Sussex Bancorp Announces Earnings for Fiscal Year 2013 and a 68.2% Increase in Diluted EPS

By GlobeNewswire,  February 03, 2014, 05:00:00 PM EDT


FRANKLIN, N.J., Feb. 3, 2014 (GLOBE NEWSWIRE) -- Sussex Bancorp (the "Company") (Nasdaq:SBBX), the holding company for Sussex Bank (the "Bank") today announced reported net income of $621 thousand, or $0.14 per basic and diluted share, for the quarter ended December 31, 2013, as compared to a net loss of $97 thousand, or $(0.03) per basic and diluted share, for the same period last year. For the year ended December 31, 2013, the Company reported net income of $1.4 million, or $0.38 per basic share and $0.37 per diluted share, as compared to net income of $735 thousand, or $0.23 per basic share and $0.22 per diluted share, for the same period last year. Net income benefited from strong growth in loans, which increased $44.7 million or 12.8% at December 31, 2013 as compared to December 31, 2012, and declines of $1.9 million, or 72.9%, and $2.5 million, or 35.0%, in credit quality costs (provision for loan losses, loan collection costs and expenses and write-downs related to foreclosed real estate) for the quarter and year ended December 31, 2013, respectively, as compared to the same periods in the prior year. The declines in credit quality costs were driven by a significant improvement in credit quality as non-performing assets ("NPAs") to total assets improved to 3.1%, which is the lowest level since 2007.

"In 2013, we had strong growth in our principal business lines, specifically in our commercial loan portfolio, which grew 14.2%. The loan growth enhanced our net interest margin and contributed to the improvement in our core earnings for the quarter," said Anthony Labozzetta, President and Chief Executive Officer of Sussex Bank. Mr. Labozzetta also stated, "We have reduced our legacy problem assets considerably and as of the end of this quarter, our NPAs were $16.6 million or 3.10% of total assets, a decrease of $7.2 million, or 30.2% as compared to the same period last year." Additionally, Mr. Labozzetta noted that, "we saw a considerable reduction in credit quality costs related to the legacy problem assets, which combined with the growth in our business, has greatly improved our operating results."

Financial Performance

Net Income. For the quarter ended December 31, 2013, the Company reported net income of $621 thousand, or $0.14 per basic and diluted share, as compared to a net loss of $97 thousand, or $(0.03) per basic and diluted share, for the same period last year. The increase in net income for the quarter ended December 31, 2013 was largely due to a decrease in credit quality costs of $1.9 million or 72.9%, which was partially offset by a decrease in gain on securities transactions of $1.0 million.

For the year ended December 31, 2013, the Company reported net income of $1.4 million, or $0.38 per basic share and $0.37 per diluted share, as compared to net income of $735 thousand, or $0.23 per basic and $0.22 per diluted share, for the same period last year. The increase in net income for the year ended December 31, 2013 was primarily attributed to a decrease in credit quality costs of $2.5 million or 35.0%, which was partially offset by a decrease in gain on securities transactions of $1.4 million.

Net Interest Income. Net interest income on a fully tax equivalent basis increased $328 thousand, or 8.0%, to $4.4 million for the fourth quarter of 2013 as compared to $4.1 million for same period in 2012. The increase in net interest income was largely due to a $30.0 million, or 6.3%, increase in average interest earning assets, principally loans receivable. The aforementioned increase also benefited from a 5 basis point increase in the net interest margin to 3.46% for the fourth quarter of 2013 as compared to the same period last year. The increase in the net interest margin was mostly due to a decrease in the average rate paid on total interest bearing liabilities, which decreased 10 basis points to 0.74% for the fourth quarter of 2013 from 0.84% for the same period in 2012.

Net interest income on a fully tax equivalent basis increased $207 thousand, or 1.2%, to $17.0 million for the year ended December 31, 2013 as compared to $16.8 million for same period in 2012. The increase in net interest income was largely due to the Company's increase in average interest earning assets of $21.4 million or 4.5%, offset by the net interest margin declining 11 basis points to 3.41% for the year ended December 31, 2013 compared to the same period last year. The increase in average interest earning assets was driven by growth in average total loans receivable of $33.0 million, offset by a decrease in average other interest earning assets of $11.7 million. The decline in the net interest margin was mostly due to a 27 basis point decline in the average rate earned on interest earning assets. This decline was partially offset by a decrease in the average rate paid on total interest bearing liabilities, which decreased 15 basis points to 0.75% for the year ended December 31, 2013 from 0.90% for the same period in 2012.

