Suffolk Bancorp (SCNB) 8-K Suffolk Bancorp Announces Earnings for the Second Quarter of 2008

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 SECOND QUARTER OF 2008

Riverhead, New York, July 15, 2008 — Suffolk Bancorp (NASDAQ - SUBK) today released the results of its operations during the second quarter of 2008. Earnings-per-share for the quarter were $0.60, an increase of 11.1 percent from $0.54 during the comparable period of 2007. Net income for the quarter was $5,714,000, up 7.2 percent from the same quarter last year. Earnings-per-share for the year to date were $1.39, an increase of 33.7 percent from $1.04 during the comparable period of 2007. Net income for the year to date was $13,273,000, up 26.6 percent from the same period last year. A detailed financial summary follows the text of this release.

Chairman, President, and Chief Executive Officer, Thomas S. Kohlmann, commented, “Our results for the year-to-date reflect, of course, the benefits of our membership in the VISA organization which was offered to public investors during the first quarter. But even putting that transaction aside, we are having a solidly profitable year here at Suffolk notwithstanding the turmoil in the credit markets and general illiquidity in the banking industry as a whole. I would like investors to focus on our performance without the effect of that transaction, and there is no better way than to look closely at our performance during the second quarter of 2008.”

He went on to say, “Return on average equity was 19.95 percent, down slightly from the same period a year ago. This was primarily the result of only slightly lower interest income but significantly lower interest expense resulting in a modest increase of 2.8 percent in net interest income, as well as a 5.2 percent increase in income other than interest set against an increase of only 1.1 percent in expenses other than interest, even including the expense associated with two new branch offices that opened during the quarter. We now have 29 locations. Also contributing was a lower effective tax rate as our book of tax-exempt securities grew. Finally, with risk-based capital at 10.12 percent, we are fully leveraged and making the most of our shareholders’ investment. Average assets increased by 9.6 percent. Average net loans increased by 12.5 percent from year to year, including significant amounts of new business with new customers. While those loans have not gone on the books at margins as wide as we would like, we believe that many will help us build relationships for the future. Average investment securities increased by 6.1 percent year over year. Average deposits increased by just 1.0 percent, while average borrowings increased by 83.6 percent, making up the difference in funding as we continued to pursue the ‘marginal-cost-of-funds’ approach to minimize our interest expense.”

He continued, “As might be expected in an under-performing economy, we have seen a modest increase in net-charge-offs which amounted to 9 basis points of average net loans, well below industry averages at any point in the economic cycle. We have seen an increase as well in non-performing assets, although the allowance for possible loan losses stands at 335 percent of those assets. It is impossible to predict exactly how these numbers will change through the coming quarters, but we have and will continue to be disciplined in our underwriting, which will deliver the best results in the long run.”

He concluded, “We take nothing for granted, but that is as true in more predictable times as it is in these less settled times. Banking is a business built not only on increments and margins, but on relationships as well. The same principles apply in good times and bad, and we intend to continue to apply the principles of discipline and prudence throughout, to the benefit of our shareholders, customers, and employees alike.”

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 29 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 15, 2008 Page 2 of 4

