x
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
For the quarterly period ended June 30, 2011
|
o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
For the transition period from ___________to ________
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|
Commission File Number 0-29030
|
|
SUSSEX BANCORP
|
|
(Exact name of registrant as specified in its charter)
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New Jersey
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22-3475473
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
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200 Munsonhurst Rd., Franklin, NJ
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07416
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(Address of principal executive offices)
|
(Zip Code)
|
Large accelerated filer o | Accelerated filer o | Non-accelerated filer o | Smaller reporting company x |
(Do not check if a smaller reporting company ) |
FORWARD-LOOKING STATEMENTS
|
ii | |||
PART I – FINANCIAL INFORMATION
|
1 | |||
Item 1 – Financial Statements
|
1 | |||
Item 2 - Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
19 | |||
Item 3 - Quantitative and Qualitative Disclosures about Market Risk
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29 | |||
Item 4 - Controls and Procedures
|
29 | |||
PART II – OTHER INFORMATION
|
30 | |||
Item 1 - Legal Proceedings
|
30 | |||
Item 1A – Risk Factors
|
30 | |||
Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds
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30 | |||
Item 3 - Defaults Upon Senior Securities
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30 | |||
Item 4 – [Removed and Reserved]
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30 | |||
Item 5 - Other Information
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30 | |||
Item 6 - Exhibits
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30 |
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§
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changes to interest rates, the ability to control costs and expenses;
|
|
§
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our ability to integrate new technology into our operations;
|
|
§
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general economic conditions;
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|
§
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the success of our efforts to diversify its revenue base by developing additional sources of non-interest income while continuing to manage its existing fee based business;
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§
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the impact on us of the changing statutory and regulatory requirements; and
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|
§
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the risks inherent in commencing operations in new markets.
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(Dollars in thousands)
|
June 30,
2011
|
December 31,
2010
|
||||||
ASSETS
|
||||||||
Cash and due from banks
|
$ | 5,973 | $ | 4,672 | ||||
Interest-bearing deposits with other banks
|
19,319 | 10,077 | ||||||
Federal funds sold
|
3,000 | 3,000 | ||||||
Cash and cash equivalents
|
28,292 | 17,749 | ||||||
Interest bearing time deposits with other banks
|
600 | 600 | ||||||
Securities available for sale, at estimated fair value
|
71,889 | 89,380 | ||||||
Securities held to maturity, at cost (estimated fair value of $2,006
|
1,966 | 1,000 | ||||||
at June 30, 2011 and $1,007 at December 31, 2010)
|
||||||||
Federal Home Loan Bank Stock, at cost
|
1,837 | 2,235 | ||||||
Loans receivable, net of unearned income
|
339,564 | 338,234 | ||||||
Less: allowance for loan losses
|
7,536 | 6,397 | ||||||
Net loans receivable
|
332,028 | 331,837 | ||||||
Foreclosed real estate
|
4,545 | 2,397 | ||||||
Premises and equipment, net
|
6,516 | 6,749 | ||||||
Accrued interest receivable
|
1,781 | 1,916 | ||||||
Goodwill
|
2,820 | 2,820 | ||||||
Bank-owned life insurance
|
10,382 | 10,173 | ||||||
Other assets
|
10,508 | 7,168 | ||||||
Total Assets
|
$ | 473,164 | $ | 474,024 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
Liabilities:
|
||||||||
Deposits:
|
||||||||
Non-interest bearing
|
$ | 41,601 | $ | 35,362 | ||||
Interest bearing
|
351,313 | 350,605 | ||||||
Total deposits
|
392,914 | 385,967 | ||||||
Short term borrowings
|
- | 10,000 | ||||||
Long term borrowings
|
26,000 | 26,000 | ||||||
Accrued interest payable and other liabilities
|
2,748 | 2,504 | ||||||
Junior subordinated debentures
|
12,887 | 12,887 | ||||||
Total Liabilities
|
434,549 | 437,358 | ||||||
Stockholders’ Equity:
|
||||||||
Preferred stock, no par value, 1,000,000 shares authorized; none issued
|
- | - | ||||||
Common stock, no par value, 10,000,000 shares authorized;
|
||||||||
issued shares 3,374,165 in 2011 and 3,352,346 in 2010;
|
||||||||
outstanding shares 3,373,385 in 2011 and 3,351,566 in 2010
|
27,916 | 27,870 | ||||||
Treasury stock, at cost; 780 shares in 2011 and 780 shares in 2010
|
(4 | ) | (4 | ) | ||||
Retained earnings
|
10,174 | 8,753 | ||||||
Accumulated other comprehensive income
|
529 | 47 | ||||||
Total Stockholders’ Equity
|
38,615 | 36,666 | ||||||
Total Liabilities and Stockholders’ Equity
|
$ | 473,164 | $ | 474,024 |
See Notes to Unaudited Consolidated Financial Statements
|
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
||||||||||||||
(Dollars in thousands, except per share data)
|
2011
|
2010
|
2011
|
2010
|
||||||||||||
INTEREST INCOME
|
||||||||||||||||
Loans receivable, including fees
|
$ | 4,739 | $ | 4,749 | $ | 9,523 | $ | 9,429 | ||||||||
Securities:
|