Provision for Loan Losses. Provision for loan losses decreased $1.0 million to $403 thousand for the fourth quarter of 2013, as compared to $1.4 million for the same period in 2012.

Provision for loan losses decreased $1.6 million to $2.7 million for the year ended December 31, 2013, as compared to $4.3 million for the same period in 2012.

Non-interest Income. The Company reported a decrease in non-interest income of $890 thousand, or 38.7%, to $1.4 million for the fourth quarter of 2013 as compared to the same period last year. The decrease in non-interest income was largely due to a decrease in gains on securities transactions of $1.0 million, which was partially offset by increases in other income, mostly prepayment penalties, and insurance commissions and fees of $82 thousand, or 100%, and $65 thousand, or 11.0%, respectively.

The Company reported a decrease in non-interest income of $908 thousand, or 13.0%, to $6.1 million for year ended December 31, 2013 as compared to the same period last year. The decrease in non-interest income was primarily due to a decrease in gains on securities transactions of $1.4 million, which was partially offset by an increase in insurance commissions and fees of $418 thousand, or 16.8%. 

Non-interest Expense. The Company's non-interest expenses decreased $641 thousand, or 12.4%, to $4.5 million for the fourth quarter of 2013 as compared to the same period last year. The decrease for the fourth quarter of 2013 as compared to the same period in 2012 was largely due to decreases in expenses and write-downs related to foreclosed real estate and loan collection costs of $833 thousand and $78 thousand, respectively, which were partly offset by an increase in salaries and employee benefits expense of $138 thousand. 

The Company's non-interest expenses decreased $204 thousand, or 1.1%, to $18.2 million for the year ended December 31, 2013 as compared to the same period last year. The decrease for the year ended December 31, 2013 as compared to the same period in 2012 was largely due to decreases in expenses and write-downs related to foreclosed real estate and loan collection costs of $547 thousand and $366 thousand, respectively, and were partly offset by increases in salaries and employee benefits expense of $337 thousand, director fees of $124 thousand and other expense of $118 thousand. The increase in director expense was principally related to a deferred compensation plan that is tied to the performance of the Company's stock, which has increased 45.2% at December 31, 2013 when compared to December 31, 2012.

Financial Condition

At December 31, 2013, the Company's total assets were $533.9 million, an increase of $19.2 million, or 3.7%, as compared to total assets of $514.7 million at December 31, 2012. The increase in total assets was largely driven by net loans receivable growth of $44.7 million, or 12.8%, which was partially offset by a decline in the securities portfolio of $27.4 million, or 22.0%. 

The Company saw strong loan growth as total loans receivable, net of unearned income, increased $44.7 million, or 12.8%, to $392.4 million at December 31, 2013, as compared to $347.7 million at December 31, 2012. The increase in loans was primarily in the commercial real estate portfolio, which increased $35.3 million, or 15.7%, to $260.7 million at December 31, 2013, as compared to $225.3 million at December 31, 2012 and in the residential real estate portfolio, which increased $9.7 million, or 9.9%, to $108.0 million at December 31, 2013, as compared to $98.3 million at December 31, 2012.

The Company's total deposits decreased $2.1 million, or 0.5%, to $430.3 million at December 31, 2013, from $432.4 million at December 31, 2012. The decrease in deposits was due to a decrease in interest bearing deposits of $12.0 million, or 3.1%, partially offset by an increase in non-interest bearing deposits of $9.8 million, or 20.3%, for December 31, 2013, as compared to December 31, 2012. 

At December 31, 2013, the Company's total stockholders' equity was $46.4 million, an increase of $6.1 million when compared to December 31, 2012. The increase was largely due to an increase in capital due to the successful completion of a rights offering in the third quarter, which was partially offset by a decrease in accumulated other comprehensive income relating to net unrealized losses on available for sale securities. At December 31, 2013, the leverage, Tier I risk-based capital and total risk-based capital ratios for the Bank were 10.38%, 14.21% and 15.47%, respectively, all in excess of the ratios required to be deemed "well-capitalized."

Asset and Credit Quality

The Company continued to improve its asset credit quality as total problem assets and NPAs continued to decline. Overall problem assets (foreclosed real estate, criticized assets and classified assets) are down 22.3% from December 31, 2012, and the ratio of NPAs to total assets improved to 3.10% at December 31, 2013 from 4.61% at December 31, 2012. Non-accrual loans to total loans fell to 3.03% at December 31, 2013, which is the lowest level since 2007. In addition, foreclosed real estate declined $2.1 million, or 42.2% from December 31, 2012.

