Exhibit 99.1

  

95 State Route 17

Paramus, NJ 07652

SB ONE BANCORP REPORTS RECORD DILUTED EPS OF $0.66 FOR THE SECOND QUARTER 2019

PARAMUS, NEW JERSEY – July 25, 2019 – SB One Bancorp (the “Company”) (Nasdaq: SBBX), the holding company for SB One Bank (the “Bank”), today reported net income of $6.2 million, or $0.67 per basic and $0.66 per diluted share, for the quarter ended June 30, 2019, an increase of 108.7%, as compared to net income of $3.0 million, or $0.38 per basic and diluted share, for the quarter ended June 30, 2018. The increase in net income for the quarter ended June 30, 2019 was driven by a $4.0 million, or 36.5%, increase in net interest income resulting from organic loan and deposit growth, and the merger with Enterprise Bank NJ (“Enterprise”), a $1.5 million gain on sales of securities and a $257 thousand increase in insurance commissions and fees partially offset by a one-time charge of $505 thousand for the disposal of leasehold improvements and rent expense due to the early termination of the lease of the Company’s corporate center in Rockaway, NJ, as compared to the same period last year.

The Company reported net income of $12.1 million, or $1.28 per basic and diluted share, for the six months ended June 30, 2019, an increase of 180.6%, as compared to $4.3 million, or $0.55 per basic and diluted share, for the same period last year. For the six months ended June 30, 2019, the Company reported net income, adjusted for a one-time tax effected charge for the disposal of leasehold improvements and rent expense of $353 thousand due to the early termination of the lease of its corporate center in Rockaway, NJ, of $12.4 million, or $1.32 per basic and diluted share, an increase of $5.3 million, or 73.9%, from net income, adjusted for tax effected merger-related expenses and non-recurring rebrand expenses of $2.7 million and $152 thousand, respectively, of $7.1 million, or $0.91 per basic and diluted share, for the quarter ended June 30, 2018.

The Company’s net income increased to $6.2 million, or $0.67 per basic and $0.66 per diluted share, for the quarter ended June 30, 2019, an increase of $421 thousand, or 7.2%, as compared to net income of $5.8 million, or $0.62 per basic and diluted share for the quarter ended March 31, 2019. For the quarter ended June 30, 2019, the Company reported net income, adjusted for a one-time tax effected charge for the disposal of leasehold improvements and rent expense of $353 thousand due to the early termination of the lease of its corporate center in Rockaway, NJ, of $6.6 million, or $0.70 per basic and diluted share an increase of $774 thousand, or 13.3% from $5.8 million, or $0.62 per basic and diluted share, for the quarter ended March 31, 2019.

“We continue to realize the financial benefits of our strong organic growth and recent mergers, which are now fully integrated. As such, I am pleased to report another strong quarter of financial performance,” said Anthony Labozzetta, President and CEO of SB One Bancorp and SB One Bank. “Our second quarter results were driven by an improved net interest margin, double-digit growth in deposits, particularly non-interest demand, and another strong contribution from our insurance subsidiary. While our commercial loan growth this quarter was light, our commercial loan production pipeline remains robust.”

Mr. Labozzetta added, “The health and wellbeing of our Bank is always top of mind, and we are happy to report that we moved our corporate headquarters to Paramus, N.J.  The new location is central to the markets we serve, improves our operational efficiencies and reduces operating costs – so important as we continue to grow and expand throughout the region.”

Financial Performance

Net Income. For the quarter ended June 30, 2019, the Company reported net income of $6.2 million, or $0.67 per basic and $0.66 per diluted share, an increase of 108.7%, as compared to net income of $3.0 million, or $0.38 per basic and diluted share, for the quarter ended June 30, 2018.

