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




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


SUSSEX BANCORP ANNOUNCES SECOND QUARTER AND SIX MONTHS EARNINGS
---
     FRANKLIN, NEW JERSEY – August 12, 2009– Sussex Bancorp (NASDAQ: “SBBX”) today announced its financial results for the quarter and the six months ending June 30, 2009.

     For the quarter ended June 30, 2009, the Company earned net income of $595 thousand, or $0.18 cents per basic and diluted share, an increase over net income of $359 thousand, or $0.11 per basic and diluted share reported for the second quarter of 2008. For the six months ended June 30, 2009, the Company earned net income of $848 thousand, or $0.26 per basic and diluted share, a decline from the $996 thousand, or $0.30 per basic and diluted share earned for the same period last year.

      The Company’s net interest income increased to $3.7 million for the quarter ended June 30, 2009 from $2.9 million for the second quarter of 2008.  The Company’s total interest income increased to $5.9 million for the quarter ended June 30, 2009 from $5.5 million for the second quarter of 2008.  The increase is primarily attributable to an increase in securities income coupled with a reduction in interest expense.  For the six months ended June 30, 2009, the Company’s net interest income increased to $6.8 million from the $5.8 million earned for the same period last year.  For the six months ended June 30, 2009, the Company’s total interest income increased to $11.6 million from $11.1 million for the period ended June 30, 2008. The Company’s interest expense decreased to $4.8 million from $5.3 million for the six months ended June 30, 2008. As a result of these changes, the Company’s net interest margin increased to 3.45% and 3.25% for the three and six months ended June 30, 2009, respectively, from 3.15% and 3.22% for the three and six months ended June 30, 2008, respectively.

     The Company reported non-interest income of $1.5 million and $2.8 million for the current three and six month periods ended June 30, 2009, respectively, compared to non-interest income of $1.2 million and $2.9 million for the three and six month periods ending June 30, 2008.

     The Company’s other expenses increased in the three and six month periods of 2009 compared to the prior year periods.  For the three month period ending June 30, 2009 other expenses increased by $435 thousand, or 12.2%, while other expenses increased by $510 thousand, or 7.2%, for the six months ended June 30, 2009 compared to the prior year periods. Professional fees increased by $98 thousand for the quarter and $172 thousand for the six months ended. The increases are attributable to expenses related to the workout of non-performing loans.  FDIC insurance expense increased by $275 thousand for the quarter and by $330 thousand for the six months ended. The quarterly and six month periods include the impact of an industry-wide special assessment levied by the FDIC to recapitalize the Deposit Insurance Fund. The Company recognized $215 thousand in expense due to this assessment. Also included in the increase in other expense was a write-down on foreclosed real-estate of $456 thousand.

     At June 30, 2009 the Company had total assets of $464.7 million, compared to total assets of $432.5 million at June 30, 2008. The Company’s total deposits increased to $383.1 million at June 30, 2009 from $346.3 million at June 30, 2008

 
 

 

     The Company’s provision for loan losses increased to $424 thousand for the quarter ended June 30, 2009 from $117 thousand for the same period last year.  The provision for the six month ended for June 30, 2009 increased to $1.1 million from $290 thousand for the same period last year.  The increase reflects added reserves necessary to adequately provide for potential collateral shortfalls caused by the decline in current real estate values relative to the non-performing assets, combined with increases deemed necessary by management due to continued general economic weakness and its potential impact on our borrowers.

At June 30, 2009, net investment in non-performing assets increased by $7.3 million to $22.3 million from $15.0 million at year end 2008. The Company’s non-accrual loans increased $2.8 million to $12.5 million at June 30, 2009 from $9.7 million at December 31, 2008 and loans past due over 90 days and still accruing totaled $1.8 million at June 30, 2009. There were no loans past due over 90 days and still accruing at December 31, 2008.  Restructured loans which were not on non-accrual at June 30, 2009 increased $1.9 million to $3.2 million from $1.3 million at December 31, 2008.  In addition, foreclosed real estate increased by a net of $762 thousand to $4.6 million as of June 30, 2009 from $3.9 million at year-end 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
 
June 30, 2009
   
June 30, 2008
   
December 31, 2008
 
                   
Cash and due from banks
  $ 11,932     $ 11,409     $ 7,602  
Federal funds sold and interest bearing deposits
    5,237       30,735       13,310  
   Cash and cash equivalents
    17,169       42,144       20,912  
                         
Interest bearing time deposits with other banks
    1,096       100       100  
Trading securities
    7,910       14,104       13,290  
Securities available for sale
    86,758       48,539       62,272  
Federal Home Loan Bank Stock, at cost
    2,047       2,111       1,975  
                         
Loans receivable, net of unearned income
    329,181       305,366       320,880  
   Less:  allowance for loan losses
    6,709       4,831       5,813  
        Net loans receivable
    322,472       300,535       315,067  
                         
Foreclosed real estate
    4,627       3,437       3,864  
Premises and equipment, net
    7,302       8,868       8,526  
Accrued interest receivable
    2,064       1,862       2,115  
Goodwill
    2,820       2,820       2,820  
Other assets
    10,393       7,943       9,654  
                         
Total Assets
  $ 464,658     $ 432,463     $ 440,595  
                         
LIABILITIES AND STOCKHOLDERS' EQUITY
                       
                         
Liabilities:
                       
   Deposits:
                       
      Non-interest bearing
  $ 40,868     $ 43,750     $ 34,784  
      Interest bearing
    342,278       302,546       325,297  
   Total Deposits
    383,146       346,296       360,081  
                         
Borrowings
    33,119       36,173       33,146  
Accrued interest payable and other liabilities
    2,756       2,547       2,571  
Junior subordinated debentures
    12,887       12,887       12,887  
                         
