Sussex Bancorp Announces Increased Second Quarter 2004 Earnings

Sussex Bancorp Announces Increased Second Quarter 2004 Earnings
Declares Quarterly Cash Dividend of $.07 Per Share 


FRANKLIN, N.J., July 22  /PRNewswire-FirstCall/ -- Sussex Bancorp (AMEX:SBB)
today announced its financial results for the second quarter ending June 30,
2004.

   Second Quarter Highlights Include:

   * Quarterly net income growth of 8.6% from same quarter in 2003
   * Growth in quarterly non-interest income of $145 thousand or 14.2% over
     same quarter in 2003
   * Declares cash dividend



For the quarter ended June 30, 2004, the Company earned net income of $391,000,
an increase of 8.6% over net income of $360,000 reported for the second quarter
of 2003. For the six months ended June 30, 2004, the Company earned net income
of $762,000, an increase of $89,000 from the $673,000 earned for the same
period last year.  Basic earnings per share for the three and six months ended
June 30, 2004 were $0.21 and $0.42 respectively, compared to $0.20 and $0.38
for the respective comparable periods of 2003.  Diluted earnings per share were
$0.20 and $0.40 respectively for the three and six months ended June 30, 2004,
compared to $0.20 and $0.37 in the respective comparable periods of 2003.

The Company's net interest income increased to $2,123,000 for the quarter ended
June 30, 2004 from $1,951,000 for the second quarter of 2003.  The Company's
interest expense decreased to $686,000 for the three months ended June 30, 2004
from $744,000 for the second quarter of 2003. The Company's interest income
increased to $2,809,000 for the quarter ended June 30, 2004 from $2,695,000 for
the second quarter of 2003.  For the six months ended June 30, 2004, the
Company's net interest income increased to $4,255,000 from the $3,864,000
earned for the same period last year.  For the six months ended June 30, 2004,
the Company's interest income increased to $5,608,000 from $5,380,000 for the
period ended June 30, 2003.  The Company's total deposits increased to $217.4
million at June 30, 2004 from $200.4 million at June 30, 2003.  At June 30,
2004 the Company had total assets of $251.1 million, compared to total assets
of $235.4 million at June 30, 2003.

The loan loss provision for the second quarter was $105,000 compared to
$120,000 for the same period last year.  The Company's total loans increased
$18.6 million to $144.3 million at June 30, 2004 from $125.7 million at June
30, 2003.

The Company also experienced increases in non-interest income in both the
current quarter and year to date periods compared to 2003.  The Company
reported non-interest income of $1,167,000 and $2,317,000 for the current three
and six month periods, respectively, compared to non-interest income of
$1,022,000 and $2,017,000 for the three and six month periods ending June 30,
2003.  For the three and six month periods ending June 30, 2004, $604,000 and
$1,170,000 of the non-interest income was commission income from the Company's
Tri-State Insurance Agency, Inc. subsidiary.

Sussex Bancorp also announced that its Board of Directors declared a cash
dividend of $0. 07 per share, payable on August 23, 2004 to shareholders of
record as of August 2, 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 Six Months
                                                 Ended June 30,
  (In thousands, except
  share and per share data)                2004                 2003

  Interest income                        $5,608               $5,380
  Interest expense                        1,353                1,516
  Net interest income                     4,255                3,864
  Provision for loan losses                 253                  245
  Net interest income after
   provision for loan losses              4,002                3,619
  Non-interest income                     2,317                2,017
  Non-interest expense                    5,270                4,723
  Income before tax expense               1,049                  913
  Tax expense                               287                  240
  Net income                               $762                 $673

  Basic earnings per share                $0.42                $0.38
  Diluted earnings per share              $0.40                $0.37

  Shares outstanding:
  Basic                               1,825,862            1,780,344
  Diluted                             1,921,038            1,837,643


                                SUSSEX BANCORP
                         CONSOLIDATED BALANCE SHEETS

                                           Balances as of June 30,

  (In thousands)                           2004                 2003

  Cash and due from banks               $12,287              $12,238
  Federal funds sold                      4,990                9,140
    Cash and cash equivalents            17,377               22,378

  Interest bearing time deposits
   with other banks                         500                3,500
  Securities available for sale,
   at fair value                         74,759               74,709
  Federal Home Loan Bank stock, at cost     760                  690

  Loans                                 144,275              125,702
  Allowance for loan losses              (1,958)              (1,590)
  Net loans                             142,317              124,112

  Premises and equipment, net             5,470                4,469
  Accrued interest receivable             1,209                 1208
  Goodwill, net                           2,124                1,932
  Other assets                            6,669                3,331

      Total assets                     $251,115             $235,399

  Deposits                              217,399              200,427
  Borrowings                             11,000               13,000
  Other liabilities                       2,520                2,546
  Junior subordinated debentures          5,155                    -
  Mandatory redeemable capital debentures     -                5,000
  Total liabilities                     236,074              220,973

  Total shareholders' equity             15,041               14,426

      Total liabilities and
       shareholders' equity            $251,115             $235,399


DATASOURCE: Sussex Bancorp



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

Bancorp, [phone]



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

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