The increase in net income for the quarter ended June 30, 2019 was driven by a $4.0 million, or 36.5%, increase in net interest income resulting from organic loan and deposit growth, and the Enterprise merger and a $1.5 million increase in non-interest income. The increase in non-interest income was driven by a $1.5 million gain on sale of securities and a $257 thousand increase in insurance commissions and fees. The gain on sale of securities was the result of the Company taking advantage of a market opportunity within the tax-free municipal securities sector. Non-interest income was partially offset by a one-time tax effected disposal of leasehold improvements and rent expense of $353 thousand as a result of the Company’s closure of its former corporate center. Non-interest expenses increased $946 thousand to $10.5 million for the second quarter 2019 as compared to $9.6 million for the second quarter 2018. The increase in non-interest expenses was mainly attributable to an increase in salaries and employee benefits of $923 thousand mainly resulting from the merger with Enterprise. In addition, occupancy increased $258 thousand resulting from the merger with Enterprise.

For the six months ended June 30, 2019, the Company reported net income of $12.1 million, or $1.28 per basic and diluted share, an increase of 180.6%, as compared to net income of $4.3 million, or $0.55 per basic and diluted share, for the same period last year.

Net Interest Income. Net interest income on a fully tax equivalent basis increased $3.9 million, or 35.2%, to $15.2 million for the second quarter of 2019, as compared to $11.2 million for the same period in 2018. The increase in net interest income was largely due to a $430.6 million, or 32.8%, increase in average interest earning assets, principally loans receivable, which increased $404.5 million, or 36.4%, driven by organic growth and the December 2018 closing of the Enterprise merger. The net interest margin increased 0.06% to 3.49% for the second quarter of 2019, as compared to the same period in 2018, as a result of an increase in deposits, specifically non-interest bearing deposits, as a main source of funding for loan growth of $50.1 million, or 22.5%.

Net interest income on a fully tax equivalent basis increased $7.7 million, or 34.5%, to $29.8 million for the first six months of 2019 as compared to $22.2 million for the same period in 2018. The increase in net interest income was largely due to a $449.0 million, or 35.0%, increase in average interest earning assets, principally loans receivable, which increased $420.6 million, or 38.6% driven by organic growth and the Enterprise merger.

Provision for Loan Losses. Provision for loan losses increased $378 thousand, or 95.0%, to $776 thousand for the second quarter of 2019, as compared to $398 thousand for the same period in 2018.

Provision for loan losses increased $441 thousand, or 48.7%, to $1.3 million for the first six months of 2019, as compared to $906 thousand for the same period in 2018.

Non-interest Income. Non-interest income increased $1.5 million, or 52.4%, to $4.4 million for the second quarter of 2019, as compared to the same period in 2018. The growth was largely due to an increase of $1.5 million in gains on sale of securities. In addition, insurance commissions and fees relating to SB One Insurance Agency increased $257 thousand, or 14.0%, for the second quarter of 2019, as compared to the same period in 2018. The aforementioned increases were partially offset by a $390 thousand loss on the disposal of fixed assets relating to closing of the Company’s corporate center.

Non-interest income increased $2.3 million, or 39.9%, to $8.0 million for the first six months of 2019 as compared to the same period last year. The increase was principally due to $1.5 million increase in gain on sale of securities. In addition, insurance commissions and fees relating to SB One Insurance Agency increased $924 thousand, or 24.7%, largely attributable to a $373 thousand increase in contingency commission income. The aforementioned increases were partially offset by a $390 thousand loss on the disposal of fixed assets relating to closing of the Company’s corporate center.

Non-interest Expense. The Company’s non-interest expenses increased $946 thousand, or 9.9%, to $10.5 million for the second quarter of 2019, as compared to the same period in 2018. The increase in non-interest expenses occurred largely in salaries and employee benefits of $923 thousand, occupancy of $258 thousand and FDIC assessment of $181 thousand as result of the Company’s growth. The increase in non-interest expenses for the second quarter of 2019, as compared to the same period in 2018, was the result of the Company’s continued growth, inclusive of the Enterprise merger net of cost savings. The increase in occupancy was driven by the addition of 4 branches from the Enterprise merger and a one-time charge to rent expense of $123 thousand resulting from the closing the of the Company’s corporate center. The aforementioned increases were partially offset by decreases in advertising and promotions and loan collection costs of $162 thousand and $72 thousand, respectively.