||||||||||||||||
Taxable
|
310 | 452 | 675 | 966 | ||||||||||||
Tax-exempt
|
291 | 265 | 583 | 528 | ||||||||||||
Federal funds sold
|
2 | 10 | 3 | 17 | ||||||||||||
Interest bearing deposits
|
10 | 8 | 13 | 10 | ||||||||||||
Total Interest Income
|
5,352 | 5,484 | 10,797 | 10,950 | ||||||||||||
INTEREST EXPENSE
|
||||||||||||||||
Deposits
|
767 | 1,111 | 1,536 | 2,215 | ||||||||||||
Borrowings
|
264 | 355 | 529 | 707 | ||||||||||||
Junior subordinated debentures
|
55 | 55 | 109 | 108 | ||||||||||||
Total Interest Expense
|
1,086 | 1,521 | 2,174 | 3,030 | ||||||||||||
Net Interest Income
|
4,266 | 3,963 | 8,623 | 7,920 | ||||||||||||
PROVISION FOR LOAN LOSSES
|
1,112 | 965 | 1,951 | 1,702 | ||||||||||||
Net Interest Income after Provision for Loan Losses
|
3,154 | 2,998 | 6,672 | 6,218 | ||||||||||||
OTHER INCOME
|
||||||||||||||||
Service fees on deposit accounts
|
328 | 340 | 644 | 674 | ||||||||||||
ATM and debit card fees
|
138 | 127 | 260 | 242 | ||||||||||||
Bank-owned life insurance
|
105 | 73 | 209 | 109 | ||||||||||||
Insurance commissions and fees
|
564 | 590 | 1,179 | 1,137 | ||||||||||||
Investment brokerage fees
|
39 | 49 | 70 | 109 | ||||||||||||
Realized holding (losses) gains on trading securities
|
- | (4 | ) | - | 7 | |||||||||||
Gain on sale of securities, available for sale
|
269 | 54 | 269 | 54 | ||||||||||||
Gain (loss) on sale of foreclosed real estate
|
7 | 1 | (4 | ) | 5 | |||||||||||
Impairment write-downs on equity securities
|
- | (171 | ) | - | (171 | ) | ||||||||||
Other
|
51 | 79 | 119 | 148 | ||||||||||||
Total Other Income
|
1,501 | 1,138 | 2,746 | 2,314 | ||||||||||||
OTHER EXPENSES
|
||||||||||||||||
Salaries and employee benefits
|
1,986 | 2,139 | 3,993 | 3,980 | ||||||||||||
Occupancy, net
|
336 | 331 | 717 | 675 | ||||||||||||
Furniture, equipment and data processing
|
288 | 295 | 588 | 594 | ||||||||||||
Advertising and promotion
|
46 | 51 | 89 | 102 | ||||||||||||
Professional fees
|
149 | 135 | 276 | 268 | ||||||||||||
Director fees
|
72 | 60 | 139 | 118 | ||||||||||||
FDIC assessment
|
126 | 225 | 382 | 449 | ||||||||||||
Insurance
|
54 | 55 | 110 | 111 | ||||||||||||
Stationary and supplies
|
40 | 50 | 83 | 94 | ||||||||||||
Loan collection costs
|
177 | 86 | 292 | 163 | ||||||||||||
Write-down on foreclosed real estate
|
- | - | 145 | 29 | ||||||||||||
Expenses related to foreclosed real estate
|
79 | 110 | 103 | 138 | ||||||||||||
Amortization of intangible assets
|
2 | 4 | 5 | 8 | ||||||||||||
Other
|
344 | 292 | 637 | 635 | ||||||||||||
Total Other Expenses
|
3,699 | 3,833 | 7,559 | 7,364 | ||||||||||||
Income before Income Taxes
|
956 | 303 | 1,859 | 1,168 | ||||||||||||
PROVISION (BENEFIT) FOR INCOME TAXES
|
229 | (2 | ) | 438 | 220 | |||||||||||
Net Income
|
$ | 727 | $ | 305 | $ | 1,421 | $ | 948 | ||||||||
EARNINGS PER SHARE
|
||||||||||||||||
Basic
|
$ | 0.22 | $ | 0.09 | $ | 0.44 | $ | 0.29 | ||||||||
Diluted
|
$ | 0.22 | $ | 0.09 | $ | 0.43 | $ | 0.29 |
Accumulated
|
||||||||||||||||||||||||
Number of
|
Other
|
Total
|
||||||||||||||||||||||
Shares
|
Common
|
Retained
|
Comprehensive
|
Treasury
|
Stockholders'
|
|||||||||||||||||||
(Dollars in thousands, except per share data)
|
Outstanding
|
Stock
|
Earnings
|
Income
|
Stock
|
Equity
|
||||||||||||||||||
Balance December 31, 2009
|
3,259,786 | $ | 27,805 | $ | 6,577 | $ | 145 | $ | - | $ | 34,527 | |||||||||||||
Comprehensive income:
|
||||||||||||||||||||||||
Net income
|
- | - | 948 | - | - | 948 | ||||||||||||||||||
Change in unrealized losses on securities
available for sale, net of tax
|
- | - | - | 391 | 391 | |||||||||||||||||||
Total Comprehensive Income
|
1,339 | |||||||||||||||||||||||
Restricted stock granted
|
87,487 | - | - | - | - | - | ||||||||||||||||||
Restricted stock forfeited
|
(2,743 | ) | - | - | - | - | - | |||||||||||||||||
Compensation expense related to stock option
and restricted stock grants
|
- | 29 | - | - | - | 29 | ||||||||||||||||||
Balance June 30, 2010
|
3,344,530 | $ | 27,834 | $ | 7,525 | $ | 536 | $ | - | $ | 35,895 | |||||||||||||
Balance December 31, 2010
|
3,351,566 | $ | 27,870 | $ | 8,753 | $ | 47 | $ | (4 | ) | $ | 36,666 | ||||||||||||
Comprehensive income:
|
||||||||||||||||||||||||
Net income
|
- | - | 1,421 | - | - | 1,421 | ||||||||||||||||||
Change in unrealized losses on securities
available for sale, net of tax
|
- | - | - | 482 | - | 482 | ||||||||||||||||||
Total Comprehensive Income
|
1,903 | |||||||||||||||||||||||
Restricted stock granted
|
22,218 | - | - | - | - | - | ||||||||||||||||||
Restricted stock forfeited
|
(399 | ) | - | - | - | - | - | |||||||||||||||||
Compensation expense related to stock option
and restricted stock grants
|
- | 46 | - | - | - | 46 | ||||||||||||||||||
Balance June 30, 2011
|
3,373,385 | $ | 27,916 | $ | 10,174 | $ | 529 | $ | (4 | ) | $ | 38,615 |
See Notes to Unaudited Consolidated Financial Statements
|
Six Months Ended
June 30,
|
||||||||
(Dollars in thousands)
|
2011
|
2010
|
||||||
Cash Flows from Operating Activities
|
||||||||
Net income
|
$ | 1,421 | $ | 948 | ||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Provision for loan losses
|
1,951 | 1,702 | ||||||
Provision for depreciation and amortization
|
307 | 330 | ||||||
Net change in trading securities
|
- | 714 | ||||||
Net amortization of securities premiums and discounts
|
416 | 93 | ||||||
Net realized gain on sale of securities
|
(269 | ) | (54 | ) | ||||
Impairment charge on equity securities
|
- | 171 | ||||||
Net realized loss (gain) on sale of foreclosed real estate
|
4 | (5 | ) | |||||
Provision for foreclosed assets
|
145 | 27 | ||||||
Earnings on bank-owned life insurance
|
(209 | ) | (108 | ) | ||||
Compensation expense for stock options and stock awards
