Exhibit 99.1

Sussex Bancorp	Contacts:	Anthony Labozzetta, President/CEO
200 Munsonhurst Road		Steven Fusco, SVP/CFO
Franklin, NJ  07416		973-827-2914

SUSSEX BANCORP ANNOUNCES THIRD QUARTER RESULTS FOR 2010

FRANKLIN, NEW JERSEY – October 28, 2010– Sussex Bancorp (“Company”) (NASDAQ: “SBBX”) today announced its financial results for the three and nine months ended September 30, 2010.

For the quarter ended September 30, 2010, the Company reported net income of $631 thousand, a decrease of $266 thousand as compared to the third quarter of 2009.  Basic and diluted earnings per share were $0.19 in the third quarter of 2010 compared to $0.28 for the third quarter of 2009.  For the nine months ended September 30, 2010, the Company’s net income decreased $166 thousand, or 9.5%, to $1.6 million from the $1.7 million earned for the same period last year.  Diluted earnings per share were $0.48 for the nine months ended September 30, 2010 compared to $0.54 for the same period in 2009.

Highlights for the quarter and nine months ended September 30, 2010 include:

· For the nine months ended September 30, 2010, net interest income (tax equivalent) increased 8.7% over the same period last year driven by a higher net interest margin.

· Net interest margin was 3.76% for the nine months ended September 30, 2010, a 25 basis point increase from 3.51% for the same period last year. This increase was attributed to lower cost of funds.

· Provision for loan losses increased $781 thousand, or 49.3%, for the nine months ended September 30, 2010 as compared to the same period last year, which resulted in a 20.4% growth in the allowance for loan losses.  The allowance for loan losses totaled $6.1 million at September 30, 2010, or 1.83% of total loans as compared to $5.5 million, or 1.65% of total loans at December 31, 2009.

· Non-accrual loans remain unchanged at approximately $22 million for the last three quarters.

· Nonperforming assets have declined by $3.6 million, or 11.8%, since June 30, 2010 to $27.0 million at September 30, 2010.

· Return on Average Assets of 0.52% for the third quarter and 0.44% for the nine months.

· At September 30, 2010 the leverage, Tier I and Total Risk Based Capital ratios for Sussex Bank were 8.94%, 12.29% and 13.55%, respectively, all in excess of the ratios required to be deemed “well-capitalized”.

Mr. Anthony Labozzetta, Sussex's President and Chief Executive Officer commented, “during the quarter we made progress from our efforts in addressing problem assets as we sold off our largest foreclosed asset with a carrying value of $2.0 million and have seen stabilization in our non-accrual loans during the past six months.”

For the three months ended September 30, 2010, the Company’s net interest income (tax equivalent) decreased $82 thousand, or 1.9%, to $4.3 million from $4.4 million for the third quarter of 2009. The quarterly decline in net interest income was driven by a 26 basis point decrease in the Company’s net interest margin to 3.78% for the quarter ended September 30, 2010, which was largely due to a 61 basis point decrease in the average rate received on earning assets.  For the nine months ended September 30, 2010, the Company’s net interest income (tax equivalent) increased $1.0 million, or 8.7%, to $12.5 million from the $11.5 million earned for the same period last year.  The improvement in net interest income was driven by a 25 basis point increase in the Company’s net interest margin to 3.76% for the nine months ended September 30, 2010, which was largely due to a 74 basis point decrease in the average rate paid on interest bearing liabilities. The improvement in the average rate paid on interest bearing liabilities is a product of management’s effort to reduce funding costs.

The Company reported non-interest income of $1.2 million and $3.5 million for the three and nine month periods ended September 30, 2010, respectively, compared to non-interest income of $1.3 million and $4.1 million for the three and nine month periods ended September 30, 2009, respectively.  The decline for the nine month period was largely due to a non-cash other than temporary impairment charge of $171 thousand

related to an equity portfolio fund during the second quarter of 2010, lower insurance commissions of $135 thousand for 2010 and non-recurring gains on the sale of fixed assets of $203 thousand during the second quarter of 2009.