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, decreased $7.2 million, or 30.2%, to $16.6 million at December 31, 2013, as compared to $23.8 million at December 31, 2012. Non-accrual loans decreased $6.0 million, or 33.5%, to $11.9 million at December 31, 2013, as compared to $17.9 million at December 31, 2012. The top five non-performing loan relationships total $7.2 million, or 60.7%, of total non-performing loans and 43.6% of total NPAs at December 31, 2013. The remaining non-performing loans have an average loan balance of $120 thousand.

The Company continues to actively market its foreclosed real estate properties, which decreased $2.1 million to $2.9 million at December 31, 2013, as compared to $5.1 million at December 31, 2012. The decrease was primarily due to the sale of foreclosed real estate properties and write-downs on foreclosed real estate of $5.2 million and $1.2 million, respectively, which was partially offset by the addition of $4.2 million in new foreclosed real estate properties during 2013. At December 31, 2013, the Company's foreclosed real estate properties had an average value of approximately $225 thousand per property.

Loans past due 30 to 89 days increased $923 thousand, or 33.5%, to $3.7 million at December 31, 2013, as compared to $2.8 million at December 31, 2012. The increase was largely due to two loan relationships that totaled $2.5 million of which one relationship for $1.4 million was brought current and performing to contractual terms in 2014.     

The allowance for loan losses was $5.4 million, or 1.4% of total loans, at December 31, 2013, compared to $5.0 million, or 1.4% of total loans, at December 31, 2012. The increase in the allowance for loan losses was largely attributed to $2.7 million in provision for loan losses, which was partly offset by $2.3 million in net charge-offs for 2013. In addition, the allowance for loan losses as a percentage of non-performing loans improved to 39.7% at December 31, 2013 from 26.6% at December 31, 2012.

About Sussex Bancorp

Sussex Bancorp is the holding company for Sussex Bank, which operates through its regional offices and corporate centers in Franklin and Rockaway, New Jersey and through its eight branch offices located in Andover, Augusta, Newton, Montague, Sparta, Vernon and Wantage, New Jersey, Port Jervis, 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, 2012, 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)
           
        12/31/2013 VS.
  12/31/2013 9/30/2013 12/31/2012 12/31/2012 9/30/2013
BALANCE SHEET HIGHLIGHTS - Period End Balances           
Total securities   $ 96,750  $ 101,202  $ 124,102  (22.0)%  (4.4)%
Total loans  392,402 392,300 347,736  12.8%  0.0%
Allowance for loan losses   (5,421)  (5,655)  (4,976)  8.9%  (4.1)%
Total assets  533,911 534,886 514,734  3.7%  (0.2)%
Total deposits  430,297 436,974 432,436  (0.5)%  (1.5)%
Total borrowings and junior subordinated debt   53,887  48,887  38,887  38.6%  10.2%
Total shareholders' equity   46,425  46,013  40,372  15.0%  0.9%
           
FINANCIAL DATA - QUARTER ENDED:           
Net interest income (tax equivalent) (a)   $ 4,430  $ 4,347  $ 4,102  8.0%  1.9%
Provision for loan losses  403 500 1,408  (71.4)%  (19.4)%
Total other income  1,411 1,434 2,301  (38.7)%  (1.6)%
Total other expenses  4,526 4,435 5,167  (12.4)%  2.1%
Income before provision for income taxes (tax equivalent)   912  846  (172)  (630.2)%  7.8%
Provision (benefit) for income taxes  162 143 (235)  (168.9)%  13.3%
Taxable equivalent adjustment (a)  129 128 160  (19.4)%  0.8%
Net income (loss)   $ 621  $ 575  $ (97)  (740.2)%  8.0%
             
Net income (loss) per common share - Basic   $ 0.14  $ 0.14  $ (0.03)  (566.7)%  --%
Net income (loss) per common share - Diluted   $ 0.14  $ 0.14  $ (0.03)  (566.7)%  --%
             
Return on average assets   0.46%  0.43%  (0.08)%  (710.0)%  6.5%
Return on average equity   5.34%  5.40%  (0.94)%  (668.0)%  (1.2)%
Net interest margin (tax equivalent)   3.46%  3.44%  3.41%  1.5%  0.6%
             
