Sussex Bancorp Announces Increased First Quarter 2004 Earnings

Sussex Bancorp Announces Increased First Quarter 2004 Earnings
Declares Quarterly Cash Dividend Of $0.07 Per Share 


FRANKLIN, N.J., April 22  /PRNewswire-FirstCall/ -- Sussex Bancorp  today
announced its financial results for the first quarter ending March 31, 2004.

   First Quarter Highlights Include:
   * Quarterly net income growth of 19% from same quarter in 2003
   * Quarterly non-interest income increases approximately 16% over same
     quarter in 2003
   * Cash dividend of $.07 per share



For the quarter ended March 31, 2004, the Company earned net income of
$371,000, an increase of approximately 19 percent over net income of $313,000
for the first quarter of 2003. Basic earnings per share for the two periods
were $0.20 and $0.18 respectively. Diluted earnings per share were $0.19 and
$0.17 for the two periods.

The Company's net interest income increased to $2,132,000 for the quarter ended
March 31, 2004 from $1,913,000 for the first quarter of 2003. The Company's
interest income increased to $2,799,000 for the three months ended March 31,
2004 from $2,685,000 for the first quarter of 2003.  The Company's interest
expense decreased to $667,000 for the three months from $772,000 for the first
quarter of 2003. The Company's total deposits increased to $212.8 million at
March 31, 2004 from $195.4 million at March 31, 2003.  At March 31, 2004 the
Company had total assets of $247.1 million, compared to total assets of $230.7
million at March 31, 2003.

The loan loss provision for the first quarter was $148,000 compared to $125,000
for the same period last year.  The Company's total loans increased $20.4
million to $138.9 million at March 31, 2004 from $118.5 million at March 31,
2003. The Company's increase in its loan loss provision is primarily due to
continued growth in the portfolio.

The Company's non-interest income increased in the first quarter, year over
year, by $155,000.  The Company reported non-interest income of $1,150,000 for
the current first quarter compared to $995,000 for the first quarter of 2003. 
The increase primarily reflects fees earned by the residential lending division
of the bank.

Sussex Bancorp also announced that its Board of Directors declared a cash
dividend of $0.07 per share, payable on May 24, 2004 to shareholders of record
as of May 3, 2004.

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 STATEMENTS OF INCOME

                                                     For the Three Months
                                                        Ended March 31,
  (In thousands, except
   share and per share data)                          2004            2003

  Interest income                                   $2,799          $2,685
  Interest expense                                     667             772
  Net interest income                                2,132           1,913
  Provision for loan losses                            148             125
  Net interest income after
   provision for loan losses                         1,984           1,788
  Non-interest income                                1,150             995
  Non-interest expense                               2,628           2,357
  Income before tax expense                            506             426
  Tax expense                                          135             113
  Net income                                          $371            $313

  Basic earnings per share                           $0.20           $0.18
  Diluted earnings per share                         $0.19           $0.17

  Shares outstanding:
  Basic                                          1,819,382       1,777,155
  Diluted                                        1,921,272       1,832,661


                               SUSSEX BANCORP
                         CONSOLIDATED BALANCE SHEETS

                                                       Balances as of
                                                         March 31,

  (In thousands)                                      2004            2003

  Cash and due from banks                          $10,027          $9,521
  Federal funds sold                                 5,965          13,200
    Cash and cash equivalents                       15,992          22,721

  Interest bearing time deposits with
   other banks                                       3,500           3,600
  Securities available for sale, at fair
   value                                            76,056          75,566
  Federal Home Loan Bank stock, at cost                760             700

  Loans                                            138,945         118,531
  Allowance for loan losses                         (1,853)         (1,496)
  Net loans                                        137,092         117,035

  Premises and equipment, net                        4,970           4,575
  Accrued interest receivable                        1,221           1,228
  Goodwill, net                                      2,124           1,932
  Other assets                                       5,356           3,361
    Total assets                                  $247,071        $230,718

  Deposits                                         212,845         195,350
  Borrowings                                        11,000          14,000
  Other liabilities                                  2,435           2,598
  Mandatory redeemable capital debentures            5,000           5,000
  Total liabilities                                231,280         211,948

  Total shareholders' equity                        15,791          13,770

    Total liabilities and shareholders'
     equity                                       $247,071        $230,718


DATASOURCE: Sussex Bancorp



CONTACT:  Candace Leatham, Executive Vice President & Treasurer of Sussex

Bancorp, [phone], extension 161



Web site:  http://www.sussexbank.com/ 

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