The Company’s non-interest expenses increased $131 thousand, or 3.5%, to $3.8 million for the three months ended September 30, 2010 and decreased $45 thousand, or 0.4%, to $11.2 million for the nine months ended September 30, 2010 as compared to the same periods in 2009.  The increase for the quarter was largely due to an increase of $182 thousand in write-downs on foreclosed real estate and higher loan collection costs of $52 thousand.  The aforementioned increases were partly offset by $205 thousand of severance paid in the third quarter of 2009 that was included in salaries and benefits.   There were no comparable payments in 2010.  The decrease for the nine month period was largely due to a decrease of $247 thousand in write-downs on foreclosed real estate, which was partly offset by an increase in salary and employee benefits expense of $241 thousand, or 4.3% over the same period last year.

At September 30, 2010, non-performing assets, which include non-accrual loans, renegotiated loans and foreclosed real estate, decreased on a linked quarter basis by $3.6 million, or 11.8%, to $27.0 million.  The decrease was largely due to a 52.2% decline in foreclosed real estate resulting principally from the sale of the Company’s largest foreclosed asset during the third quarter of 2010 and declines in renegotiated loans. The ratio of non-performing assets to total assets for September 30, 2010, June 30, 2010 and September 30, 2009 were 5.58%, 6.32% and 4.31%, respectively. The allowance for loan losses was $6.1 million, or 1.83% of total loans, at September 30, 2010 as compared to $5.5 million, or 1.65% of total loans, at December 31, 2009.

At September 30, 2010 the Company’s total assets were $484.2 million, an increase of $29.4 million, or 6.5%, compared to total assets of $454.8 million at December 31, 2009.  The Company’s total deposits increased $26.6 million, or 7.2%, to $398.7 million at September 30, 2010 from $372.1 million at December 31, 2009.  The growth in deposits was primarily in core deposits, (non-interest demand, NOW, savings and money market accounts), which increased $29.6 million, or 10.9%, at September 30, 2010 as compared to December 31, 2009.  The Company’s gross loans, net of unearned income increased $648 thousand to $333.6 million at September 30, 2010 from $333.0 million at December 31, 2009, as cash and cash equivalents increased $12.6 million, or 54.4%, to $35.6 million at September 30, 2010.  Bank-owned life insurance increased to $10.1 million at September 30, 2010, as the Company purchased an additional $6.5 million during the second quarter of 2010.  At September 30, 2010 the Company’s total stockholders’ equity was $37.0 million, an increase of $2.4 million, or 7.0%, as compared December 31, 2009.

“A key focus for our Company is to work through and reduce our problem assets, which continue to put downward pressure on our results.  In addition, we are focused on building for the future and strengthening our core operating results within a risk management framework.  To this end, during the quarter we have enhanced our senior management team with the addition of a new chief financial officer, a new chief retail officer and the promotion of a new chief credit officer.  Our team is committed to executing our community bank strategy of delivering an extraordinary experience for our customers while assisting with their financial needs,” stated Mr. Labozzetta.

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.  For additional information, please visit the company's Web site at www.sussexbank.com.

When used in this discussion the words: “believes”, “anticipates”, “contemplates”, “expects” or similar expressions are intended to identify forward looking statements.  Such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected.  Those risks and uncertainties include those listed under Item 1A - Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2009 and changes to interest rates, the ability to control costs and expenses, general economic conditions, the success of the Company’s efforts to diversify its revenue base by developing additional sources of non-interest income while continuing to manage its existing fee based business, risks associated with the quality of the Company’s assets and the ability of its borrowers to comply with repayment terms.  The Company undertakes no obligation to publicly release the results of any revisions to those forward looking statements that may be made to reflect events or circumstances after this date or to reflect the occurrence of unanticipated events.

SUSSEX BANCORP

SUMMARY FINANCIAL HIGHLIGHTS

(Dollars in Thousands, Except Percentages and Per Share Data)

(Unaudited)

