SB One Bancorp (SBBX) 8-K Sussex Bancorp Announces Increased Second Quarter 2005 Earnings

EXHIBIT 99.1

Sussex Bancorp
200 Munsonhurst Road, Rt. 517
Franklin, NJ 07416 Candace Leatham
Executive Vice President
& Treasurer
973-827-2914

FOR IMMEDIATE RELEASE

SUSSEX BANCORP ANNOUNCES INCREASED SECOND QUARTER 2005 EARNINGS

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DECLARES QUARTERLY CASH DIVIDEND OF $0.07 PER SHARE

FRANKLIN, NEW JERSEY – July 21, 2005– Sussex Bancorp (AMEX: “SBB”) today announced its financial results for the second quarter ending June 30, 2005.

Second Quarter Highlights Include:

• Quarterly net income growth of 70.3% from same quarter in 2004
• Growth in quarterly non-interest income of $157 thousand or 13.5% over same quarter in 2004
• Cash dividend

 For the quarter ended June 30, 2005, the Company earned net income of $666,000, an increase of 70.3% over net income of $391,000 reported for the second quarter of 2004. For the six months ended June 30, 2005, the Company earned net income of $1,186,000, an increase of $424,000 from the $762,000 earned for the same period last year. Basic earnings per share for the three and six months ended June 30, 2005 were $0.22 and $0.39 respectively, compared to $0.21 and $0.42 for the respective comparable periods of 2004. Diluted earnings per share were $0.22 and $0.39 respectively for the three and six months ended June 30, 2005, compared to $0.20 and $0.40 in the respective comparable periods of 2004.

The Company’s net interest income increased to $2,742,000 for the quarter ended June 30, 2005 from $2,123,000 for the second quarter of 2004. The Company’s interest income increased to $3,684,000 for the quarter ended June 30, 2005 from $2,809,000 for the second quarter of 2004. The Company’s interest expense increased to $942,000 for the three months ended June 30, 2005 from $686,000 for the second quarter of 2004. For the six months ended June 30, 2005, the Company’s net interest income increased to $5,378,000 from the $4,255,000 earned for the same period last year. For the six months ended June 30, 2005, the Company’s interest income increased to $7,107,000 from $5,608,000 for the period ended June 30, 2004. The Company’s total deposits increased to $236.3 million at June 30, 2005 from $217.4 million at June 30, 2004. At June 30, 2005 the Company had total assets of $290.4 million, compared to total assets of $251.1 million at June 30, 2004.

The loan loss provision for the second quarter was $206,000 compared to $105,000 for the same period last year. The Company’s total loans increased $42 million to $186.3 million at June 30, 2005 from $144.3 million at June 30, 2004.

The Company also experienced increases in non-interest income in both the current quarter and year to date periods compared to 2004. The Company reported non-interest income of $1,324,000 and $2,425,000 for the current three and six month periods, respectively, compared to non-interest income of $1,167,000 and $2,317,000 for the three and six month periods ending June 30, 2004. For the three and six month periods ending June 30, 2005, $315,000 and $551,000 was from service charges on deposit accounts.

Sussex Bancorp also announced that it’s Board of Directors declared a cash dividend of $0.07 pershare, payable on August 30, 2005 to shareholders of record as of August 2, 2005.

Sussex Bancorp is the holding company for Sussex Bank, which operates through its main office in Franklin, New Jersey and branch offices in Andover, Augusta, Newton, Montague, Sparta, Vernon and Wantage, New Jersey, and for the Tri-State Insurance Agency, Inc., a full service insurance agency located in Sussex County, New Jersey.

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SUSSEX BANCORP
CONSOLIDATED STATEMENT OF CONDITION
(In Thousands, Except Share Data)
(Unaudited)