|
46 | 29 | ||||||
(Increase) decrease in assets:
|
||||||||
Accrued interest receivable
|
135 | 141 | ||||||
Other assets
|
(3,665 | ) | (142 | ) | ||||
Increase in accrued interest payable and other liabilities
|
244 | 471 | ||||||
Net Cash Provided by Operating Activities
|
526 | 4,317 | ||||||
Cash Flows from Investing Activities
|
||||||||
Securities available for sale:
|
||||||||
Purchases
|
(7,297 | ) | (17,830 | ) | ||||
Sales
|
6,271 | 1,001 | ||||||
Maturities, calls and principal repayments
|
19,172 | 13,509 | ||||||
Securities held to maturity:
|
||||||||
Purchases
|
(966 | ) | - | |||||
Net (increase) decrease in loans
|
(4,842 | ) | 94 | |||||
Proceeds from the sale of foreclosed assets
|
403 | 194 | ||||||
Purchases of interest bearing time deposits
|
- | (500 | ) | |||||
Purchases of bank premises and equipment
|
(69 | ) | (227 | ) | ||||
Purchases of bank owned life insurance
|
- | (6,500 | ) | |||||
Decrease (increase) in FHLB stock
|
398 | (58 | ) | |||||
Net Cash Provided by (Used in) Investing Activities
|
13,070 | (10,317 | ) | |||||
Cash Flows from Financing Activities
|
||||||||
Net increase in deposits
|
6,947 | 27,976 | ||||||
Repayments of borrowings
|
(10,000 | ) | (30 | ) | ||||
Net Cash (Used in) Provided by Financing Activities
|
(3,053 | ) | 27,946 | |||||
Net Increase in Cash and Cash Equivalents
|
10,543 | 21,946 | ||||||
Cash and Cash Equivalents - Beginning
|
17,749 | 23,079 | ||||||
Cash and Cash Equivalents - Ending
|
$ | 28,292 | $ | 45,025 | ||||
Supplementary Cash Flows Information
|
||||||||
Interest paid
|
$ | 2,194 | $ | 3,051 | ||||
Income taxes paid
|
$ | 834 | $ | 499 | ||||
Supplementary Schedule of Noncash Investing and Financing Activities
|
||||||||
Foreclosed real estate acquired in settlement of loans
|
$ | 2,700 | $ | 937 | ||||
Trading securities transferred to available for sale securities
|
$ | - | $ | 2,241 |
See Notes to Unaudited Consolidated Financial Statements
|
Gross
|
Gross
|
|||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||
(Dollars in thousands)
|
Cost
|
Gains
|
Losses
|
Value
|
||||||||||||
June 30, 2011
|
||||||||||||||||
Available for Sale
|
||||||||||||||||
U.S. government agencies
|
$ | 5,007 | $ | 10 | $ | - | $ | 5,017 | ||||||||
State and political subdivisions
|
28,016 | 458 | (153 | ) | 28,321 | |||||||||||
Mortgage-backed securities:
|
||||||||||||||||
U.S. government-sponsored enterprises
|
32,809 | 784 | (69 | ) | 33,524 | |||||||||||
Private mortgage-backed securities
|
3,533 | 150 | - | 3,683 | ||||||||||||
Equity securities-financial services industry and other
|
1,643 | 8 | (307 | ) | 1,344 | |||||||||||
71,008 | 1,410 | (529 | ) | 71,889 | ||||||||||||
Held to Maturity Securities
|
||||||||||||||||
State and political subdivisions
|
1,966 | 40 | - | 2,006 | ||||||||||||
Total Securities
|
$ | 72,974 | $ | 1,450 | $ | (529 | ) | $ | 73,895 | |||||||
December 31, 2010
|
||||||||||||||||
Available for Sale
|
||||||||||||||||
U.S. government agencies
|
$ | 21,158 | $ | 78 | $ | (47 | ) | $ | 21,189 | |||||||
State and political subdivisions
|
29,353 | 97 | (715 | ) | 28,735 | |||||||||||
Mortgage-backed securities:
|
||||||||||||||||
U.S. government-sponsored enterprises
|
32,560 | 747 | (21 | ) | 33,286 | |||||||||||
Private mortgage-backed securities
|
4,592 | 215 | - | 4,807 | ||||||||||||
Equity securities-financial services industry and other
|
1,638 | 9 | (284 | ) | 1,363 | |||||||||||
89,301 | 1,146 | (1,067 | ) | 89,380 | ||||||||||||
Held to Maturity Securities
|
||||||||||||||||
State and political subdivisions
|
1,000 | 7 | - | 1,007 | ||||||||||||
Total Securities
|
$ | 90,301 | $ | 1,153 | $ | (1,067 | ) | $ | 90,387 |
Available for Sale
|
Held to Maturity
|
|||||||||||||||
Amortized
|
Fair
|
Amortized
|
Fair
|
|||||||||||||
(Dollars in thousands)
|
Cost
|
Value
|
Cost
|
Value
|
||||||||||||
Due in one year or less
|
$ | 4,979 | $ | 4,991 | $ | 966 | $ | 971 | ||||||||
Due after one year through five years
|
3,000 | 3,005 | - | - | ||||||||||||
Due after five years through ten years
|
197 | 200 | - | - | ||||||||||||
Due after ten years
|
24,847 | 25,142 | 1,000 | 1,035 | ||||||||||||
Total bonds and obligations
|
33,023 | 33,338 | 1,966 | 2,006 | ||||||||||||
Mortgage-backed securities:
|
||||||||||||||||
U.S. government-sponsored enterprises
|
32,809 | 33,524 | - | - | ||||||||||||
Private mortgage-backed securities
|
3,533 | 3,683 | - | - | ||||||||||||
Equity securities-financial services industry and other
|
1,643 | 1,344 | - | - | ||||||||||||
Total securities
|
$ | 71,008 | $ | 71,889 | $ | 1,966 | $ | 2,006 |
Less Than Twelve Months
|
Twelve Months or More
|
Total
|
||||||||||||||||||||||
Gross
|
Gross
|
Gross
|
||||||||||||||||||||||
Fair
|
Unrealized
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
|||||||||||||||||||
(Dollars in thousands)
|
Value
|
Losses
|
Value
|
Losses
|
Value
|
Losses
|
||||||||||||||||||
June 30, 2011
|
||||||||||||||||||||||||
Available for sale securities:
|
||||||||||||||||||||||||
U.S. government agencies
|
$ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||
State and political subdivisions
|
4,368 | (30 | ) | 1,084 | (123 | ) | 5,452 | (153 | ) | |||||||||||||||
Mortgage-backed securities:
|
||||||||||||||||||||||||
U.S. government-sponsored enterprises
|
2,152 | (69 | ) | - | - | 2,152 | (69 | ) | ||||||||||||||||
Equity securities-financial services industry and other
|
850 | (36 | ) | 413 | (271 | ) | 1,263 | (307 | ) | |||||||||||||||
Total Temporarily Impaired Securities
|
$ | 7,370 | $ | (135 | ) | $ | 1,497 | $ | (394 | ) | $ | 8,867 | $ | (529 | ) | |||||||||
December 31, 2010
|
||||||||||||||||||||||||
Available for sale securities:
|