										Q/E 9/30/10 VS.
	9/30/2010			6/30/2010			9/30/2009			Q/E 6/30/10			Q/E 9/30/09
BALANCE SHEET DATA:
Total securities	$	87,779		$	79,421		$	86,060			10.5	%		2.0	%
Total loans		333,607			330,179			330,404			1.0	%		1.0	%
Allowance for loan losses		(6,097	)		(5,449	)		(5,064	)		11.9	%		20.4	%
Total assets		484,195			484,626			452,534			(0.1	) %		7.0	%
Total deposits		398,737			400,051			369,137			(0.3	) %		8.0	%
Total borrowings and junior subordinated debt		45,933			45,947			45,991			(0.0	) %		(0.1	) %
Total shareholders' equity		36,959			35,895			34,689			3.0	%		6.5	%
FINANCIAL DATA - QUARTER ENDED:
Net interest income (tax equivalent)	$	4,274		$	4,096		$	4,356			4.3	%		(1.9	) %
Provision for loan losses		662			965			520			(31.4	) %		27.3	%
Total other income		1,176			1,143			1,280			2.9	%		(8.1	) %
Total other expenses		3,844			3,838			3,713			0.2	%		3.5	%
Income before provision (benefit) for income taxes		799			303			1,248			163.7	%		(36.0	) %
Provision (benefit) for income taxes		168			(2	)		351			(8,500.0	) %		(52.1	) %
Net income	$	631		$	305		$	897			106.9	%		(29.7	) %
Net income per common share - Basic	$	0.19		$	0.09		$	0.28			111.1	%		(32.1	) %
Net income per common share - Diluted	$	0.19		$	0.09		$	0.28			111.1	%		(32.1	) %
Return on average assets		0.52	%		0.25	%		0.78	%		105.7	%		(33.1	) %
Return on average equity		6.96	%		3.42	%		10.69	%		103.7	%		(34.9	) %
Effficiency ratio (a)		70.53	%		73.26	%		65.88	%		(3.7	) %		7.1	%
FINANCIAL DATA - YEAR TO DATE:
Net interest income (tax equivalent)	$	12,457					$	11,455						8.7	%
Provision for loan losses		2,364						1,583						49.3	%
Total other income		3,500						4,070						(14.0	) %
Total other expenses		11,218						11,263						(0.4	) %
Income before provision for income taxes		1,967						2,230						(11.8	) %
Provision for income taxes		388						485						(20.0	) %
Net income	$	1,579					$	1,745						(9.5	) %
Net income per common share - Basic	$	0.49					$	0.54						(9.3	) %
Net income per common share - Diluted	$	0.48					$	0.54						(11.1	) %
Return on average assets		0.44	%					0.50	%					(11.2	) %
Return on average equity		5.91	%					7.08	%					(16.5	) %
Effficiency ratio (a)		70.30	%					72.55	%					(3.1	) %
SHARE INFORMATION:
Book value per common share	$	11.37		$	11.04		$	10.69			3.0	%		6.4	%
Average diluted shares outstanding (QE)		3,309			3,283			3,256			0.8	%		1.6	%
CAPITAL RATIOS:
Total equity to total assets		7.63	%		7.41	%		7.67	%		3.1	%		(0.4	) %
Leverage ratio (b)		8.94	%		8.84	%		8.91	%		1.1	%		0.3	%
Tier 1 risk-based capital ratio (b)		12.29	%		11.94	%		11.85	%		2.9	%		3.7	%
Total risk-based capital ratio (b)		13.55	%		13.19	%		13.11	%		2.7	%		3.4	%
ASSET QUALITY AND RATIOS:
Non-accrual loans	$	22,403		$	22,529		$	13,263			(0.6	) %		68.9	%
Renegotiated loans		2,537			3,551			1,883			(28.6	) %		34.7	%
Foreclosed real estate		2,095			4,564			4,380			(54.1	) %		(52.2	) %
Non-performing assets	$	27,035		$	30,644		$	19,526			(11.8	) %		38.5	%
Loans 90 days past due and still accruing	$	330		$	1,262		$	4,263			(73.9	) %		(92.3	) %
Non-accrual loans to total loans		6.72	%		6.82	%		4.01	%		(1.58	) %		67.29	%
Non-performing assets to total assets		5.58	%		6.32	%		4.31	%		(11.7	) %		29.4	%
Allowance for loan losses as a % of non-performing loans		24.45	%		20.89	%		33.43	%		17.01	%		(26.88	) %
Allowance for loan losses to total loans		1.83	%		1.65	%		1.53	%		10.7	%		19.2	%

(a) Efficiency ratio calculated non-interest expense divided by net interest income (tax equivalent) plus non-interest income.

(b) Sussex Bank capital ratios.

