SBB ProShares Short SmallCap600

--- FRANKLIN, N.J., April 20 /PRNewswire-FirstCall/ -- Sussex Bancorp (AMEX:SBB) today announced its financial results for the first quarter ending March 31, 2006. * Cash dividend of $0.07 per share * Quarterly earnings increased by 15% * Earnings per share increased over 18% * Increased share repurchase plan by 50,000 shares For the quarter ended March 31, 2006, the Company earned net income of $596,000, an increase of approximately 15 percent over net income of $520,000 for the first quarter of 2005. Basic earnings per share for the two periods were $0.19 and $0.16 respectively. Diluted earnings per share were $0.19 and $0.16 for the two periods. The Company's net interest income increased to $2,915,000 for the quarter ended March 31, 2006 from $2,636,000 for the first quarter of 2005. The Company's interest income increased to $4,581,000 for the three months ended March 31, 2006 from $3,423,000 for the first quarter of 2005. The Company's interest expense increased to $1,666,000 for the first quarter of 2006 from $767,000 for the first quarter of 2005. The Company's total deposits increased to $272.4 million at March 31, 2006 from $228.0 million at March 31, 2005. The Company's total loans increased $63.0 million to $229.6 million at March 31, 2006 from $166.6 million at March 31, 2005. At March 31, 2006 the Company had total assets of $326.4 million, compared to total assets of $280.2 million at March 31, 2005. The increase in deposits and loans is partially attributable to the bank's acquisition of $6.3 million in deposits and $3.4 million in loans in connection with its purchase of the Port Jervis, New York branch of NBT Bancorp. The loan loss provision for the first quarter was $216,000 compared to $135,000 for the same period last year. Sussex Bancorp also announced that its Board of Directors declared a cash dividend of $0.07 per share, payable on May 26, 2006 to shareholders of record as of May 5, 2006. In addition, the Board of Sussex Bancorp also increased the Company's share repurchase program by 50,000 shares, to a total of 150,000 shares. The Company has already repurchased 78,483 shares under the program. Purchases may be made in open market or privately negotiated transactions. Mr. Donald L. Kovach, Chairman and Chief Executive Officer of the Company, stated, "First quarter results were in line with our expectations and reflect the continued execution of our strategic plan. We will continue to drive growth through expansion into contiguous markets and will focus on building assets through superior service and product offerings." 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, Port Jervis, New York and for the Tri-State Insurance Agency, Inc., a full service insurance agency located in Sussex County, New Jersey. SUSSEX BANCORP CONSOLIDATED BALANCE SHEETS (Dollars In Thousands) March 31, March 31, December 31, ASSETS 2006 2005 2005 Cash and due from banks $10,742 $9,922 $11,395 Federal funds sold 11,780 12,800 13,385 Cash and cash equivalents 22,522 22,722 24,780 Interest bearing time deposits with other banks 500 500 500 Securities available for sale 58,354 75,509 61,180 Federal Home Loan Bank Stock, at cost 890 700 1,025 Loans receivable, net of unearned income 229,614 166,639 211,335 Less: allowance for loan losses 2,824 1,828 2,615 Net loans receivable 226,790 164,811 208,720 Premises and equipment, net 6,688 5,952 6,619 Accrued interest receivable 1,439 1,409 1,778 Goodwill 2,837 2,334 2,334 Other assets 6,367 6,282 6,246 Total Assets $326,387 $280,219 $313,182 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Deposits: Non-interest bearing $51,978 $31,934 $39,148 Interest bearing 220,456 196,020 217,699 Total Deposits 272,434 227,954 256,847 Borrowings 13,288 14,000 16,300 Accrued interest payable and other liabilities 2,156 1,569 1,956 Junior subordinated debentures 5,155 5,155 5,155 Total Liabilities 293,033 248,678 280,258 Total Stockholders' Equity 33,354 31,541 32,924 Total Liabilities and Stockholders' Equity $326,387 $280,219 $313,182 SUSSEX BANCORP CONSOLIDATED STATEMENTS OF INCOME (Dollars In Thousands Except Per Share Data) Three Months Ended March 31, 2006 2005 INTEREST INCOME Loans receivable, including fees $3,813 $2,620 Securities: Taxable 353 447 Tax-exempt 261 293 Federal funds sold 149 40 Interest bearing deposits 5 23 Total Interest Income 4,581 3,423 INTEREST EXPENSE Deposits 1,372 578 Borrowings 191 131 Junior subordinated debentures 103 78 Total Interest Expense 1,666 787 Net Interest Income 2,915 2,636 PROVISION FOR LOAN LOSSES 216 135 Net Interest Income after Provision for Loan Losses 2,699 2,501 OTHER INCOME Service fees on deposit accounts 320 236 ATM fees 82 83 Insurance commissions and fees 733 595 Mortgage broker fees 4 58 Investment brokerage fees 52 64 Other 100 65 Total Other Income 1,291 1,101 OTHER EXPENSES Salaries and employee benefits 1,639 1,594 Occupancy, net 271 255 Furniture, equipment and data processing 278 251 Stationary and supplies 51 48 Professional fees 178 115 Advertising and promotion 185 116 Insurance 58 42 Postage and freight 52 45 Amortization of intangible assets 33 64 Other 384 373 Total Other Expenses 3,129 2,903 Income before Income Taxes 861 699 PROVISION FOR INCOME TAXES 265 179 Net Income $596 $520 SUSSEX BANCORP COMPARATIVE AVERAGE BALANCES AND AVERAGE INTEREST RATES (Dollars In Thousands) (dollars in thousands) 2006 2005 Average Average Average Average Earning Assets: Balance Interest(1) Rate(2) Balance Interest(1) Rate (2) Securities: Tax exempt(3) $24,178 $356 5.96% $27,498 $420 6.19% Taxable 36,546 353 3.92% 48,887 447 3.71% Total securities 60,724 709 4.73% 76,385 867 4.60% Total loans receivable(4) 219,172 3,813 7.06% 163,732 2,620 6.49% Other interest- earning assets 14,220 154 4.41% 11,075 63 2.32% Total earning assets 294,116 $4,676 6.45% 251,192 $3,550 5.73% Non-interest earning assets 24,768 23,795 Allowance for loan losses (2,707) (2,200) Total Assets $316,177 $272,787 Sources of Funds: Interest bearing deposits: NOW $48,402 $201 1.68% $7,386 $9 0.49% Money market 27,663 242 3.54% 57,329 140 0.99% Savings 50,798 103 0.82% 66,464 115 0.70% Time 92,147 827 3.64% 59,613 314 2.14% Total interest bearing deposits 219,010 1,372 2.54% 190,792 578 1.23% Borrowed funds 16,192 191 4.72% 10,951 131 4.77% Junior subordinated debentures 5,155 103 7.97% 5,155 78 6.08% Total interest bearing liabilities 240,357 $1,666 2.81% 206,898 $787 1.54% Non-interest bearing liabilities: Demand deposits 40,491 32,747 Other liabilities 2,084 1,372 Total non-interest bearing liabilities 42,575 34,119 Stockholders' equity 33,245 31,770 Total Liabilities and Stockholders' Equity $316,177 $272,787 Net Interest Income and Margin(5) $3,010 4.15% $2,763 4.46% (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) 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 and Treasurer of Sussex Bancorp, +1-973-827-2914 Web site: http://www.sussexbank.com/

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