STATISTICAL SUMMARY

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

	2nd Qtr 2008			2nd Qtr 2007			Change		6 Mos. 2008			6 Mos. 2007			Change
EARNINGS
Earnings-Per-Share – Basic	$	0.60		$	0.54		11.1	%	$	1.39		$	1.04		33.7	%
Cash Dividends-Per-Share		0.22			0.22		0.0	%		0.44			0.44		0.0	%
Net Income		5,714			5,332		7.2	%		13,273			10,481		26.6	%
Net Interest Income		16,438			15,985		2.8	%		32,301			32,067		0.7	%
AVERAGE BALANCES
Average Assets	$	1,554,661		$	1,418,458		9.6	%	$	1,523,693		$	1,410,805		8.0	%
Average Net Loans		1,014,318			901,364		12.5	%		992,019			891,572		11.3	%
Average Investment Securities		447,803			422,214		6.1	%		435,760			420,610		3.6	%
Average Interest-Earning Assets		1,462,422			1,326,199		10.3	%		1,427,981			1,315,287		8.6	%
Average Deposits		1,178,736			1,166,678		1.0	%		1,161,300			1,152,897		0.7	%
Average Borrowings		246,272			134,110		83.6	%		228,769			132,325		72.9	%
Average Interest-Bearing Liabilities		995,869			875,220		13.8	%		970,198			863,206		12.4	%
Average Equity		114,549			103,233		11.0	%		112,369			104,614		7.4	%
RATIOS
Return on Average Equity		19.95	%		20.66	%	(3.4	%)		23.62	%		20.04	%	17.9	%
Return on Average Assets		1.47	%		1.50	%	2.0	%		1.74	%		1.49	%	16.8	%
Average Equity/Assets		7.37	%		7.28	%	1.2	%		7.37	%		7.42	%	(0.7	%)
Net Interest Margin (FTE)		4.71	%		5.03	%	(6.4	%)		4.75	%		5.08	%	(6.5	%)
Efficiency Ratio		54.55	%		55.65	%	(2.0	%)		50.28	%		55.80	%	(9.9	%)
Tier 1 Leverage Ratio June 30		7.41	%		7.44	%	(0.4	%)
Tier 1 Risk-based Capital Ratio June 30		9.48	%		9.58	%	(1.0	%)
Total Risk-based Capital Ratio June 30		10.12	%		10.26	%	(1.4	%)
ASSET QUALITY during period:
Net Charge-offs (Recoveries)	$	222		$	(93	)	338.7	%	$	252		$	(82	)	407.3	%
Net Charge-offs/Average Net Loans (annual)		0.09	%		(0.04	%)	325.0	%		0.05	%		(0.02	%)	350.0	%
at end of period:
Non-accrual & Restructured Loans	$	2,355		$	935		151.9	%
Foreclosed Real Estate (“OREO”)		—			—		0.0	%
Total Non-performing Assets		2,355			935		151.9	%
Allowance/Non-performing Assets		334.82	%		791.12	%	(57.7	%)
Allowance/Loans, Net of Discount		0.77	%		0.80	%	(3.8	%)
Net Loans/Deposits		83.74	%		79.94	%	4.8	%
EQUITY
Shares Outstanding		9,568,730			9,800,692		(2.4	%)
Common Equity	$	115,275		$	100,039		15.2	%
Book Value Per Common Share		12.05			10.21		18.0	%
Tangible Common Equity		114,461			99,225		15.4	%
Tangible Book Value Per Common Share		11.96			10.12		18.2	%
LOAN DISTRIBUTION at end of period:
Commercial, Financial & Agricultural Loans	$	236,931			204,114		16.1	%
Commercial Real Estate Mortgages		309,108			300,390		2.9	%
Real Estate - Construction Loans		111,312			86,305		29.0	%
Residential Mortgages (1st and 2nd Liens)		204,197			166,540		22.6	%
Home Equity Loans		68,951			67,464		2.2	%
Consumer Loans		95,809			100,693		(4.9	%)
Other Loans		723			1,046		(30.9	%)
Total Loans (Net of Unearned Discounts)	$	1,027,031		$	926,552		10.8	%

PRESS RELEASE July 15, 2008 Page 3 of 4

CONSOLIDATED STATEMENTS OF CONDITION

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

	June 30,
	2008			2007			Change
ASSETS
Cash & Due From Banks	$	68,329		$	50,582		35.1	%
Investment Securities:
Available for Sale, at Fair Value		420,997			403,053		4.5	%
Obligations of States & Political Subdivisions		8,048			9,026		(10.8	%)
Federal Reserve Bank Stock		638			638		0.0	%
Federal Home Loan Bank Stock		8,827			6,621		33.3	%
Corporate Bonds & Other Securities		100			100		0.0	%
Total Investment Securities		438,610			419,438		4.6	%
Total Loans		1,027,031			926,552		10.8	%
Allowance for Loan Losses		7,885			7,397		6.6	%
Net Loans		1,019,146			919,155		10.9	%
Premises & Equipment, Net		22,199			21,803		1.8	%
Accrued Interest Receivable, Net		7,403			7,790		(5.0	%)
Excess of Cost Over Fair Value of Net Assets Acquired		814			814		0.0	%
Other Assets		15,638			19,503		(19.8	%)
TOTAL ASSETS	$	1,572,139		$	1,439,085		9.2	%
LIABILITIES & STOCKHOLDERS’ EQUITY
Demand Deposits	$	439,735		$	419,657		4.8	%
Saving, N.O.W. & Money Market Deposits		452,893			424,126		6.8	%
Time Certificates of $100,000 or More		138,028			105,830		30.4	%
Other Time Deposits		186,398			200,237		(6.9	%)
Total Deposits		1,217,054			1,149,850		5.8	%
Federal Home Loan Bank Borrowings		165,100			116,900		41.2	%
Repurchase Agreements		54,770			53,790		1.8	%
Dividend Payable on Common Stock		2,105			2,160		(2.5	%)
Accrued Interest Payable		2,238			2,268		(1.3	%)
Other Liabilities		15,597			14,078		10.8	%
TOTAL LIABILITIES		1,456,864			1,339,046		8.8	%
STOCKHOLDERS’ EQUITY
Common Stock (par value $2.50; 15,000,000 shares authorized; 9,568,730 and 9,800,692 shares outstanding at June 30, 2008 and 2007, respectively)		33,911			33,911		0.0	%
Surplus		20,266			20,051		1.1	%
Treasury Stock at Par (3,995,661 and 3,763,699 shares, respectively)		(9,989	)		(9,409	)	6.2	%
Retained Earnings		71,891			61,826		16.3	%
		116,079			106,379		9.1	%
Accumulated Other Comprehensive Loss, Net of Tax		(804	)		(6,340	)	(87.3	%)
TOTAL STOCKHOLDERS’ EQUITY		115,275			100,039		15.2	%
TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY	$	1,572,139		$	1,439,085		9.2	%