SUSSEX BANCORP

CONSOLIDATED BALANCE SHEETS

(Dollars In Thousands)

(Unaudited)

ASSETS	September 30, 2010		September 30, 2009		December 31, 2009
Cash and due from banks	$	32,644	$	13,240	$	8,779
Federal funds sold		3,000		2,038		14,300
Cash and cash equivalents		35,644		15,278		23,079
Interest bearing time deposits with other banks		600		100		100
Trading securities		-		3,974		2,955
Securities available for sale		85,677		80,040		71,315
Federal Home Loan Bank Stock, at cost		2,102		2,046		2,045
Loans receivable, net of unearned income		333,607		330,404		332,959
Less:  allowance for loan losses		6,097		5,064		5,496
Net loans receivable		327,510		325,340		327,463
Foreclosed real estate		2,095		4,380		3,843
Premises and equipment, net		6,868		7,165		7,065
Accrued interest receivable		1,925		2,120		1,943
Goodwill		2,820		2,820		2,820
Bank-owned life insurance		10,069		3,326		3,360
Other assets		8,885		5,945		8,853
Total Assets	$	484,195	$	452,534	$	454,841
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits:
Non-interest bearing	$	37,765	$	39,037	$	34,155
Interest bearing		360,972		330,100		337,920
Total Deposits		398,737		369,137		372,075
Borrowings		33,046		33,104		33,090
Accrued interest payable and other liabilities		2,566		2,717		2,262
Junior subordinated debentures		12,887		12,887		12,887
Total Liabilities		447,236		417,845		420,314
Total Stockholders' Equity		36,959		34,689		34,527
Total Liabilities and Stockholders' Equity	$	484,195	$	452,534	$	454,841

SUSSEX BANCORP

CONSOLIDATED STATEMENTS OF INCOME

(Dollars In Thousands Except Per Share Data)

(Unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2010			2009			2010			2009
INTEREST INCOME
Loans receivable, including fees	$	4,765		$	4,923		$	14,194		$	14,520
Securities:
Taxable		412			651			1,378			2,032
Tax-exempt		292			308			820			897
Federal funds sold		3			5			20			26
Interest bearing deposits		20			1			30			15
Total Interest Income		5,492			5,888			16,442			17,490
INTEREST EXPENSE
Deposits		943			1,264			3,158			5,166
Borrowings		358			359			1,065			1,067
Junior subordinated debentures		62			64			170			251
Total Interest Expense		1,363			1,687			4,393			6,484
Net Interest Income		4,129			4,201			12,049			11,006
PROVISION FOR LOAN LOSSES		662			520			2,364			1,583
Net Interest Income after Provision for Loan Losses		3,467			3,681			9,685			9,423
OTHER INCOME
Service fees on deposit accounts		375			380			1,049			1,095
ATM and debit card fees		128			126			370			354
Bank-owned life insurance		100			41			219			144
Insurance commissions and fees		485			548			1,622			1,757
Investment brokerage fees		24			30			133			111
Realized holding gains (losses) on trading securities		-			2			7			21
Gain on sale of securities, available for sale		(2	)		55			52			55
Gain on sale of fixed assets		2			-			2			203
Gain (loss) on sale of foreclosed real estate		12			(34	)		17			(35	)
Impairment write-downs on equity securities		-			-			(171	)		-
Other		52			132			200			365
Total Other Income		1,176			1,280			3,500			4,070
OTHER EXPENSES
Salaries and employee benefits		1,885			2,070			5,865			5,624
Occupancy, net		336			320			1,011			979
Furniture, equipment and data processing		325			314			919			991
Advertising and promotion		36			49			138			145
Professional fees		130			168			398			416
Director Fees		65			56			183			182
FDIC assessment		232			172			681			687
Insurance		56			54			167			140
Stationary and supplies		53			37			147			128
Loan collection costs		144			92			307			338
Write-down on foreclosed real estate		182			-			209			456
Expenses related to foreclosed real estate		82			36			222			195
Amortization of intangible assets		3			4			11			14
Other		315			341			960			968
Total Other Expenses		3,844			3,713			11,218			11,263
Income before Income Taxes		799			1,248			1,967			2,230
PROVISION (BENEFIT) FOR INCOME TAXES		168			351			388			485
Net Income	$	631		$	897		$	1,579		$	1,745
EARNINGS PER SHARE
Basic	$	0.19		$	0.28		$	0.49		$	0.54
Diluted	$	0.19		$	0.28		$	0.48		$	0.54