||||||||||||||||||||||||
U.S. government agencies
|
$ | 6,962 | $ | (47 | ) | $ | - | $ | - | $ | 6,962 | $ | (47 | ) | ||||||||||
State and political subdivisions
|
18,006 | (578 | ) | 1,071 | (137 | ) | 19,077 | (715 | ) | |||||||||||||||
Mortgage-backed securities:
|
||||||||||||||||||||||||
U.S. government-sponsored enterprises
|
4,536 | (21 | ) | - | - | 4,536 | (21 | ) | ||||||||||||||||
Equity securities-financial services industry and other
|
820 | (50 | ) | 445 | (234 | ) | 1,265 | (284 | ) | |||||||||||||||
Total Temporarily Impaired Securities
|
$ | 30,324 | $ | (696 | ) | $ | 1,516 | $ | (371 | ) | $ | 31,840 | $ | (1,067 | ) |
(Dollars in thousands)
|
June 30,
2011
|
December 31,
2010
|
||||||
Commercial and industrial loans
|
$ | 14,087 | $ | 15,045 | ||||
Construction
|
18,028 | 20,862 | ||||||
Commercial real estate
|
206,618 | 204,407 | ||||||
Residential real estate
|
99,590 | 96,659 | ||||||
Consumer and other
|
1,395 | 1,395 | ||||||
339,718 | 338,368 | |||||||
Unearned net loan origination fees
|
(154 | ) | (134 | ) | ||||
Allowance for loan losses
|
(7,536 | ) | (6,397 | ) | ||||
Net Loans Receivable
|
$ | 332,028 | $ | 331,837 |
Recorded
|
||||||||||||||||||||||||||||
Investment
|
||||||||||||||||||||||||||||
(Dollars in thousands)
|
30-59 Days
Past Due
|
60-89 days
Past Due
|
Greater
Than
90 Days (a)
|
Total Past
Due
|
Current
|
Total
Financing
Receivables
|
> 90 Days
and
Accruing
|
|||||||||||||||||||||
June 30, 2011
|
||||||||||||||||||||||||||||
Commercial and industrial
|
$ | 225 | $ | 191 | $ | 93 | $ | 509 | $ | 13,578 | $ | 14,087 | $ | 29 | ||||||||||||||
Construction
|
1,576 | - | 4,000 | 5,576 | 12,452 | 18,028 | 1,000 | |||||||||||||||||||||
Commercial real estate
|
2,739 | 2,386 | 19,741 | 24,866 | 181,752 | 206,618 | - | |||||||||||||||||||||
Residential real estate
|
502 | 1,024 | 2,257 | 3,783 | 95,807 | 99,590 | - | |||||||||||||||||||||
Consumer and other
|
10 | 23 | - | 33 | 1,362 | 1,395 | - | |||||||||||||||||||||
Total
|
$ | 5,052 | $ | 3,624 | $ | 26,091 | $ | 34,767 | $ | 304,951 | $ | 339,718 | $ | 1,029 | ||||||||||||||
December 31, 2010
|
||||||||||||||||||||||||||||
Commercial and industrial
|
$ | 182 | $ | 229 | $ | 98 | $ | 509 | $ | 14,536 | $ | 15,045 | $ | 20 | ||||||||||||||
Construction
|
- | - | 6,430 | 6,430 | 14,432 | 20,862 | - | |||||||||||||||||||||
Commercial real estate
|
2,316 | 3,946 | 14,959 | 21,221 | 183,186 | 204,407 | 29 | |||||||||||||||||||||
Residential real estate
|
3,029 | - | 1,244 | 4,273 | 92,386 | 96,659 | - | |||||||||||||||||||||
Consumer and other
|
3 | 16 | - | 19 | 1,376 | 1,395 | - | |||||||||||||||||||||
Total
|
$ | 5,530 | $ | 4,191 | $ | 22,731 | $ | 32,452 | $ | 305,916 | $ | 338,368 | $ | 49 |
(Dollars in thousands)
|
June 30,
2011
|
December 31,
2010
|
||||||
Commercial and industrial
|
$ | 64 | $ | 78 | ||||
Construction
|
3,000 | 6,430 | ||||||
Commercial real estate
|
19,741 | 14,930 | ||||||
Residential real estate
|
2,257 | 1,244 | ||||||
Consumer and other
|
- | - | ||||||
Total
|
$ | 25,062 | $ | 22,682 |
Commercial
and
|
Commercial
Real
|
Residential
Real
|
||||||||||||||||||||||||||
(Dollars in thousands)
|
Industrial
|
Construction
|
Estate
|
Estate
|
Consumer
|
Unallocated
|
Total
|
|||||||||||||||||||||
Three Months Ended:
|
||||||||||||||||||||||||||||
June 30, 2011
|
||||||||||||||||||||||||||||
Beginning balance
|
$ | 448 | $ | 1,347 | $ | 3,953 | $ | 832 | $ | 54 | $ | 592 | $ | 7,226 | ||||||||||||||
Charge-offs
|
(13 | ) | (909 | ) | (394 | ) | - | (11 | ) | - | (1,327 | ) | ||||||||||||||||
Recoveries
|
2 | 516 | 1 | - | 6 | - | 525 | |||||||||||||||||||||
Provision
|
(9 | ) | 15 | 1,213 | 113 | (4 | ) | (216 | ) | 1,112 | ||||||||||||||||||
Ending balance
|
$ | 428 | $ | 969 | $ | 4,773 | $ | 945 | $ | 45 | $ | 376 | $ | 7,536 | ||||||||||||||
Six Months Ended:
|
||||||||||||||||||||||||||||
June 30, 2011
|
||||||||||||||||||||||||||||
Beginning balance
|
$ | 436 | $ | 1,183 | $ | 3,760 | $ | 798 | $ | 56 | $ | 164 | $ | 6,397 | ||||||||||||||
Charge-offs
|
(13 | ) | (909 | ) | (395 | ) | (12 | ) | (23 | ) | - | (1,352 | ) | |||||||||||||||
Recoveries
|
3 | 516 | 8 | - | 13 | - | 540 | |||||||||||||||||||||
Provision
|
2 | 179 | 1,400 | 159 | (1 | ) | 212 | 1,951 | ||||||||||||||||||||
Ending balance
|
$ | 428 | $ | 969 | $ | 4,773 | $ | 945 | $ | 45 | $ | 376 | $ | 7,536 |
Allowance for Loan Losses
|
Loans Receivable
|
|||||||||||||||||||||||
(Dollars in thousands)
|
Balance
|
Balance
Related to
Loans
Individually
Evaluated for
Impairment
|
Balance
Related to
Loans
Collectively
Evaluated for
Impairment
|
Balance
|
Individually
Evaluated
for
Impairment
|
Collectively
Evaluated
for
Impairment
|
||||||||||||||||||
June 30, 2011
|
||||||||||||||||||||||||
Commercial and industrial
|
$ | 428 | $ | 62 | $ | 366 | $ | 14,087 | $ | 85 | $ | 14,002 | ||||||||||||
Construction
|
969 | 55 | 914 | 18,028 | 3,000 | 15,028 | ||||||||||||||||||
Commercial real estate
|
4,773 | 1,816 | 2,957 | 206,618 | 21,522 | 185,096 | ||||||||||||||||||
Residential real estate
|
945 | 221 | 724 | 99,590 | 2,257 | 97,333 | ||||||||||||||||||
Consumer and other loans
|
45 | - | 45 | 1,395 | - | 1,395 | ||||||||||||||||||
Unallocated
|
376 | - | - | - | - | - | ||||||||||||||||||
Total
|
$ | 7,536 | $ | 2,154 | $ | 5,006 | $ | 339,718 | $ | 26,864 | $ | 312,854 | ||||||||||||
December 31, 2010
|
||||||||||||||||||||||||
Commercial and industrial
|
$ | 436 | $ | 54 | $ | 382 | $ | 15,045 | $ | 78 | $ | 14,967 | ||||||||||||
Construction
|
1,183 | 610 | 573 | 20,862 | 6,636 | 14,226 | ||||||||||||||||||
Commercial real estate
|
3,760 | 493 | 3,267 | 204,407 | 15,514 | 188,893 | ||||||||||||||||||
Residential real estate
|
