SB One Bancorp (SBBX) 8-K Declares Quarterly 5% Stock Dividend

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 THIRD QUARTER 2005
EARNINGS

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DECLARES QUARTERLY 5% STOCK DIVIDEND

FRANKLIN, NEW JERSEY – October 19, 2005– Sussex Bancorp (AMEX: “SBB”) today announced its financial results for the third quarter ending September 30, 2005.

Highlights Include:

• Quarterly net income growth of 86.6% from the same quarter of 2004
• Nine month net income growth of 66.4% over 2004
• Growth in quarterly non-interest income of $158thousand, or 14.2%, over same quarter in 2004
• Declaration of 5% stock dividend

For the quarter ended September 30, 2005, the Company earned net income of $752,000, an increase of 86.6% over net income of $403,000 reported for the third quarter of 2004. For the nine months ended September 30, 2005, the Company earned net income of $1,938,000, an increase of $773,000 from the $1,165,000 earned for the same period last year. Basic earnings per share for the three and nine months ended September 30, 2005, as adjusted for the 5% stock dividend, were $0.24 and $0.61 respectively, compared to $0.21 and $0.61 for the respective comparable periods of 2004, as the weighted number of basic shares increased by 1,238,861 shares, or 64.2%, and 1,241,364 shares, or 64.6%, respectively for the three and nine month periods between 2004 and 2005. Diluted earnings per share, as adjusted for the 5% stock dividend, were $0.23 and $0.61 respectively for the three and nine months ended September 30, 2005, compared to $0.20 and $0.58 for the respective comparable periods of 2004, as the weighted number of diluted shares increased by 1,194,572 shares, or 59.5%, and 1,187,026 shares, or 58.9%, respectively for the three and nine month periods between 2004 and 2005.

The Company’s net interest income increased to $2,885,000 for the quarter ended September 30, 2005 from $2,298,000 for the third quarter of 2004. The Company’s interest income increased to $4,023,000 for the quarter ended September 30, 2005 from $2,987,000 for the third quarter of 2004. The Company’s interest expense increased to $1,138,000 for the three months ended September 30, 2005 from $689,000 for the third quarter of 2004. For the nine months ended September 30, 2005, the Company’s net interest income increased to $8,263,000 from the $6,553,000 earned for the same period last year. For the nine months ended September 30, 2005, the Company’s interest income increased to $11,130,000 from $8,595,000 for the period ended September 30, 2004. The Company’s total deposits increased to $245.1 million at September 30, 2005 from $223.7 million at September 30, 2004. At September 30, 2005 the Company had total assets of $304.0 million, compared to total assets of $259.7 million at September 30, 2004.

The loan loss provision for the third quarter was $206,000 compared to $120,000 for the same period last year. The Company’s total loans increased $54.6 million to $203.6 million at September 30, 2005 from $149.0 million at September 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 $1,267,000 and $3,692,000 for the current three and nine month periods, respectively, compared to non-interest income of $1,109,000 and $3,426,000 for the three and nine month periods ending September 30, 2004. For the three and nine month periods ending September 30, 2005, $334,000 and $885,000 was from service charges on deposit accounts.

Sussex Bancorp also announced that its Board of Directors declared a 5% stock dividend payable on November 29, 2005 to shareholders of record as of November 3, 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 BALANCE SHEETS
(Dollars In Thousands)

ASSETS	September 30, 2005		September 30, 2004		December 31, 2004
Cash and due from banks	$	9,800	$	13,090	$	10,434
Federal funds sold		8,900		-		18,860
Cash and cash equivalents		18,700		13,090		29,294
Interest bearing time deposits with other banks		500		10,900		3,900
Securities available for sale		66,203		72,612		74,736
Federal Home Loan Bank Stock, at cost		900		690		690
Loans receivable, net of unearned income		203,653		149,042		156,916
Less: allowance for loan losses		2,394		2,078		2,274
Net loans receivable		201,259		146,964		154,642
Premises and equipment, net		5,806		5,667		5,618
Accrued interest receivable		1,523		1,265		1,330
Goodwill		2,334		2,124		2,334
Other assets		6,728		6,389		5,731
Total Assets	$	303,953	$	259,701	$	278,275
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits:
Non-interest bearing	$	37,355	$	36,868	$	34,451
Interest bearing		207,767		186,862		195,376
Total Deposits		245,122		223,730		229,827
Borrowings		18,000		12,385		10,000
Accrued interest payable and other liabilities		2,652		2,245		1,641
Junior subordinated debentures		5,155		5,155		5,155
Total Liabilities		270,929		243,515		246,623
Total Stockholders' Equity		33,024		16,186		31,652
Total Liabilities and Stockholders' Equity	$	303,953	$	259,701	$	278,275

