Suffolk Bancorp (SCNB) 8-K Suffolk Bancorp Announces Earnings for the Fourth Quarter and the Full Year

Exhibit 99.1

PRESS RELEASE

FOR IMMEDIATE RELEASE
Contact:	Douglas Ian Shaw Corporate Secretary (631) 727-5667	4 West Second Street Riverhead, NY 11901 (631) 727-5667 (Voice) -(631) 727-3214 (FAX) invest@suffolkbancorp.com

SUFFOLK BANCORP ANNOUNCES EARNINGS FOR THE FOURTH QUARTER AND THE FULL YEAR

Riverhead, New York, January 17, 2006 — Suffolk Bancorp (NASDAQ - SUBK) today released the results of its operations during the fourth quarter and full year of 2005. Earnings-per-share for the quarter were $0.56, an increase of 5.7 percent from $0.53 during the comparable period of 2004. Earnings-per-share for the year were $2.09 compared to $1.92 up 8.9 percent. Net income for the quarter was $5,800,000, up 0.5 percent from $5,771,000 posted during the same period last year. Net income for the year was $22,102,000, up 5.9 percent from $20,875,000, posted during the same period last year. A detailed financial summary follows the text of this release.

President and Chief Executive Officer, Thomas S. Kohlmann, remarked, “Our core banking business continued to grow, with earnings per share and net income increasing from year to year even without the benefit of securities gains of $775,000 for the same quarter last year and $1,994,000 for all of 2004. Along with long-term managerial discipline and prudence, one of the most important characteristics of a successful banking company is flexibility. Key is our ability to discern changes in the economy generally and in our own marketplace; and to develop measured, orderly responses. Our first concern is to protect operating margins, and the second, to take advantage of changed opportunities to bolster profits and thus shareholder value, well served, we believe, by a return on average equity of 23.56 percent for the quarter and 22.18 percent for the year. While the principles underlying Suffolk’s strategic direction and operations remain constant, a review of both balance sheet and income statement reveals significant evolution in our business. Most important has been the continued redistribution of the loan portfolio out of indirect retail paper. Just three years ago this comprised fully one third of the portfolio, and now just 14.7 percent, a level closer to what we believe will be sustainable in light of the structural changes in automobile finance as discussed in the past. The loan portfolio grew 9.6 percent from year to year, particularly in commercial real estate, even while overcoming an 18.0 percent decline in indirect paper during that same period. Another example of our adaptability has been in the composition of our investment portfolio, where we have redeployed cash flow from maturing collateralized mortgage obligations, originally purchased to provide downside protection while rates fell to their recent, historic lows, to purchase municipal securities which provide superior returns in the current environment.”

He continued, “We have adapted to the current and somewhat peculiar interest rate environment by further sharpening our focus on demand deposits, primarily in lending relationships, and on those time deposits which are less sensitive to price. The result has been a 10.0 percent increase in demand deposits, a 13.3 percent decline in non-maturity deposits, and a decline in total deposits of 3.2 percent from year to year. We have replaced these funds with borrowings in the capital markets, and expect to continue to do so until the yield curve assumes a more normal, upward slope and the cost of new deposits is more favorable. The result of this repositioning has been a net interest margin of 5.23 percent for the quarter and 5.05 percent for the year, up from 4.92 percent and 4.90 percent, respectively, a year ago. Absent the effect of securities gains taken last year as we repositioned the investment portfolio, non-interest income increased by 4.9 percent for the quarter and declined by 1.3 percent for the year, this a reflection of sharp competition among banks offering “free” services during 2005. Non interest expense increased modestly, by only 2.3 percent for the quarter and the year, except for occupancy as we outgrew certain locations and moved to larger quarters, and as facilities in other locations were upgraded to attract and retain customers. And finally, we continue to manage the capital account to adjust it to the size of the business at hand and thus maximize leverage for our shareholders benefit, having repurchased just over 4 percent of the shares outstanding one year ago.”

Mr. Kohlmann concluded, “Our first obligation to our shareholders is to remain alert to both the challenges and opportunities of our markets as they develop, and to craft strategies and tactics to make the most of them. We believe that we have accomplished that during 2005.”