798 | 233 | 565 | 96,659 | 1,244 | 95,415 | ||||||||||||||||||
Consumer and other loans
|
56 | - | 56 | 1,395 | - | 1,395 | ||||||||||||||||||
Unallocated
|
164 | - | - | - | - | - | ||||||||||||||||||
Total
|
$ | 6,397 | $ | 1,390 | $ | 4,843 | $ | 338,368 | $ | 23,472 | $ | 314,896 |
June 30, 2011
|
||||||||||||||||||||
Special
|
||||||||||||||||||||
(Dollars in thousands)
|
Pass
|
Mention
|
Substandard
|
Doubtful
|
Total
|
|||||||||||||||
Commercial and industrial
|
$ | 13,434 | $ | 568 | $ | 76 | $ | 9 | $ | 14,087 | ||||||||||
Construction
|
11,520 | 566 | 5,942 | - | 18,028 | |||||||||||||||
Commercial real estate
|
169,478 | 9,995 | 27,145 | - | 206,618 | |||||||||||||||
Residential real estate
|
95,043 | 458 | 4,089 | - | 99,590 | |||||||||||||||
Consumer and other
|
1,384 | - | 11 | - | 1,395 | |||||||||||||||
$ | 290,859 | $ | 11,587 | $ | 37,263 | $ | 9 | $ | 339,718 | |||||||||||
December 31, 2010
|
||||||||||||||||||||
Special
|
||||||||||||||||||||
(Dollars in thousands)
|
Pass
|
Mention
|
Substandard
|
Doubtful
|
Total
|
|||||||||||||||
Commercial and industrial
|
$ | 14,268 | $ | 679 | $ | 75 | $ | 23 | $ | 15,045 | ||||||||||
Construction
|
10,669 | 2,753 | 7,440 | - | 20,862 | |||||||||||||||
Commercial real estate
|
162,147 | 19,880 | 21,920 | 460 | 204,407 | |||||||||||||||
Residential real estate
|
93,884 | 1,083 | 1,681 | 11 | 96,659 | |||||||||||||||
Consumer and other
|
1,382 | - | 13 | - | 1,395 | |||||||||||||||
$ | 282,350 | $ | 24,395 | $ | 31,129 | $ | 494 | $ | 338,368 |
Unpaid
|
Average
|
Interest
|
||||||||||||||||||
Recorded
|
Principal
|
Related
|
Recorded
|
Income
|
||||||||||||||||
(Dollars in thousands)
|
Investment
|
Balance
|
Allowance
|
Investment
|
Recognized
|
|||||||||||||||
June 30, 2011
|
||||||||||||||||||||
With no related allowance recorded:
|
||||||||||||||||||||
Commercial and industrial
|
$ | - | $ | - | $ | - | $ | 19 | $ | - | ||||||||||
Construction
|
2,604 | 2,908 | - | 3,795 | 1 | |||||||||||||||
Commercial real estate
|
8,709 | 9,468 | - | 8,859 | 80 | |||||||||||||||
Residential real estate
|
1,597 | 1,597 | - | 816 | 17 | |||||||||||||||
Consumer and other
|
- | - | - | 3 | - | |||||||||||||||
With an allowance recorded:
|
||||||||||||||||||||
Commercial and industrial
|
85 | 98 | 62 | 77 | - | |||||||||||||||
Construction
|
396 | 396 | 55 | 1,941 | - | |||||||||||||||
Commercial real estate
|
12,813 | 13,672 | 1,816 | 9,694 | 105 | |||||||||||||||
Residential real estate
|
660 | 672 | 221 | 611 | 1 | |||||||||||||||
Consumer and other
|
- | - | - | - | - | |||||||||||||||
Total:
|
||||||||||||||||||||
Commercial and industrial
|
$ | 85 | $ | 98 | $ | 62 | $ | 96 | $ | - | ||||||||||
Construction
|
3,000 | 3,304 | 55 | 5,736 | 1 | |||||||||||||||
Commercial real estate
|
21,522 | 23,140 | 1,816 | 18,773 | 165 | |||||||||||||||
Residential real estate
|
2,257 | 2,269 | 221 | 1,427 | 18 | |||||||||||||||
Consumer and other
|
- | - | - | 3 | - | |||||||||||||||
$ | 26,864 | $ | 28,811 | $ | 2,154 | $ | 25,815 | $ | 204 | |||||||||||
December 31, 2010
|
||||||||||||||||||||
With no related allowance recorded:
|
||||||||||||||||||||
Commercial and industrial
|
$ | - | $ | - | $ | - | $ | 188 | $ | - | ||||||||||
Construction
|
3,230 | 3,535 | - | 2,885 | 38 | |||||||||||||||
Commercial real estate
|
4,863 | 5,284 | - | 8,122 | 118 | |||||||||||||||
Residential real estate
|
560 | 560 | - | 849 | 7 | |||||||||||||||
Consumer and other
|
- | - | - | 9 | - | |||||||||||||||
With an allowance recorded:
|
||||||||||||||||||||
Commercial and industrial
|
78 | 78 | 54 | 71 | - | |||||||||||||||
Construction
|
3,406 | 5,481 | 610 | 2,568 | - | |||||||||||||||
Commercial real estate
|
10,651 | 11,453 | 493 | 10,379 | 299 | |||||||||||||||
Residential real estate
|
684 | 684 | 233 | 449 | 1 | |||||||||||||||
Consumer and other
|
- | - | - | - | - | |||||||||||||||
Total:
|
||||||||||||||||||||
Commercial and industrial
|
$ | 78 | $ | 78 | $ | 54 | $ | 259 | $ | - | ||||||||||
Construction
|
6,636 | 9,016 | 610 | 5,453 | 38 | |||||||||||||||
Commercial real estate
|
15,514 | 16,737 | 493 | 18,501 | 417 | |||||||||||||||
Residential real estate
|
1,244 | 1,244 | 233 | 1,298 | 8 | |||||||||||||||
Consumer and other
|
- | - | - | 9 | - | |||||||||||||||
$ | 23,472 | $ | 27,075 | $ | 1,390 | $ | 25,520 | $ | 463 |
Three Months Ended
June 30, 2011
|
Three Months Ended
June 30, 2010
|
|||||||||||||||||||||||
Per
|
Per
|
|||||||||||||||||||||||
Income
|
Shares
|
Share
|
Income
|
Shares
|
Share
|
|||||||||||||||||||
(In thousands, except per share data)
|
(Numerator)
|
(Denominator)
|
Amount
|
(Numerator)
|
(Denominator)
|
Amount
|
||||||||||||||||||
Basic earnings per share:
|
||||||||||||||||||||||||
Net income applicable to common
|
||||||||||||||||||||||||
stockholders
|
$ | 727 | 3,255 | $ | 0.22 | $ | 305 | 3,250 | $ | 0.09 | ||||||||||||||
Effect of dilutive securities:
|
||||||||||||||||||||||||
Stock options
|
- | 71 | - | 33 | ||||||||||||||||||||
Diluted earnings per share:
|
||||||||||||||||||||||||
Net income applicable to common
|
||||||||||||||||||||||||
stockholders and assumed conversions
|
$ | 727 | 3,326 | $ | 0.22 | $ | 305 | 3,283 | $ | 0.09 | ||||||||||||||
Six Months Ended
June 30, 2011
|
Six Months Ended
June 30, 2010
|
|||||||||||||||||||||||
Per
|
Per
|
|||||||||||||||||||||||
Income
|
Shares
|
Share
|
Income
|
Shares
|
Share
|
|||||||||||||||||||
(In thousands, except per share data)
|
(Numerator)
|
(Denominator)
|
Amount
|
(Numerator)
|
(Denominator)
|
Amount
|
||||||||||||||||||
Basic earnings per share:
|
||||||||||||||||||||||||
Net income applicable to common
|
||||||||||||||||||||||||
stockholders
|
$ | 1,421 | 3,255 | $ | 0.44 | $ | 948 | 3,249 | $ | 0.29 | ||||||||||||||
