before income taxes			614				909				1,523				2,022				820				2,842
Income tax expense (1)			(41	)			256				215				503				328				831
Total assets			1,371,936				4,689				1,376,625				865,832				6,450				872,282

 

(1)

Calculated at statutory tax rate of 28.1% for the insurance services segment

 

 

SUSSEX BANCORP

Non-GAAP Reporting

(Dollars In Thousands)

(Unaudited)

 

		Three Months Ended March 31,
		2018				2017
Net income (GAAP)		$	1,308			$	2,011
Merger related expenses net of tax (1)			2,367				-
Net income, as adjusted		$	3,675			$	2,011
Average diluted shares outstanding (GAAP) (2)			7,791,736				4,727,333
Diluted EPS, as adjusted		$	0.47			$	0.43
Return on average assets, as adjusted			1.10	%			0.94	%
Return on average equity, as adjusted			10.22	%			13.07	%

 

(1)

Merger related expense net of tax expense of $926 thousand.

(2)

Average diluted shares outstanding includes acquisition of CBBC shares of 1,873,028