Sussex Bancorp reported unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2015. For the quarter, the company reported total interest income of $6,249,000 compared to $5,547,000 a year ago. Net interest income was $5,295,000 compared to $4,713,000 a year ago. Net interest income after provision for loan losses was $5,165,000 compared to $4,407,000 a year ago. Income before income taxes was $1,363,000 compared to $1,053,000 a year ago. Net income was $913,000 or $0.20 per basic and diluted share compared to $723,000 or $0.16 per basic and diluted share a year ago. Return on average assets was 0.55% against 0.50% for the same period a year ago. Return on average equity was 6.79% against 5.65% for the same period a year ago.  The improvement in net income for the fourth quarter of 2015 was driven by loan and deposit growth, an increase in pre-tax income generated from insurance subsidiary and a decline in credit quality costs (provision for loan losses, loan collection costs and expenses and write-downs related to foreclosed real estate).  The increase in net income for the quarter ended December 31, 2015 was primarily due to an increase in net interest income of $582,000 and a decline in the provision for loan losses of $176,000.  The increase in net interest income was largely due to an $85.6 million, or 15.6%, increase in average interest earning assets, principally loans receivable, which increased $64.1 million, or 14.0%.  The improvement in net interest income was partly offset by a decline in the net interest margin of 7 basis points to 3.39% for the fourth quarter of 2015 as compared to the same period in 2014.

For the full year, the company reported total interest income of $23,644,000 compared to $21,300,000 a year ago. Net interest income was $20,076,000 compared to $18,006,000 a year ago. Net interest income after provision for loan losses was $19,440,000 compared to $16,469,000 a year ago. Income before income taxes was $5,340,000 compared to $3,601,000 a year ago. Net income was $3,700,000 or $0.81 per basic and diluted share compared to $2,600,000 or $0.57 per basic and diluted share a year ago. Return on average assets was 0.59% against 0.46% for the same period a year ago. Return on average equity was 7.02% against 5.25% for the same period a year ago. Book value per common share was $11.61 against $10.99 for the same period a year ago. The improvement in net income for 2015 was driven by an 11.5% increase in net interest income as a result of strong growth in loans and deposits, which increased $71.5 million, or 15.1%, and $59.6 million, or 13.0%, respectively.  Additionally, the improvement in net income per diluted common share also benefited from a 58.6% decline in provision for loan losses, which was in part offset by higher non-interest expenses. The increase in net income for the year ended December 31, 2015 was largely due to an increase in net interest income of $2.1 million, a decline in the provision for loan losses of $901,000 and higher non-interest income of $492,000, which were partially offset by increases in non-interest expenses of $1.7 million and income tax expense of $639,000. The increase in net interest income was largely due to a $66.5 million, or 12.6%, increase in average interest earning assets, principally loans receivable, which increased $59.6 million, or 13.9%. The improvement in net interest income was partly offset by a decline in the net interest margin of 4 basis points to 3.45% for the year ended December 31, 2015 as compared to the same period in 2014.


The board of directors of company declared a quarterly cash dividend of $0.04 per share, which is payable on February 25, 2016 to common shareholders of record as of the close of business on February 11, 2016.