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