The Company’s non-interest expenses decreased $470 thousand, or 2.2%, to $20.7 million for the first six months of 2019 as compared to the same period last year. The decrease in non-interest expenses was primarily due to a decrease in merger-related expenses of $3.7 million. The aforementioned decrease was partially offset by increases to salaries and employee benefits of $2.0 million, occupancy expenses of $435 thousand, FDIC assessment of $237 thousand, other expenses of $237 thousand and data processing of $209 thousand.

Income Tax Expense. The Company’s income tax expenses increased $940 thousand to $1.8 million for the second quarter of 2019, as compared to the same period last year. The Company’s effective tax rate for the second quarter of 2019 and 2018 was 22.7%.

The Company’s income tax expenses increased $2.2 million to $3.3 million for the first six months of 2019, as compared to the same period last year as a result of increased pre-tax income. The Company’s effective tax rate for the first six months of 2019 was 21.7%, as compared to 20.5% for the six months ended June 30, 2018.

Financial Condition

At June 30, 2019, the Company’s total assets were $1.9 billion, an increase of $70.6 million, or 3.9%, as compared to total assets of $1.8 billion at December 31, 2018. The increase was mainly attributable to an increase in loans receivable of $55.9 million, or 3.8%, to $1.5 billion.

The Company’s total deposits increased $122.5 million, or 9.1%, to $1.5 billion at June 30, 2019, from $1.4 billion at December 31, 2018. The growth in deposits was mostly due to an increase in interest bearing deposits of $104.2 million, or 9.5%, and an increase in non-interest bearing deposits of $18.4 million, or 7.1%, at June 30, 2019, as compared to December 31, 2018.

At June 30, 2019, the Company’s total stockholders’ equity was $192.4 million, an increase of $7.0 million when compared to December 31, 2018. At June 30, 2019, the leverage, Tier I risk-based capital, total risk-based capital and common equity Tier I capital ratios for the Bank were 10.32%, 12.10%, 12.72% and 12.10%, respectively, all in excess of the ratios required to be deemed “well-capitalized.”

Asset and Credit Quality

The ratio of non-performing assets (“NPAs”), which include non-accrual loans, loans 90 days past due and still accruing, troubled debt restructured loans currently performing in accordance with renegotiated terms and foreclosed real estate, to total assets decreased to 1.13% at June 30, 2019 as compared to 1.43% at December 31, 2018. NPAs exclude $2.8 million of Purchased Credit-Impaired (“PCI”) loans acquired through the merger with Community Bank of Bergen County (“Community Bank”). NPAs decreased $4.7 million to $21.1 million at June 30, 2019, as compared to $25.8 million at December 31, 2018, resulting from a non-accrual loan payoff of $4.3 million. Non-accrual loans, excluding $2.8 million of PCI loans, decreased $4.5 million, or 21.6%, to$16.2 million at June 30, 2019, as compared to $20.7 million at December 31, 2018. Loans past due 30 to 89 days totaled $8.9 million at June 30, 2019, representing an increase of $5.1 million, or 135.1%, as compared to $3.8 million at December 31, 2018.

The Company continues to actively market its foreclosed real estate properties, the value of which decreased $573 thousand to $3.6 million at June 30, 2019 as compared to $4.1 million at December 31, 2018. The decrease in foreclosed real estate properties was largely attributable to the sale of three properties totaling $902 thousand which was partially offset by one new foreclosed property valued at $335 thousand. At June 30, 2019, the Company’s foreclosed real estate properties had an average carrying value of approximately $358 thousand per property.

The Company’s allowance for loan losses increased $852 thousand, or 9.7%, to $9.6 million, at June 30, 2019 as compared to $8.8 million at December 31, 2018. The Company’s outstanding credit mark recorded on the legacy Community Bank and Enterprise portfolios of $441.5 million totaled $7.3 million at June 30, 2019. The Company’s combined coverage of allowance for loan loss and credit mark on the legacy Community Bank and Enterprise portfolios totaled $17.0 million, or 1.11% of the overall loan portfolio, at June 30, 2019. The Company recorded $1.3 million in provision for loan losses for the six months ended June 30, 2019 as compared to $906 thousand for the six months ended June 30, 2018. Additionally, the Company recorded net charge-offs of $495 thousand for the six months ended June 30, 2019, as compared to $23 thousand in net recoveries for the six months ended June 30, 2018. The allowance for loan losses as a percentage of non-accrual loans increased to 59.3% at June 30, 2019 from 43.5% at December 31, 2018.