ASSETS		June 30, 2005			June 30, 2004
Cash and due from banks	$	14,186		$	12,387
Federal funds sold		2,195			4,990
Time deposits with other banks		500			500
Securities available for sale		73,352			75,449
Loans receivable, net of unearned income		186,278			144,275
Allowance for loan losses		(2,158	)		(1,958	)
Net loans
		184,120			142,317
Premises and equipment		5,830			5,470
Accrued interest receivable		1,567			1,209
Goodwill		2,334			2,124
Other assets		6,362			6,669
Total Assets	$	290,446		$	251,115
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits:
Non-interest bearing	$	36,719		$	35,710
Interest bearing		199,613			181,689
Total Deposits		236,332			217,399
Borrowings		14,000			11,000
Other liabilities		2,365			2,520
Junior subordinated debentures		5,155			5,155
Total Liabilities		257,852			236,074
Stockholders' Equity:
Common Stock, no par value, authorized
5,000,000 shares: outstanding shares,
3,017,213 in 2005 and 1,835,085 in 2004		25,580			9,913
Retained earnings		6,881			5,547
Other comprehensive income, net of tax		133			(419	)
Total Stockholders' Equity		32,594			15,041
Total Liabilities and Stockholders' Equity	$	290,446		$	251,115

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SUSSEX BANCORP
CONSOLIDATED STATEMENT OF INCOME
(In Thousands, Except Share Data)
(Unaudited)

	Six Months Ended June 30,
		2005		2004
INTEREST INCOME:
Interest and fees on loans	$	5,489	$	4,262
Interest on federal funds sold		119		31
Interest on time deposits		27		17
Interest on securities:
Taxable interest		880		885
Tax-exempt interest		592		413
Total Interest Income		7,107		5,608
INTEREST EXPENSE:
Interest on deposits		1,273		967
Interest on borrowings		292		265
Interest on capital debentures		164		121
Total Interest Expense		1,729		1,353
Net Interest Income		5,378		4,255
PROVISION FOR LOAN LOSSES		341		253
Net Interest Income after Provision for
Loan Losses		5,037		4,002
NON-INTEREST INCOME:
Service charges on deposit accounts		551		382
Insurance commissions and fees		1,217		1,170
Other income		657		765
Total Non-Interest Income		2,425		2,317
NON-INTEREST EXPENSE:
Salaries and employee benefits		3,203		3,090
Occupancy, net		488		414
Furniture and equipment		522		412
Other expenses		1,612		1,354
Total Non-Interest Expense		5,825		5,270
Income Before Income Tax Expense		1,637		1,049
PROVISION FOR INCOME TAX EXPENSE		451		287
Net Income	$	1,186	$	762

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SUSSEX BANCORP
COMPARATIVE AVERAGE BALANCES AND AVERAGE INTEREST RATES
(In Thousands)
(Unaudited)

	Six Months Ended June 30,
(dollars in thousands)	2005							2004
Earning Assets:	Average Balance			Interest (1)		Average Rate (2)		Average Balance			Interest (1)		Average Rate (2)
Securities:
Tax exempt (3)	$	27,749		$	845		6.14%	$	22,172		$	589		5.34%
Taxable		47,954			880		3.70%		52,349			885		3.40%
Total securities		75,703			1,725		4.60%		74,521			1,474		3.98%
Total loans receivable (4)		169,676			5,489		6.52%		138,719			4,262		6.18%
Other interest-earning assets		11,098			146		2.64%		9,255			48		1.05%
Total earning assets		256,477		$	7,360		5.79%		222,495		$	5,784		5.23%
Non-interest earning assets		23,813							24,527
Allowance for loan losses		(2,051	)						(1,842	)
Total Assets	$	278,239						$	245,180
Sources of Funds:
Interest bearing deposits:
NOW	$	7,685		$	23		0.61%	$	47,066		$	107		0.46%
Money market		58,158			300		1.04%		8,784			42		0.97%
Savings		65,214			226		0.70%		66,097			215		0.65%
Time		62,039			724		2.35%		57,941			603		2.09%
Total interest bearing deposits		193,096			1,273		1.33%		179,888			967		1.08%
Borrowed funds		12,484			292		4.65%		11,000			265		4.77%
Junior subordinated debentures		5,155			164		6.32%		5,155			121		4.64%
Total interest bearing liabilities		210,735		$	1,729		1.65%		196,043		$	1,353		1.39%
Non-interest bearing liabilities:
Demand deposits		34,168							31,826
Other liabilities		1,451							2,159
Total non-interest bearing liabilities		35,619							33,985
Stockholders' equity		31,885							15,152
Total Liabilities and Stockholders' Equity	$	278,239						$	245,180
Net Interest Income and Margin (5)				$	5,631		4.43%				$	4,431		4.01%

(1) Includes loan fee income

(2) Average rates on securities are calculated on amortized costs

(3) Full 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

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