Suffolk Bancorp is a one-bank holding company engaged in the commercial banking business through Suffolk County National Bank, a full service commercial bank headquartered in Riverhead, New York. Organized in 1890, Suffolk County National Bank is the second largest independent bank headquartered on Long Island, with 27 offices in Suffolk County, New York.

Safe Harbor Statement Pursuant to the Private Securities Litigation Reform Act of 1995

This press release may include statements which look to the future. These can include remarks about Suffolk Bancorp, the banking industry, and the economy in general. These remarks are based on current plans and expectations. They are subject, however, to a variety of uncertainties that could cause future results to vary materially from Suffolk’s historical performance, or from current expectations. Factors affecting Suffolk Bancorp include particularly, but are not limited to: changes in interest rates; increases or decreases in retail and commercial economic activity in Suffolk’s market area; variations in the ability and propensity of consumers and businesses to borrow, repay, or deposit money, or to use other banking and financial services; and changes in government regulations.

PRESS RELEASE January 17, 2006 Page 2 of 4

STATISTICAL SUMMARY

(unaudited, in thousands of dollars except for share and per share data)

	4th Q 2005			4th Q 2004			Change		YTD 2005			YTD 2004			Change
EARNINGS
Earnings-Per-Share - Basic	$	0.56		$	0.53		5.7	%	$	2.09		$	1.92		8.9	%
Cash Dividends-Per-Share		0.20			0.19		5.3	%		0.79			0.76		3.9	%
Net Income		5,800			5,771		0.5	%		22,102			20,875		5.9	%
Net Interest Income		16,483			15,338		7.5	%		64,361			60,605		6.2	%
AVERAGE BALANCES
Average Assets		1,374,513			1,377,873		(0.2	)%		1,386,079			1,362,696		1.7	%
Average Net Loans		869,033			806,086		7.8	%		854,158			816,765		4.6	%
Average Investment Securities		414,762			435,841		(4.8	)%		428,482			404,708		5.9	%
Average Deposits		1,184,123			1,231,702		(3.9	)%		1,203,176			1,222,634		(1.6	)%
Average Borrowings		75,863			1,206		6,190.5	%		63,169			3,842		1,544.2	%
Average Equity		98,460			102,566		(4.0	)%		99,668			100,106		(0.4	)%
RATIOS
Return on Average Equity		23.56	%		22.51	%	4.7	%		22.18	%		20.85	%	6.4	%
Return on Average Assets		1.69	%		1.68	%	0.6	%		1.59	%		1.53	%	3.9	%
Average Equity/Assets		7.16	%		7.44	%	(3.8	)%		7.19	%		7.35	%	(2.2	)%
Net Interest Margin (FTE)		5.23	%		4.92	%	6.3	%		5.05	%		4.90	%	3.1	%
Efficiency Ratio		49.44	%		49.60	%	(0.3	)%		50.28	%		50.24	%	0.1	%
Tier 1 Leverage Ratio Dec. 31		7.52	%		7.54	%	(0.3	)%
Tier 1 Risk-based Capital Ratio Dec. 31		9.96	%		11.07	%	(10.0	)%
Total Risk-based Capital Ratio Dec. 31		10.91	%		11.94	%	(8.6	)%
ASSET QUALITY during period:
Net (Recoveries) Charge-offs	$	5		$	(5	)	(200.0	)%	$	(43	)	$	2,314		(101.9	)%
Net Charge-offs/Average Net Loans (annual)		0.00	%		0.00	%	0.0	%		(0.01	)%		0.28	%	(103.6	)%
at end of period:
Non-accrual & Restructured Loans	$	4,459		$	5,364		(16.9	)%
Foreclosed Real Estate (“OREO”)		0			0		0.0	%
Total Non-performing Assets		4,459			5,364		(16.9	)%
Allowance/Non-performing Assets		220.41	%		153.06	%	44.0	%
Allowance/Loans, Net of Discount		1.09	%		0.99	%	10.1	%
Net Loans/Deposits		77.26	%		68.24	%	13.2	%
EQUITY
Shares Outstanding		10,406,721			10,842,537		(4.0	)%
Common Equity	$	102,001		$	106,212		(4.0	)%
Book Value Per Common Share		9.80			9.80		0.0	%
Tangible Common Equity		101,187			105,398		(4.0	)%
Tangible Book Value Per Common Share		9.72			9.72		0.0	%
LOAN DISTRIBUTION at end of period:
Commercial, Financial & Agricultural Loans		179,523			158,205		13.5	%
Commercial Real Estate Mortgages		308,436			262,262		17.6	%
Real Estate - Construction Loans		67,411			50,455		33.6	%
Residential Mortgages (1st and 2nd Liens)		131,006			114,969		13.9	%
Home Equity Loans		80,775			75,486		7.0	%
Consumer Loans		132,930			162,206		(18.0	)%
Other Loans		4,956			1,847		168.3	%
Total Loans (Net of Unearned Discounts)	$	905,037		$	825,430		9.6	%