Effect of dilutive securities:
|
||||||||||||||||||||||||
Stock options
|
- | 68 | - | 38 | ||||||||||||||||||||
Diluted earnings per share:
|
||||||||||||||||||||||||
Net income applicable to common
|
||||||||||||||||||||||||
stockholders and assumed conversions
|
$ | 1,421 | 3,323 | $ | 0.43 | $ | 948 | 3,287 | $ | 0.29 |
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
(Dollars in thousands)
|
2011
|
2010
|
2011
|
2010
|
||||||||||||
Unrealized holding gain on available for sale securities
|
$ | 855 | $ | 312 | $ | 1,072 | $ | 535 | ||||||||
Reclassification adjustments for gains and
|
||||||||||||||||
impairment write-downs included in net income
|
269 | (117 | ) | 269 | (117 | ) | ||||||||||
Net unrealized gain
|
586 | 429 | 803 | 652 | ||||||||||||
Tax effect
|
(234 | ) | (172 | ) | (321 | ) | (261 | ) | ||||||||
Other comprehensive income, net of tax
|
$ | 352 | $ | 257 | $ | 482 | $ | 391 |
Three Months Ended
June 30, 2011
|
Three Months Ended
June 30, 2010
|
|||||||||||||||||||||||
Banking and
|
Banking and
|
|||||||||||||||||||||||
Financial
|
Insurance
|
Financial
|
Insurance
|
|||||||||||||||||||||
(Dollars in thousands)
|
Services
|
Services
|
Total
|
Services
|
Services
|
Total
|
||||||||||||||||||
Net interest income from external sources
|
$ | 4,266 | $ | - | $ | 4,266 | $ | 3,963 | $ | - | $ | 3,963 | ||||||||||||
Other income from external sources
|
937 | 564 | 1,501 | 548 | 590 | 1,138 | ||||||||||||||||||
Depreciation and amortization
|
151 | 3 | 154 | 161 | 3 | 164 | ||||||||||||||||||
Income before income taxes
|
908 | 48 | 956 | 276 | 27 | 303 | ||||||||||||||||||
Income tax expense (benefit)
(1)
|
210 | 19 | 229 | (13 | ) | 11 | (2 | ) | ||||||||||||||||
Total assets
|
470,020 | 3,143 | 473,163 | 481,551 | 3,075 | 484,626 | ||||||||||||||||||
Six Months Ended
June 30, 2011
|
Six Months Ended
June 30, 2010
|
|||||||||||||||||||||||
Banking and
|
Banking and
|
|||||||||||||||||||||||
Financial
|
Insurance
|
Financial
|
Insurance
|
|||||||||||||||||||||
Services
|
Services
|
Total
|
Services
|
Services
|
Total
|
|||||||||||||||||||
Net interest income from external sources
|
$ | 8,623 | $ | - | $ | 8,623 | $ | 7,920 | $ | - | $ | 7,920 | ||||||||||||
Other income from external sources
|
1,567 | 1,179 | 2,746 | 1,177 | 1,137 | 2,314 | ||||||||||||||||||
Depreciation and amortization
|
301 | 6 | 307 | 324 | 6 | 330 | ||||||||||||||||||
Income before income taxes
|
1,701 | 158 | 1,859 | 1,126 | 42 | 1,168 | ||||||||||||||||||
Income tax expense
(1)
|
375 | 63 | 438 | 203 | 17 | 220 | ||||||||||||||||||
Total assets
|
470,020 | 3,143 | 473,163 | 481,551 | 3,075 | 484,626 |
(1)
|
Insurance Services calculated at statutory tax rate of 40%
|
Weighted
|
||||||||||||||||
Average
|
Weighted
|
|||||||||||||||
Exercise
|
Average
|
Aggregate
|
||||||||||||||
Number of
|
Price per
|
Contractual
|
Intrinsic
|
|||||||||||||
Shares
|
Share
|
Term
|
Value
|
|||||||||||||
Options outstanding, beginning of year
|
116,075 | $ | 12.33 | |||||||||||||
Options expired
|
- | - | ||||||||||||||
Options forfeited
|
- | - | ||||||||||||||
Options outstanding, end of quarter
|
116,075 | $ | 12.33 | 2.49 | $ | - | ||||||||||
Options exercisable, end of quarter
|
116,075 | $ | 12.33 | 2.49 | $ | - | ||||||||||
Option price range at end of quarter
|
$ | 8.86 to $16.45 | ||||||||||||||
Option price range for exercisable shares
|
$ | 8.86 to $16.45 |
Weighted Average
|
||||||||
Number of
|
Grant Date
|
|||||||
Shares
|
Fair Value
|
|||||||
Restricted stock, beginning of year
|
101,991 | $ | 4.71 | |||||
Granted
|
22,218 | 6.24 | ||||||
Forfeited
|
(399 | ) | 5.75 | |||||
Vested
|
(7,318 | ) | 6.52 | |||||
Restricted stock, end of quarter
|
116,492 | $ | 4.89 |
Quoted Prices In
|
Significant
|
|||||||||||||||
Active Markets
|
Other
|
Significant
|
||||||||||||||
Fair
|
for Identical
|
Observable
|
Unobservable
|
|||||||||||||
Value
|
Assets
|
Inputs
|
Inputs
|
|||||||||||||
(Dollars in thousands)
|
Measurements
|
(Level I)
|
(Level II)
|
(Level III)
|
||||||||||||
June 30, 2011:
|
||||||||||||||||
U.S. government agencies
|
$ | 5,017 | $ | - | $ | 5,017 | $ | - | ||||||||
State and political subdivisions
|
28,321 | - | 28,321 | - | ||||||||||||
Mortgage-backed securities
|
||||||||||||||||
U.S. government-sponsored enterprises
|
33,524 | - | 33,524 | - | ||||||||||||
Private mortgage-backed securities
|
3,683 | - | 3,683 | - | ||||||||||||
Equity securities-financial services industry and other
|
1,344 | 1,196 | 148 | - | ||||||||||||
December 31, 2010:
|
||||||||||||||||
U.S. government agencies
|
$ | 21,189 | $ | - | $ | 21,189 | $ | - | ||||||||
State and political subdivisions
|
28,735 | - | 28,735 | - | ||||||||||||
Mortgage-backed securities
|
||||||||||||||||
U.S. government-sponsored enterprises
|
33,286 | - | 33,286 | - | ||||||||||||
Private mortgage-backed securities
|
4,807 | - | 4,807 | - | ||||||||||||
Equity securities-financial services industry and other
|
1,363 | 1,213 | 150 | - |
Quoted Prices in
|
Significant
|
|||||||||||||||
Active Markets
|
Other
|
Significant
|
||||||||||||||
Fair
|
for Identical
|
Observable
|
Unobservable
|
|||||||||||||
Value
|
Assets
|
Inputs
|
Inputs
|
|||||||||||||
(Dollars in thousands)
|
Measurements
|
(Level I)
|
(Level II)
|
(Level III)
|
||||||||||||
June 30, 2011:
|
||||||||||||||||
Impaired loans
|
$ | 11,800 | $ | - | $ | - | $ | 11,800 | ||||||||
Foreclosed real estate
|
3,994 | - | - | 3,994 | ||||||||||||
December 31, 2010:
|
||||||||||||||||
Impaired loans
|
$ | 13,430 | $ | - | $ | - | $ | 13,430 | ||||||||
Foreclosed real estate
|
2,007 | - | - | 2,007 |
2011
|
2010
|
|||||||||||||||
Carrying
|
Fair
|
Carrying
|
Fair
|
|||||||||||||
(Dollars in thousands)
