EX-99.3 4 ex99-3.htm EXHIBIT 99.3 ex99-3.htm
 
Exhibit 99.3

Sussex Bancorp
Contact:
Donald L. Kovach
399 Route 23
  
President/CEO
Franklin, NJ  07416
  
973-827-2914
     
     

SUSSEX BANCORP ANNOUNCES FIRST QUARTER 2008 EARNINGS
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FRANKLIN, NEW JERSEY – April 17, 2008– Sussex Bancorp (NASDAQ: “SBBX”) today announced its financial results for the first quarter ended March 31, 2008.

For the quarter ended March 31, 2008, the Company earned net income of $637,000, a decrease of approximately 12.0 percent from net income of $724,000 for the first quarter of 2007.   Basic earnings per share for the two periods were $0.21 and $0.23, respectively.  Diluted earnings per share were $0.20 and $0.23 for the first quarter of 2008 and 2007, respectively.  The Company’s first quarter 2008 performance reflects increases in net interest income and non-interest income, offset by increased provision for loan losses and non-interest expense.

The Company’s net interest income increased $42 thousand, to $2.9 million for the quarter ended March 31, 2008 from $2.8 million for the first quarter of 2007. The Company’s interest income increased $204 thousand, or 3.8%, to $5.6 million for the three months ended March 31, 2008 from $5.4 million for the first quarter of 2007. However, the Company’s interest expense increased $162 thousand, or 6.4%, to $2.7 million for the first quarter of 2008 from $2.5 million for the first quarter of 2007.  The increase in interest expense reflects the continued competitive marketplace for cost effective deposits in the Company’s trade area, as well as an increase in the Company’s outstanding junior subordinated debentures related to the Company’s trust preferred securities. The Company’s outstanding junior subordinated debentures increased from $5.2 million at March 31, 2007 to $12.9 million at March 31, 2008. The Company believes that additional trust preferred securities have provided a cost efficient funding source for the continued growth in the Company’s loan portfolio.

The Company’s non-interest income increased to $1.7 million for the quarter ended March 31, 2008 from $1.6 million for the first quarter of 2007.  The increase in non-interest income is attributable to holding gains on trading securities, gains on sales of securities and increases in service fees on deposit accounts and ATM fees.  The Company’s non-interest expense increased to $3.5 million for the quarter ended March 31, 2008 from $3.2 million for the first quarter of 2007.  Salary and employee benefits increased by $97 thousand, occupancy expense increased $45 thousand attributable to increases in fuel costs, furniture, fixtures and equipment and data processing increased $35 thousand and FDIC insurance increased $86 thousand.

The Company’s total deposits increased to $319.2 million at March 31, 2008 from $293.9 million at March 31, 2007. The Company’s gross loans, net of unearned income increased $31.7 million to $302.4 million at March 31, 2008 from $270.7 million at March 31, 2007.  At March 31, 2008 the Company had total assets of $405.5 million, compared to total assets of $357.2 million at March 31, 2007.   The loan loss provision for the first quarter of 2008 was $173 thousand compared to $108 thousand for the same period last year.

Sussex Bancorp also announced that its Board of Directors declared a cash dividend of $0.07 per share, payable on May 15, 2008 to shareholders of record as of May 1, 2008.

 
 
 


Sussex Bancorp is the holding company for Sussex Bank, which operates through its main office in Franklin, New Jersey and branch offices in Andover, Augusta, Newton, Montague, Sparta, Vernon and Wantage, New Jersey, Port Jervis and Warwick, New York and for the Tri-State Insurance Agency, Inc., a full service insurance agency located in Sussex County, New Jersey.

 
CONSOLIDATED BALANCE SHEETS
  
(Dollars In Thousands)
  
(Unaudited)
  
                   
ASSETS
  
March 31, 2008
  
March 31, 2007
  
December 31, 2007
  
                   
Cash and due from banks
   $ 11,934     $ 7,783     $ 7,985  
Federal funds sold
     10,350       2,665       3,790  
   Cash and cash equivalents
     22,284       10,448       11,775  
                         
Interest bearing time deposits with other banks
     100       100       100  
Trading securities
     13,834       13,476       14,259  
Securities available for sale
     48,997       44,945       48,397  
Federal Home Loan Bank Stock, at cost
     2,077       1,277       2,032  
                         
Loans receivable, net of unearned income
     302,402       270,740       300,646  
   Less:  allowance for loan losses
     5,309       3,428       5,140  
        Net loans receivable
     297,093       267,312       295,506  
                         
Premises and equipment, net
     8,941       8,172       9,112  
Accrued interest receivable
     1,944       1,685       2,035  
Goodwill
     2,820       2,820       2,820  
Other assets
     7,435       7,017       7,496  
                         
Total Assets
   $ 405,525     $ 357,252     $ 393,532  
                         
LIABILITIES AND STOCKHOLDERS' EQUITY
                        
                         
Liabilities:
                        
   Deposits:
                        
      Non-interest bearing
   $ 42,621     $ 37,215     $ 36,625  
      Interest bearing
     276,626       256,696       271,913  
   Total Deposits
     319,247       293,911       308,538  
                         
