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Sussex Bancorp Announces First Quarter 2009 Earnings
FRANKLIN, N.J., April 30, 2009 (GLOBE NEWSWIRE) -- Sussex Bancorp (Nasdaq:SBBX - News) today announced its financial results for the first quarter ended March 31, 2009.
For the quarter ended March 31, 2009, the Company earned net income of $253,000, a decrease of approximately 60.3% from net income of $637,000 for the first quarter of 2008. Basic and diluted earnings per share were $0.08 and $0.19 for the first quarter of 2009 and 2008, respectively. The Company's first quarter 2009 performance reflects increases in net interest income offset by increased provision for loan losses and a decline in non-interest income.
The Company's net interest income increased $211 thousand, to $3.1 million for the quarter ended March 31, 2009 from $2.9 million for the first quarter of 2008. The Company's interest income increased $131 thousand, or 2.3%, to $5.7 million for the three months ended March 31, 2009 from $5.6 million for the first quarter of 2008. The Company's interest expense decreased $80 thousand, or 3.0%, to $2.6 million for the first quarter of 2009 from $2.7 million for the first quarter of 2008.
The Company's non-interest income decreased to $1.3 million for the quarter ended March 31, 2009 from $1.7 million for the first quarter of 2008. The decrease in non-interest income is attributable to lower insurance commissions and fees combined with decreased holding gains on trading securities. The Company's non-interest expense remained unchanged at $3.5 million for the quarters ended March 31, 2009 and 2008. Salary and employee benefits decreased by $96 thousand, occupancy expense decreased $6 thousand, and furniture, fixtures and equipment decreased by $39 thousand. These decreases were offset by increases in FDIC assessments of $55 thousand and expenses related to foreclosed real estate of $161 thousand.
The Company's provision for loan losses increased to $639 thousand in the first quarter of 2009 from $173 thousand in the first quarter of 2008. The increase reflects an increase in non-performing assets and added reserves necessary to adequately provide for potential collateral shortfalls caused by the decline in current real estate values, combined with increases deemed necessary by management due to continued general economic weakness and its potential impact on our borrowers. At March 31, 2009, non-performing assets totaled $18.1 million compared to $15.0 million at December 31, 2008, as foreclosed real estate increased by $743 thousand, non-accrual loans by $1.3 million and loans past due 90 days and still accruing $1.0 million. The increase in non-performing assets was primarily related to three real estate secured credit relationships.
The Company's total deposits increased to $400.7 million at March 31, 2009 from $319.2 million at March 31, 2008. The Company's gross loans, net of unearned income increased $20.8 million to $323.2 million at March 31, 2009 from $302.4 million at March 31, 2008. At March 31, 2009 the Company had total assets of $481.2 million, compared to total assets of $405.5 million at March 31, 2008. At March 31, 2009, the leverage capital, tier 1 capital to risk weighted assets and total capital to risk weighted assets ratios of Sussex Bank, the Company's bank subsidiary, were 8.23%, 10.78% and 12.04%, respectively, in excess of the 5%, 6% and 10% required to be deemed "well capitalized" under regulatory requirements.
Separately, the Company announced that its Board of Directors has increased the Company's stock buyback program, so that the Company may now repurchase up to a total of 400,000 shares of the Company's common stock. The Company has already repurchased 239,062 shares under this program. Purchases may be made in open market or privately negotiated transactions.
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
(Unaudited)
(Dollars in thousands, March 31, March 31, Dec. 31,
except share data) 2009 2008 2008
--------------------------------------------------------------------
ASSETS
------
Cash and due from banks $ 10,871 $ 11,934 $ 7,602
Federal funds sold 32,930 10,350 13,310
--------- --------- ---------
Cash and cash equivalents 43,801 22,284 20,912
Interest bearing time
deposits with other banks 2,839 100 100
Trading securities 11,315 13,834 13,290
Securities available for
sale 76,589 48,997 62,272
Federal Home Loan Bank
Stock, at cost 1,974 2,077 1,975
Loans receivable, net of
unearned income 323,204 302,402 320,880
Less: allowance for loan
losses 6,412 5,309 5,813
--------- --------- ---------
Net loans receivable 316,792 297,093 315,067
Foreclosed real estate 4,607 316 3,864
Premises and equipment, net 8,332 8,941 8,526
Accrued interest receivable 2,032 1,944 2,115
