Suffolk Bancorp (SCNB) 8-K Suffolk Bancorp Announces Earnings for the First Quarter of 2006

Exhibit 99.1

PRESS RELEASE

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

SUFFOLK BANCORP ANNOUNCES EARNINGS FOR THE FIRST QUARTER OF 2006

Riverhead, New York, April 11, 2006 — Suffolk Bancorp (NASDAQ - SUBK) today released the results of its operations during the first quarter of 2006. Earnings-per-share were $0.50, an increase of 4.2 percent from $0.48 during the comparable period of 2005. Net income was $5,224,000, up 1.8 percent from the same quarter last year. A detailed financial summary follows the text of this release.

President and Chief Executive Officer, Thomas S. Kohlmann, remarked, “The most important story in the banking industry during the first quarter of this year has been the inversion of the yield curve a number of times during the past three months. Short-term interest rates have continued to rise as the Federal Reserve has repeatedly increased its target for overnight funds, most recently on March 28^th for the 15th consecutive time since June of 2004. Long-term rates have remained stubbornly low by comparison, to the point where certain short rates exceeded intermediate- and long-term rates at times during the quarter. At the same time, chronic overcapacity in the industry has encouraged some banking companies to price loans, deposits, and fee services at uneconomic, and in our opinion, unsustainable levels in order to gain or keep market share. Together, these have made it a real challenge for banks to maintain their operating margins.”

He continued, “This notwithstanding, we were able to post gains from year to year in most important categories. Return on average equity increased to 21.07 percent from 20.11 percent last year. Our net interest margin increased to 5.05 percent from 4.93 percent, although it declined slightly from 5.23 percent in the quarter ended December 31, 2005. Net loans, a key component of our relationship with core customers, were ahead 7.3 percent, while its complement, demand deposits, were ahead 8.6 percent, topping the $400 million mark. We recovered a net $22,000 in previously charged-off loans during the quarter, compared to net charge-offs of $67,000 last year, and total non-performing assets decreased by 19.1 percent, and the allowance as a multiple of nonperforming assets increased to 2.43 times from 1.63 times in 2005, an increase of 48.7 percent.”

Mr. Kohlmann concluded, “Our most important duty to our shareholders in this particularly challenging environment is to find ways to preserve the margins that make earnings possible on a per-share basis, and then to find additional ways to expand our core business to support those earnings over the long term.”

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 has 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
April 11, 2006
Page 2 of 4

STATISTICAL SUMMARY

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

	1st Qtr 2006			1st Qtr 2005			Change
EARNINGS
Earnings-Per-Share - Basic	$	0.50		$	0.48		4.2	%
Cash Dividends-Per-Share		0.22			0.19		15.8	%
Net Income		5,224			5,132		1.8	%
Net Interest Income		16,155			15,494		4.3	%
AVERAGE BALANCES
Average Assets	$	1,413,258		$	1,376,604		2.7	%
Average Net Loans		893,487			829,335		7.7	%
Average Investment Securities		414,486			440,559		(5.9	)%
Average Interest-Earning Assets		1,308,590			1,271,682		2.9	%
Average Deposits		1,136,054			1,189,761		(4.5	)%
Average Borrowings		151,991			55,084		175.9	%
Average Interest -Bearing Liabilities		877,032			850,072		3.2	%
Average Equity		99,181			102,074		(2.8	)%
RATIOS
Return on Average Equity		21.07	%		20.11	%	4.8	%
Return on Average Assets		1.48	%		1.49	%	(0.7	)%
Average Equity/Assets		7.02	%		7.41	%	(5.6	)%
Net Interest Margin (FTE)		5.05	%		4.93	%	2.4	%
Efficiency Ratio		53.18	%		52.11	%	2.1	%
Tier 1 Leverage Ratio Mar. 31		7.35	%		7.27	%	1.1	%
Tier 1 Risk-based Capital Ratio Mar. 31		9.77	%		10.26	%	(4.8	)%
Total Risk-based Capital Ratio Mar. 31		10.73	%		11.12	%	(3.5	)%
ASSET QUALITY during period:
Net (Recoveries) Charge-offs	$	(22	)	$	67		(132.8	)%
Net Charge-offs/Average Net Loans (annual)		(0.01	)%		0.03	%	(133.3	)%
at end of period:
Non-accrual & Restructured Loans	$	4,182		$	5,172		(19.1	)%
Foreclosed Real Estate (“OREO”)		—			—		0.0	%
Total Non-performing Assets		4,182			5,172		(19.1	)%
Allowance/Non-performing Assets		242.71	%		163.23	%	48.7	%
Allowance/Loans, Net of Discount		1.10	%		0.98	%	12.2	%
Net Loans/Deposits		80.62	%		72.86	%	10.6	%
EQUITY
Shares Outstanding		10,328,706			10,638,537		(2.9	)%
Common Equity	$	100,917		$	99,033		1.9	%
Book Value Per Common Share		9.77			9.31		4.9	%
Tangible Common Equity		100,103			98,219		1.9	%
Tangible Book Value Per Common Share		9.69			9.23		5.0	%
LOAN DISTRIBUTION at end of period:
Commercial, Financial & Agricultural Loans	$	193,941		$	174,529		11.1	%
Commercial Real Estate Mortgages		311,485			282,888		10.1	%
Real Estate - Construction Loans		70,941			54,490		30.2	%
Residential Mortgages (1st and 2nd Liens)		136,004			119,035		14.3	%
Home Equity Loans		81,219			78,040		4.1	%
Consumer Loans		122,903			149,787		(17.9	)%
Other Loans		7,763			1,815		327.7	%
Total Loans (Net of Unearned Discounts)	$	924,256		$	860,584		7.4	%