About SB One Bancorp

SB One Bancorp (Nasdaq: SBBX), is the holding company for SB One Bank, a full-service, commercial bank that operates regionally with 18 branch locations in New Jersey and New York. Established in 1975, SB One Bank's strength is in its ability to build strong personal relationships with its customers and to serve the communities in which it operates. In addition to its branches and loan production offices, SB One Bank offers a full-service insurance agency, SB One Insurance Agency, Inc. and wealth services through SB One Wealth. SB One Bank reinforces its commitment to the communities in which it lives and serves through the SB One Foundation, Inc. which supports various local charitable organizations.

SB One Bancorp was recently added to the Russell 2000^® Index and Russell 3000^® Index. In 2017, it was recognized as one of the top 29 banks and thrifts nationwide and one of three from New Jersey that comprise the Sandler O’Neill Sm-All Stars Class of 2017. SB One Bancorp is one of the 50 Fastest Growing Companies in New Jersey as ranked by NJBIZ Magazine. SB One Bancorp President and Chief Executive Officer, Anthony Labozzetta, was named one of America’s Business Leaders in Banking by Forbes magazine and American Banker’s Community Banker of the Year in 2016.

For more details on SB One Bank, visit: www.SBOne.bank

Forward-Looking Statements

This press release contains statements that are forward looking and are made pursuant to the “safe-harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to statements that may be identified by the use of words such as "expect," "estimate," “assume,” "believe," "anticipate," "will," "forecast," "plan," "project" or similar words. Such statements are based on SB One Bancorp’s current expectations and are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others, (1) difficulties and delays in integrating the business or fully realizing cost savings and other benefits; (2) operating costs, customer loss and business disruption following the mergers with Community Bank and Enterprise, including adverse effects on relationships with employees, may be greater than expected; (3) changes to interest rates; (4) the ability to control costs and expenses; (5) general economic conditions; (6) the success of SB One Bancorp’s efforts to diversify its revenue base by developing additional sources of non-interest income while continuing to manage its existing fee-based business; and (7) risks associated with the quality of SB One Bancorp’s assets and the ability of its borrowers to comply with repayment. Further information about these and other relevant risks and uncertainties may be found in SB One Bancorp’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018 and in subsequent filings with the Securities and Exchange Commission. SB One Bancorp 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.

SB ONE BANCORP

Anthony Labozzetta, President/CEO

Adriano Duarte, CFO

(p) 844-256-7328

SB ONE BANCORP

SUMMARY FINANCIAL HIGHLIGHTS

(In Thousands, Except Percentages and Per Share Data)

(Unaudited)