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

	Three Months Ended September 30,				Nine Months Ended September 30,
	2005		2004		2005		2004
INTEREST INCOME
Loans receivable, including fees	$	3,259	$	2,260	$	8,748	$	6,522
Securities:
Taxable		400		483		1,280		1,368
Tax-exempt		285		221		877		634
Federal funds sold		65		10		184		41
Interest bearing deposits		14		13		41		30
Total Interest Income		4,023		2,987		11,130		8,595
INTEREST EXPENSE
Deposits		877		493		2,150		1,460
Borrowings		169		130		461		395
Junior subordinated debentures		92		66		256		187
Total Interest Expense		1,138		689		2,867		2,042
Net Interest Income		2,885		2,298		8,263		6,553
PROVISION FOR LOAN LOSSES		206		120		547		373
Net Interest Income after Provision for Loan Losses		2,679		2,178		7,716		6,180
OTHER INCOME
Service fees on deposit accounts		334		175		885		557
ATM and debit card fees		90		87		259		237
Insurance commissions and fees		536		526		1,753		1,696
Mortgage banking fees		48		130		209		456
Investment brokerage fees		104		96		234		217
Net gain on sale of securities, available for sale		42		11		42		11
Net gain on sale of assets		12		-		12		-
Other		101		84		298		252	��
Total Other Income		1,267		1,109		3,692		3,426
OTHER EXPENSES
Salaries and employee benefits		1,610		1,564		4,813		4,654
Occupancy, net		246		225		734		639
Furniture, equipment and data processing		267		247		789		659
Stationary and supplies		43		43		131		126
Professional fees		136		81		385		238
Advertising and promotion		108		96		374		279
Insurance		33		41		121		126
Postage and freight		41		39		131		130
Amortization of intangible assets		61		51		188		145
Other		311		354		1,015		1,015
Total Other Expenses		2,856		2,741		8,681		8,011
Income before Income Taxes		1,090		546		2,727		1,595
PROVISION FOR INCOME TAXES		338		143		789		430
Net Income	$	752	$	403	$	1,938	$	1,165

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

	Nine 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)	$	27,326		$	1,245		6.09%	$	22,109		$	905		5.47%
Taxable		46,527			1,280		3.68%		52,691			1,368		3.47%
Total securities		73,853			2,525		4.57%		74,800			2,273		4.06%
Total loans receivable (4)		177,891			8,748		6.57%		14,980			6,522		6.18%
Other interest-earning assets		10,427			225		2.89%		8,044			71		1.17%
Total earning assets		262,171		$	11,498		5.86%		223,824		$	8,866		5.29%
Non-interest earning assets		23,982							25,012
Allowance for loan losses		(2,118	)						(1,899	)
Total Assets	$	284,035						$	246,937
Sources of Funds:
Interest bearing deposits:
NOW	$	43,028		$	200		0.62%	$	45,671		$	152		0.45%
Money market		20,746			326		2.10%		11,392			93		1.09%
Savings		64,110			345		0.72%		66,505			324		0.65%
Time		66,419			1,279		2.57%		57,051			891		2.09%
Total interest bearing deposits		194,303			2,150		1.48%		180,619			1,460		1.08%
Borrowed funds		13,189			461		4.61%		10,832			395		4.79%
Junior subordinated debentures		5,155			256		6.55%		5,155			187		4.78%
Total interest bearing liabilities		212,647		$	2,867		1.80%		196,606		$	2,042		1.39%
Non-interest bearing liabilities:
Demand deposits		37,545							32,923
Other liabilities		1,682							2,100
Total non-interest bearing liabilities		39,227							35,023
Stockholders' equity		32,161							15,308
Total Liabilities and Stockholders' Equity	$	284,035						$	246,937
Net Interest Income and Margin (5)				$	8,631		4.40%				$	6,824		4.07%

(1)
(2)
(3)
(4)
(5) Includes loan fee income
Average rates on securities are calculated on amortized costs
Full taxable equivalent basis, using a 39% effective tax rate and adjusted for TEFRA (Tax and Equity Fiscal Responsibility Act) interest expense disallowance
Loans outstanding include non-accrual loans
Represents the difference between interest earned and interest paid, divided by average total interest-earning assets

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