Sussex Bancorp Announces Increased Second Quarter 2005 Earnings Declares Quarterly Cash Dividend Of $0.07 Per Share FRANKLIN, N.J., July 21 /PRNewswire-FirstCall/ -- Sussex Bancorp (AMEX: SBB) today announced its financial results for the second quarter ending June 30, 2005. Second Quarter Highlights Include: * Quarterly net income growth of 70.3% from same quarter in 2004 * Growth in quarterly non-interest income of $157 thousand or 13.5% over same quarter in 2004 * Cash dividend For the quarter ended June 30, 2005, the Company earned net income of $666,000, an increase of 70.3% over net income of $391,000 reported for the second quarter of 2004. For the six months ended June 30, 2005, the Company earned net income of $1,186,000, an increase of $424,000 from the $762,000 earned for the same period last year. Basic earnings per share for the three and six months ended June 30, 2005 were $0.22 and $0.39 respectively, compared to $0.21 and $0.42 for the respective comparable periods of 2004. Diluted earnings per share were $0.22 and $0.39 respectively for the three and six months ended June 30, 2005, compared to $0.20 and $0.40 in the respective comparable periods of 2004. The Company's net interest income increased to $2,742,000 for the quarter ended June 30, 2005 from $2,123,000 for the second quarter of 2004. The Company's interest income increased to $3,684,000 for the quarter ended June 30, 2005 from $2,809,000 for the second quarter of 2004. The Company's interest expense increased to $942,000 for the three months ended June 30, 2005 from $686,000 for the second quarter of 2004. For the six months ended June 30, 2005, the Company's net interest income increased to $5,378,000 from the $4,255,000 earned for the same period last year. For the six months ended June 30, 2005, the Company's interest income increased to $7,107,000 from $5,608,000 for the period ended June 30, 2004. The Company's total deposits increased to $236.3 million at June 30, 2005 from $217.4 million at June 30, 2004. At June 30, 2005 the Company had total assets of $290.4 million, compared to total assets of $251.1 million at June 30, 2004. The loan loss provision for the second quarter was $206,000 compared to $105,000 for the same period last year. The Company's total loans increased $42 million to $186.3 million at June 30, 2005 from $144.3 million at June 30, 2004. The Company also experienced increases in non-interest income in both the current quarter and year to date periods compared to 2004. The Company reported non-interest income of $1,324,000 and $2,425,000 for the current three and six month periods, respectively, compared to non-interest income of $1,167,000 and $2,317,000 for the three and six month periods ending June 30, 2004. For the three and six month periods ending June 30, 2005, $315,000 and $551,000 was from service charges on deposit accounts. Sussex Bancorp also announced that its Board of Directors declared a cash dividend of $0.07 per share, payable on August 30, 2005 to shareholders of record as of August 2, 2005. Sussex Bancorp is the holding company for 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 the Tri-State Insurance Agency, Inc., a full service insurance agency located in Sussex County, New Jersey. SUSSEX BANCORP CONSOLIDATED STATEMENT OF CONDITION (In Thousands, Except Share Data) (Unaudited) ASSETS June 30, 2005 June 30, 2004 Cash and due from banks $14,186 $12,387 Federal funds sold 2,195 4,990 Time deposits with other banks 500 500 Securities available for sale 73,352 75,449 Loans receivable, net of unearned income 186,278 144,275 Allowance for loan losses (2,158) (1,958) Net loans 184,120 142,317 Premises and equipment 5,830 5,470 Accrued interest receivable 1,567 1,209 Goodwill 2,334 2,124 Other assets 6,362 6,669 Total Assets $290,446 $251,115 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Deposits: Non-interest bearing $36,719 $35,710 Interest bearing 199,613 181,689 Total Deposits 236,332 217,399 Borrowings 14,000 11,000 Other liabilities 2,365 2,520 Junior subordinated debentures 5,155 5,155 Total Liabilities 257,852 236,074 Stockholders' Equity: Common Stock, no par value, authorized 5,000,000 shares: outstanding shares, 3,017,213 in 2005 and 1,835,085 in 2004 25,580 9,913 Retained earnings 6,881 5,547 Other comprehensive income, net of tax 133 (419) Total Stockholders' Equity 32,594 15,041 Total Liabilities and Stockholders' Equity $290,446 $251,115 SUSSEX BANCORP CONSOLIDATED STATEMENT OF INCOME (In Thousands, Except Share Data) (Unaudited) Six Months Ended June 30, 2005 2004 INTEREST INCOME: Interest and fees on loans $5,489 $4,262 Interest on federal funds sold 119 31 Interest on time deposits 27 17 Interest on securities: Taxable interest 880 885 Tax-exempt interest 592 413 Total Interest Income 7,107 5,608 INTEREST EXPENSE: Interest on deposits 1,273 967 Interest on borrowings 292 265 Interest on capital debentures 164 121 Total Interest Expense 1,729 1,353 Net Interest Income 5,378 4,255 PROVISION FOR LOAN LOSSES 341 253 Net Interest Income after Provision for Loan Losses 5,037 4,002 NON-INTEREST INCOME: Service charges on deposit accounts 551 382 Insurance commissions and fees 1,217 1,170 Other income 657 765 Total Non-Interest Income 2,425 2,317 NON-INTEREST EXPENSE: Salaries and employee benefits 3,203 3,090 Occupancy, net 488 414 Furniture and equipment 522 412 Other expenses 1,612 1,354 Total Non-Interest Expense 5,825 5,270 Income Before Income Tax Expense 1,637 1,049 PROVISION FOR INCOME TAX EXPENSE 451 287 Net Income $1,186 $762 SUSSEX BANCORP COMPARATIVE AVERAGE BALANCES AND AVERAGE INTEREST RATES (In Thousands) (Unaudited) Six Months Ended June 30, (dollars in thousands) 2005 2004 Average Average Average Average Earning Balance Interest(1) Rate (2) Balance Interest(1) Rate (2) Assets: Securities: Tax exempt(3) $27,749 $845 6.14% $22,172 $589 5.34% Taxable 47,954 880 3.70% 52,349 885 3.40% Total securities 75,703 1,725 4.60% 74,521 1,474 3.98% Total loans receivable(4) 169,676 5,489 6.52% 138,719 4,262 6.18% Other interest -earning assets 11,098 146 2.64% 9,255 48 1.05% Total earning assets 256,477 $7,360 5.79% 222,495 $5,784 5.23% Non-interest earning assets 23,813 24,527 Allowance for loan losses (2,051) (1,842) Total Assets $278,239 $245,180 Sources of Funds: Interest bearing deposits: NOW $7,685 $23 0.61% $47,066 $107 0.46% Money market 58,158 300 1.04% 8,784 42 0.97% Savings 65,214 226 0.70% 66,097 215 0.65% Time 62,039 724 2.35% 57,941 603 2.09% Total interest bearing deposits 193,096 1,273 1.33% 179,888 967 1.08% Borrowed funds 12,484 292 4.65% 11,000 265 4.77% Junior subordinated debentures 5,155 164 6.32% 5,155 121 4.64% Total interest bearing liabilities 210,735 $1,729 1.65% 196,043 $1,353 1.39% Non-interest bearing liabilities: Demand deposits 34,168 31,826 Other liabilities 1,451 2,159 Total non- interest bearing liabilities 35,619 33,985 Stockholders' equity 31,885 15,152 Total Liabilities and Stockholders' Equity $278,239 $245,180 Net Interest Income and Margin (5) $5,631 4.43% $4,431 4.01% (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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