SB One Bancorp (SBBX) 8-K Sussex Bancorp Announces Second Quarter and Six Months Earnings

Exhibit 99.1

Sussex Bancorp	Donald L. Kovach
399 Route 23	President/CEO
Franklin, NJ  07416	973-827-2914
FOR IMMEDIATE RELEASE

SUSSEX BANCORP ANNOUNCES SECOND QUARTER AND SIX MONTHS EARNINGS

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     FRANKLIN, NEW JERSEY – August 12, 2009– Sussex Bancorp (NASDAQ: “SBBX”) today announced its financial results for the quarter and the six months ending June 30, 2009.

     For the quarter ended June 30, 2009, the Company earned net income of $595 thousand, or $0.18 cents per basic and diluted share, an increase over net income of $359 thousand, or $0.11 per basic and diluted share reported for the second quarter of 2008. For the six months ended June 30, 2009, the Company earned net income of $848 thousand, or $0.26 per basic and diluted share, a decline from the $996 thousand, or $0.30 per basic and diluted share earned for the same period last year.

      The Company’s net interest income increased to $3.7 million for the quarter ended June 30, 2009 from $2.9 million for the second quarter of 2008.  The Company’s total interest income increased to $5.9 million for the quarter ended June 30, 2009 from $5.5 million for the second quarter of 2008.  The increase is primarily attributable to an increase in securities income coupled with a reduction in interest expense.  For the six months ended June 30, 2009, the Company’s net interest income increased to $6.8 million from the $5.8 million earned for the same period last year.  For the six months ended June 30, 2009, the Company’s total interest income increased to $11.6 million from $11.1 million for the period ended June 30, 2008. The Company’s interest expense decreased to $4.8 million from $5.3 million for the six months ended June 30, 2008. As a result of these changes, the Company’s net interest margin increased to 3.45% and 3.25% for the three and six months ended June 30, 2009, respectively, from 3.15% and 3.22% for the three and six months ended June 30, 2008, respectively.

     The Company reported non-interest income of $1.5 million and $2.8 million for the current three and six month periods ended June 30, 2009, respectively, compared to non-interest income of $1.2 million and $2.9 million for the three and six month periods ending June 30, 2008.

     The Company’s other expenses increased in the three and six month periods of 2009 compared to the prior year periods.  For the three month period ending June 30, 2009 other expenses increased by $435 thousand, or 12.2%, while other expenses increased by $510 thousand, or 7.2%, for the six months ended June 30, 2009 compared to the prior year periods. Professional fees increased by $98 thousand for the quarter and $172 thousand for the six months ended. The increases are attributable to expenses related to the workout of non-performing loans.  FDIC insurance expense increased by $275 thousand for the quarter and by $330 thousand for the six months ended. The quarterly and six month periods include the impact of an industry-wide special assessment levied by the FDIC to recapitalize the Deposit Insurance Fund. The Company recognized $215 thousand in expense due to this assessment. Also included in the increase in other expense was a write-down on foreclosed real-estate of $456 thousand.

     At June 30, 2009 the Company had total assets of $464.7 million, compared to total assets of $432.5 million at June 30, 2008. The Company’s total deposits increased to $383.1 million at June 30, 2009 from $346.3 million at June 30, 2008

     The Company’s provision for loan losses increased to $424 thousand for the quarter ended June 30, 2009 from $117 thousand for the same period last year.  The provision for the six month ended for June 30, 2009 increased to $1.1 million from $290 thousand for the same period last year.  The increase reflects added reserves necessary to adequately provide for potential collateral shortfalls caused by the decline in current real estate values relative to the non-performing assets, combined with increases deemed necessary by management due to continued general economic weakness and its potential impact on our borrowers.

At June 30, 2009, net investment in non-performing assets increased by $7.3 million to $22.3 million from $15.0 million at year end 2008. The Company’s non-accrual loans increased $2.8 million to $12.5 million at June 30, 2009 from $9.7 million at December 31, 2008 and loans past due over 90 days and still accruing totaled $1.8 million at June 30, 2009. There were no loans past due over 90 days and still accruing at December 31, 2008.  Restructured loans which were not on non-accrual at June 30, 2009 increased $1.9 million to $3.2 million from $1.3 million at December 31, 2008.  In addition, foreclosed real estate increased by a net of $762 thousand to $4.6 million as of June 30, 2009 from $3.9 million at year-end 2008.

     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, Port Jervis and Warwick, New York and for the Tri-State Insurance Agency, Inc., a full service insurance agency located in Sussex County, New Jersey.

CONSOLIDATED BALANCE SHEETS

(Dollars In Thousands)

(Unaudited)