FINANCIAL DATA - YEAR TO DATE:           
Net interest income (tax equivalent) (a)   $ 16,960    $ 16,753  1.2%  
Provision for loan losses  2,745   4,330  (36.6)%  
Total other income   6,093    7,001  (13.0)%  
Total other expenses  18,228   18,432  (1.1)%  
Income before provision for income taxes (tax equivalent)   2,080    992  109.7%  
Provision (benefit) for income taxes   133    (329)  (140.4)%  
Taxable equivalent adjustment (a)   519    586  (11.4)%  
Net income   $ 1,428    $ 735  94.3%  
             
Net income per common share - Basic   $ 0.38    $ 0.23  65.2%  
Net income per common share - Diluted   $ 0.37    $ 0.22  68.2%  
             
Return on average assets   0.27%    0.14%  87.5%  
Return on average equity   3.37%    1.81%  86.7%  
Net interest margin (tax equivalent)   3.41%    3.52%  (3.1)%  
             
SHARE INFORMATION:           
Book value per common share   $ 10.03  $ 9.94  $ 11.88  (15.6)%  0.9%
Outstanding shares- period ending 4,629,113 4,629,113 3,397,873  36.2%  --%
Average diluted shares outstanding (year to date) 3,816,662 3,570,163 3,287,017  16.1%  6.9%
             
CAPITAL RATIOS:           
Total equity to total assets   8.70%  8.60%  7.84%  10.9%  1.1%
Leverage ratio (b)  10.38% 10.39% 9.27%  12.0%  (0.1)%
Tier 1 risk-based capital ratio (b)  14.21% 13.78% 12.93%  9.9%  3.1%
Total risk-based capital ratio (b)  15.47% 15.04% 14.18%  9.1%  2.9%
             
ASSET QUALITY AND RATIOS:          
Non-accrual loans   $ 11,892  $ 13,406  $ 17,867  (33.4)%  (11.3)%
Loans 90 days past due and still accruing   123  197  208  (40.9)%  (37.6)%
Troubled debt restructured loans ("TDRs") (c)   1,628  612 608  167.8%  166.0%
Foreclosed real estate   2,926  3,077  5,066  (42.2)%  (4.9)%
Non-performing assets ("NPAs")   $ 16,569  $ 17,292  $ 23,749  (30.2)%  (4.2)%
           
Foreclosed real estate, Criticized and Classified Assets   $ 27,148  $ 29,783  $ 34,946  (22.3)%  (8.8)%
Loans past due 30 to 89 days   $ 3,677  $ 2,033  $ 2,754  33.5%  80.9%
Charge-offs, net (quarterly)   $ 637  $ 492  $ 3,146  (79.8)%  29.5%
Charge-offs, net as a % of average loans (annualized)   0.65%  0.51%  3.70%  (82.5)%  26.1%
Non-accrual loans to total loans   3.03%  3.42%  5.14%  (41.0)%  (11.3)%
NPAs to total assets   3.10%  3.23%  4.61%  (32.7)%  (4.0)%
NPAs excluding TDR loans (c) to total assets   2.80%  3.12%  4.50%  (37.8)%  (10.3)%
Non-accrual loans to total assets   2.23%  2.51%  3.47%  (35.8)%  (11.1)%
Allowance for loan losses as a % of non-performing loans   39.73%  39.78%  26.63%  49.2%  (0.1)%
Allowance for loan losses to total loans   1.38%  1.44%  1.43%  (3.5)%  (4.2)%
           
(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)
 
     
ASSETS December 31, 2013 December 31, 2012
   (Unaudited)   
Cash and due from banks  $ 5,521  $ 6,268
Interest-bearing deposits with other banks  7,725  5,400
Cash and cash equivalents  13,246  11,668
     
Interest bearing time deposits with other banks  100  100
Securities available for sale, at fair value  90,676  118,881
Securities held to maturity  6,074  5,221
Federal Home Loan Bank Stock, at cost  2,705  1,980
     
Loans receivable, net of unearned income  392,402  347,736
Less: allowance for loan losses  5,421  4,976
Net loans receivable  386,981  342,760
     
Foreclosed real estate  2,926  5,066
Premises and equipment, net  6,892  6,476
Accrued interest receivable  1,642  1,741
Goodwill  2,820  2,820
Bank owned life insurance  11,889  11,536
Other assets  7,960  6,485
     