Borrowings
     36,187       20,239       35,200  
Accrued interest payable and other liabilities
     2,336       2,708       2,467  
Junior subordinated debentures
     12,887       5,155       12,887  
                         
Total Liabilities
     370,657       322,013       359,092  
                         
Total Stockholders' Equity
     34,868       35,239       34,440  
                         
Total Liabilities and Stockholders' Equity
   $ 405,525     $ 357,252     $ 393,532  


 
 
 



SUSSEX BANCORP
  
CONSOLIDATED STATEMENTS OF INCOME
  
(Dollars In Thousands)
  
(Unaudited)
  
             
   
Three Months Ended March 31,
  
   
2008
    
2007
  
INTEREST INCOME
            
   Loans receivable, including fees
   $ 4,811     $ 4,653  
   Securities:
                
      Taxable
     524       396  
      Tax-exempt
     236       250  
   Federal funds sold
     24       92  
   Interest bearing deposits
     1       1  
         Total Interest Income
     5,596       5,392  
                 
INTEREST EXPENSE
                
   Deposits
     2,130       2,208  
   Borrowings
     382       222  
   Junior subordinated debentures
     193       113  
        Total Interest Expense
     2,705       2,543  
                 
        Net Interest Income
     2,891       2,849  
PROVISION FOR LOAN LOSSES
     173       108  
        Net Interest Income after Provision for Loan Losses
     2,718       2,741  
                 
OTHER INCOME
                
   Service fees on deposit accounts
     351       319  
   ATM fees
     105       87  
   Insurance commissions and fees
     743       854  
   Investment brokerage fees
     47       157  
   Holding gains on trading securities
     217       46  
   Gain on sale of securities, available for sale
     84       -  
   Other
     132       123  
      Total Other Income
     1,679       1,586  
                 
OTHER EXPENSES
                
   Salaries and employee benefits
     1,879       1,782  
   Occupancy, net
     358       313  
   Furniture, equipment and data processing
     373       338  
   Stationary and supplies
     43       46  
   Professional fees
     109       139  
   Advertising and promotion
     126       104  
   Insurance
     38       46  
   Postage and freight
     38       40  
   Amortization of intangible assets
     15       37  
   Other
     494       395  
      Total Other Expenses
     3,473       3,240  
                 
       Income before Income Taxes
     924       1,087  
PROVISION FOR INCOME TAXES
     287       363  
      Net Income
   $ 637     $ 724  
 

 

 
COMPARATIVE AVERAGE BALANCES AND AVERAGE INTEREST RATES
  
(Unaudited)
  
                                     
   
Three Months Ended March 31,
(Dollars in thousands)
  
2008
    
2007
   
Average
          
Average
  
Average
          
Average
Interest earning assets:
  
Balance
    
Interest (1)
    
Rate (2)
  
Balance
    
Interest (1)
    
Rate (2)
   Securities:
                                    
      Tax exempt  (3)
   $ 22,643     $ 352       6.25 %   $ 23,640     $ 328       5.63 %
      Taxable
     40,389       524       5.22 %     34,149       396       4.70 %
   Total securities
     63,032       876       5.59 %     57,789       724       5.08 %
   Total loans receivable (4)
     300,024       4,811       6.45 %     266,252       4,653       7.09 %
   Other interest-earning assets
     2,941       25       3.42 %     6,819       93       5.53 %
      Total interest earning assets
     365,997     $ 5,712       6.28 %     330,860     $ 5,470       6.70 %
                                                 
Non-interest earning assets
     29,437                       27,298                  
Allowance for loan losses
     (5,226 )                     (3,385 )                
      Total Assets
   $ 390,208                     $ 354,773                  
                                                 
Interest bearing liabilities:
                                                
   Interest bearing deposits:
                                                
      NOW
   $ 59,235     $ 244       1.66 %   $ 57,140     $ 314       2.23 %
      Money market
     32,716       215       2.65 %     35,400       343       3.92 %
      Savings
     38,504       112       1.17 %     39,884       90       0.91 %
      Time
     136,092       1,559       4.61 %     124,130       1,462       4.78 %
   Total interest bearing deposits
     266,547       2,130       3.21 %     256,554       2,208       3.49 %
      Borrowed funds
     35,650       382       4.24 %     18,777       222       4.72 %
      Junior subordinated debentures
     12,887       193       5.91 %     5,155       113       8.74 %
   Total interest bearing liabilities
     315,084     $ 2,705       3.45 %     280,486     $ 2,543       3.68 %
                                                 
Non-interest bearing liabilities:
                                                
      Demand deposits
     38,653                       37,294                  
      Other liabilities
     1,844                       2,159                  
   Total non-interest bearing liabilities
     40,497                       39,453                  
   Stockholders' equity
     34,627                       34,834                  
      Total Liabilities and Stockholders' Equity
   $ 390,208                     $ 354,773                  
                            
Net Interest Income and Margin (5)
           $ 3,007     3.30 %           $ 2,927     3.59 %
                                                 
(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