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

Exhibit 99.1

PRESS RELEASE

FOR IMMEDIATE RELEASE

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

SUFFOLK BANCORP ANNOUNCES EARNINGS FOR THE SECOND QUARTER OF 2006

Riverhead, New York, July 17, 2006 — Suffolk Bancorp (NASDAQ - SUBK) today released the results of its operations during the second quarter of 2006. Earnings-per-share for the quarter were $0.55, an increase of 10.0 percent from $0.50 during the comparable period of 2005. Net income for the quarter was $5,639,000, up 5.9 percent from the same quarter last year. Earnings-per-share for the year to date were $1.05, an increase of 7.1 percent from $0.98 during the comparable period of 2005. Net income for the year to date was $10,863,000, up 3.9 percent from the same period last year. A detailed financial summary follows the text of this release.

President and Chief Executive Officer, Thomas S. Kohlmann, remarked, “I find myself commenting once again on the flatness of the yield curve during the past quarter, and the challenge it presents to all banks as long-term rates remain at an unusually narrow spread to short-term rates. Despite the effect of the yield curve, we were able to post reasonably good results as of June 30^th. Return on average equity was 22.93 percent, up from 21.44 during the same quarter last year. Even in the face of increases in the cost of funding, we were able to expand our net interest margin to 5.15 percent from 4.98 percent during the second quarter of 2005. This was the result of several things, including higher rates on variable rate loans, and new, profitable commercial relationships. Additionally, we continued to analyze different sources of funds by analyzing their marginal cost, at times using wholesale funds when competition for retail funds warrants. This allows us to preserve the relationships with our customers that are both the basis of our core business and the foundation of our business model, while maintaining margins in the face of a relatively flat yield curve. In combination with the ongoing, proper management of capital to match our business needs, this maximizes earnings per share.”

He continued, “Although it had no effect on earnings during the past quarter, shareholders will note that the remainder of a large loan that is in litigation and not performing, previously disclosed and fully reserved, was charged off. Recent developments led us to conclude that it is no longer a bankable asset. As noted, we continue to pursue all legal remedies. As a result of this charge, our allowance for possible loan and lease losses now stands at 1,165.13 percent of non-performing assets, or more than five times the industry average of 223.06 percent at the end of last quarter. While the size of the allowance as a percentage of total loans decreased to 0.77 percent, our method in computing the allowance remains absolutely consistent, and coverage at these levels is a reflection of the quality of our loan portfolio.”

Mr. Kohlmann concluded, “There is no secret to our success. It is just basic business, avoiding the distractions of irrational competition and easy transactions, and disciplining ourselves to stick to the fundamentals of banking every day. We feel that our approach is what permits us to generate value for our shareholders consistently.”

