Acquisitions And Stock Offering

9 Months Ended

Sep. 30, 2017

Business Combinations [Abstract]

Acquisitions And Stock Offering

ACQUISITIONS AND STOCK OFFERING

On April 11, 2017, we announced the signing of a definitive merger agreement to acquire Community Bank of Bergen County, NJ, a New Jersey-chartered bank (“Community”) in an all-stock transaction (the “Merger”). Under the terms of the agreement, Community will be merged with and into Sussex Bank, with Sussex Bank being the surviving entity and each outstanding share of Community common stock will be exchanged for 0.97 shares of Sussex Bancorp's common stock. The transaction is expected to close in the first quarter of 2018, subject to customary closing conditions, including receipt of regulatory approvals and the approvals of the shareholders of Sussex Bancorp and Community. Based on financials as of December 31, 2016, the combined company will have approximately $1.2 billion in assets, $925 million in gross loans, and $965 million in deposits upon completion of the transaction. Included in the Company`s third quarter and year-to-date non-interest expense was $482 thousand in non-recurring expenses related to the Merger, largely legal and other professional fees. The Company expects to incur related non-recurring costs through the closing of the Merger. The Company has received regulatory approvals from The New Jersey Department of Banking and Insurance and the FDIC to complete the merger.

On June 21, 2017, we announced the closing of an underwritten public offering of 1,136,363 shares of the Company’s common stock at a public offering price of $24.00 per share. The Company granted the underwriters a 30-day option to purchase up to an additional 113,636 shares of its common stock, which was exercised in full by the Underwriters on June 16, 2017. The net proceeds to the Company (including the proceeds from the exercise of the Underwriters’ option) after deducting underwriting discounts and commissions was $28.2 million, which will be used for general corporate purposes. The Company estimates it will incur an additional $100 thousand in unbilled offering expenses; such expenses will reduce net proceeds.