													6/30/2019 VS.
	6/30/2019			3/31/2019			12/31/2018			6/30/2018			12/31/2018			3/31/2019			6/30/2018
BALANCE SHEET HIGHLIGHTS - Period End Balances
Total securities	$	198,191		$	196,081		$	186,217		$	179,943			6.4	%		1.1	%		10.1	%
Total loans		1,530,668			1,513,645			1,474,775			1,136,546			3.8	%		1.1	%		34.7	%
Allowance for loan losses		(9,627	)		(9,190	)		(8,775	)		(8,264	)		9.7	%		4.8	%		16.5	%
Total assets		1,866,344			1,840,129			1,795,703			1,437,302			3.9	%		1.4	%		29.9	%
Total deposits		1,476,488			1,461,324			1,353,939			1,061,599			9.1	%		1.0	%		39.1	%
Total borrowings and junior subordinated debt		180,535			179,370			247,765			215,793			(27.1	)%		0.6	%		(16.3	)%
Total shareholders' equity		192,416			189,695			185,444			148,823			3.8	%		1.4	%		29.3	%
FINANCIAL DATA - QUARTER ENDED:
Net interest income (tax equivalent) (a)	$	15,161		$	14,666		$	11,575		$	11,214			31.0	%		3.4	%		35.2	%
Provision for loan losses		776			571			210			398			269.5	%		35.9	%		95.0	%
Total other income		4,392			3,633			2,493			2,881			76.2	%		20.9	%		52.4	%
Total other expenses		10,526			10,178			10,273			9,580			2.5	%		3.4	%		9.9	%
Income before provision for income taxes (tax equivalent)		8,251			7,550			3,585			4,117			130.2	%		9.3	%		100.4	%
Provision for income taxes		1,836			1,500			991			896			85.3	%		22.4	%		104.9	%
Taxable equivalent adjustment (a)		171			227			807			229			(78.8	)%		(24.7	)%		(25.3	)%
Net income	$	6,244		$	5,823		$	1,787		$	2,992			249.4	%		7.2	%		108.7	%
Net income per common share - Basic	$	0.67		$	0.62		$	0.29		$	0.38			131.0	%		8.1	%		76.0	%
Net income per common share - Diluted	$	0.66		$	0.62		$	0.29		$	0.38			127.6	%		6.5	%		73.1	%
Return on average assets		1.35	%		1.28	%		0.53	%		0.85	%		153.0	%		5.7	%		57.9	%
Return on average equity		12.98	%		12.39	%		4.97	%		8.10	%		161.3	%		4.8	%		60.3	%
Efficiency ratio (b)		54.31	%		56.32	%		77.47	%		69.09	%		(29.9	)%		(3.6	)%		(21.4	)%
Net interest margin (tax equivalent)		3.49	%		3.46	%		3.55	%		3.43	%		(1.7	)%		0.9	%		1.7	%
Avg. interest earning assets/Avg. interest bearing liabilities		1.27			1.25			1.27			1.28			(0.5	)%		1.0	%		(0.9	)%
FINANCIAL DATA - YEAR TO DATE:
Net interest income (tax equivalent) (a)	$	29,827								$	22,176									34.5	%
Provision for loan losses		1,347									906									48.7	%
Total other income		8,025									5,738									39.9	%
Total other expenses		20,704									21,174									(2.2	)%
Income before provision for income taxes (tax equivalent)		15,801									5,834									170.8	%
Provision for income taxes		3,336									1,111									200.3	%
Taxable equivalent adjustment (a)		398									423									(5.9	)%
Net income	$	12,067								$	4,300									180.6	%
Net income per common share - Basic	$	1.28								$	0.55									132.7	%
Net income per common share - Diluted	$	1.28								$	0.55									132.7	%
Return on average assets		1.31	%								0.63	%								109.2	%
Return on average equity		12.69	%								5.90	%								115.1	%
Efficiency ratio (b)		55.28	%								77.02	%								(28.2	)%
Net interest margin (tax equivalent)		3.47	%								3.49	%								(0.6	)%
Avg. interest earning assets/Avg. interest bearing liabilities		1.26									1.28									(1.2	)%
SHARE INFORMATION:
Book value per common share	$	20.35		$	20.03		$	19.45		$	18.77			4.6	%		1.6	%		8.4	%
Tangible book value per common share		17.25			16.93			16.36			15.48			5.4	%		1.9	%		11.4	%
Outstanding shares- period ending		9,456,778			9,470,730			9,532,943			7,929,706			(0.8	)%		(0.1	)%		19.3	%
Average diluted shares outstanding (year to date)		9,406,175			9,460,118			7,921,269			7,848,468			18.7	%		(0.6	)%		19.8	%
CAPITAL RATIOS:
Total equity to total assets		10.31	%		10.31	%		10.32	%		10.35	%		(0.1	)%		0.0	%		(0.4	)%
Leverage ratio (c)		10.32	%		10.21	%		12.06	%		10.62	%		(14.4	)%		1.1	%		(2.8	)%
Tier 1 risk-based capital ratio (c)		12.10	%		12.09	%		12.34	%		12.87	%		(1.9	)%		0.1	%		(6.0	)%
Total risk-based capital ratio (c)		12.72	%		12.70	%		12.94	%		13.60	%		(1.7	)%		0.2	%		(6.5	)%
Common equity Tier 1 capital ratio (c)		12.10	%		12.09	%		12.34	%		12.87	%		(1.9	)%		0.1	%		(6.0	)%
ASSET QUALITY:
Non-accrual loans (e)	$	16,243		$	20,638		$	20,704		$	18,601			(21.5	)%		(21.3	)%		(12.7	)%
Loans 90 days past due and still accruing		-			-			-			-			-	%		-	%		-	%
Troubled debt restructured loans ("TDRs") (d)		1,246			1,035			906			1,784			37.5	%		20.4	%		(30.2	)%
Foreclosed real estate		3,576			3,241			4,149			3,414			(13.8	)%		10.3	%		4.7	%
Non-performing assets ("NPAs")	$	21,065		$	24,914		$	25,759		$	23,799			(18.2	)%		(15.4	)%		(11.5	)%
Foreclosed real estate, criticized and classified assets (e)	$	29,039		$	28,704		$	24,006		$	22,529			21.0	%		1.2	%		28.9	%
Loans past due 30 to 89 days	$	8,904		$	4,842		$	3,787		$	2,868			135.1	%		83.9	%		210.5	%
Charge-offs (Recoveries) , net (quarterly)	$	339		$	156		$	30		$	(38	)		1,030.0	%		117.3	%		(992.1	)%
Charge-offs (Recoveries) , net as a % of average loans (annualized)		0.09	%		0.04	%		0.01	%		(0.01	)%		813.2	%		105.7	%		(754.2	)%
Non-accrual loans to total loans		1.06	%		1.36	%		1.40	%		1.64	%		(24.2	)%		(22.2	)%		(35.2	)%
NPAs to total assets		1.13	%		1.35	%		1.43	%		1.66	%		(21.1	)%		(16.6	)%		(31.8	)%
NPAs excluding TDR loans (d) to total assets		1.06	%		1.30	%		1.35	%		1.53	%		(21.5	)%		(18.2	)%		(30.7	)%
Non-accrual loans to total assets		0.87	%		1.12	%		1.12	%		1.29	%		(22.5	)%		(22.4	)%		(32.8	)%
Allowance for loan losses as a % of non-accrual loans		59.27	%		44.53	%		43.51	%		44.43	%		36.2	%		33.1	%		33.4	%
Allowance for loan losses to total loans		0.63	%		0.61	%		0.60	%		0.73	%		5.7	%		3.6	%		(13.5	)%