Total Assets  $ 533,911  $ 514,734
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
     
Liabilities:    
Deposits:    
Non-interest bearing  $ 58,210  $ 48,375
Interest bearing  372,087  384,061
Total Deposits  430,297  432,436
     
Borrowings  41,000  26,000
Accrued interest payable and other liabilities  3,302  3,039
Junior subordinated debentures  12,887  12,887
     
Total Liabilities  487,486  474,362
     
Total Stockholders' Equity  46,425  40,372
     
Total Liabilities and Stockholders' Equity  $ 533,911  $ 514,734
 
SUSSEX BANCORP
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS)
(Dollars In Thousands Except Per Share Data)
(Unaudited)
  Three Months Ended December 31, Twelve Months Ended December 31,
  2013 2012 2013 2012
INTEREST INCOME        
Loans receivable, including fees  $ 4,647  $ 4,354  $ 18,007  $ 17,646
Securities:        
Taxable  193  154  603  1,148
Tax-exempt  254  311  1,016  1,138
Interest bearing deposits  7  5  16  35
Total Interest Income  5,101  4,824  19,642  19,967
         
INTEREST EXPENSE        
Deposits  417  556  1,827  2,494
Borrowings  329  268  1,157  1,065
Junior subordinated debentures  54  58  217  241
Total Interest Expense  800  882  3,201  3,800
         
Net Interest Income  4,301  3,942  16,441  16,167
PROVISION FOR LOAN LOSSES  403  1,408  2,745  4,330
Net Interest Income after Provision for Loan Losses  3,898  2,534  13,696  11,837
         
OTHER INCOME        
Service fees on deposit accounts  295  299  1,135  1,141
ATM and debit card fees  180  174  699  627
Bank owned life insurance  86  94  353  394
Insurance commissions and fees  657  592  2,902  2,484
Investment brokerage fees  34  27  170  145
Gain on sale of loans, held for sale  --  --  --  47
(Loss) gain on securities transactions  (6)  1,036  393  1,799
Gain (loss) on sale of fixed assets  1  (3)  1  (9)
Other  164  82  440  373
Total Other Income  1,411  2,301  6,093  7,001
         
OTHER EXPENSES        
Salaries and employee benefits  2,381  2,243  9,324  8,987
Occupancy, net  381  379  1,464  1,450
Furniture, equipment and data processing  346  313  1,329  1,327
Advertising and promotion  62  63  260  285
Professional fees  212  199  748  677
Director fees  156  85  455  321
FDIC assessment  175  165  698  681
Insurance  66  61  270  240
Stationary and supplies  48  48  191  176
Loan collection costs  96  174  347  713
Expenses and write-downs related to foreclosed real estate  213  1,046  1,538  2,085
Amortization of intangible assets  --  1  1  5
Other  390  390  1,603  1,485
Total Other Expenses  4,526  5,167  18,228  18,432
         
Income before Income Taxes  783  (332)  1,561  406
INCOME TAX EXPENSE (BENEFIT)  162  (235)  133  (329)
Net Income  $ 621  $ (97)  $ 1,428  $ 735
         
OTHER COMPREHENSIVE LOSS:        
Unrealized (losses) gains on available for sale securities arising during the period  $ (458)  $ (220)  $ (3,785)  $ 1,193
Reclassification adjustment for net gain on securities transactions included in net income  6  (1,036)  (393)  (1,799)
Income tax expense related to items of other comprehensive loss  181  502  1,671  243
Other comprehensive loss, net of income taxes  (271)  (754)  (2,507)  (363)
Comprehensive income (loss)  $ 350  $ (851)  $ (1,079)  $ 372
         
EARNINGS PER SHARE        
Basic  $ 0.14  $ (0.03)  $ 0.38  $ 0.23
Diluted  $ 0.14  $ (0.03)  $ 0.37  $ 0.22
 
SUSSEX BANCORP
COMPARATIVE AVERAGE BALANCES AND AVERAGE INTEREST RATES
(Dollars In Thousands)
(Unaudited)
             
  Three Months Ended December 31,
  2013 2012
  Average   Average Average   Average
  Balance Interest (1) Rate (2) Balance Interest (1) Rate (2)
Earning Assets:            
Securities:            
Tax exempt (3)  $ 30,860  $ 383 4.92%  $ 37,215  $ 471 5.03%
Taxable  73,521  193 1.04%  91,467  154 0.67%
Total securities  104,381  576 2.19%  128,682  625 1.93%
Total loans receivable (4)  393,805  4,647 4.68%  340,190  4,354 5.09%
Other interest-earning assets  10,033  7 0.28%  9,394  5 0.21%
Total earning assets 508,219  5,230 4.08% 478,266  4,984 4.15%
             