Total Liabilities
    431,908       397,903       408,685  
                         
Total Stockholders' Equity
    32,750       34,560       31,910  
                         
Total Liabilities and Stockholders' Equity
  $ 464,658     $ 432,463     $ 440,595  



 
 

 

 

SUSSEX BANCORP
CONSOLIDATED STATEMENTS OF INCOME
(Dollars In Thousands)
(Unaudited)

   
Three Months Ended June 30,
   
Six Months Ended June 30,
 
   
2009
   
2008
   
2009
   
2008
 
INTEREST INCOME
                       
   Loans receivable, including fees
  $ 4,789     $ 4,637     $ 9,597     $ 9,448  
   Securities:
                               
      Taxable
    754       543       1,381       1,067  
      Tax-exempt
    316       226       589       462  
   Federal funds sold
    9       88       21       112  
   Interest bearing deposits
    7       -       14       1  
         Total Interest Income
    5,875       5,494       11,602       11,090  
                                 
INTEREST EXPENSE
                               
   Deposits
    1,733       2,068       3,902       4,198  
   Borrowings
    356       373       708       755  
   Junior subordinated debentures
    83       131       187       324  
        Total Interest Expense
    2,172       2,572       4,797       5,277  
                                 
        Net Interest Income
    3,703       2,922       6,805       5,813  
PROVISION FOR LOAN LOSSES
    424       117       1,063       290  
        Net Interest Income after Provision for Loan Losses
    3,279       2,805       5,742       5,523  
                                 
OTHER INCOME
                               
   Service fees on deposit accounts
    348       351       715       702  
   ATM and debit card fees
    121       120       228       225  
   Insurance commissions and fees
    595       653       1,209       1,396  
   Investment brokerage fees
    34       48       81       95  
   Unrealized holding gains (losses) on trading securities
    (16 )     (196 )     19       21  
   Gain on sale of securities, available for sale
    -       68       -       152  
   Gain on sale of fixed assets
    203       -       203       -  
   Loss on sale of foreclosed real estate
    -       -       (1 )     -  
   Other
    168       184       336       316  
      Total Other Income
    1,453       1,228       2,790       2,907  
                                 
OTHER EXPENSES
                               
   Salaries and employee benefits
    1,771       1,976       3,554       3,855  
   Occupancy, net
    309       304       661       662  
   Furniture, equipment and data processing
    337       374       677       747  
   Stationary and supplies
    45       48       90       91  
   Professional fees
    186       88       369       197  
   Advertising and promotion
    37       161       96       287  
   Insurance
    45       47       86       85  
   FDIC assessment
    365       90       515       185  
   Postage and freight
    35       46       77       84  
   Amortization of intangible assets
    5       14       10       29  
   Write-down on foreclosed real estate
    456       -       456       -  
   Expenses related to foreclosed real estate
    93       35       276       57  
   Other
    318       384       683       761  
      Total Other Expenses
    4,002       3,567       7,550       7,040  
       Income before Income Taxes
    730       466       982       1,390  
PROVISION FOR INCOME TAXES
    135       107       134       394  
      Net Income
  $ 595     $ 359     $ 848     $ 996  




 
 

 



SUSSEX BANCORP
 
COMPARATIVE AVERAGE BALANCES AND AVERAGE INTEREST RATES
 
(Dollars In Thousands)
 
(Unaudited)
 
   
Six Months Ended June 30,
 
   
2009
   
2008
 
   
Average
         
Average
   
Average
         
Average
 
Earning Assets:
 
Balance
   
Interest (1)
   
Rate (2)
   
Balance
   
Interest (1)
   
Rate (2)
 
Securities:
                                   
      Tax exempt (3)
  $ 28,593     $ 883       6.22 %   $ 22,287     $ 690       6.23 %
      Taxable
    61,881       1,381       4.50 %     41,339       1,067       5.19 %
Total securities
    90,473       2,264       5.05 %     63,626       1,757       5.55 %
Total loans receivable (4)
    323,857       9,597       5.98 %     303,192       9,448       6.27 %
Other interest-earning assets
    26,523       35       0.26 %     10,153       113       2.24 %
Total earning assets
    440,853     $ 11,895       5.44 %     376,971     $ 11,318       6.04 %
                                                 
Non-interest earning assets
    35,899                       30,054                  
Allowance for loan losses
    (6,290 )                     (5,305 )                
Total Assets
  $ 470,462                     $ 401,720                  
                                                 
Sources of Funds:
                                               
Interest bearing deposits:
                                               
      NOW
  $ 57,718     $ 300       1.05 %   $ 58,426     $ 429       1.48 %
      Money market
    14,805       96       1.30 %     29,588       354       2.41 %
      Savings
    169,788       1,742       2.07 %     53,995       551       2.05 %
      Time
    110,060       1,764       3.23 %     134,773       2,864       4.27 %
Total interest bearing deposits
    352,371       3,902       2.23 %     276,782       4,198       3.05 %
      Borrowed funds
    33,130       708       4.25 %     35,914       755       4.16 %
      Junior subordinated debentures
    12,887       187       2.89 %     12,887       324       4.97 %
Total interest bearing liabilities
    398,388     $ 4,797       2.43 %     325,583     $ 5,277       3.26 %
                                                 
Non-interest bearing liabilities:
                                               
      Demand deposits
    37,690                       39,286                  
      Other liabilities
    1,872                       2,069                  
Total non-interest bearing liabilities
    39,562                       41,355                  
Stockholders' equity
    32,512                       34,782                  
Total Liabilities and Stockholders' Equity
  $ 470,462                     $ 401,720                  
                                             
Net Interest Income and Margin (5)
          $ 7,098     3.25 %           $ 6,041     3.22 %
                                                 
(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