FRANKLIN, N.J., April 17, 2008 (PRIME NEWSWIRE) -- Sussex Bancorp (Nasdaq:SBBX) today announced its financial results for the first quarter ended March 31, 2008.
For the quarter ended March 31, 2008, the Company earned net income of $637,000, a decrease of approximately 12.0 percent from net income of $724,000 for the first quarter of 2007. Basic earnings per share for the two periods were $0.21 and $0.23, respectively. Diluted earnings per share were $0.20 and $0.23 for the first quarter of 2008 and 2007, respectively. The Company's first quarter 2008 performance reflects increases in net interest income and non-interest income, offset by increased provision for loan losses and non-interest expense.
The Company's net interest income increased $42 thousand, to $2.9 million for the quarter ended March 31, 2008 from $2.8 million for the first quarter of 2007. The Company's interest income increased $204 thousand, or 3.8%, to $5.6 million for the three months ended March 31, 2008 from $5.4 million for the first quarter of 2007. However, the Company's interest expense increased $162 thousand, or 6.4%, to $2.7 million for the first quarter of 2008 from $2.5 million for the first quarter of 2007. The increase in interest expense reflects the continued competitive marketplace for cost effective deposits in the Company's trade area, as well as an increase in the Company's outstanding junior subordinated debentures related to the Company's trust preferred securities. The Company's outstanding junior subordinated debentures increased from $5.2 million at March 31, 2007 to $12.9 million at March 31, 2008. The Company believes that additional trust preferred securities have provided a cost efficient funding source for the continued growth in the Company's loan portfolio.
The Company's non-interest income increased to $1.7 million for the quarter ended March 31, 2008 from $1.6 million for the first quarter of 2007. The increase in non-interest income is attributable to holding gains on trading securities, gains on sales of securities and increases in service fees on deposit accounts and ATM fees. The Company's non-interest expense increased to $3.5 million for the quarter ended March 31, 2008 from $3.2 million for the first quarter of 2007. Salary and employee benefits increased by $97 thousand, occupancy expense increased $45 thousand attributable to increases in fuel costs, furniture, fixtures and equipment and data processing increased $35 thousand and FDIC insurance increased $86 thousand.
The Company's total deposits increased to $319.2 million at March 31, 2008 from $293.9 million at March 31, 2007. The Company's gross loans, net of unearned income increased $31.7 million to $302.4 million at March 31, 2008 from $270.7 million at March 31, 2007. At March 31, 2008 the Company had total assets of $405.5 million, compared to total assets of $357.2 million at March 31, 2007. The loan loss provision for the first quarter of 2008 was $173 thousand compared to $108 thousand for the same period last year.
Sussex Bancorp also announced that its Board of Directors declared a cash dividend of $0.07 per share, payable on May 15, 2008 to shareholders of record as of May 1, 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.
SUSSEX BANCORP
CONSOLIDATED BALANCE SHEETS
(Dollars In Thousands)
(Unaudited)
March 31, March 31, Dec. 31,
ASSETS 2008 2007 2007
------ -------- -------- --------
Cash and due from banks $ 11,934 $ 7,783 $ 7,985
Federal funds sold 10,350 2,665 3,790
-------- -------- --------
Cash and cash equivalents 22,284 10,448 11,775
Interest bearing time
deposits with other banks 100 100 100
Trading securities 13,834 13,476 14,259
Securities available for sale 48,997 44,945 48,397
Federal Home Loan Bank Stock,
at cost 2,077 1,277 2,032
Loans receivable, net of
unearned income 302,402 270,740 300,646
Less: allowance for loan losses 5,309 3,428 5,140
-------- -------- --------
Net loans receivable 297,093 267,312 295,506
Premises and equipment, net 8,941 8,172 9,112
Accrued interest receivable 1,944 1,685 2,035
Goodwill 2,820 2,820 2,820
Other assets 7,435 7,017 7,496
-------- -------- --------
Total Assets $405,525 $357,252 $393,532
