Suffolk Bancorp (SCNB) 8-K Results of Operations and Financial Condition

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 THIRD QUARTER OF 2008

Riverhead, New York, October 15, 2008 — Suffolk Bancorp (NASDAQ - SUBK) today released the results of its operations during the third quarter of 2008. Earnings-per-share for the quarter were $0.62, an increase of 1.6 percent from $0.61 during the comparable period of 2007. Net income for the quarter was $5,967,000, down 1.3 percent from $6,043,000 during the same quarter last year. Earnings-per-share for the year to date were $2.01, an increase of 21.1 percent from $1.66 during the comparable period of 2007. Net income for the year to date was $19,240,000, up 16.4 percent from the same period last year. A detailed financial summary follows the text of this release.

Acting President and Chief Executive Officer, J. Gordon Huszagh remarked, “The past quarter has been nothing less than historic in the financial markets. I will not recount the specifics which have been widely reported, but the resulting loss of capital in the banking industry and the resulting global economic turmoil have continued and deepened, even as central bankers around the world seek to limit the contraction of credit. In the face of this, I do want to offer some guarded reassurance about Suffolk Bancorp’s condition and prospects. At the end of the third quarter, our results are not materially different than those we have posted traditionally, and with return on equity still above 20 percent, we continue to be among the most profitable banks in the industry.”

He continued, “The current financial crisis has affected large financial institutions the most, the kind of companies you think of when you refer to “Wall Street,” but the effects of their actions have been felt by markets and institutions around the world, both large and small. It was precipitated by sub-prime mortgage lending, but now affects many other parts of the economy. The good news is that Suffolk Bancorp did not get caught up in these practices either directly in our own lending, or indirectly through investments in questionable securities. Consistency and discipline are key, at any point in the business cycle. As a community bank, we underwrite loans the traditional way, based on the borrower’s demonstrated ability to repay. That same prudence and analysis goes into the selection of investment securities owned by the bank. As a result, Suffolk remains well capitalized, profitable, and with modest loan delinquencies and charge-offs.”

He went on to say, “Precisely because we stuck to our principles all along, we are now in a position to take advantage of business opportunities created by this financial tempest. Of recent, we have attracted good, loyal customers concerned about the safety of their current banks, and who recognize our strength. There are more of those potential customers every week. We can safely tell them, and remind our current customers, that our deposits are insured by the FDIC to $250,000 per depositor, and we continue to make loans to credit worthy customers the same way we have over the past 118 years. Relationship banking is our special strength, and these new customers can be part of our continuing success. This is reflected in loan growth of 13.7 percent from year to year, and growth in total assets of 14.0 percent while maintaining our historic standards of strength and performance.”

He concluded, “The events of the last week or two are unprecedented in the careers of anyone now in banking. I would be mistaken to say that nothing can go wrong for us and we make no guarantees, but on behalf of the Board and my fellow managers, we hope that our investors will take comfort in our intention to continue to manage our bank prudently, safely, and soundly for the benefit of our shareholders, customers, employees and the communities we serve. Suffolk has weathered each and every financial downturn for more than a century. We intend to ride out this storm as well.”

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 October 15, 2008 Page 2 of 4

