FRANKLIN, N.J., Jan. 19 /PRNewswire-FirstCall/ -- Sussex Bancorp (AMEX: SBB) today announced net income $2,399,000 for the year ended December 31, 2005, or $0.76 per basic share compared to net income of $1,591,000, or $0.81 per basic share, for the prior year. 2005 highlights include: * Net income growth of 50.8% * Interest income increased by $3,756,000 For the year ended December 31, 2005, the Company earned net income of $2,399,000 an increase of approximately 50.8 percent over net income of $1,591,000 for the same period last year. Basic and diluted earnings per share for the year ended December 31, 2005 were $0.76 and $0.75 respectively, compared to $0.81 and $0.78 respectively, in the year ago period. During 2005, the Company had 3,153,004 shares outstanding, compared to 2,994,874 shares outstanding in the prior year period, reflecting the Company's successful capital offering near year-end 2004. The Company raised $15.1 million in additional capital and issued 1,131,150 shares of its common stock in December 2004. The Company's total interest income increased to $15,547,000 for the year ended December 31, 2005 from $11,791,000 for the same period last year, reflecting the increase in the loan portfolio yields and average balances. For the year ended December 31, 2005, the Company's non-interest income increased by $331,000 or 7.3%, to $4.9 million from $4.5 million for the same period last year. The Company's interest expense increased to $4,328,000 for the year ended December 31, 2005 from $2,814,000 for the same period last year. The Company's total non-interest expense increased by $814,000 reflecting increases associated with the Company's growth. The loan loss provision for the year ended December 31, 2005 increased to $1,138,000 from $558,000, reflecting the 34.7% growth in the loan portfolio, over the same period last year. At December 31, 2005 the Company had total loans of $211.3 million, compared to total loans of $156.9 million at December 31, 2004. At December 31, 2005 the Company had total assets of $313.2 million, compared to total assets of $278.3 million at December 31, 2004. In addition, the Company had total deposits of $256.8 million, compared to total deposits of $229.8 million at December 31, 2004. Sussex Bancorp is the holding company for the Sussex Bank, which operates through its main office in Franklin, New Jersey and branch offices in Andover, Augusta, Newton, Montague, Sparta, Vernon and Wantage, New Jersey and for Tri- State Insurance Agency, Inc, Augusta, New Jersey. In addition, the Company recently announced its expansion into New York state, purchasing a branch location in Port Jervis, N.Y. The transaction is expected to close later in the first quarter. SUSSEX BANCORP CONSOLIDATED BALANCE SHEETS (Dollars In Thousands) December 31, December 31, ASSETS 2005 2004 Cash and due from banks $11,395 $10,434 Federal funds sold 13,385 18,860 Cash and cash equivalents 24,780 29,294 Interest bearing time deposits with other banks 500 3,900 Securities available for sale 61,180 74,736 Federal Home Loan Bank Stock, at cost 1,025 690 Loans receivable, net of unearned income 211,335 156,916 Less: allowance for loan losses 2,615 2,274 Net loans receivable 208,720 154,642 Premises and equipment, net 6,619 5,618 Accrued interest receivable 1,778 1,330 Goodwill 2,334 2,334 Other assets 6,246 5,731 Total Assets $313,182 $278,275 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Deposits: Non-interest bearing $39,148 $34,451 Interest bearing 217,699 195,376 Total Deposits 256,847 229,827 Federal funds purchased - - Borrowings 16,300 10,000 Accrued interest payable and other liabilities 1,956 1,641 Junior subordinated debentures 5,155 5,155 Total Liabilities 280,258 246,623 Stockholders' Equity: Common stock, no par value, authorized 5,000,000 