======== ======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Liabilities:
Deposits:
Non-interest bearing $ 42,621 $ 37,215 $ 36,625
Interest bearing 276,626 256,696 271,913
-------- -------- --------
Total Deposits 319,247 293,911 308,538
Borrowings 36,187 20,239 35,200
Accrued interest payable
and other liabilities 2,336 2,708 2,467
Junior subordinated debentures 12,887 5,155 12,887
-------- -------- --------
Total Liabilities 370,657 322,013 359,092
Total Stockholders' Equity 34,868 35,239 34,440
-------- -------- --------
Total Liabilities and
Stockholders' Equity $405,525 $357,252 $393,532
======== ======== ========
SUSSEX BANCORP
CONSOLIDATED STATEMENTS OF INCOME
(Dollars In Thousands)
(Unaudited)
Three Months Ended
March 31,
-----------------
2008 2007
------ ------
INTEREST INCOME
Loans receivable, including fees $4,811 $4,653
Securities:
Taxable 524 396
Tax-exempt 236 250
Federal funds sold 24 92
Interest bearing deposits 1 1
------ ------
Total Interest Income 5,596 5,392
------ ------
INTEREST EXPENSE
Deposits 2,130 2,208
Borrowings 382 222
Junior subordinated debentures 193 113
------ ------
Total Interest Expense 2,705 2,543
------ ------
Net Interest Income 2,891 2,849
PROVISION FOR LOAN LOSSES 173 108
------ ------
Net Interest Income after Provision
for Loan Losses 2,718 2,741
------ ------
OTHER INCOME
Service fees on deposit accounts 351 319
ATM fees 105 87
Insurance commissions and fees 743 854
Investment brokerage fees 47 157
Holding gains on trading securities 217 46
Gain on sale of securities, available for sale 84 --
Other 132 123
------ ------
Total Other Income 1,679 1,586
------ ------
OTHER EXPENSES
Salaries and employee benefits 1,879 1,782
Occupancy, net 358 313
Furniture, equipment and data processing 373 338
Stationary and supplies 43 46
Professional fees 109 139
Advertising and promotion 126 104
Insurance 38 46
Postage and freight 38 40
Amortization of intangible assets 15 37
Other 494 395
------ ------
Total Other Expenses 3,473 3,240
------ ------
Income before Income Taxes 924 1,087
PROVISION FOR INCOME TAXES 287 363
------ ------
Net Income $ 637 $ 724
====== ======
SUSSEX BANCORP
COMPARATIVE AVERAGE BALANCES AND AVERAGE INTEREST RATES
(Unaudited)
Three Months Ended March 31,
-----------------------------------------------
(Dollars in thousands) 2008 2007
-------------------------------------------- ----------------------
Inte- Avg. Inte- Avg.
Average rest Rate Average rest Rate
Balance (1) (2) Balance (1) (2)
-----------------------------------------------
Interest earning
assets:
Securities:
Tax exempt(3) $ 22,643 $ 352 6.25% $ 23,640 $ 328 5.63%
Taxable 40,389 524 5.22% 34,149 396 4.70%
-----------------------------------------------
Total securities 63,032 876 5.59% 57,789 724 5.08%
Total loans
receivable(4) 300,024 4,811 6.45% 266,252 4,653 7.09%
Other interest-
earning assets 2,941 25 3.42% 6,819 93 5.53%
-----------------------------------------------
Total interest
earning assets 365,997 $5,712 6.28% 330,860 $5,470 6.70%
Non-interest
earning assets 29,437 27,298
Allowance for
loan losses (5,226) (3,385)
-------- --------
Total Assets $390,208 $354,773
======== ========
Interest bearing
liabilities:
Interest bearing
deposits:
NOW $ 59,235 $ 244 1.66% $ 57,140 $ 314 2.23%
Money market 32,716 215 2.65% 35,400 343 3.92%
Savings 38,504 112 1.17% 39,884 90 0.91%
Time 136,092 1,559 4.61% 124,130 1,462 4.78%
-----------------------------------------------
Total interest
bearing deposits 266,547 2,130 3.21% 256,554 2,208 3.49%
Borrowed funds 35,650 382 4.24% 18,777 222 4.72%
Junior sub-
ordinated
debentures 12,887 193 5.91% 5,155 113 8.74%
-----------------------------------------------
Total interest
bearing liabilities 315,084 $2,705 3.45% 280,486 $2,543 3.68%
Non-interest
bearing liabilities:
Demand deposits 38,653 37,294
Other liabilities 1,844 2,159
-------- --------
Total non-interest
bearing liabilities 40,497 39,453
Stockholders' equity 34,627 34,834
-------- --------
Total Liabilities
and Stockholders'
Equity $390,208 $354,773
======== ========
Net Interest Income ------------ ------------
and Margin(5) $3,007 3.30% $2,927 3.59%
============ ============
(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