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

 
Sussex Bancorp
Contact: Donald L. Kovach
200 Munsonhurst  Road
Chairman
Franklin, NJ 07416
(973) 827-2914
   



SUSSEX BANCORP ANNOUNCES 2009 EARNINGS
 
FRANKLIN, NEW JERSEY – February 1, 2010– Sussex Bancorp (NASDAQ “SBBX”) today announced its results of operations for the year ended December 31, 2009. For 2009, the Company earned $2.0 million, or $0.62 per basic and diluted share, compared to a net loss of $1.0 million, or ($0.32) per basic and diluted share for the prior year. The Company’s return to profitability in 2009 primarily reflects an increase in net interest income of $3.2 million as well as the absence of impairment charges in 2009, as the Company recorded an impairment charge of $3.5 million in 2008 related to certain FNMA and Freddie Mac securities.

The Company’s total interest income increased to $23.1 million for the year ended December 31, 2009 from $22.7 million for the same period last year, as total interest expense decreased to $8.1 million for the year ended December 31, 2009 from $10.8 million for the year ended December 31, 2008. As a result, for the year ended December 31, 2009 the Company’s net interest income increased to $15.0 million from the $11.8 million earned last year. The improvement in the net interest income is reflective of the improvement in the Company’s net interest margin, which increased by 48 basis points from 3.12% in 2008 to 3.60% in 2009.

 The Company’s average earning assets increased by $39.5 million in 2009 over 2008, while the average yield declined by 42 basis points, to 5.46% in 2009 from 5.88% in 2008. The Company’s average interest bearing liabilities increased by $45.1 million for the year ended December 31, 2009 compared to the prior year.  The Company’s cost of interest bearing liabilities decreased by 108 basis points to 2.07% in 2009 from 3.15% in 2008.

For the year ended December 31, 2009, the Company’s non-interest income increased by $3.5 million from $2.0 million for year ended December 31, 2008 to $5.5 million for year ended December 31, 2009. The improvement is attributable to an impairment write-down of $3.5 million on equity securities that the Company incurred in 2008, while the Company experienced no such impairment charges in 2009.  Non-interest expense was flat year over year, increasing by $90 thousand to $14.7 million for the year ended December 31, 2009 compared to $14.6 million one year earlier.  This increase is due to $551 thousand in increased FDIC assessment charges, while salaries and employee benefit expenses declined by approximately $194 thousand.

The Company’s loan loss provision for the year ended December 31, 2009 was $3.4 million compared to $1.4 million for the same period last year. The increase in the provision is primarily attributable to a decline in real estate collateral values and adverse economic conditions in the Company’s trade area. As a result of these conditions, the Company’s non-performing loan balance increased to $20.4 million at December 31, 2009 from $11.0 million at December 31, 2008.  The Company believes these loans are adequately provided for in its loan loss provision or are sufficiently secured at December 31, 2009.  Non-performing loans as a percentage of total gross loans at December 31, 2009 were 6.13%, compared to 3.44% one year earlier.

At December 31, 2009 the Company had total assets of $454.8 million, compared to total assets of $440.6 million at December 31, 2008.  The Company had total deposits of $372.1 million at December 31, 2009, compared to total deposits of $360.1 million at December 31, 2008.

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





 
 
 


SUSSEX BANCORP
  
CONSOLIDATED BALANCE SHEETS
  
(Dollars In Thousands)
  
             
ASSETS
  
December 31, 2009
  
December 31, 2008
  
   
(Unaudited)
        
             
Cash and due from banks
   $ 8,779     $ 7,602  
Federal funds sold
     14,300       13,310  
   Cash and cash equivalents
     23,079       20,912  
                 
Interest bearing time deposits with other banks
     100       100  
Trading securities
     2,955       13,290  
Securities available for sale
     71,315       62,272  
Federal Home Loan Bank Stock, at cost
     2,045       1,975  
                 
Loans receivable, net of unearned income
     332,959       320,880  
   Less:  allowance for loan losses
     5,496       5,813  
        Net loans receivable
     327,463       315,067  
                 
Foreclosed real estate
     3,843       3,864  
Premises and equipment, net
     7,065       8,526  
Accrued interest receivable
     1,943       2,115  
Goodwill
     2,820       2,820  
Other assets
     12,213       9,654  
                 
Total Assets
   $ 454,841     $ 440,595  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY
                
                 
Liabilities:
                
   Deposits:
                
      Non-interest bearing
   $ 34,155     $ 34,784  
      Interest bearing
     337,920       325,297  
   Total Deposits
     372,075       360,081  
                 
Borrowings
     33,090       33,146  
Accrued interest payable and other liabilities
     2,262       2,571  
Junior subordinated debentures
     12,887       12,887  
                 
Total Liabilities
     420,314       408,685  
                 
Total Stockholders' Equity
     34,527       31,910  
                 
Total Liabilities and Stockholders' Equity
   $ 454,841     $ 440,595  




 
 
 


SUSSEX BANCORP
  
CONSOLIDATED STATEMENTS OF INCOME
  
(Dollars In Thousands)
  