PRESS RELEASE January 17, 2006 Page 3 of 4

CONSOLIDATED STATEMENTS OF CONDITION

(unaudited, in thousands of dollars except for share and per share data)

	December 31,
	2005			2004			Change
ASSETS
Cash & Due From Banks	$	48,530		$	37,553		29.2	%
Federal Funds Sold		—			2,500		(100.0	)%
Investment Securities:
Available for Sale, at Fair Value		400,038			427,678		(6.5	)%
Obligations of States & Political Subdivisions		11,378			11,900		(4.4	)%
Federal Reserve Bank Stock		638			638		0.0	%
Federal Home Loan Bank Stock		5,158			1,823		182.9	%
Corporate Bonds & Other Securities		100			100		0.0	%
Total Investment Securities		417,312			442,139		(5.6	)%
Total Loans		905,037			825,430		9.6	%
Allowance for Loan Losses		9,828			8,210		19.7	%
Net Loans		895,209			817,220		9.5	%
Premises & Equipment, Net		22,792			23,005		(0.9	)%
Accrued Interest Receivable, Net		6,747			5,804		16.2	%
Excess of Cost Over Fair Value of Net Assets Acquired		814			814		0.0	%
Other Assets		16,879			19,183		(12.0	)%
TOTAL ASSETS	$	1,408,283		$	1,348,218		4.5	%
LIABILITIES & STOCKHOLDERS’ EQUITY
Demand Deposits	$	424,320		$	385,736		10.0	%
Saving, N.O.W. & Money Market Deposits		521,156			601,336		(13.3	)%
Time Certificates of $100,000 or More		15,825			22,737		(30.4	)%
Other Time Deposits		197,406			187,783		5.1	%
Total Deposits		1,158,707			1,197,592		(3.2	)%
Federal Funds Purchased		7,700			—		100.0	%
Federal Home Loan Bank Borrowings		83,000			25,300		228.1	%
Repurchase Agreements		37,275			—		100.0	%
Dividend Payable on Common Stock		2,081			2,061		1.0	%
Accrued Interest Payable		1,722			721		138.8	%
Other Liabilities		15,797			16,332		(3.3	)%
TOTAL LIABILITIES		1,306,282			1,242,006		5.2	%
STOCKHOLDERS’ EQUITY
Common Stock (par value $2.50; 15,000,000 shares authorized; 10,406,721 and 10,842,537 shares outstanding at December 31, 2005 and 2004, respectively)		33,884			33,884		0.0	%
Surplus		19,440			19,440		0.0	%
Treasury Stock at Par (3,147,015 and 2,711,199 shares, respectively)		(7,868	)		(6,778	)	16.1	%
Retained Earnings		58,823			58,195		1.1	%
		104,279			104,741		(0.4	)%
Accumulated Other Comprehensive (Loss) Income, Net of Tax		(2,278	)		1,471		(254.9	)%
TOTAL STOCKHOLDERS’ EQUITY		102,001			106,212		(4.0	)%
TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY	$	1,408,283		$	1,348,218		4.5	%