STATISTICAL SUMMARY

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

	3rd Qtr 2008			3rd Qtr 2007			Change		9 Mos. 2008			9 Mos. 2007			Change
EARNINGS
Earnings-Per-Share - Basic	$	0.62		$	0.61		1.6	%	$	2.01		$	1.66		21.1	%
Cash Dividends-Per-Share		0.22			0.22		0.0	%		0.66			0.66		0.0	%
Net Income		5,967			6,043		(1.3	%)		19,240			16,524		16.4	%
Net Interest Income		16,685			16,047		4.0	%		48,986			48,114		1.8	%
AVERAGE BALANCES
Average Assets	$	1,606,389		$	1,408,176		14.1	%	$	1,551,575		$	1,415,079		9.6	%
Average Net Loans		1,039,045			912,248		13.9	%		1,007,867			898,540		12.2	%
Average Investment Securities		423,536			403,330		5.0	%		431,640			414,787		4.1	%
Average Interest-Earning Assets		1,516,069			1,319,548		14.9	%		1,457,667			1,316,723		10.7	%
Average Deposits		1,289,342			1,158,179		11.3	%		1,204,457			1,154,677		4.3	%
Average Borrowings		188,623			127,002		48.5	%		215,240			130,531		64.9	%
Average Interest-Bearing Liabilities		1,030,877			858,812		20.0	%		990,647			861,735		15.0	%
Average Equity		114,109			99,228		15.0	%		112,954			102,799		9.9	%
RATIOS
Return on Average Equity		20.92	%		24.36	%	(14.1	%)		22.71	%		21.43	%	6.0	%
Return on Average Assets		1.49	%		1.72	%	(13.4	%)		1.65	%		1.56	%	5.8	%
Average Equity/Assets		7.10	%		7.05	%	0.7	%		7.28	%		7.26	%	0.3	%
Net Interest Margin (FTE)		4.62	%		5.09	%	(9.2	%)		4.70	%		5.08	%	(7.5	%)
Efficiency Ratio		55.88	%		52.69	%	6.1	%		52.08	%		54.75	%	(4.9	%)
Tier 1 Leverage Ratio Sept. 30		7.43	%		7.60	%	(2.2	%)
Tier 1 Risk-based Capital Ratio Sept. 30		9.72	%		9.70	%	0.2	%
Total Risk-based Capital Ratio Sept. 30		10.37	%		10.38	%	(0.1	%)
ASSET QUALITY during period:
Net Charge-offs (Recoveries)	$	215		$	(41	)	—		$	467		$	(123	)	—
Net Charge-offs (Recoveries)/
Average Net Loans (annualized)		0.08	%		(0.02	%)	—			0.06	%		(0.02	%)	—
at end of period:
Non-accrual & Restructured Loans	$	1,775		$	952		86.4	%
Foreclosed Real Estate ("OREO")		—			—		0.0	%
Total Non-performing Assets		1,775			952		86.4	%
Allowance/Non-performing Assets		449.01	%		783.51	%	(42.7	%)
Allowance/Loans, Net of Discount		0.75	%		0.80	%	(6.3	%)
Net Loans/Deposits		80.15	%		79.86	%	0.4	%
EQUITY
Shares Outstanding		9,576,354			9,715,592		(1.4	%)
Common Equity	$	117,674		$	105,144		11.9	%
Book Value Per Common Share		12.29			10.82		13.6	%
Tangible Common Equity		116,860			104,330		12.0	%
Tangible Book Value Per Common Share		12.20			10.74		13.6	%
LOAN DISTRIBUTION at end of period:
Commercial, Financial & Agricultural Loans	$	219,412		$	195,613		12.2	%
Commercial Real Estate Mortgages		346,492			309,952		11.8	%
Real Estate -Construction Loans		120,746			90,259		33.8	%
Residential Mortgages (1st and 2nd Liens)		210,150			171,669		22.4	%
Home Equity Loans		70,746			65,972		7.2	%
Consumer Loans		93,119			99,798		(6.7	%)
Other Loans		993			839		18.4	%
Total Loans (Net of Unearned Discounts)	$	1,061,658		$	934,102		13.7	%

PRESS RELEASE October 15, 2008 Page 3 of 4

CONSOLIDATED STATEMENTS OF CONDITION

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

	September 30,
	2008			2007			Change
ASSETS
Cash & Due From Banks	$	57,043		$	49,453		15.3	%
Federal Funds Sold		61,800			—		100.0	%
Investment Securities:
Available for Sale, at Fair Value		387,404			391,402		(1.0	%)
Obligations of States & Political Subdivisions		11,415			8,455		35.0	%
Federal Reserve Bank Stock		638			638		0.0	%
Federal Home Loan Bank Stock		7,697			5,320		44.7	%
Corporate Bonds & Other Securities		100			100		0.0	%
Total Investment Securities		407,254			405,915		0.3	%
Total Loans		1,061,658			934,102		13.7	%
Allowance for Loan Losses		7,970			7,459		6.9	%
Net Loans		1,053,688			926,643		13.7	%
Premises & Equipment, Net		22,047			21,985		0.3	%
Accrued Interest Receivable, Net		7,537			8,068		(6.6	%)
Excess of Cost Over Fair Value of Net Assets Acquired		814			814		0.0	%
Other Assets		16,747			14,250		17.5	%
TOTAL ASSETS	$	1,626,930		$	1,427,128		14.0	%
LIABILITIES & STOCKHOLDERS' EQUITY
Demand Deposits	$	452,781		$	417,387		8.5	%
Saving, N.O.W. & Money Market Deposits		538,641			416,751		29.2	%
Time Certificates of $100,000 or More		147,709			127,482		15.9	%
Other Time Deposits		175,438			198,778		(11.7	%)
Total Deposits		1,314,569			1,160,398		13.3	%
Federal Home Loan Bank Borrowings		140,000			88,000		59.1	%
Repurchase Agreements		37,620			53,790		(30.1	%)
Dividend Payable on Common Stock		2,107			2,143		(1.7	%)
Accrued Interest Payable		2,246			2,481		(9.5	%)
Other Liabilities		12,714			15,172		(16.2	%)
TOTAL LIABILITIES		1,509,256			1,321,984		14.2	%
STOCKHOLDERS' EQUITY
Common Stock (par value $2.50; 15,000,000 shares authorized; 9,576,354 and 9,715,592 shares outstanding at September 30, 2008 and 2007, respectively)		33,930			33,911		0.1	%
Surplus		20,515			20,111		2.0	%
Treasury Stock at Par (3,995,661 and 3,848,799 shares, respectively)		(9,989	)		(9,622	)	3.8	%
Retained Earnings		75,752			63,425		19.4	%
		120,208			107,825		11.5	%
Accumulated Other Comprehensive Loss, Net of Tax		(2,534	)		(2,681	)	(5.5	%)
TOTAL STOCKHOLDERS' EQUITY		117,674			105,144		11.9	%
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY	$	1,626,930		$	1,427,128		14.0	%