(a) Full taxable equivalent basis, using a 30.09% effective tax rate and adjusted for TEFRA (Tax and Equity Fiscal Responsibility Act) interest expense disallowance

(b) Efficiency ratio calculated non-interest expense divided by net interest income plus non-interest income

(c) SB One Bank capital ratios

(d) Troubled debt restructured loans currently performing in accordance with renegotiated terms

(e) PCI loans acquired through merger with Community Bank excluded from non-accrual loans and criticized and classified assets totaled $3.0 million

SB ONE BANCORP

CONSOLIDATED BALANCE SHEETS

(Dollars In Thousands)

	June 30, 2019		December 31, 2018
ASSETS
Cash and due from banks	$	9,754	$	11,768
Interest-bearing deposits with other banks		16,303		14,910
Cash and cash equivalents		26,057		26,678
Interest bearing time deposits with other banks		200		200
Securities available for sale, at fair value		194,167		182,139
Securities held to maturity		4,024		4,078
Other Bank Stock, at cost		8,867		11,764
Loans receivable, net of unearned income		1,530,668		1,474,775
Less: allowance for loan losses		9,627		8,775
Net loans receivable		1,521,041		1,466,000
Foreclosed real estate		3,576		4,149
Premises and equipment, net		19,745		19,215
Right-of-use assets, net		5,211		-
Accrued interest receivable		6,352		6,546
Goodwill and intangibles		29,242		29,446
Bank-owned life insurance		36,240		35,778
Other assets		11,622		9,710
Total Assets	$	1,866,344	$	1,795,703
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits:
Non-interest bearing	$	278,188	$	259,807
Interest bearing		1,198,300		1,094,132
Total Deposits		1,476,488		1,353,939
Borrowings		152,671		219,906
Lease liability		5,220		-
Accrued interest payable and other liabilities		11,685		8,555
Subordinated debentures		27,864		27,859
Total Liabilities		1,673,928		1,610,259
Total Stockholders' Equity		192,416		185,444
Total Liabilities and Stockholders' Equity	$	1,866,344	$	1,795,703

