FRANKLIN, N.J., April 17, 2008 (PRIME NEWSWIRE) -- Sussex Bancorp (Nasdaq:SBBX) today announced its financial results for the first quarter ended March 31, 2008.

For the quarter ended March 31, 2008, the Company earned net income of $637,000, a decrease of approximately 12.0 percent from net income of $724,000 for the first quarter of 2007. Basic earnings per share for the two periods were $0.21 and $0.23, respectively. Diluted earnings per share were $0.20 and $0.23 for the first quarter of 2008 and 2007, respectively. The Company's first quarter 2008 performance reflects increases in net interest income and non-interest income, offset by increased provision for loan losses and non-interest expense.

The Company's net interest income increased $42 thousand, to $2.9 million for the quarter ended March 31, 2008 from $2.8 million for the first quarter of 2007. The Company's interest income increased $204 thousand, or 3.8%, to $5.6 million for the three months ended March 31, 2008 from $5.4 million for the first quarter of 2007. However, the Company's interest expense increased $162 thousand, or 6.4%, to $2.7 million for the first quarter of 2008 from $2.5 million for the first quarter of 2007. The increase in interest expense reflects the continued competitive marketplace for cost effective deposits in the Company's trade area, as well as an increase in the Company's outstanding junior subordinated debentures related to the Company's trust preferred securities. The Company's outstanding junior subordinated debentures increased from $5.2 million at March 31, 2007 to $12.9 million at March 31, 2008. The Company believes that additional trust preferred securities have provided a cost efficient funding source for the continued growth in the Company's loan portfolio.

The Company's non-interest income increased to $1.7 million for the quarter ended March 31, 2008 from $1.6 million for the first quarter of 2007. The increase in non-interest income is attributable to holding gains on trading securities, gains on sales of securities and increases in service fees on deposit accounts and ATM fees. The Company's non-interest expense increased to $3.5 million for the quarter ended March 31, 2008 from $3.2 million for the first quarter of 2007. Salary and employee benefits increased by $97 thousand, occupancy expense increased $45 thousand attributable to increases in fuel costs, furniture, fixtures and equipment and data processing increased $35 thousand and FDIC insurance increased $86 thousand.

The Company's total deposits increased to $319.2 million at March 31, 2008 from $293.9 million at March 31, 2007. The Company's gross loans, net of unearned income increased $31.7 million to $302.4 million at March 31, 2008 from $270.7 million at March 31, 2007. At March 31, 2008 the Company had total assets of $405.5 million, compared to total assets of $357.2 million at March 31, 2007. The loan loss provision for the first quarter of 2008 was $173 thousand compared to $108 thousand 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 15, 2008 to shareholders of record as of May 1, 2008.

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 and Warwick, 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)
                              (Unaudited)

                                       March 31,  March 31,   Dec. 31,
 ASSETS                                  2008       2007        2007
 ------                                --------   --------   --------
 
 Cash and due from banks               $ 11,934   $  7,783   $  7,985
 Federal funds sold                      10,350      2,665      3,790
                                       --------   --------   --------
    Cash and cash equivalents            22,284     10,448     11,775

 Interest bearing time
  deposits with other banks                 100        100        100

 Trading securities                      13,834     13,476     14,259
 Securities available for sale           48,997     44,945     48,397
 Federal Home Loan Bank Stock,
  at cost                                 2,077      1,277      2,032

 Loans receivable, net of
  unearned income                       302,402    270,740    300,646
   Less:  allowance for loan losses       5,309      3,428      5,140
                                       --------   --------   --------
     Net loans receivable               297,093    267,312    295,506

 Premises and equipment, net              8,941      8,172      9,112
 Accrued interest receivable              1,944      1,685      2,035
 Goodwill                                 2,820      2,820      2,820
 Other assets                             7,435      7,017      7,496
                                       --------   --------   --------
 Total Assets                          $405,525   $357,252   $393,532
                                       ========   ========   ========

 LIABILITIES AND STOCKHOLDERS' EQUITY
 ------------------------------------
 
 Liabilities:
    Deposits:
       Non-interest bearing            $ 42,621   $ 37,215   $ 36,625
       Interest bearing                 276,626    256,696    271,913
                                       --------   --------   --------
    Total Deposits                      319,247    293,911    308,538

 Borrowings                              36,187     20,239     35,200
 Accrued interest payable
  and other liabilities                   2,336      2,708      2,467
 Junior subordinated debentures          12,887      5,155     12,887
                                       --------   --------   --------

 Total Liabilities                      370,657    322,013    359,092

 Total Stockholders' Equity              34,868     35,239     34,440
                                       --------   --------   --------
 Total Liabilities and
  Stockholders' Equity                 $405,525   $357,252   $393,532
                                       ========   ========   ========