Goodwill 2,820 2,820 2,820
Other assets 10,055 7,119 9,654
--------- --------- ---------
Total Assets $481,156 $405,525 $440,595
========= ========= =========
LIABILITIES AND
STOCKHOLDERS' EQUITY
---------------------
Liabilities:
Deposits:
Non-interest bearing $ 36,215 $ 42,621 $ 34,784
Interest bearing 364,461 276,626 325,297
--------- --------- ---------
Total Deposits 400,676 319,247 360,081
Borrowings 33,132 36,187 33,146
Accrued interest payable and
other liabilities 2,525 2,336 2,571
Junior subordinated
debentures 12,887 12,887 12,887
--------- --------- ---------
Total Liabilities 449,220 370,657 408,685
Total Stockholders' Equity 31,936 34,868 31,910
--------- --------- ---------
Total Liabilities and
Stockholders' Equity $481,156 $405,525 $440,595
========= ========= =========
SUSSEX BANCORP
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended
March 31,
----------------------
(Dollars in thousands) 2009 2008
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INTEREST INCOME
Loans receivable, including fees $ 4,808 $ 4,811
Securities:
Taxable 627 524
Tax-exempt 273 236
Federal funds sold 12 24
Interest bearing deposits 7 1
--------- ---------
Total Interest Income 5,727 5,596
--------- ---------
INTEREST EXPENSE
Deposits 2,169 2,130
Borrowings 352 382
Junior subordinated debentures 104 193
--------- ---------
Total Interest Expense 2,625 2,705
--------- ---------
Net Interest Income 3,102 2,891
PROVISION FOR LOAN LOSSES 639 173
--------- ---------
Net Interest Income after
Provision for Loan Losses 2,463 2,718
--------- ---------
OTHER INCOME
Service fees on deposit accounts 367 351
ATM fees 107 105
Insurance commissions and fees 614 743
Investment brokerage fees 47 47
Holding gains on trading securities 35 217
Gain on sale of securities,
available for sale -- 84
Loss on sale of foreclosed real
estate (1) --
Other 168 132
--------- ---------
Total Other Income 1,337 1,679
--------- ---------
OTHER EXPENSES
Salaries and employee benefits 1,783 1,879
Occupancy, net 352 358
Furniture, equipment and data
processing 340 373
Stationary and supplies 45 43
Professional fees 183 109
Advertising and promotion 59 126
Insurance 41 38
FDIC Assessment 150 95
Postage and freight 42 38
Amortization of intangible assets 5 15
Expenses related to foreclosed real
estate 183 22
Other 365 377
--------- ---------
Total Other Expenses 3,548 3,473
--------- ---------
Income before Income Taxes 252 924
PROVISION (BENEFIT) FOR INCOME TAXES (1) 287
--------- ---------
Net Income $ 253 $ 637
========= =========
SUSSEX BANCORP
COMPARATIVE AVERAGE BALANCES AND AVERAGE INTEREST RATES
(Unaudited)
Three Months Ended March 31,
(Dollars in ------------------------------------------------------
thousands) 2009 2008
----------------------------------------- ---------------------------
Interest Average Interest Average Average Interest Average
earning Balance (1) Rate(2) Balance (1) Rate(2)
assets: ------------------------------------------------------
Securities:
Tax exempt
(3) $ 26,709 $ 278 4.22% $ 22,643 $ 352 6.25%
Taxable 56,817 627 4.48% 40,389 524 5.22%
------------------------------------------------------
Total secur-
ities 83,526 905 4.39% 63,032 876 5.59%
Total loans
receivable
(4) 322,535 4,808 6.05% 300,024 4,811 6.45%
Other
interest-
earning
assets 26,676 19 0.29% 2,941 25 3.42%
------------------------------------------------------
Total
interest
earning
assets 432,737 $5,732 5.37% 365,997 $5,712 6.28%
Non-interest
earning
assets 34,492 29,437
Allowance for
loan losses (6,000) (5,226)
-------- --------
Total
Assets $461,228 $390,208
======== ========
Interest
bearing
liabilities:
Interest
bearing
deposits:
NOW $ 57,897 $ 159 1.11% $ 59,235 $ 244 1.66%
Money market 14,703 48 1.33% 32,716 215 2.65%
Savings 159,739 1,026 2.61% 38,504 112 1.17%
Time 112,901 936 3.36% 136,092 1,559 4.61%
------------------------------------------------------
Total
interest
bearing
deposits 345,240 2,169 2.55% 266,547 2,130 3.21%
Borrowed
funds 33,138 352 4.25% 35,650 382 4.24%
Junior
subordi-
nated
debentures 12,887 104 3.22% 12,887 193 5.91%
------------------------------------------------------
Total
interest
bearing
liabilities 391,265 $2,625 2.72% 315,084 $2,705 3.45%
Non-interest
bearing
liabilities:
Demand
deposits 36,479 38,653
Other
liabilities 1,261 1,844
-------- --------
Total non-
interest
bearing
liabilities 37,740 40,497
Stockholders'
equity 32,223 34,627
-------- --------
Total
Liabilities
and Stock-
holders'
Equity $461,228 $390,208
======== ========
----------------- -----------------
Net Interest
Income and
Margin (5) $3,107 2.91% $3,007 3.30%
================= =================
(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, President/CEO
973-827-2914
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