ASSETS	June 30, 2009		June 30, 2008		December 31, 2008
Cash and due from banks	$	11,932	$	11,409	$	7,602
Federal funds sold and interest bearing deposits		5,237		30,735		13,310
Cash and cash equivalents		17,169		42,144		20,912
Interest bearing time deposits with other banks		1,096		100		100
Trading securities		7,910		14,104		13,290
Securities available for sale		86,758		48,539		62,272
Federal Home Loan Bank Stock, at cost		2,047		2,111		1,975
Loans receivable, net of unearned income		329,181		305,366		320,880
Less:  allowance for loan losses		6,709		4,831		5,813
Net loans receivable		322,472		300,535		315,067
Foreclosed real estate		4,627		3,437		3,864
Premises and equipment, net		7,302		8,868		8,526
Accrued interest receivable		2,064		1,862		2,115
Goodwill		2,820		2,820		2,820
Other assets		10,393		7,943		9,654
Total Assets	$	464,658	$	432,463	$	440,595
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits:
Non-interest bearing	$	40,868	$	43,750	$	34,784
Interest bearing		342,278		302,546		325,297
Total Deposits		383,146		346,296		360,081
Borrowings		33,119		36,173		33,146
Accrued interest payable and other liabilities		2,756		2,547		2,571
Junior subordinated debentures		12,887		12,887		12,887
Total Liabilities		431,908		397,903		408,685
Total Stockholders' Equity		32,750		34,560		31,910
Total Liabilities and Stockholders' Equity	$	464,658	$	432,463	$	440,595

SUSSEX BANCORP

CONSOLIDATED STATEMENTS OF INCOME

(Dollars In Thousands)

(Unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2009			2008			2009			2008
INTEREST INCOME
Loans receivable, including fees	$	4,789		$	4,637		$	9,597		$	9,448
Securities:
Taxable		754			543			1,381			1,067
Tax-exempt		316			226			589			462
Federal funds sold		9			88			21			112
Interest bearing deposits		7			-			14			1
Total Interest Income		5,875			5,494			11,602			11,090
INTEREST EXPENSE
Deposits		1,733			2,068			3,902			4,198
Borrowings		356			373			708			755
Junior subordinated debentures		83			131			187			324
Total Interest Expense		2,172			2,572			4,797			5,277
Net Interest Income		3,703			2,922			6,805			5,813
PROVISION FOR LOAN LOSSES		424			117			1,063			290
Net Interest Income after Provision for Loan Losses		3,279			2,805			5,742			5,523
OTHER INCOME
Service fees on deposit accounts		348			351			715			702
ATM and debit card fees		121			120			228			225
Insurance commissions and fees		595			653			1,209			1,396
Investment brokerage fees		34			48			81			95
Unrealized holding gains (losses) on trading securities		(16	)		(196	)		19			21
Gain on sale of securities, available for sale		-			68			-			152
Gain on sale of fixed assets		203			-			203			-
Loss on sale of foreclosed real estate		-			-			(1	)		-
Other		168			184			336			316
Total Other Income		1,453			1,228			2,790			2,907
OTHER EXPENSES
Salaries and employee benefits		1,771			1,976			3,554			3,855
Occupancy, net		309			304			661			662
Furniture, equipment and data processing		337			374			677			747
Stationary and supplies		45			48			90			91
Professional fees		186			88			369			197
Advertising and promotion		37			161			96			287
Insurance		45			47			86			85
FDIC assessment		365			90			515			185
Postage and freight		35			46			77			84
Amortization of intangible assets		5			14			10			29
Write-down on foreclosed real estate		456			-			456			-
Expenses related to foreclosed real estate		93			35			276			57
Other		318			384			683			761
Total Other Expenses		4,002			3,567			7,550			7,040
Income before Income Taxes		730			466			982			1,390
PROVISION FOR INCOME TAXES		135			107			134			394
Net Income	$	595		$	359		$	848		$	996

SUSSEX BANCORP
COMPARATIVE AVERAGE BALANCES AND AVERAGE INTEREST RATES
(Dollars In Thousands)
(Unaudited)
	Six Months Ended June 30,
	2009								2008
	Average					Average			Average					Average
Earning Assets:	Balance			Interest (1)		Rate (2)			Balance			Interest (1)		Rate (2)
Securities:
Tax exempt (3)	$	28,593		$	883		6.22	%	$	22,287		$	690		6.23	%
Taxable		61,881			1,381		4.50	%		41,339			1,067		5.19	%
Total securities		90,473			2,264		5.05	%		63,626			1,757		5.55	%
Total loans receivable (4)		323,857			9,597		5.98	%		303,192			9,448		6.27	%
Other interest-earning assets		26,523			35		0.26	%		10,153			113		2.24	%
Total earning assets		440,853		$	11,895		5.44	%		376,971		$	11,318		6.04	%
Non-interest earning assets		35,899								30,054
Allowance for loan losses		(6,290	)							(5,305	)
Total Assets	$	470,462							$	401,720
Sources of Funds:
Interest bearing deposits:
NOW	$	57,718		$	300		1.05	%	$	58,426		$	429		1.48	%
Money market		14,805			96		1.30	%		29,588			354		2.41	%
Savings		169,788			1,742		2.07	%		53,995			551		2.05	%
Time		110,060			1,764		3.23	%		134,773			2,864		4.27	%
Total interest bearing deposits		352,371			3,902		2.23	%		276,782			4,198		3.05	%
Borrowed funds		33,130			708		4.25	%		35,914			755		4.16	%
Junior subordinated debentures		12,887			187		2.89	%		12,887			324		4.97	%
Total interest bearing liabilities		398,388		$	4,797		2.43	%		325,583		$	5,277		3.26	%
Non-interest bearing liabilities:
Demand deposits		37,690								39,286
Other liabilities		1,872								2,069
Total non-interest bearing liabilities		39,562								41,355
Stockholders' equity		32,512								34,782
Total Liabilities and Stockholders' Equity	$	470,462							$	401,720
Net Interest Income and Margin (5)				$	7,098		3.25	%				$	6,041		3.22	%
(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