EX-99.1 2 ex99-1.htm EXHIBIT 99.1 ex99-1.htm
 
 
Exhibit 99.1

Sussex Bancorp
200 Munsonhurst Road, Rt. 517
Franklin, NJ 07416
973-827-2914

FOR IMMEDIATE RELEASE
SUSSEX BANCORP ANNOUNCES IMPROVED THIRD QUARTER AND NINE MONTH EARNINGS
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FRANKLIN, NEW JERSEY – October 22, 2009– Sussex Bancorp (NASDAQ: “SBBX”) today announced improved financial results for the third quarter and nine months ended September 30, 2009.

For the quarter ended September 30, 2009, the Company earned $897 thousand compared to a net loss of $3.0 million for the quarter ended September 30, 2008.   For the nine months ended September 30, 2009, the Company earned $1.7 million compared to a net loss of $2.0 million reported for the same period last year. Basic and diluted earnings per share for the three and nine months ended September 30, 2009, were $0.28 and $0.54, respectively, compared to basic and diluted loss per share of ($0.92) and ($0.62) for the comparable periods of 2008.  The improvement in the Company’s performance in 2009 reflects higher net interest income, partially offset by higher provisions for loan losses, and the impact of other than temporary impairment (“OTTI”) charges in 2008 attributable to Fannie Mae and Freddie Mac preferred stock.  The Company had no comparable OTTI charge in 2009.

 The Company’s net interest income increased to $4.2 million for the quarter ended September 30, 2009 from $3.1 million for the third quarter of 2008.  The Company’s interest income was unchanged at $5.9 million during each period, while the Company’s interest expense decreased to $1.7 million for the three months ended September 30, 2009 from $2.7 million for the third quarter of 2008.

For the nine months ended September 30, 2009, the Company’s net interest income increased to $11.0 million from the $9.0 million earned for the same period last year.  For the nine months ended September 30, 2009, the Company’s interest income increased to $17.5 million from $17.0 million in the nine months ended September 30, 2008.  As the Company’s average earning assets increased by $48.8 million, its yield on earning assets decreased by 47 basis points.  The Company’s interest expense decreased to $6.5 million for the nine months ended September 30, 2009 from $8.0 million for the nine month period ended September 30, 2008. The Company’s average interest bearing liabilities increased by $56.1 million in the first nine months of 2009 compared to the prior year, and the Company’s cost of interest bearing liabilities decreased by 97 basis points.

For the nine months ended September 30, 2009, the Company’s net interest margin increased by 30 basis points, to 3.51% from 3.21 % in the prior year period.  For the third quarter of 2009, the Company’s net interest margin increased to 4.04% from 3.18% in the third quarter of 2008.

The loan loss provision for the third quarter was $520 thousand compared to $279 thousand for the same period last year.  For the nine month period the provision was $1.6 million, compared to $569 thousand for the same period last year.  At September 30, 2009, non-performing assets totaled $23.8 million compared to $15.1 million at September 30, 2008 and $15.0 million at December 31, 2008.

At September 30, 2009 the Company had total assets of $452.5 million, compared to total assets of $439.1 million at September 30, 2008.  The Company’s total loans increased $18.1 million to $330.4 million at September 30, 2009 from $312.3 million at September 30, 2008.
 
The Company reported non-interest income for the three and nine month periods ending September 30, 2009 of $1.3 million and $4.1 million, respectively, compared  to a loss of $2.3 million and non-interest income of $632 thousand for the three and nine month periods ending September 30, 2008, respectively.  The reduced non-interest income for the three and nine month periods in 2008 reflects the OTTI charge discussed above, which is recognized in non-interest income.

Salaries and employee benefits increased by $228 thousand to $2.1 million for the quarter ended September 30, 2009 from the $1.8 million in the same period last year and declined by $73 thousand in the nine months ended September 30, 2009 compared to the prior year period.  The increase in the quarterly period is related to expenses accrued in relation to severance owed to a former executive officer of the Company and the Bank.

