Sussex Bancorp (SBBX, Financial) filed Quarterly Report for the period ended 2012-06-30.
Sussex Bancorp has a market cap of $17 million; its shares were traded at around $4.97 with a P/E ratio of 12.8 and P/S ratio of 0.6. Sussex Bancorp had an annual average earning growth of 3.2% over the past 5 years.
Net income before taxes for our Tri-State segment decreased $48 thousand, or 30.4%, resulting in a net income before taxes of $110 thousand for the first six months of 2012 compared $158 thousand for the same period in 2011. The decline was largely due to the expansion of sales staff and a decline in contingency income. The Tri-State revenues for the first half of 2012 were higher by 2.5% and when adjusting for a decline in contingency income ($69 thousand), core revenues were up 9.4% first six months of 2012 as compared to the same period last year. Expenses were higher for the first half of 2012 by $77 thousand, or 7.5%, as compared to the same period last year principally due to the addition of sales staff.
Net Interest Income – Net interest income, on a fully taxable equivalent basis, decreased $511 thousand, or 5.7%, to $8.4 million for the six months ended June 30, 2012, as compared to $8.9 million for same period in 2011. Our net interest margin declined 51 basis points to 3.55% for the first six months of 2012, compared to 4.06% for the same period last year. The decline was mostly attributed to a 65 basis point decline in the average rate on earning assets to 4.39% for the six month period ended June 30, 2012, as compared to the same period last year. The decline in net interest income was partly offset by an increase in the average balance of earning assets, which grew $33.1 million to $476.8 million at June 30, 2012, as compared to June 30, 2011.
Securities Portfolio – At June 30, 2012, total investment securities, which include available-for-sale and held-to-maturity securities, were $120.7 million compared to $100.6 million at December 31, 2011. Available-for-sale securities were $115.5 million at June 30, 2012, compared to $96.4 million at December 31, 2011. The available-for-sale securities are held primarily for liquidity, interest rate risk management and profitability. Accordingly, our investment policy is to invest in securities with low credit risk, such as U.S. government agency obligations, state and political obligations and mortgage-backed securities. Held-to-maturity securities were $5.2 million at June 30, 2012, compared to $4.2 million at December 31, 2011.
Loans – The loan portfolio comprises our largest class of earning assets. Total loans receivable, net of unearned income, at June 30, 2012, increased $7.2 million to $346.9 million from $339.7 million at year-end 2011. The increase was largely in commercial real estate loans, which grew by $11.9 million, or 5.5%, to $228.0 million at June 30, 2012 as compared to December 31, 2011. Approximately 96% of our loan portfolio is secured by real estate and less than 5% of the loan portfolio is commercial and industrial based loans. We do not originate sub-prime or unconventional one to four family real estate loans.
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Sussex Bancorp has a market cap of $17 million; its shares were traded at around $4.97 with a P/E ratio of 12.8 and P/S ratio of 0.6. Sussex Bancorp had an annual average earning growth of 3.2% over the past 5 years.
Highlight of Business Operations:
Our net interest income, on a fully tax equivalent basis, declined $116 thousand, or 2.6%, to $4.3 million for the quarter ended June 30, 2012, as compared to $4.4 million for same period in 2011. The decrease in net interest income was largely due to our net interest margin declining 39 basis points to 3.59% for the second quarter of 2012 primarily due to a 39 basis point decline in the average rate earned on loans. This decline in net interest income was partially offset by a decrease in the average rate paid on total interest bearing liabilities, which decreased 21 basis points to 0.90% for the second quarter of 2012 from 1.11% for the same period in 2011. The decline was in part offset by a $37.2 million, or 8.4%, increase in average interest earning assets, principally securities.Net income before taxes for our Tri-State segment decreased $48 thousand, or 30.4%, resulting in a net income before taxes of $110 thousand for the first six months of 2012 compared $158 thousand for the same period in 2011. The decline was largely due to the expansion of sales staff and a decline in contingency income. The Tri-State revenues for the first half of 2012 were higher by 2.5% and when adjusting for a decline in contingency income ($69 thousand), core revenues were up 9.4% first six months of 2012 as compared to the same period last year. Expenses were higher for the first half of 2012 by $77 thousand, or 7.5%, as compared to the same period last year principally due to the addition of sales staff.
Net Interest Income – Net interest income, on a fully taxable equivalent basis, decreased $511 thousand, or 5.7%, to $8.4 million for the six months ended June 30, 2012, as compared to $8.9 million for same period in 2011. Our net interest margin declined 51 basis points to 3.55% for the first six months of 2012, compared to 4.06% for the same period last year. The decline was mostly attributed to a 65 basis point decline in the average rate on earning assets to 4.39% for the six month period ended June 30, 2012, as compared to the same period last year. The decline in net interest income was partly offset by an increase in the average balance of earning assets, which grew $33.1 million to $476.8 million at June 30, 2012, as compared to June 30, 2011.
Securities Portfolio – At June 30, 2012, total investment securities, which include available-for-sale and held-to-maturity securities, were $120.7 million compared to $100.6 million at December 31, 2011. Available-for-sale securities were $115.5 million at June 30, 2012, compared to $96.4 million at December 31, 2011. The available-for-sale securities are held primarily for liquidity, interest rate risk management and profitability. Accordingly, our investment policy is to invest in securities with low credit risk, such as U.S. government agency obligations, state and political obligations and mortgage-backed securities. Held-to-maturity securities were $5.2 million at June 30, 2012, compared to $4.2 million at December 31, 2011.
Loans – The loan portfolio comprises our largest class of earning assets. Total loans receivable, net of unearned income, at June 30, 2012, increased $7.2 million to $346.9 million from $339.7 million at year-end 2011. The increase was largely in commercial real estate loans, which grew by $11.9 million, or 5.5%, to $228.0 million at June 30, 2012 as compared to December 31, 2011. Approximately 96% of our loan portfolio is secured by real estate and less than 5% of the loan portfolio is commercial and industrial based loans. We do not originate sub-prime or unconventional one to four family real estate loans.
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