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
July 17, 2006
Page 2 of 4

STATISTICAL SUMMARY

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

	2nd Q 2006			2nd Q 2005			Change		6 Mos. 2006			6 Mos. 2005			Change
EARNINGS
Earnings-Per-Share - Basic	$	0.55		$	0.50		10.0	%	$	1.05		$	0.98		7.1	%
Cash Dividends-Per-Share		0.22			0.20		10.0	%		0.44			0.39		12.8	%
Net Income		5,639			5,325		5.9	%		10,863			10,457		3.9	%
Net Interest Income		16,669			15,902		4.8	%		32,824			31,396		4.5	%
AVERAGE BALANCES
Average Assets	$	1,425,001		$	1,390,939		2.4	%	$	1,420,034		$	1,383,821		2.6	%
Average Net Loans		913,213			859,067		6.3	%		903,405			844,283		7.0	%
Average Investment Securities		412,533			431,714		(4.4	)%		413,504			436,112		(5.2	)%
Average Interest-Earning Assets		1,328,358			1,296,205		2.5	%		1,318,528			1,284,011		2.7	%
Average Deposits		1,154,180			1,205,108		(4.2	)%		1,145,167			1,197,477		(4.4	)%
Average Borrowings		156,779			76,159		105.9	%		154,532			65,680		135.3	%
Average Interest -Bearing Liabilities		878,998			864,303		1.7	%		878,155			857,227		2.4	%
Average Equity		98,369			99,365		(1.0	)%		98,772			100,712		(1.9	)%
RATIOS
Return on Average Equity		22.93	%		21.44	%	6.9	%		22.00	%		20.77	%	5.9	%
Return on Average Assets		1.58	%		1.53	%	3.3	%		1.53	%		1.51	%	1.3	%
Average Equity/Assets		6.90	%		7.14	%	(3.4	)%		6.96	%		7.28	%	(4.4	)%
Net Interest Margin (FTE)		5.15	%		4.98	%	3.4	%		5.10	%		4.96	%	2.8	%
Efficiency Ratio		51.76	%		51.46	%	0.6	%		52.46	%		51.78	%	1.3	%
Tier 1 Leverage Ratio June 30		7.35	%		7.22	%	1.8	%
Tier 1 Risk-based Capital Ratio June 30		9.57	%		10.01	%	(4.4	)%
Total Risk-based Capital Ratio June 30		10.22	%		10.90	%	(6.2	)%
ASSET QUALITY during period:
Net Charge-offs (Recoveries)	$	3,366		$	(70	)	4,908.6	%	$	3,344		$	(2	)	167,300.0	%
Net Charge-offs/Average Net Loans (annual)		1.47	%		(0.03	)%	5,000.0	%		0.74	%		(0.0005	)%	148,100.0	%
at end of period:
Non-accrual & Restructured Loans	$	608		$	4,831		(87.4	)%
Foreclosed Real Estate (“OREO”)		—			—		0.0	%
Total Non-performing Assets		608			4,831		(87.4	)%
Allowance/Non-performing Assets		1,165.13	%		183.96	%	533.4	%
Allowance/Loans, Net of Discount		0.77	%		1.01	%	(23.8	)%
Net Loans/Deposits		77.25	%		69.14	%	11.7	%
EQUITY
Shares Outstanding		10,251,106			10,552,571		(2.9	)%
Common Equity	$	100,032		$	102,593		(2.5	)%
Book Value Per Common Share		9.76			9.72		0.4	%
Tangible Common Equity		99,218			101,779		(2.5	)%
Tangible Book Value Per Common Share		9.68			9.64		0.4	%
LOAN DISTRIBUTION at end of period:
Commercial, Financial & Agricultural Loans	$	201,398		$	180,126		11.8	%
Commercial Real Estate Mortgages		309,778			291,326		6.3	%
Real Estate - Construction Loans		72,083			62,976		14.5	%
Residential Mortgages (1st and 2nd Liens)		138,465			123,389		12.2	%
Home Equity Loans		79,774			80,939		(1.4	)%
Consumer Loans		117,588			141,698		(17.0	)%
Other Loans		536			563		(4.8	)%
Total Loans (Net of Unearned Discounts)	$	919,622		$	881,017		4.4	%

PRESS RELEASE
July 17, 2006
Page 3 of 4

CONSOLIDATED STATEMENTS OF CONDITION

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

	June 30,
	2006			2005			Change
ASSETS
Cash & Due From Banks	$	59,285		$	48,060		23.4	%
Federal Funds Sold		5,000			21,100		(76.3	)%
Investment Securities:
Available for Sale, at Fair Value		395,826			416,593		(5.0	)%
Obligations of States & Political Subdivisions		10,168			10,443		(2.6	)%
Federal Reserve Bank Stock		638			638		0.0	%
Federal Home Loan Bank Stock		5,497			1,930		184.8	%
Corporate Bonds & Other Securities		100			100		0.0	%
Total Investment Securities		412,229			429,704		(4.1	)%
Total Loans		919,622			881,017		4.4	%
Allowance for Loan Losses		7,084			8,887		(20.3	)%
Net Loans		912,538			872,130		4.6	%
Premises & Equipment, Net		22,364			22,765		(1.8	)%
Accrued Interest Receivable, Net		7,173			6,276		14.3	%
Excess of Cost Over Fair Value of Net Assets Acquired		814			814		0.0	%
Other Assets		23,677			19,292		22.7	%
TOTAL ASSETS	$	1,443,080		$	1,420,141		1.6	%
LIABILITIES & STOCKHOLDERS’ EQUITY
Demand Deposits	$	436,508		$	445,252		(2.0	)%
Saving, N.O.W. & Money Market Deposits		490,566			588,086		(16.6	)%
Time Certificates of $100,000 or More		45,603			24,910		83.1	%
Other Time Deposits		208,611			203,194		2.7	%
Total Deposits		1,181,288			1,261,442		(6.4	)%
Federal Home Loan Bank Borrowings		90,350			—		100.0	%
Repurchase Agreements		52,835			37,355		41.4	%
Dividend Payable on Common Stock		2,260			2,117		6.8	%
Accrued Interest Payable		1,827			1,088		67.9	%
Other Liabilities		14,488			15,546		(6.8	)%
TOTAL LIABILITIES		1,343,048			1,317,548		1.9	%
STOCKHOLDERS’ EQUITY
Common Stock (par value $2.50; 15,000,000 shares authorized; 10,251,106 and 10,552,571 shares outstanding at June 30, 2006 and 2005, respectively)		33,884			33,884		0.0	%
Surplus		19,494			19,439		0.3	%
Treasury Stock at Par (3,302,630 and 3,001,165 shares, respectively)		(8,256	)		(7,502	)	10.1	%
Retained Earnings		60,446			55,520		8.9	%
		105,568			101,341		4.2	%
Accumulated Other Comprehensive (Loss) Income, Net of Tax		(5,536	)		1,252		(542.2	)%
TOTAL STOCKHOLDERS’ EQUITY		100,032			102,593		(2.5	)%
TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY	$	1,443,080		$	1,420,141		1.6	%