Sussex Bancorp is the holding company for Sussex Bank, which operates through its eight New Jersey offices and two Orange County offices and for the Tri-State Insurance Agency, Inc., a full service insurance agency located in Sussex County, New Jersey.

 
 
 

 


SUSSEX BANCORP
  
CONSOLIDATED BALANCE SHEETS
  
(Dollars In Thousands)
  
(Unaudited)
  
                   
ASSETS
  
September 30, 2009
  
September 30, 2008
  
December 31, 2008
  
                   
Cash and due from banks
   $ 13,240     $ 10,537     $ 7,602  
Federal funds sold
     2,038       15,470       13,310  
   Cash and cash equivalents
     15,278       26,007       20,912  
                         
Interest bearing time deposits with other banks
     100       100       100  
Trading securities
     3,974       13,519       13,290  
Securities available for sale
     80,040       64,487       62,272  
Federal Home Loan Bank Stock, at cost
     2,046       2,111       1,975  
                         
Loans receivable, net of unearned income
     330,404       312,330       320,880  
   Less:  allowance for loan losses
     5,064       5,080       5,813  
        Net loans receivable
     325,340       307,250       315,067  
                         
Foreclosed real estate
     4,380       3,931       3,864  
Premises and equipment, net
     7,165       8,697       8,526  
Accrued interest receivable
     2,120       2,058       2,115  
Goodwill
     2,820       2,820       2,820  
Other assets
     9,271       8,099       9,654  
                         
Total Assets
   $ 452,534     $ 439,079     $ 440,595  
                         
LIABILITIES AND STOCKHOLDERS' EQUITY
                        
                         
Liabilities:
                        
   Deposits:
                        
      Non-interest bearing
   $ 39,037     $ 40,430     $ 34,784  
      Interest bearing
     330,100       316,231       325,297  
   Total Deposits
     369,137       356,661       360,081  
                         
Borrowings
     33,104       36,160       33,146  
Accrued interest payable and other liabilities
     2,717       2,572       2,571  
Junior subordinated debentures
     12,887       12,887       12,887  
                         
Total Liabilities
     417,845       408,280       408,685  
                         
Total Stockholders' Equity
     34,689       30,799       31,910  
                         
Total Liabilities and Stockholders' Equity
   $ 452,534     $ 439,079     $ 440,595  


 
 
 


SUSSEX BANCORP
  
CONSOLIDATED STATEMENTS OF INCOME
  
(Dollars In Thousands)
  
(Unaudited)
  
                         
   
Three Months Ended September 30,
    
Nine Months Ended September 30,
  
   
2009
    
2008
    
2009
    
2008
  
INTEREST INCOME
                        
   Loans receivable, including fees
   $ 4,923     $ 4,887     $ 14,520     $ 14,335  
   Securities:
                                
      Taxable
     651       631       2,032       1,698  
      Tax-exempt
     308       248       897       710  
   Federal funds sold
     5       111       26       223  
   Interest bearing deposits
     1       1       15       2  
         Total Interest Income
     5,888       5,878       17,490       16,968  
                                 
INTEREST EXPENSE
                                
   Deposits
     1,264       2,219       5,166       6,417  
   Borrowings
     359       377       1,067       1,132  
   Junior subordinated debentures
     64       135       251       459  
        Total Interest Expense
     1,687       2,731       6,484       8,008  
                                 
        Net Interest Income
     4,201       3,147       11,006       8,960  
PROVISION FOR LOAN LOSSES
     520       279       1,583       569  
        Net Interest Income after Provision for Loan Losses
     3,681       2,868       9,423       8,391  
                                 
OTHER INCOME
                                
   Service fees on deposit accounts
     380       409       1,095       1,111  
   ATM and debit card fees
     126       123       354       348  
   Insurance commissions and fees
     548       576       1,757       1,972  
   Investment brokerage fees
     30       22       111       117  
   Holding gains on trading securities
     2       (8 )     21       13  
                                 