PRESS RELEASE January 17, 2006 Page 4 of 4

CONSOLIDATED STATEMENTS OF INCOME

(unaudited, in thousands of dollars except for share and per share data)

	For the 3 Months Ended						For the Year to Date
	12/31/05		12/31/04		Change		2005		2004		Change
INTEREST INCOME
Federal Funds Sold	$	11	$	87	(87.4	)%	$	91	$	310	(70.6	)%
United States Treasury Securities		97		102	(4.9	)%		385		414	(7.0	)%
Obligations of States & Political Subdivisions		711		336	111.6	%		2,240		983	127.9	%
Mortgage-Backed Securities		2,066		2,685	(23.1	)%		9,597		10,365	(7.4	)%
U.S. Government Agency Obligations		1,229		1,203	2.2	%		4,896		4,342	12.8	%
Corporate Bonds & Other Securities		33		21	57.1	%		147		80	83.8	%
Loans		15,717		12,740	23.4	%		58,317		51,490	13.3	%
Total Interest Income		19,864		17,174	15.7	%		75,673		67,984	11.3	%
INTEREST EXPENSE
Saving, N.O.W. & Money Market Deposits		1,026		721	42.3	%		3,689		2,755	33.9	%
Time Certificates of $100,000 or more		148		98	51.0	%		543		368	47.6	%
Other Time Deposits		1,401		1,010	38.7	%		4,888		4,209	16.1	%
Federal Funds Purchased and Repurchase Agreements		400		—	100.0	%		1,252		—	100.0	%
Interest on Other Borrowings		406		7	5,700.0	%		940		47	1,900.0	%
Total Interest Expense		3,381		1,836	84.2	%		11,312		7,379	53.3	%
Net-interest Income		16,483		15,338	7.5	%		64,361		60,605	6.2	%
Provision for Loan Losses		450		225	100.0	%		1,575		1,973	(20.2	)%
Net-interest Income After Provision		16,033		15,113	6.1	%		62,786		58,632	7.1	%
OTHER INCOME
Service Charges on Deposit Accounts		1,471		1,420	3.6	%		5,670		5,659	0.2	%
Other Service Charges, Commissions & Fees		657		602	9.1	%		2,542		2,518	1.0	%
Fiduciary Fees		325		283	14.8	%		1,183		1,207	(2.0	)%
Net Securities Gains		—		775	(100.0	)%		—		1,994	(100.0	)%
Other Operating Income		358		374	(4.3	)%		771		916	(15.8	)%
Total Other Income		2,811		3,454	(18.6	)%		10,166		12,294	(17.3	)%
OTHER EXPENSE
Salaries & Employee Benefits		5,628		5,547	1.5	%		22,223		21,753	2.2	%
Net Occupancy Expense		985		778	26.6	%		3,764		3,129	20.3	%
Equipment Expense		478		525	(9.0	)%		2,055		2,142	(4.1	)%
Other Operating Expense		2,448		2,471	(0.9	)%		9,432		9,597	(1.7	)%
Total Other Expense		9,539		9,321	2.3	%		37,474		36,621	2.3	%
Income Before Provision for Income Taxes		9,305		9,246	0.6	%		35,478		34,305	3.4	%
Provision for Income Taxes		3,505		3,475	0.9	%		13,376		13,430	(0.4	)%
NET INCOME	$	5,800	$	5,771	0.5	%	$	22,102	$	20,875	5.9	%
Average: Common Shares Outstanding		10,412,798		10,847,098	(4.0	)%		10,570,896		10,882,327	(2.9	)%
Dilutive Stock Options		30,896		30,971	(0.2	)%		29,318		31,323	(6.4	)%
Average Total		10,443,694		10,878,069	(4.0	)%		10,600,214		10,913,650	(2.9	)%
EARNINGS PER COMMON SHARE Basic	$	0.56	$	0.53	5.7	%	$	2.09	$	1.92	8.9	%
Diluted	$	0.56	$	0.53	5.7	%	$	2.09	$	1.91	9.4	%