SUSSEX BANCORP

COMPARATIVE AVERAGE BALANCES AND AVERAGE INTEREST RATES

(Dollars In Thousands)

(Unaudited)

	Three Months Ended September 30,
	2010								2009
Earning Assets:	Average Balance			Interest (1)		Average Rate (2)			Average Balance			Interest (1)		Average Rate (2)
Securities:
Tax exempt (3)	$	30,669		$	436		5.64	%	$	29,243		$	464		6.30	%
Taxable		49,501			412		3.30	%		61,132			651		4.22	%
Total securities		80,170			848		4.20	%		90,375			1,115		4.89	%
Total loans receivable (4)		329,294			4,765		5.74	%		326,645			4,923		5.98	%
Other interest-earning assets		39,071			24		0.24	%		10,805			5		0.20	%
Total earning assets		448,535		$	5,637		4.99	%		427,826		$	6,043		5.60	%
Non-interest earning assets		39,847								36,999
Allowance for loan losses		(5,809	)							(5,604	)
Total Assets	$	482,573							$	459,220
Sources of Funds:
Interest bearing deposits:
NOW	$	67,306		$	109		0.64	%	$	55,906		$	132		0.94	%
Money market		13,735			25		0.72	%		15,766			48		1.22	%
Savings		178,833			398		0.88	%		173,872			522		1.19	%
Time		100,517			411		1.62	%		91,252			562		2.44	%
Total interest bearing deposits		360,391			943		1.04	%		336,796			1,264		1.49	%
Borrowed funds		33,051			358		4.24	%		33,109			359		4.24	%
Junior subordinated debentures		12,887			62		1.88	%		12,887			64		1.95	%
Total interest bearing liabilities		406,329		$	1,363		1.33	%		382,792		$	1,687		1.75	%
Non-interest bearing liabilities:
Demand deposits		38,721								40,130
Other liabilities		1,266								2,723
Total non-interest bearing liabilities		39,987								42,853
Stockholders' equity		36,257								33,575
Total Liabilities and Stockholders' Equity	$	482,573							$	459,220
Net Interest Income and Margin (5)				$	4,274		3.78	%				$	4,356		4.04	%

(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

COMPARATIVE AVERAGE BALANCES AND AVERAGE INTEREST RATES

(Dollars In Thousands)

(Unaudited)

	Nine Months Ended September 30,
	2010								2009
Earning Assets:	Average Balance			Interest (1)		Average Rate (2)			Average Balance			Interest (1)		Average Rate (2)
Securities:
Tax exempt  (3)	$	28,432		$	1,227		5.77	%	$	28,812		$	1,347		6.25	%
Taxable		49,820			1,379		3.70	%		61,628			2,032		4.41	%
Total securities		78,252			2,606		4.45	%		90,440			3,379		4.99	%
Total loans receivable (4)		330,340			14,194		5.74	%		324,796			14,519		5.98	%
Other interest-earning assets		34,914			50		0.19	%		21,226			40		0.25	%
Total earning assets		443,506		$	16,850		5.08	%		436,463		$	17,939		5.50	%
Non-interest earning assets		38,058								36,269
Allowance for loan losses		(5,991	)							(6,059	)
Total Assets	$	475,573							$	466,673
Sources of Funds:
Interest bearing deposits:
NOW	$	64,342		$	386		0.80	%	$	57,108		$	432		1.01	%
Money market		12,857			74		0.77	%		15,129			144		1.27	%
Savings		174,285			1,398		1.07	%		171,164			2,264		1.77	%
Time		102,586			1,300		1.69	%		103,722			2,325		3.00	%
Total interest bearing deposits		354,070			3,158		1.19	%		347,122			5,166		1.99	%
Borrowed funds		33,065			1,065		4.25	%		33,123			1,067		4.25	%
Junior subordinated debentures		12,887			170		1.74	%		12,887			251		2.57	%
Total interest bearing liabilities		400,022		$	4,393		1.47	%		393,133		$	6,484		2.21	%
Non-interest bearing liabilities:
Demand deposits		38,474								38,512
Other liabilities		1,436								2,159
Total non-interest bearing liabilities		39,910								40,671
Stockholders' equity		35,641								32,870
Total Liabilities and Stockholders' Equity	$	475,573							$	466,673
Net Interest Income and Margin (5)				$	12,457		3.76	%				$	11,455		3.51	%

(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