PRESS RELEASE July 15, 2008 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
	6/30/08		6/30/07		Change		2008		2007		Change
INTEREST INCOME
Federal Funds Sold	$	2	$	34	(94.1	%)	$	3	$	83	(96.4	%)
United States Treasury Securities		99		99	0.0	%		198		198	0.0	%
Obligations of States & Political Subdivisions		1,537		1,320	16.4	%		3,048		2,548	19.6	%
Mortgage-Backed Securities		2,133		1,957	9.0	%		3,965		3,987	(0.6	%)
U.S. Government Agency Obligations		1,035		1,218	(15.0	%)		2,093		2,435	(14.0	%)
Corporate Bonds & Other Securities		200		108	85.2	%		381		208	83.2	%
Loans		16,980		17,628	(3.7	%)		34,265		34,937	(1.9	%)
Total Interest Income		21,986		22,364	(1.7	%)		43,953		44,396	(1.0	%)
INTEREST EXPENSE
Saving, N.O.W. & Money Market Deposits		1,438		1,232	16.7	%		2,756		2,411	14.3	%
Time Certificates of $100,000 or more		987		1,259	(21.6	%)		2,133		2,343	(9.0	%)
Other Time Deposits		1,464		2,077	(29.5	%)		3,334		4,021	(17.1	%)
Federal Funds Purchased & Repurchase Agreements		370		726	(49.0	%)		886		1,441	(38.5	%)
Interest on Other Borrowings		1,289		1,085	18.8	%		2,543		2,113	20.4	%
Total Interest Expense		5,548		6,379	(13.0	%)		11,652		12,329	(5.5	%)
Net-interest Income		16,438		15,985	2.8	%		32,301		32,067	0.7	%
Provision for Loan Losses		300		18	1,566.7	%		525		130	303.8	%
Net-interest Income After Provision		16,138		15,967	1.1	%		31,776		31,937	(0.5	%)
OTHER INCOME
Service Charges on Deposit Accounts		1,433		1,361	5.3	%		2,806		2,676	4.9	%
Other Service Charges, Commissions & Fees		727		752	(3.3	%)		1,446		1,365	5.9	%
Fiduciary Fees		376		339	10.9	%		748		659	13.5	%
Net Securities Gains		—		—	0.0	%		3,737		—	100.0	%
Other Operating Income		156		106	47.2	%		305		229	33.2	%
Total Other Income		2,692		2,558	5.2	%		9,042		4,929	83.4	%
OTHER EXPENSE
Salaries & Employee Benefits		6,322		6,165	2.5	%		12,659		12,334	2.6	%
Net Occupancy Expense		1,070		980	9.2	%		2,174		2,004	8.5	%
Equipment Expense		519		563	(7.8	%)		1,046		1,145	(8.6	%)
Other Operating Expense		2,524		2,611	(3.3	%)		4,910		5,159	(4.8	%)
Total Other Expense		10,435		10,319	1.1	%		20,789		20,642	0.7	%
Income Before Provision for Income Taxes		8,395		8,206	2.3	%		20,029		16,224	23.5	%
Provision for Income Taxes		2,681		2,874	(6.7	%)		6,756		5,743	17.6	%
NET INCOME	$	5,714	$	5,332	7.2	%	$	13,273	$	10,481	26.6	%
Average:Common Shares Outstanding		9,568,730		9,957,096	(3.9	%)		9,581,142		10,072,696	(4.9	%)
Dilutive Stock Options		22,572		15,463	46.0	%		17,767		23,291	(23.7	%)
Average Total		9,591,302		9,972,559	(3.8	%)		9,598,909		10,095,987	(4.9	%)
EARNINGS PER COMMON SHARE    Basic	$	0.60	$	0.54	11.1	%	$	1.39	$	1.04	33.7	%
Diluted	$	0.60	$	0.53	13.2	%	$	1.38	$	1.04	32.7	%