Non-interest earning assets  35,680      40,958    
Allowance for loan losses  (5,945)      (6,654)    
Total Assets  $ 537,954      $ 512,570    
             
Sources of Funds:            
Interest bearing deposits:            
NOW  $ 118,247  $ 45 0.15%  $ 101,954  $ 35 0.14%
Money market  13,745  6 0.17%  13,570  7 0.21%
Savings  148,175  77 0.21%  158,245  114 0.29%
Time  97,836  289 1.17%  103,342  400 1.54%
Total interest bearing deposits 378,003  417 0.44% 377,111  556 0.59%
Borrowed funds 40,181  329 3.25% 26,016  268 4.10%
Junior subordinated debentures 12,887  54 1.66% 12,887  58 1.79%
Total interest bearing liabilities 431,071  800 0.74% 416,014  882 0.84%
             
Non-interest bearing liabilities:            
Demand deposits  58,466      50,846    
Other liabilities  1,858      4,399    
Total non-interest bearing liabilities  60,324      55,245    
Stockholders' equity  46,559      41,311    
Total Liabilities and Stockholders' Equity  $ 537,954      $ 512,570    
             
Net Interest Income and Margin (5)    4,430 3.46%    4,102 3.41%
Tax-equivalent basis adjustment    (129)      (160)  
Net Interest Income    $ 4,301      $ 3,942  
             
(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,
  2013 2012
  Average   Average Average   Average
  Balance Interest (1) Rate (2) Balance Interest (1) Rate (2)
Earning Assets:            
Securities:            
Tax exempt (3)  $ 30,758  $ 1,535 4.99%  $ 31,397  $ 1,724 5.49%
Taxable  87,155  603 0.69%  86,456  1,148 1.33%
Total securities  117,913  2,138 1.81%  117,853  2,872 2.44%
Total loans receivable (4)  372,894  18,007 4.83%  339,927  17,646 5.19%
Other interest-earning assets  6,488  16 0.25%  18,154  35 0.19%
Total earning assets 497,295  20,161 4.05% 475,934  20,553 4.32%
             
Non-interest earning assets  37,620      41,795    
Allowance for loan losses  (5,763)      (7,164)    
Total Assets  $ 529,152      $ 510,565    
             
Sources of Funds:            
Interest bearing deposits:            
NOW  $ 113,535  $ 154 0.14%  $ 96,432  $ 164 0.17%
Money market  14,409  29 0.20%  16,110  54 0.34%
Savings  153,322  351 0.23%  162,052  606 0.37%
Time  99,025  1,293 1.31%  106,372  1,670 1.57%
Total interest bearing deposits 380,291  1,827 0.48% 380,966  2,494 0.65%
Borrowed funds 34,526  1,157 3.35% 26,053  1,065 4.09%
Junior subordinated debentures 12,887  217 1.68% 12,887  241 1.87%
Total interest bearing liabilities 427,704  3,201 0.75% 419,906  3,800 0.90%
             
Non-interest bearing liabilities:            
Demand deposits  56,361      47,180    
Other liabilities  2,705      2,759    
Total non-interest bearing liabilities  59,066      49,939    
Stockholders' equity  42,382      40,720    
Total Liabilities and Stockholders' Equity  $ 529,152      $ 510,565    
             
Net Interest Income and Margin (5)    16,960 3.41%    16,753 3.52%
Tax-equivalent basis adjustment    (519)      (586)  
Net Interest Income    $ 16,441      $ 16,167  
             
(1) Includes loan fee income
(2) Average rates on securities are calculated on amortized costs
(3) Full taxable equivalent basis, using a 39% effective tax rate and adjusted for TEFRA (Tax and Equity Fiscal Responsibility Act) interest expense disallowance
(4) Loans outstanding include non-accrual loans
(5) Represents the difference between interest earned and interest paid, divided by average total interest-earning assets
CONTACT: Anthony Labozzetta, President/CEO
         Steven Fusco, SVP/CFO
         844-256-7328

Source: Sussex Bancorp

This article appears in: News Headlines

Referenced Stocks: SBBX


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