shares; issued and outstanding 3,153,004 in 2005 and 2,994,874 in 2004 27,300 25,397 Retained earnings 5,842 6,116 Accumulated other comprehensive income (218) 139 Total Stockholders' Equity 32,924 31,652 Total Liabilities and Stockholders' Equity $313,182 $278,275 SUSSEX BANCORP CONSOLIDATED STATEMENTS OF INCOME (Dollars In Thousands Except Per Share Data) Year Ended December 31, 2005 2004 INTEREST INCOME Loans receivable, including fees $12,331 $8,954 Securities: Taxable 1,650 1,812 Tax-exempt 1,145 869 Federal funds sold 359 97 Interest bearing deposits 62 59 Total Interest Income 15,547 11,791 INTEREST EXPENSE Deposits 3,286 2,032 Borrowings 686 522 Junior subordinated debentures 356 260 Total Interest Expense 4,328 2,814 Net Interest Income 11,219 8,977 PROVISION FOR LOAN LOSSES 1,138 558 Net Interest Income after Provision for Loan Losses 10,081 8,419 OTHER INCOME Service fees on deposit accounts 1,225 748 ATM fees 347 324 Insurance commissions and fees 2,327 2,195 Mortgage broker fees 212 620 Investment brokerage fees 291 292 Net realized gain on sale of fixed assets 8 - Net realized gain on sale of securities 35 16 Net gain (loss) on sale of foreclosed real estate 6 (5) Other 422 352 Total Other Income 4,873 4,542 OTHER EXPENSES Salaries and employee benefits 6,340 6,208 Occupancy, net 989 854 Furniture and equipment 1,078 902 Stationary and supplies 179 181 Professional fees 545 356 Advertising and promotion 507 411 Insurance 170 167 Postage and freight 171 175 Amortization of intangible assets 249 200 Other 1,375 1,335 Total Other Expenses 11,603 10,789 Income before Income Taxes 3,351 2,172 PROVISION FOR INCOME TAXES 952 581 Net Income $2,399 $1,591 SUSSEX BANCORP COMPARATIVE AVERAGE BALANCES AND AVERAGE INTEREST RATES (Dollars In Thousands) Years Ended December 31, 2005 2004 Average Average Average Average Balance Interest(1) Rate(2) Balance Interest(1) Rate(2) Earning Assets: Securities: Tax exempt(3) $26,716 $1,614 6.04% $22,176 $1,241 5.60% Taxable 44,849 1,650 3.68% 51,684 1,812 3.51% Total securities 71,565 3,264 4.56% 73,860 3,053 4.13% Total loans receivable(4) 185,287 12,331 6.66% 143,916 8,954 6.22% Other interest- earning assets 12,600 421 3.34% 10,409 156 1.50% Total earning assets 269,452 $16,016 5.94% 228,185 $12,163 5.33% Non-interest earning assets 24,146 25,311 Allowance for loan losses (2,230) (1,958) Total Assets $291,368 $251,538 Sources of Funds: Interest bearing deposits: NOW $43,939 $299 0.68% $42,412 $196 0.46% Money market 22,083 534 2.42% 16,878 184 1.09% Savings 62,025 456 0.74% 66,322 439 0.66% Time 71,174 1,997 2.81% 58,443 1,213 2.08% Total interest bearing deposits 199,221 3,286 1.65% 184,055 2,032 1.10% Borrowed funds 14,771 686 4.64% 10,630 522 4.91% Junior subordinated debentures 5,155 356 6.91% 5,155 260 5.05% Total interest bearing liabilities 219,147 $4,328 1.97% 199,840 $2,814 1.41% Non-interest bearing liabilities: Demand deposits 38,067 33,627 Other liabilities 1,785 2,004 Total non-interest bearing liabilities 39,852 35,631 Stockholders' equity 32,368 16,067 Total Liabilities and Stockholders' Equity $291,368 $251,538 Net Interest Income and Margin(5) $11,688 4.34% $9,349 4.10% (1) Includes loan fee income (2) Average rates on securities are calculated on amortized costs (3) Full taxable equivalent basis, using a 39% effective tax rate and adjusted for TEFRA (Tax and Equity Fiscal Responsibility Act) interest expense disallowance (4) Loans outstanding include non-accrual loans (5) Represents the difference between interest earned and interest paid, divided by average total interest-earning assets DATASOURCE: Sussex Bancorp CONTACT: Candace Leatham, Executive Vice President/Treasurer of Sussex Bancorp, +1-973-827-2914 Web site: http://www.sussexbank.com/

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