             
   
Years Ended December 31,
  
   
2009
    
2008
  
   
(Unaudited)
        
INTEREST INCOME
  
 
        
   Loans receivable, including fees
   $ 19,259     $ 19,150  
   Securities:
                
      Taxable
     2,587       2,266  
      Tax-exempt
     1,164       976  
   Federal funds sold
     30       259  
   Interest bearing deposits
     15       2  
         Total Interest Income
     23,055       22,653  
                 
INTEREST EXPENSE
                
   Deposits
     6,321       8,746  
   Borrowings
     1,426       1,507  
   Junior subordinated debentures
     306       590  
        Total Interest Expense
     8,053       10,843  
                 
        Net Interest Income
     15,002       11,810  
PROVISION FOR LOAN LOSSES
     3,404       1,350  
        Net Interest Income after Provision for Loan Losses
     11,598       10,460  
                 
OTHER INCOME
                
   Service fees on deposit accounts
     1,467       1,534  
   ATM fees
     480       464  
   Insurance commissions and fees
     2,284       2,507  
   Investment brokerage fees
     137       151  
   Holding gains on trading securities
     5       199  
   Gain on sale of securities, available for sale
     134       150  
   Gain on sale of fixed assets
     203       -  
   Gain (loss) on sale of foreclosed real estate
     190       (58 )
   Impairment write-downs on equity securities
     -       (3,526 )
   Other
     644       570  
      Total Other Income
     5,544       1,991  
                 
OTHER EXPENSES
                
   Salaries and employee benefits
     7,351       7,545  
   Occupancy, net
     1,302       1,299  
   Furniture, equipment and data processing
     1,286       1,481  
   Stationary and supplies
     178       192  
   Professional fees
     768       621  
   Advertising and promotion
     179       469  
   Insurance
     194       171  
   FDIC Assessment
     936       385  
   Postage and freight
     139       155  
   Amortization of intangible assets
     18       49  
   Write-down on foreclosed real estate
     456       437  
   Foreclosed real estate
     347       255  
   Other
     1,525       1,530  
      Total Other Expenses
     14,679       14,589  
                 
       Income (Loss) before Income Taxes
     2,463       (2,138 )
PROVISION (BENEFIT) FOR INCOME TAXES
     452       (1,096 )
      Net Income (Loss)
   $ 2,011     $ (1,042 )


 
 
 



SUSSEX BANCORP
  
COMPARATIVE AVERAGE BALANCES AND AVERAGE INTEREST RATES
  
(Dollars In Thousands)
  
(Unaudited)
  
                                     
   
Twelve Months Ended December 31,
  
(Dollars in thousands)
  
2009
    
2008
  
   
Average
          
Average
    
Average
          
Average
  
Earning Assets:
  
Balance
    
Interest (1)
    
Rate (2)
    
Balance
    
Interest (1)
    
Rate (2)
  
Securities:
                                    
      Tax exempt  (3)
   $ 28,102     $ 1,747       6.22 %   $ 23,720     $ 1,458       6.15 %
      Taxable
     59,035       2,587       4.38 %     47,234       2,266       4.80 %
Total securities
     87,137       4,334       4.97 %     70,954       3,724       5.25 %
Total loans receivable (4)
     326,740       19,259       5.89 %     307,845       19,150       6.22 %
Other interest-earning assets
     19,208       45       0.23 %     14,749       261       1.77 %
Total earning assets
     433,085     $ 23,638       5.46 %     393,548     $ 23,135       5.88 %
                                                 
Non-interest earning assets
     36,355                       31,359                  
Allowance for loan losses
     (5,824 )                     (5,182 )                
Total Assets
   $ 463,616                     $ 419,725                  
                                                 
Sources of Funds:
                                                
Interest bearing deposits:
                                                
      NOW
   $ 57,928     $ 582       1.00 %   $ 58,878     $ 798       1.36 %
      Money market
     14,709       177       1.21 %     23,769       527       2.22 %
      Savings
     169,541       2,759       1.63 %     85,707       2,350       2.74 %
      Time
     101,565       2,803       2.76 %     127,475       5,071       3.98 %
Total interest bearing deposits
     343,743       6,321       1.84 %     295,829       8,746       2.96 %
      Borrowed funds
     33,139       1,426       4.30 %     35,971       1,507       4.19 %
      Junior subordinated debentures
     12,887       306       2.38 %     12,887       590       4.57 %
Total interest bearing liabilities
     389,769     $ 8,053       2.07 %     344,687     $ 10,843       3.15 %
                                                 
Non-interest bearing liabilities:
                                                
      Demand deposits
     38,154                       39,303                  
      Other liabilities
     2,303                       2,036                  
Total non-interest bearing liabilities
     40,457                       41,339                  
Stockholders' equity
     33,390                       33,699                  
Total Liabilities and Stockholders' Equity
   $ 463,616                     $ 419,725                  
                                             
Net Interest Income and Margin (5)
           $ 15,585     3.60 %           $ 12,292     3.12 %
                                                 
(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