Riverhead - Suffolk Bancorp (NASDAQ-SUBK) has released the results of its second quarter of 2008, reporting earnings-per-share for the quarter were $0.60, an increase of 11.1 percent from $0.54 during the comparable period of 2007.

Net income for the quarter was $5,714,000, up 7.2 percent from the same quarter last year. Earnings-per-share for the year to date were $1.39, an increase of 33.7 percent from $1.04 during the comparable period of 2007. Net income for the year to date was $13,273,000, up 26.6 percent from the same period last year.

Chairman, President, and Chief Executive Officer, Thomas S. Kohlmann, commented on the good news, saying, "Our results for the year-to-date reflect, of course, the benefits of our membership in the VISA organization which was offered to public investors during the first quarter. But even putting that transaction aside, we are having a solidly profitable year here at Suffolk notwithstanding the turmoil in the credit markets and general illiquidity in the banking industry as a whole."

He went on to say, "Return on average equity was 19.95 percent, down slightly from the same period a year ago," indicating tis was primarily the result of only slightly lower interest income but significantly lower interest expense. Even including the expense associated with two new branch offices that opened during the quarter, bringing the organization to 29 locations.

"Also contributing was a lower effective tax rate as our book of tax-exempt securities grew," Kohlmann explained. "Finally, with risk-based capital at 10.12 percent, we are fully leveraged and making the most of our shareholders' investment."

The findings also indicate average assets increased by 9.6 percent; average net loans increased by 12.5 percent from year to year, including significant amounts of new business with new customers. "While those loans have not gone on the books at margins as wide as we would like, we believe that many will help us build relationships for the future," he added.

In addition, average investment securities increased by 6.1 percent year over year while Average deposits increased by just 1.0 percent and average borrowings increased by 83.6 percent.

"As might be expected in an under-performing economy, we have seen a modest increase in net-charge-offs which amounted to nine basis points of average net loans, well below industry averages at any point in the economic cycle," Kohlmann added. "We have seen an increase as well in non-performing assets, although the allowance for possible loan losses stands at 335 percent of those assets. It is impossible to predict exactly how these numbers will change through the coming quarters, but we have and will continue to be disciplined in our underwriting, which will deliver the best results in the long run."

Cautioning that "we take nothing for granted," Kohlmann said, "but that is as true in more predictable times as it is in these less settled times. Banking is a business built not only on increments and margins, but on relationships as well. The same principles apply in good times and bad, and we intend to continue to apply the principles of discipline and prudence throughout, to the benefit of our shareholders, customers, and employees alike."

Suffolk Bancorp is a one-bank holding company engaged in the commercial banking business through Suffolk County National Bank, a full service commercial bank headquartered in Riverhead, New York. Organized in 1890, Suffolk County National Bank has 29 offices in Suffolk County.