EXHIBIT 99.1

Sussex Bancorp
200 Munsonhurst Road, Rt. 517
Franklin, NJ 07416 Candace Leatham
Executive Vice President
& Treasurer
973-827-2914

FOR IMMEDIATE RELEASE

SUSSEX BANCORP ANNOUNCES INCREASED 2004 EARNINGS

        FRANKLIN, NEW JERSEY – January 20, 2005– Sussex Bancorp (AMEX:“SBB”) today announced net income $1,591,000 for the year ended December 31, 2004, or $0.85 per basic share compared to net income of $1,441,000, or $0.80 per basic share, for the prior year.

2004 highlights include:

• Net income growth of 10.4%
• Earnings per share increased 6.3%
• Non-interest income increased by $439,000
• Increased capital of $15.2 million through public offering of common stock

        For the year ended December 31, 2004, the Company earned net income of $1,591,000 an increase of approximately 10.4 percent over net income of $1,441,000 for the same period last year. Basic and diluted earnings per share for the year ended December 31, 2004 were $0.85 and $0.82 respectively, compared to $0.80 and $0.78 respectively, in the year ago period.

        The Company’s total interest income increased to $11,791,000 for the year ended December 31, 2004 from $10,771,000 for the same period last year, reflecting the increase in the yields for both the loan and investment portfolios. For the year ended December 31, 2004, the Company’s non-interest income increased by $439,000 or 10.7%, to $4.5 million from $4.1 million for the same period last year.

        The Company’s interest expense decreased to $2,814,000 for the year ended December 31, 2004 from $2,860,000 for the same period last year, despite a year over year increase in total deposits of $22.2 million. The Company’s total non-interest expense increased by $1.1 million, reflecting increases associated with the Company’s growth. The loan loss provision for the year ended December 31, 2004 increased to $558,000 from $405,000 for the same period last year. At December 31, 2004 the Company had total loans of $157 million, compared to total loans of $134.4 million at December 31, 2003.

-5-

        At December 31, 2004 the Company had total assets of $278.3 million, compared to total assets of $240.7 million at December 31, 2003. In addition, the Company had total deposits of $230 million, compared to total deposits of $207.7 million at December 31, 2003.

        On December 21, 2004, the Company completed a public offering of shares of its common stock. As part of the offering, the Company sold 1,131,150 shares of common stock, and raised net proceeds of $15.2 million.

        Sussex Bancorp is the holding company for the 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 and for Tri-State Insurance Agency, Inc, Augusta, New Jersey.

-6-

SUSSEX BANCORPCONSOLIDATED
STATEMENTS OF INCOME

	For the Year Ended December 31,
(In thousands, except
share and per share data)		2004		2003
Interest income	$	11,791	$	10,771
Interest expense		2,814		2,860
Net interest income		8,977		7,911
Provision for loan losses		558		405
Net interest income after
provision for loan losses		8,419		7,506
Non-interest income		4,542		4,103
Non-interest expense		10,789		9,663
Income before tax expense		2,172		1,946
Tax expense		581		505
Net income	$	1,591	$	1,441
Basic earnings per share (as adjusted for 5% stock dividend)	$	0.85	$	0.80
Diluted earnings per share		0.82		0.78
Shares outstanding:
Basic		1,872,138		1,790,142
Diluted		1,949,112		1,859,407

-7-

SUSSEX BANCORP
CONSOLIDATED BALANCE SHEETS

	Balances as of December 31,
(In thousands)		2004			2003
Cash and due from banks	$	10,434		$	11,301
Federal funds sold		18,860			4,195
Cash and cash equivalents		29,294			15,496
Interest bearing time deposits with other banks		3,900			3,500
Securities available for sale, at fair value		74,736			76,545
Federal Home Loan Bank stock, at cost		690			760
Loans		156,916			134,374
Allowance for loan losses		(2,274	)		(1,734	)
Net loans		154,642			132,640
Accrued interest receivable		1,330			1,241
Premises and equipment, net		5,618			4,650
Goodwill, net		2,334			2,124
Other assets		5,731			3,661
Total assets	$	278,275		$	240,617
Deposits		229,827			207,657
Borrowings		10,000			11,000
Other liabilities		1,641			2,056
Mandatory redeemable capital debentures		5,155			5,000
Total liabilities		246,623			225,713
Total shareholders' equity		31,652			14,904
Total liabilities and shareholders' equity	$	278,275		$	240,617

-8-