Sus­sex Ban­corp 3Q earn­ings rise

The Pak Banker - - Front Page -

NEW JERSEY

Sus­sex Ban­corp, the hold­ing com­pany for Sus­sex Bank to­day an­nounced net in­come of $546 thou­sand, or $0.17 per ba­sic and di­luted share, for the quar­ter-ended Septem­ber 30, 2012, a 6.3% earn­ings per share growth, as com­pared to $534 thou­sand, or $0.16 per ba­sic and di­luted share, for the same pe­riod last year. The in­crease in net in­come was largely due to im­proved non-in­ter­est in­come re­sult­ing from an in­crease in gains on sale of se­cu­ri­ties and in­sur­ance com­mis­sions and fees, which was largely off­set by higher pro­vi­sion for loan losses and ex­penses and write-downs re­lated to fore­closed real es­tate.

For the nine months ended Septem­ber 30, 2012, the Com­pany re­ported net in­come of $832 thou­sand, or $0.26 per ba­sic share and $0.25 per di­luted share, as com­pared to $2.0 mil­lion, or $0.60 per ba­sic and di­luted share, for the same pe­riod last year. The Com­pany at­trib­uted the de­crease in net in­come for the nine months ended Septem­ber 30, 2012, largely 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.

The Com­pany’s over­all credit qual­ity con­tin­ues to im­prove as to­tal prob­lem as­sets (to­tal clas­si­fied/crit­i­cized/fore­closed real es­tate) have de­clined $20.3 mil­lion, or 33.3%, to $42.5 mil­lion at Septem­ber 30, 2012, from a his­tor­i­cal high of $62.8 mil­lion at March 31, 2010, and have de­creased 14.4% since De­cem­ber 31, 2011. In­cluded in our over­all to­tal prob­lem as­sets are non-per­form­ing as­sets (“NPAs”), which de­clined 12.3% to $29.8 mil­lion at Septem­ber 30, 2012, from $34.0 mil­lion at De­cem­ber 31, 2011.

We continue to make progress to­wards re­duc­ing our legacy prob­lem as­sets, which was a pri­mary goal for 2012. This quar­ter, we have re­duced our non-per­form­ing as­sets by 13.2% and our to­tal prob­lem as­sets by 16.9% as com­pared to the same pe­riod last year. With the pend­ing sales of sev­eral fore­closed real es­tate prop­er­ties we are hope­ful that this mo­men­tum will continue into 2013”, said An­thony Labozzetta, Pres­i­dent and Chief Ex­ec­u­tive Of­fi­cer of Sus­sex Bank. “Our oper­at­ing re­sults continue to be neg­a­tively af­fected by high lev­els of credit qual­ity costs re­lated to legacy prob­lem as­sets. As we continue to re­duce our prob­lem as­sets, we will fur­ther im­prove our fi­nan­cial per­for­mance”, added Mr. Labozzetta.

The Com­pany re­ported net in­come of $546 thou­sand, up 2.3% for the third quar­ter of 2012, as com­pared to $534 thou­sand for the same pe­riod in 2011. The im­prove­ment in net in­come was largely due to in­creased gains on sale of se­cu­ri­ties (+$570 thou­sand), which was pri­mar­ily off­set by higher pro­vi­sion for loan losses (+$367 thou­sand) and ex­penses and write-downs re­lated to fore­closed real es­tate (+$160 thou­sand). Con­tribut­ing to the Com­pany’s quar­terly earn­ings im­prove­ment was the per­for­mance of its in­sur­ance sub­sidiary, Tri-state In­sur­ance Agency, Inc. (“Tri-state”), which re­ported a 25.5% in­crease in rev­enues and $106 thou­sand in net in­come be­fore taxes for the third quar­ter of 2012 as com­pared to a net loss be­fore taxes of $4 thou­sand for the same pe­riod last year.

The Com­pany re­ported net in­come of $832 thou­sand for the nine months ended Septem­ber 30, 2012, as com­pared to $2.0 mil­lion for the same pe­riod in 2011. The de­cline in net in­come was largely due to an in­crease in ex­penses and write-downs re­lated to fore­closed real es­tate (+$ 722 thou­sand), higher oper­at­ing costs re­sult­ing from growth ini­tia­tives of the Com­pany and a de­cline in the net in­ter­est mar­gin.

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