PRESS RELEASE
July 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
	6/30/06		6/30/05		Change		2006		2005		Change
INTEREST INCOME
Federal Funds Sold	$	33	$	41	(19.5	)%	$	41	$	51	(19.6	)%
United States Treasury Securities		96		96	0.0	%		191		192	(0.5	)%
Obligations of States & Political Subdivisions		931		495	88.1	%		1,760		904	94.7	%
Mortgage-Backed Securities		1,935		2,579	(25.0	)%		3,965		5,236	(24.3	)%
U.S. Government Agency Obligations		1,222		1,222	0.0	%		2,444		2,445	(0.0	)%
Corporate Bonds & Other Securities		77		44	75.0	%		171		75	128.0	%
Loans		17,523		14,176	23.6	%		33,784		27,558	22.6	%
Total Interest Income		21,817		18,653	17.0	%		42,356		36,461	16.2	%
INTEREST EXPENSE
Saving, N.O.W. & Money Market Deposits		1,266		867	46.0	%		2,313		1,689	36.9	%
Time Certificates of $100,000 or more		265		131	102.3	%		462		248	86.3	%
Other Time Deposits		1,645		1,164	41.3	%		3,099		2,177	42.4	%
Federal Funds Purchased and Repurchase Agreement		844		387	118.1	%		1,506		489	208.0	%
Interest on Other Borrowings		1,128		202	458.4	%		2,152		462	365.8	%
Total Interest Expense		5,148		2,751	87.1	%		9,532		5,065	88.2	%
Net-interest Income		16,669		15,902	4.8	%		32,824		31,396	4.5	%
Provision for Loan Losses		300		375	(20.0	)%		600		675	(11.1	)%
Net-interest Income After Provision		16,369		15,527	5.4	%		32,224		30,721	4.9	%
OTHER INCOME
Service Charges on Deposit Accounts		1,456		1,412	3.1	%		2,854		2,770	3.0	%
Other Service Charges, Commissions & Fees		768		669	14.8	%		1,334		1,228	8.6	%
Fiduciary Fees		340		277	22.7	%		632		561	12.7	%
Other Operating Income		155		131	18.3	%		285		268	6.3	%
Total Other Income		2,719		2,489	9.2	%		5,105		4,827	5.8	%
OTHER EXPENSE
Salaries & Employee Benefits		5,842		5,555	5.2	%		11,900		11,079	7.4	%
Net Occupancy Expense		974		849	14.7	%		2,006		1,868	7.4	%
Equipment Expense		519		540	(3.9	)%		1,023		1,099	(6.9	)%
Other Operating Expense		2,701		2,520	7.2	%		4,967		4,711	5.4	%
Total Other Expense		10,036		9,464	6.0	%		19,896		18,757	6.1	%
Income Before Provision for Income Taxes		9,052		8,552	5.8	%		17,433		16,791	3.8	%
Provision for Income Taxes		3,413		3,227	5.8	%		6,570		6,334	3.7	%
NET INCOME	$	5,639	$	5,325	5.9	%	$	10,863	$	10,457	3.9	%
Average:Common Shares Outstanding		10,297,824		10,616,833	(3.0	)%		10,326,529		10,690,085	(3.4	)%
Dilutive Stock Options		23,817		25,101	(5.1	)%		29,505		28,952	1.9	%
Average Total		10,321,641		10,641,934	(3.0	)%		10,356,034		10,719,037	(3.4	)%
EARNINGS PER COMMON SHAREBasic	$	0.55	$	0.50	10.0	%	$	1.05	$	0.98	7.1	%
Diluted	$	0.55	$	0.50	10.0	%	$	1.05	$	0.98	7.1	%