   Gain on sale of securities, available for sale
     55       -       55       152  
   Gain on sale of fixed assets
     -       -       203       -  
   Loss on sale of foreclosed real estate
     (34 )     -       (35 )     -  
   Impairment write-down on equity securities
     -       (3,526 )     -       (3,526 )
   Other
     173       129       509       445  
      Total Other Income
     1,280       (2,275 )     4,070       632  
                                 
OTHER EXPENSES
                                
   Salaries and employee benefits
     2,070       1,842       5,624       5,697  
   Occupancy, net
     320       315       981       977  
   Furniture, equipment and data processing
     314       372       991       1,119  
   Stationary and supplies
     37       50       127       141  
   Professional fees
     216       140       585       337  
   Advertising and promotion
     49       92       145       379  
   Insurance
     54       42       140       127  
   FDIC assessment
     172       95       687       280  
   Postage and freight
     33       34       110       118  
   Amortization of intangible assets
     4       14       14       43  
   Write-down on foreclosed real estate
     -       -       456       -  
   Expenses related to foreclosed real estate
     77       75       353       132  
   Other
     367       368       1,050       1,129  
      Total Other Expenses
     3,713       3,439       11,263       10,479  
                                 
       Income (loss) before Income Taxes
     1,248       (2,846 )     2,230       (1,456 )
PROVISION FOR INCOME TAXES
     351       181       485       575  
      Net Income (Loss)
   $ 897     $ (3,027 )   $ 1,745     $ (2,031 )


 
 
 


SUSSEX BANCORP
COMPARATIVE AVERAGE BALANCES AND AVERAGE INTEREST RATES
(Dollars In Thousands)
(Unaudited)
 
   
Nine Months Ended September 30,
  
   
2009
    
2008
  
   
Average
          
Average
    
Average
          
Average
  
Earning Assets:
  
Balance
    
Interest (1)
    
Rate (2)
    
Balance
    
Interest (1)
    
Rate (2)
  
Securities:
                                    
      Tax exempt  (3)
   $ 28,812     $ 1,347       6.25 %   $ 22,906     $ 1,061       6.19 %
      Taxable
     61,628       2,032       4.41 %     45,576       1,698       4.98 %
Total securities
     90,440       3,379       4.99 %     68,482       2,759       5.38 %
Total loans receivable (4)
     324,797       14,519       5.98 %     304,859       14,335       6.28 %
Other interest-earning assets
     21,226       41       0.25 %     14,350       225       2.10 %
Total earning assets
     436,463     $ 17,939       5.50 %     387,691     $ 17,319       5.97 %
                                                 
Non-interest earning assets
     36,269                       30,837                  
Allowance for loan losses
     (6,059 )                     (5,188 )                
Total Assets
   $ 466,673                     $ 413,340                  
                                                 
Sources of Funds:
                                                
Interest bearing deposits:
                                                
      NOW
   $ 57,108     $ 432       1.01 %   $ 58,277     $ 604       1.38 %
      Money market
     15,129       144       1.27 %     26,346       451       2.29 %
      Savings
     171,163       2,264       1.77 %     73,098       1,376       2.51 %
      Time
     103,722       2,325       3.00 %     130,380       3,986       4.08 %
Total interest bearing deposits
     347,122       5,166       1.99 %     288,101       6,417       2.98 %
      Borrowed funds
     33,123       1,067       4.25 %     35,998       1,132       4.13 %
      Junior subordinated debentures
     12,887       251       2.57 %     12,887       459       4.68 %
Total interest bearing liabilities
     393,132     $ 6,484       2.21 %     336,986     $ 8,008       3.17 %
                                                 
Non-interest bearing liabilities:
                                                
      Demand deposits
     38,512                       39,721                  
      Other liabilities
     2,159                       2,207                  
Total non-interest bearing liabilities
     40,671                       41,928                  
Stockholders' equity
     32,870                       34,426                  
Total Liabilities and Stockholders' Equity
   $ 466,673                     $ 413,340                  
                         
Net Interest Income and Margin (5)
           $ 11,455     3.51 %           $ 9,311     3.21 %

(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