Sussex Bancorp (SBBX, Financial) filed Quarterly Report for the period ended 2012-09-30.
Sussex Bancorp has a market cap of $18.8 million; its shares were traded at around $5.47 with a P/E ratio of 13.8 and P/S ratio of 0.7. Sussex Bancorp had an annual average earning growth of 3.2% over the past 5 years.
Overview – We reported net income of $832 thousand for the nine months ended September 30, 2012, as compared to net income of $2.0 million for the same period in 2011. Basic and diluted earnings per share for the nine months ended September 30, 2012 were $0.26 and $0.25, respectively, compared to the basic and diluted earnings per share of $0.60 and $0.59, respectively, for the comparable period of 2011. The decline in net income was largely attributed to expenses and write-downs related to the prospective sales of several foreclosed real estate properties. In addition, expenses related to additional commercial lending staff, technology upgrades, increased advertising and promotion and FDIC assessment costs (due to deposit growth) also added to the decrease in net income. The aforementioned declines were partly offset by improved non-interest income resulting from increases in gains on sale of securities and insurance commissions and fees.
Net Interest Income – Net interest income, on a fully taxable equivalent basis, decreased $612 thousand, or 4.6%, to $12.7 million for the nine months ended September 30, 2012, as compared to $13.3 million for same period in 2011. Our net interest margin declined 41 basis points to 3.56% for the nine months ended September 30, 2012, compared to 3.97% for the same period last year. The decline was mostly attributed to a 35 basis point decline in the average rate earned on loans to 5.22%, which was partly offset by a 18 basis point decrease in the average rate paid on interest bearing liabilities to 0.93% for the nine month period ended September 30, 2012, as compared to the same period last year. The decline was in part offset by a $28.3 million, or 6.3%, increase in average interest earning assets, principally securities.
Securities Portfolio – At September 30, 2012, total investment securities, which include available for sale and held to maturity securities, were $124.6 million compared to $100.6 million at December 31, 2011. Available for sale securities were $119.0 million at September 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 $5.6 million at September 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 September 30, 2012, increased $690 thousand to $340.4 million from $339.7 million at year-end 2011. The increase was largely in commercial real estate loans, which grew by $6.3 million, or 1.9%, to $222.5 million at September 30, 2012 as compared to December 31, 2011. Approximately 94% 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 $18.8 million; its shares were traded at around $5.47 with a P/E ratio of 13.8 and P/S ratio of 0.7. Sussex Bancorp had an annual average earning growth of 3.2% over the past 5 years.
Highlight of Business Operations:
Net interest income, on a fully tax equivalent basis, declined $100 thousand, or 2.3%, to $4.2 million for the third quarter of 2012 as compared to $4.3 million for same period in 2011. The decrease in net interest income was largely due to the Company’s net interest margin declining 23 basis points to 3.57% for the third quarter of 2012 compared to the same period last year. The decline in the net interest margin was mostly due to a 30 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 24 basis points to 0.87% for the third quarter of 2012 from 1.11% for the same period in 2011. The decline was in part offset by a $19.0 million, or 4.2%, increase in average interest earning assets, principally securities.Overview – We reported net income of $832 thousand for the nine months ended September 30, 2012, as compared to net income of $2.0 million for the same period in 2011. Basic and diluted earnings per share for the nine months ended September 30, 2012 were $0.26 and $0.25, respectively, compared to the basic and diluted earnings per share of $0.60 and $0.59, respectively, for the comparable period of 2011. The decline in net income was largely attributed to expenses and write-downs related to the prospective sales of several foreclosed real estate properties. In addition, expenses related to additional commercial lending staff, technology upgrades, increased advertising and promotion and FDIC assessment costs (due to deposit growth) also added to the decrease in net income. The aforementioned declines were partly offset by improved non-interest income resulting from increases in gains on sale of securities and insurance commissions and fees.
Net Interest Income – Net interest income, on a fully taxable equivalent basis, decreased $612 thousand, or 4.6%, to $12.7 million for the nine months ended September 30, 2012, as compared to $13.3 million for same period in 2011. Our net interest margin declined 41 basis points to 3.56% for the nine months ended September 30, 2012, compared to 3.97% for the same period last year. The decline was mostly attributed to a 35 basis point decline in the average rate earned on loans to 5.22%, which was partly offset by a 18 basis point decrease in the average rate paid on interest bearing liabilities to 0.93% for the nine month period ended September 30, 2012, as compared to the same period last year. The decline was in part offset by a $28.3 million, or 6.3%, increase in average interest earning assets, principally securities.
Securities Portfolio – At September 30, 2012, total investment securities, which include available for sale and held to maturity securities, were $124.6 million compared to $100.6 million at December 31, 2011. Available for sale securities were $119.0 million at September 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 $5.6 million at September 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 September 30, 2012, increased $690 thousand to $340.4 million from $339.7 million at year-end 2011. The increase was largely in commercial real estate loans, which grew by $6.3 million, or 1.9%, to $222.5 million at September 30, 2012 as compared to December 31, 2011. Approximately 94% 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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