PRESS RELEASE
April 11, 2006
Page 3 of 4

CONSOLIDATED STATEMENTS OF CONDITION

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

	March 31,
	2006			2005			Change
ASSETS
Cash & Due From Banks	$	50,975		$	40,531		25.8	%
Federal Funds Sold		—			2,500		(100.0	)%
Investment Securities:
Available for Sale, at Fair Value		393,384			417,870		(5.9	)%
Obligations of States & Political Subdivisions		11,313			11,816		(4.3	)%
Federal Reserve Bank Stock		638			638		0.0	%
Federal Home Loan Bank Stock		5,851			2,500		134.0	%
Corporate Bonds & Other Securities		100			100		0.0	%
Total Investment Securities		411,286			432,924		(5.0	)%
Total Loans		924,256			860,584		7.4	%
Allowance for Loan Losses		10,150			8,442		20.2	%
Net Loans		914,106			852,142		7.3	%
Premises & Equipment, Net		22,571			22,677		(0.5	)%
Accrued Interest Receivable, Net		7,041			5,853		20.3	%
Excess of Cost Over Fair Value of Net Assets Acquired		814			814		0.0	%
Other Assets		18,117			16,856		7.5	%
TOTAL ASSETS	$	1,424,910		$	1,374,297		3.7	%
LIABILITIES & STOCKHOLDERS’ EQUITY
Demand Deposits	$	401,498		$	369,666		8.6	%
Saving, N.O.W. & Money Market Deposits		509,110			586,060		(13.1	)%
Time Certificates of $100,000 or More		21,943			22,981		(4.5	)%
Other Time Deposits		201,252			190,785		5.5	%
Total Deposits		1,133,803			1,169,492		(3.1	)%
Federal Funds Purchased		8,000			—		100.0	%
Federal Home Loan Bank Borrowings		98,400			44,000		123.6	%
Repurchase Agreements		64,675			42,175		53.3	%
Dividend Payable on Common Stock		2,272			2,035		11.6	%
Accrued Interest Payable		2,303			770		199.1	%
Other Liabilities		14,540			16,792		(13.4	)%
TOTAL LIABILITIES		1,323,993			1,275,264		3.8	%
STOCKHOLDERS’ EQUITY
Common Stock (par value $2.50; 15,000,000 shares authorized; 10,328,706 and 10,638,537 shares outstanding at March 31, 2006 and 2005, respectively)		33,884			33,884		0.0	%
Surplus		19,769			19,439		1.7	%
Treasury Stock at Par (3,225,030 and 2,915,199 shares, respectively)		(8,062	)		(7,288	)	10.6	%
Retained Earnings		59,180			54,864		7.9	%
		104,771			100,899		3.8	%
Accumulated Other Comprehensive (Loss) Income, Net of Tax		(3,854	)		(1,866	)	106.5	%
TOTAL STOCKHOLDERS’ EQUITY		100,917			99,033		1.9	%
TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY	$	1,424,910		$	1,374,297		3.7	%

PRESS RELEASE
April 11, 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
	3/31/06		3/31/05		Change
INTEREST INCOME
Federal Funds Sold	$	8	$	10	(20.0	)%
United States Treasury Securities		95		96	(1.0	)%
Obligations of States & Political Subdivisions		829		409	102.7	%
Mortgage-Backed Securities		2,030		2,657	(23.6	)%
U.S. Government Agency Obligations		1,222		1,223	(0.1	)%
Corporate Bonds & Other Securities		94		31	203.2	%
Loans		16,261		13,382	21.5	%
Total Interest Income		20,539		17,808	15.3	%
INTEREST EXPENSE
Saving, N.O.W. & Money Market Deposits		1,047		822	27.4	%
Time Certificates of $100,000 or more		197		117	68.4	%
Other Time Deposits		1,454		1,013	43.5	%
Federal Funds Purchased and Repurchase Agreements		662		102	549.0	%
Interest on Other Borrowings		1,024		260	293.8	%
Total Interest Expense		4,384		2,314	89.5	%
Net-interest Income		16,155		15,494	4.3	%
Provision for Loan Losses		300		300	0.0	%
Net-interest Income After Provision		15,855		15,194	4.4	%
OTHER INCOME
Service Charges on Deposit Accounts		1,398		1,358	2.9	%
Other Service Charges, Commissions & Fees		566		559	1.3	%
Fiduciary Fees		292		284	2.8	%
Other Operating Income		130		137	(5.1	)%
Total Other Income		2,386		2,338	2.1	%
OTHER EXPENSE
Salaries & Employee Benefits		6,058		5,524	9.7	%
Net Occupancy Expense		1,032		1,019	1.3	%
Equipment Expense		504		559	(9.8	)%
Other Operating Expense		2,266		2,191	3.4	%
Total Other Expense		9,860		9,293	6.1	%
Income Before Provision for Income Taxes		8,381		8,239	1.7	%
Provision for Income Taxes		3,157		3,107	1.6	%
NET INCOME	$	5,224	$	5,132	1.8	%
Average:Common Shares Outstanding		10,355,554		10,764,150	(3.8	)%
Dilutive Stock Options		34,697		32,393	7.1	%
Average Total		10,390,251		10,796,543	(3.8	)%
EARNINGS PER COMMON SHARE
Basic	$	0.50	$	0.48	4.2	%
Diluted	$	0.50	$	0.48	4.2	%