|
Amount
|
Value
|
Amount
|
Value
|
||||||||||||
Financial assets:
|
||||||||||||||||
Cash and cash equivalents
|
$ | 28,292 | $ | 28,292 | $ | 17,749 | $ | 17,749 | ||||||||
Time deposits with other banks
|
600 | 600 | 600 | 600 | ||||||||||||
Securities available for sale
|
71,889 | 71,889 | 89,380 | 89,380 | ||||||||||||
Securities held to maturity
|
1,966 | 2,006 | 1,000 | 1,007 | ||||||||||||
Federal Home Loan Bank stock
|
1,837 | 1,837 | 2,235 | 2,235 | ||||||||||||
Loans receivable, net of allowance
|
332,028 | 334,384 | 331,837 | 334,762 | ||||||||||||
Accrued interest receivable
|
1,781 | 1,781 | 1,916 | 1,916 | ||||||||||||
Financial liabilities:
|
||||||||||||||||
Deposits
|
392,914 | 393,817 | 385,957 | 386,935 | ||||||||||||
Borrowings
|
26,000 | 28,409 | 36,000 | 38,168 | ||||||||||||
Junior subordinated debentures
|
12,887 | 8,547 | 12,887 | 8,647 | ||||||||||||
Accrued interest payable
|
249 | 249 | 269 | 269 | ||||||||||||
Off-balance financial instruments:
|
||||||||||||||||
Commitments to extend credit
|
- | - | - | - | ||||||||||||
Outstanding letters of credit
|
- | - | - | - |
Three Months Ended June 30,
|
||||||||||||||||||||||||
2011
|
2010
|
|||||||||||||||||||||||
Average
|
Average
|
Average
|
Average
|
|||||||||||||||||||||
(Dollars in thousands)
|
Balance
|
Interest
(1)
|
Rate
(2)
|
Balance
|
Interest
(1)
|
Rate
(2)
|
||||||||||||||||||
Earning Assets:
|
||||||||||||||||||||||||
Securities:
|
||||||||||||||||||||||||
Tax exempt
(3)
|
$ | 29,805 | $ | 441 | 5.94 | % | $ | 27,768 | $ | 398 | 5.74 | % | ||||||||||||
Taxable
|
48,992 | 310 | 2.54 | % | 51,004 | 452 | 3.56 | % | ||||||||||||||||
Total securities
|
78,797 | 751 | 3.83 | % | 78,772 | 850 | 4.33 | % | ||||||||||||||||
Total loans receivable
(4)
|
343,333 | 4,739 | 5.54 | % | 331,033 | 4,749 | 5.75 | % | ||||||||||||||||
Other interest-earning assets
|
22,674 | 12 | 0.20 | % | 35,981 | 18 | 0.20 | % | ||||||||||||||||
Total earning assets
|
444,804 | $ | 5,502 | 4.96 | % | 445,786 | $ | 5,617 | 5.05 | % | ||||||||||||||
Non-interest earning assets
|
36,421 | 40,353 | ||||||||||||||||||||||
Allowance for loan losses
|
(7,602 | ) | (6,355 | ) | ||||||||||||||||||||
Total assets
|
$ | 473,623 | $ | 479,784 | ||||||||||||||||||||
Sources of Funds:
|
||||||||||||||||||||||||
Interest bearing deposits:
|
||||||||||||||||||||||||
NOW
|
$ | 78,439 | $ | 106 | 0.54 | % | $ | 64,034 | $ | 134 | 0.84 | % | ||||||||||||
Money market
|
14,504 | 20 | 0.55 | % | 12,385 | 25 | 0.82 | % | ||||||||||||||||
Savings
|
169,086 | 296 | 0.70 | % | 176,352 | 506 | 1.15 | % | ||||||||||||||||
Time
|
91,804 | 345 | 1.51 | % | 104,174 | 446 | 1.72 | % | ||||||||||||||||
Total interest bearing deposits
|
353,833 | 767 | 0.87 | % | 356,945 | 1,111 | 1.25 | % | ||||||||||||||||
Borrowed funds
|
26,000 | 264 | 4.03 | % | 33,066 | 355 | 4.25 | % | ||||||||||||||||
Junior subordinated debentures
|
12,887 | 55 | 1.69 | % | 12,887 | 55 | 1.69 | % | ||||||||||||||||
Total interest bearing liabilities
|
392,720 | $ | 1,086 | 1.11 | % | 402,898 | $ | 1,521 | 1.51 | % | ||||||||||||||
Non-interest bearing liabilities:
|
||||||||||||||||||||||||
Demand deposits
|
40,402 | 39,841 | ||||||||||||||||||||||
Other liabilities
|
2,370 | 1,341 | ||||||||||||||||||||||
Total non-interest bearing liabilities
|
42,772 | 41,182 | ||||||||||||||||||||||
Stockholders’ equity
|
38,131 | 35,704 | ||||||||||||||||||||||
Total liabilities and stockholders’ equity
|
$ | 473,623 | $ | 479,784 | ||||||||||||||||||||
Net interest income and margin
(5)
|
$ | 4,416 | 3.98 | % | $ | 4,096 | 3.69 | % |
(1)
|
Includes loan fee income
|
(2)
|
Average rates on securities are calculated on amortized costs
|
(3)
|
Fully 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
|
Six Months Ended June 30,
|
||||||||||||||||||||||||
2011
|
2010
|
|||||||||||||||||||||||
Average
|
Average
|
Average
|
Average
|
|||||||||||||||||||||
(Dollars in thousands)
|
Balance
|
Interest
(1)
|
Rate
(2)
|
Balance
|
Interest
(1)
|
Rate
(2)
|
||||||||||||||||||
Earning Assets:
|
||||||||||||||||||||||||
Securities:
|
||||||||||||||||||||||||
Tax exempt
(3)
|
$ | 29,913 | $ | 883 | 5.95 | % | $ | 27,295 | $ | 791 | 5.85 | % | ||||||||||||
Taxable
|
54,181 | 675 | 2.51 | % | 49,982 | 966 | 3.90 | % | ||||||||||||||||
Total securities
|
84,094 | 1,558 | 3.74 | % | 77,277 | 1,757 | 4.59 | % | ||||||||||||||||
Total loans receivable
(4)
|
342,511 | 9,523 | 5.61 | % | 330,872 | 9,429 | 5.75 | % | ||||||||||||||||
Other interest-earning assets
|
17,111 | 16 | 0.19 | % | 30,847 | 27 | 0.18 | % | ||||||||||||||||
Total earning assets
|
443,716 | $ | 11,097 | 5.04 | % | 438,996 | $ | 11,213 | 5.15 | % | ||||||||||||||
Non-interest earning assets
|
36,425 | 39,102 | ||||||||||||||||||||||
Allowance for loan losses
|
(7,209 | ) | (6,083 | ) | ||||||||||||||||||||
Total assets
|
$ | 472,932 | $ | 472,015 | ||||||||||||||||||||
Sources of Funds:
|
||||||||||||||||||||||||
Interest bearing deposits:
|
||||||||||||||||||||||||
NOW
|
$ | 79,558 | $ | 220 | 0.56 | % | $ | 62,835 | $ | 277 | 0.89 | % | ||||||||||||
Money market
|
13,960 | 38 | 0.56 | % | 12,410 | 49 | 0.80 | % | ||||||||||||||||
Savings
|
169,839 | 594 | 0.71 | % | 171,973 | 1,000 | 1.17 | % | ||||||||||||||||
Time
|
90,919 | 684 | 1.52 | % | 103,638 | 889 | 1.73 | % | ||||||||||||||||
Total interest bearing deposits
|
354,276 | 1,536 | 0.87 | % | 350,856 | 2,215 | 1.27 | % | ||||||||||||||||
Borrowed funds
|
27,295 | 529 | 3.86 | % | 33,073 | 707 | 4.25 | % | ||||||||||||||||
Junior subordinated debentures
|
12,887 | 109 | 1.69 | % | 12,887 | 108 | 1.67 | % | ||||||||||||||||
Total interest bearing liabilities
|
394,458 | $ | 2,174 | 1.11 | % | 396,816 | $ | 3,030 | 1.54 | % | ||||||||||||||
