Sussex Bancorp reported unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2012. For the quarter, the company reported net loss of $97,000 or $0.03 per basic and diluted share as compared to net income of $515,000 or $0.16 per basic share and $0.15 per diluted share for the same period last year. The decrease for the quarter ended December 31, 2012 in net income was largely due to higher expenses and write-downs related to foreclosed real estate of $988,000 and to higher provision for loan losses of $790,000 as compared to the same period last year. Net interest income on a fully tax equivalent basis declined $149,000 or 3.5%, to $4.1 million for the fourth 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 18 basis points to 3.41% for the fourth quarter of 2012 compared to the same period last year. Return on average assets was negative 0.08% against return on average assets of 0.41% for the same period a year ago. Return on average equity was negative 0.94% against return on average equity of 5.22% for the same period a year ago. Loss before income taxes was $332,000 against income before income taxes of $617,000 for the same period a year ago.

For the fiscal year 2012, the company reported net income of $735,000 or $0.23 per basic share and $0.22 per diluted share as compared to $2.5 million or $0.76 per basic share and $0.74 per diluted share for the same period last year. The company attributed the decrease in net income of $1.7 million or 70.2%, to $735,000 as compared to the same period last year, to an increase in expenses and write-downs related to foreclosed real estate (+$1.7 million), greater provision for loan losses (+$1.0 million), higher operating costs resulting from growth initiatives of the company and a decline in the net interest margin. Net interest income, on a fully tax equivalent basis, decreased $762,000 or 4.4%, to $16.8 million for the year ended December 31, 2012, as compared to $17.5 million for same period in 2011. Return on average assets was 0.19% against 0.51% for the same period a year ago. Return on average equity was 2.41% against 6.44% for the same period a year ago. Book value per common share as at December 31, 2012 was $11.88 against $11.83 as at December 31, 2011. Income before income taxes was $406,000 against $3,107,000 for the same period a year ago.