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Sussex Bancorp Announces 2009 Earnings

(February 01, 2010)

FRANKLIN, N.J., Feb. 1, 2010 (GLOBE NEWSWIRE) -- 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 millionin 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


 



 


CONTACT: Sussex Bancorp
Donald L. Kovach, Chairman
(973) 827-2914



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