PRESS RELEASE October 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
	9/30/08		9/30/07		Change		2008		2007		Change
INTEREST INCOME
Federal Funds Sold	$	262	$	53	394.3	%	$	265	$	136	94.9	%
United States Treasury Securities		100		99	1.0	%		298		297	0.3	%
Obligations of States & Political Subdivisions		1,595		1,407	13.4	%		4,643		3,955	17.4	%
Mortgage-Backed Securities		2,029		1,891	7.3	%		5,994		5,878	2.0	%
U.S. Government Agency Obligations		855		1,083	(21.1	%)		2,948		3,518	(16.2	%)
Corporate Bonds & Other Securities		119		96	24.0	%		500		304	64.5	%
Loans		17,494		17,845	(2.0	%)		51,759		52,782	(1.9	%)
Total Interest Income		22,454		22,474	(0.1	%)		66,407		66,870	(0.7	%)
INTEREST EXPENSE
Saving, N.O.W. & Money Market Deposits		2,085		1,221	70.8	%		4,841		3,632	33.3	%
Time Certificates of $100,000 or more		1,030		1,408	(26.8	%)		3,163		3,751	(15.7	%)
Other Time Deposits		1,307		2,076	(37.0	%)		4,641		6,097	(23.9	%)
Federal Funds Purchased & Repurchase Agreements		295		739	(60.1	%)		1,181		2,180	(45.8	%)
Interest on Other Borrowings		1,052		983	7.0	%		3,595		3,096	16.1	%
Total Interest Expense		5,769		6,427	(10.2	%)		17,421		18,756	(7.1	%)
Net-interest Income		16,685		16,047	4.0	%		48,986		48,114	1.8	%
Provision for Loan Losses		300		22	1,263.6	%		825		152	442.8	%
Net-interest Income After Provision		16,385		16,025	2.2	%		48,161		47,962	0.4	%
OTHER INCOME
Service Charges on Deposit Accounts		1,402		1,339	4.7	%		4,208		4,015	4.8	%
Other Service Charges, Commissions & Fees		904		784	15.3	%		2,350		2,199	6.9	%
Fiduciary Fees		366		363	0.8	%		1,114		1,022	9.0	%
Net Securities Gains		—		—	0.0	%		3,737		—	100.0	%
Other Operating Income		129		270	(52.2	%)		434		449	(3.3	%)
Total Other Income		2,801		2,756	1.6	%		11,843		7,685	54.1	%
OTHER EXPENSE
Salaries & Employee Benefits		6,520		6,062	7.6	%		19,179		18,396	4.3	%
Net Occupancy Expense		1,289		1,061	21.5	%		3,463		3,065	13.0	%
Equipment Expense		534		515	3.7	%		1,580		1,660	(4.8	%)
Other Operating Expense		2,546		2,269	12.2	%		7,456		7,428	0.4	%
Total Other Expense		10,889		9,907	9.9	%		31,678		30,549	3.7	%
Income Before Provision for Income Taxes		8,297		8,874	(6.5	%)		28,326		25,098	12.9	%
Provision for Income Taxes		2,330		2,831	(17.7	%)		9,086		8,574	6.0	%
NET INCOME	$	5,967	$	6,043	(1.3	%)	$	19,240	$	16,524	16.4	%
Average: Common Shares Outstanding		9,575,691		9,765,095	(1.9	%)		9,579,312		9,969,036	(3.9	%)
Dilutive Stock Options		27,742		15,118	83.5	%		21,282		20,657	3.0	%
Average Total		9,603,433		9,780,213	(1.8	%)		9,600,594		9,989,693	(3.9	%)
EARNINGS PER COMMON SHAREBasic	$	0.62	$	0.61	1.6	%	$	2.01	$	1.66	21.1	%
Diluted	$	0.62	$	0.61	1.6	%	$	2.00	$	1.65	21.2	%