Suffolk Bancorp Announces Results for the Third Quarter of 2011

Suffolk Bancorp (NASDAQ - SUBK) today released the preliminary, unaudited results of its operations during the third quarter of 2011. Earnings-per-share were $0.32. Net income was $3,072,000. A detailed financial summary follows the text. There are no comparisons to the third quarter of 2010 because, as previously disclosed, on August 10, 2011, the Audit Committee of the Board of Directors of Suffolk made a determination of non-reliance on the financial statements previously filed with respect to the three and nine months ended September 30, 2010 and the three and twelve months ended December 31, 2010. The financial restatements of these periods, as well as the financial statements with regard to the three months ended March 31, 2011 and the three and six months ended June 30, 2011 have not yet been filed as the processes for those periods are not yet complete.

The key points are:

• Suffolk was profitable during the third quarter of 2011.
• Suffolk exceeded the capital ratios for a "well-capitalized” institution as of September 30, 2011 under 12 CFR 6.4, and further, exceeded each of the individual minimum capital ratios agreed upon with regulators.
• Suffolk’s allowance for loan losses at September 30, 2011 was $43,693,000, or 4.3 percent of total loans.
• Suffolk’s net interest margin (FTE) for the quarter was 4.72 percent.

President and Chief Executive Officer, J. Gordon Huszagh commented, "We are releasing the results of our operations for the third quarter in preliminary form to provide our shareholders, customers, and employees with information as to the condition and prospects of Suffolk Bancorp, and its banking subsidiary, Suffolk County National Bank. The process of restating the third and fourth quarters of 2010 and moving forward to definitive statements for the first and second quarters of 2011 has taken far longer than any of the parties involved anticipated, and we continue to work diligently to make those filings as soon as possible. We felt it was important to inform all interested parties that Suffolk County National Bank is profitable on a quarterly basis, has substantial capital, and has an allowance for possible loan losses based on a comprehensive analysis of the loan portfolio. We are, therefore, and expect to continue to be, able to conduct our business; whether through loans to creditworthy borrowers, or by accepting deposits, or providing any one of the other services we have offered to the customers in each of the communities we have served in the past.”

Mr. Huszagh went on to say, "We want to emphasize that these results are preliminary, and subject to change, although we believe them to be approximately correct. For that reason, we will reserve our usual commentary on these results until they are final. In the meantime, we hope that the information contained in this release will provide a reasonable basis for the public to evaluate Suffolk Bancorp and its future, and to put to rest any speculation about our business.”

Suffolk Bancorp is a one-bank holding company engaged in the commercial banking business through Suffolk County National Bank ("SCNB”), a full-service commercial bank headquartered in Riverhead, New York. Organized in 1890, SCNB has 30 offices in Suffolk County, New York.

Safe Harbor Statement Pursuant to the Private Securities Litigation Reform Act of 1995

This press release includes statements which look to the future. These can include remarks about Suffolk Bancorp, the banking industry, the economy in general, expectations of the business environment in which Suffolk operates, the adequacy of our allowance for loan losses, projections of future performance, and potential future credit experience. These forward-looking statements are based upon current management expectations, and may, therefore, involve risks and uncertainties that cannot be predicted or quantified and are beyond Suffolk’s control and are subject to a variety of uncertainties that could cause future results to vary materially from Suffolk’s historical performance, or from current expectations. Factors affecting Suffolk Bancorp include particularly, but are not limited to: changes in interest rates; increases or decreases in retail and commercial economic activity in Suffolk’s market area; variations in the ability and propensity of consumers and businesses to borrow, repay, or deposit money, or to use other banking and financial services; a failure to file our Quarterly Reports for the quarters ended March 31, 2011 and June 30, 2011 on or before November 7, 2011; a failure to comply with Nasdaq rules; results of regulatory examinations; any failure by us to comply with our written agreement with the OCC (the "Agreement”) or the individual minimum capital ratios for the Bank established by the OCC; the cost of compliance with the Agreement; failure by us to maintain effective internal controls over financial reporting; larger-than-expected losses from the sale of assets; potential litigation or regulatory action relating to the matters resulting in our failure to file on time our Quarterly Report on Form 10-Q for the quarters ended March 31, 2011 and June 30, 2011 or resulting from the revisions to our earnings previously announced on April 12, 2011 or the restatement of our financial statements for the quarterly period ended September 30, 2011 and year ended December 31, 2010; and the potential that net charge-offs are higher than expected or for further increases in our provision for loan losses. Further, it could take Suffolk longer than anticipated to implement its strategic plans to increase revenue and manage non-interest expense, or it may not be possible to implement those plans at all. Finally, new and unanticipated legislation, regulation, or accounting standards may require Suffolk to change its practices in ways that materially change the results of operations.