Non-interest bearing liabilities:
|
||||||||||||||||||||||||
Demand deposits
|
38,616 | 38,349 | ||||||||||||||||||||||
Other liabilities
|
2,332 | 1,522 | ||||||||||||||||||||||
Total non-interest bearing liabilities
|
40,948 | 39,871 | ||||||||||||||||||||||
Stockholders’ equity
|
37,526 | 35,328 | ||||||||||||||||||||||
Total liabilities and stockholders’ equity
|
$ | 472,932 | $ | 472,015 | ||||||||||||||||||||
Net interest income and margin
(5)
|
$ | 8,923 | 4.06 | % | $ | 8,183 | 3.76 | % |
(1)
|
Includes loan fee income
|
(2)
|
Average rates on securities are calculated on amortized costs
|
(3)
|
Fully 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
|
(Dollars in thousands)
|
June 30,
2011
|
December 31,
2010
|
||||||
Non-accrual loans
|
$ | 25,062 | $ | 22,682 | ||||
Non-accrual loans to total loans
|
7.38 | % | 6.71 | % | ||||
Non-performing assets
|
$ | 30,921 | $ | 26,397 | ||||
Non-performing assets to total assets
|
6.53 | % | 5.57 | % | ||||
Allowance for loan losses as a % of non-performing loans
|
28.57 | % | 26.65 | % | ||||
Allowance for loan losses to total loans
|
2.22 | % | 1.89 | % |
(Dollars in thousands)
|
June 30, 2011
|
June 30, 2010
|
||||||
Balance, beginning of period
|
$ | 6,397 | $ | 5,496 | ||||
Charge-offs
|
(1,352 | ) | (1,775 | ) | ||||
Recoveries
|
540 | 26 | ||||||
Provision
|
1,951 | 1,702 | ||||||
Balance, end of period
|
$ | 7,536 | $ | 5,449 |
Allowance for Loans Losses at June 30,
|
||||||||||||||||
2011
|
2010
|
|||||||||||||||
Percent of
|
Percent of
|
|||||||||||||||
Loans In Each
|
Loans In Each
|
|||||||||||||||
Category To
|
Category To
|
|||||||||||||||
(Dollars in thousands)
|
Amount
|
Gross Loans
|
Amount
|
Gross Loans
|
||||||||||||
Commercial and industrial
|
$ | 428 | 4.2 | % | $ | 453 | 5.2 | % | ||||||||
Construction
|
969 | 5.3 | % | 1,164 | 6.3 | % | ||||||||||
Commercial real estate
|
4,773 | 60.8 | % | 2,986 | 59.7 | % | ||||||||||
Residential real estate
|
945 | 29.3 | % | 693 | 28.4 | % | ||||||||||
Consumer and other loans
|
45 | 0.4 | % | 63 | 0.4 | % | ||||||||||
Unallocated
|
376 | - | 90 | - | ||||||||||||
Total
|
$ | 7,536 | 100.0 | % | $ | 5,449 | 100.0 | % |
Number
|
Description
|
|
3.1*
|
Restated Certificate of Incorporation.
|
|
3.2
|
Amended and Restated By-laws (incorporated by reference to Exhibit 3.II to the Current Report on Form 8-K filed with the SEC on April 28, 2010.)
|
|
31.1*
|
Certification of Anthony Labozzetta pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
31.2*
|
Certification of Steven M. Fusco pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
32.1*
|
Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
101**
|
Financial statements from the quarterly report on Form 10-Q of Sussex Bancorp for the quarter ended June 30, 2011, formatted in XBRL (eXtensible Business Reporting Language): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Income, (iii) the Consolidated Statements of Stockholders’ Equity, (iv) the Consolidated Statements of Cash Flows and (v) Notes to Consolidated Financial Statements.
|
*
|
Filed herewith
|
**
|
Pursuant to Rule 406T of Regulation S-T, the Interactive Data Files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.
|
Name | Address |
Anthony S. Abbate |
c/o Sussex Bancorp
399 Route 23
P.O. Box 353
Franklin, NJ 07416
|
Patrick Brady | c/o Sussex Bancorp |
399 Route 23
P.O. Box 353
Franklin, NJ 07416
|
Richard Branca |
c/o Sussex Bancorp
399 Route 23
P.O. Box 353
Franklin, NJ 07416
|
Katherine H. Caristia |
c/o Sussex Bancorp
399 Route 23
P.O. Box 353
Franklin, NJ 07416
|
Mark J. Hontz |
c/o Sussex Bancorp
399 Route 23
P.O. Box 353
Franklin, NJ 07416
|
Donald L. Kovach |
c/o Sussex Bancorp
399 Route 23
P.O. Box 353
Franklin, NJ 07416
|
Anthony Labozzetta |
c/o Sussex Bancorp
399 Route 23
P.O. Box 353
Franklin, NJ 07416
|
Edward J. Leppert |
c/o Sussex Bancorp
399 Route 23
P.O. Box 353
Franklin, NJ 07416
|
Timothy Marvil |
c/o Sussex Bancorp
399 Route 23
P.O. Box 353
Franklin, NJ 07416
|
Richard Scott |
c/o Sussex Bancorp
399 Route 23
P.O. Box 353
Franklin, NJ 07416
|
/s/ Anthony Labozzetta
Anthony Labozzetta
President and Chief Executive Officer
|
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Sussex Bancorp;
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; and
|
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; and
|
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;
|
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s Board of Directors (or persons performing the equivalent functions):
|
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: August 15, 2011
|
By:
|
/s/ Anthony Labozzetta | |
ANTHONY LABOZZETTA
|
|||
President and
|
|||
Chief Executive Officer
|
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Sussex Bancorp;
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; and
|
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; and
|
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;
|
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s Board of Directors (or persons performing the equivalent functions):
|
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: August 15, 2011
|
By:
|
/s/ Steven M. Fusco | |
STEVEN M. FUSCO
|
|||
Senior Vice President and
|
|||
Chief Financial Officer
|
A)
|
the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)), and
|
B)
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods covered by the Report.
|
Date: August 15, 2011
|
By:
|
/s/ Anthony Labozzetta | |
ANTHONY LABOZZETTA
|
|||
President and
|
|||
Chief Executive Officer
|
Date: August 15, 2011
|
By:
|
/s/ Steven M. Fusco | |
STEVEN M. FUSCO
|
|||
Senior Vice President and
|
|||
Chief Financial Officer
|