                            SUSSEX BANCORP
                  CONSOLIDATED STATEMENTS OF INCOME
                        (Dollars In Thousands)
                             (Unaudited)
                                                   Three Months Ended
                                                       March 31,
                                                    -----------------
                                                     2008       2007
                                                    ------     ------
 INTEREST INCOME
    Loans receivable, including fees                $4,811     $4,653
    Securities:
       Taxable                                         524        396
       Tax-exempt                                      236        250
    Federal funds sold                                  24         92
    Interest bearing deposits                            1          1
                                                    ------     ------
          Total Interest Income                      5,596      5,392
                                                    ------     ------
 INTEREST EXPENSE
    Deposits                                         2,130      2,208
    Borrowings                                         382        222
    Junior subordinated debentures                     193        113
                                                    ------     ------
         Total Interest Expense                      2,705      2,543
                                                    ------     ------

         Net Interest Income                         2,891      2,849
 PROVISION FOR LOAN LOSSES                             173        108
                                                    ------     ------
         Net Interest Income after Provision
          for Loan Losses                            2,718      2,741
                                                    ------     ------
 OTHER INCOME
    Service fees on deposit accounts                   351        319
    ATM fees                                           105         87
    Insurance commissions and fees                     743        854
    Investment brokerage fees                           47        157
    Holding gains on trading securities                217         46
    Gain on sale of securities, available for sale      84         --
    Other                                              132        123
                                                    ------     ------
       Total Other Income                            1,679      1,586
                                                    ------     ------
OTHER EXPENSES
    Salaries and employee benefits                   1,879      1,782
    Occupancy, net                                     358        313
    Furniture, equipment and data processing           373        338
    Stationary and supplies                             43         46
    Professional fees                                  109        139
    Advertising and promotion                          126        104
    Insurance                                           38         46
    Postage and freight                                 38         40
    Amortization of intangible assets                   15         37
    Other                                              494        395
                                                    ------     ------
       Total Other Expenses                          3,473      3,240
                                                    ------     ------

        Income before Income Taxes                     924      1,087
 PROVISION FOR INCOME TAXES                            287        363
                                                    ------     ------
       Net Income                                   $  637     $  724
                                                    ======     ======

                            SUSSEX BANCORP
       COMPARATIVE AVERAGE BALANCES AND AVERAGE INTEREST RATES
                             (Unaudited)

                                  Three Months Ended March 31,
                       -----------------------------------------------
 (Dollars in thousands)          2008                     2007
 --------------------------------------------   ----------------------
                                 Inte-   Avg.             Inte-   Avg.
                       Average   rest    Rate    Average  rest    Rate
                       Balance    (1)     (2)    Balance   (1)    (2)
                       -----------------------------------------------
 Interest earning
  assets:
   Securities:
    Tax exempt(3)      $ 22,643  $  352  6.25%  $ 23,640  $  328  5.63%
    Taxable              40,389     524  5.22%    34,149     396  4.70%
                       -----------------------------------------------
   Total securities      63,032     876  5.59%    57,789     724  5.08%
   Total loans
    receivable(4)       300,024   4,811  6.45%   266,252   4,653  7.09%
   Other interest-
    earning assets        2,941      25  3.42%     6,819      93  5.53%
                       -----------------------------------------------
     Total interest
      earning assets    365,997  $5,712  6.28%   330,860  $5,470  6.70%

 Non-interest
  earning assets         29,437                   27,298
 Allowance for
  loan losses            (5,226)                  (3,385)
                       --------                 --------
    Total Assets       $390,208                 $354,773
                       ========                 ========
 Interest bearing
  liabilities:
   Interest bearing
    deposits:
     NOW               $ 59,235  $  244  1.66%  $ 57,140  $  314  2.23%
     Money market        32,716     215  2.65%    35,400     343  3.92%
     Savings             38,504     112  1.17%    39,884      90  0.91%
     Time               136,092   1,559  4.61%   124,130   1,462  4.78%
                       -----------------------------------------------
  Total interest
   bearing deposits     266,547   2,130  3.21%   256,554   2,208  3.49%
    Borrowed funds       35,650     382  4.24%    18,777     222  4.72%
    Junior sub-
     ordinated
     debentures          12,887     193  5.91%     5,155     113  8.74%
                       -----------------------------------------------
 Total interest
  bearing liabilities   315,084  $2,705  3.45%   280,486  $2,543  3.68%

 Non-interest
  bearing liabilities:
   Demand deposits       38,653                   37,294
   Other liabilities      1,844                    2,159
                       --------                 --------
 Total non-interest
  bearing liabilities    40,497                   39,453
 Stockholders' equity    34,627                   34,834
                       --------                 --------
    Total Liabilities
     and Stockholders'
     Equity            $390,208                 $354,773
                       ========                 ========
 Net Interest Income             ------------             ------------
  and Margin(5)                  $3,007  3.30%            $2,927  3.59%
                                 ============             ============

 (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
Sussex Bancorp
Donald L. Kovach, President/CEO
973-827-2914