SB ONE BANCORP

CONSOLIDATED STATEMENTS OF INCOME

(Dollars In Thousands Except Per Share Data)

(Unaudited)

	Three Months Ended June 30,					Six Months Ended
	2019			2018		6/30/2019			6/30/2018
INTEREST INCOME
Loans receivable, including fees	$	19,059		$	12,562	$	37,219		$	24,462
Securities:
Taxable		1,277			804		2,452			1,540
Tax-exempt		337			449		785			830
Federal funds sold		-			-		-			-
Interest bearing deposits		65			16		114			46
Total Interest Income		20,738			13,831		40,570			26,878
INTEREST EXPENSE
Deposits		4,459			1,659		8,323			3,117
Borrowings		973			874		2,187			1,380
Junior subordinated debentures		316			313		631			628
Total Interest Expense		5,748			2,846		11,141			5,125
Net Interest Income		14,990			10,985		29,429			21,753
PROVISION FOR LOAN LOSSES		776			398		1,347			906
Net Interest Income after Provision for Loan Losses		14,214			10,587		28,082			20,847
OTHER INCOME
Service fees on deposit accounts		367			311		697			639
ATM and debit card fees		278			250		509			463
Bank owned life insurance		232			188		462			373
Insurance commissions and fees		2,096			1,839		4,658			3,734
Investment brokerage fees		21			41		77			63
Gain (loss) gain on securities transactions		1,524			36		1,524			36
(Loss) gain on disposal of fixed assets		(381	)		9		(381	)		9
Other		255			207		479			421
Total Other Income		4,392			2,881		8,025			5,738
OTHER EXPENSES
Salaries and employee benefits		6,334			5,411		12,464			10,469
Occupancy, net		985			727		1,764			1,329
Data processing		999			939		1,939			1,730
Furniture and equipment		314			326		632			607
Advertising and promotion		123			285		255			341
Professional fees		372			290		834			619
Director fees		180			142		325			289
FDIC assessment		281			100		447			210
Insurance		33			52		63			147
Stationary and supplies		90			89		174			146
Merger-related expenses		-			446		-			3,739
Loan collection costs		17			89		137			150
Expenses and write-downs related to foreclosed real estate		96			1		161			208
Amortization of intangible assets		101			60		203			121
Other		601			623		1,306			1,069
Total Other Expenses		10,526			9,580		20,704			21,174
Income before Income Taxes		8,080			3,888		15,403			5,411
INCOME TAX EXPENSE		1,836			896		3,336			1,111
Net Income	$	6,244		$	2,992	$	12,067		$	4,300
EARNINGS PER SHARE
Basic	$	0.67		$	0.38	$	1.28		$	0.55
Diluted	$	0.66		$	0.38	$	1.28		$	0.55

SB ONE BANCORP

COMPARATIVE AVERAGE BALANCES AND AVERAGE INTEREST RATES

(Dollars In Thousands)

(Unaudited)

	Three Months Ended June 30,
	2019									2018
	Average						Average			Average						Average
	Balance			Interest			Rate (2)			Balance			Interest			Rate (2)
Earning Assets:
Securities:
Tax exempt (3)	$	46,888		$	508			4.35	%	$	64,726		$	678			4.20	%
Taxable		158,258			1,277			3.24	%		126,462			804			2.55	%
Total securities		205,146			1,785			3.49	%		191,188			1,482			3.11	%
Total loans receivable (1) (4)		1,516,945			19,059			5.04	%		1,112,480			12,562			4.53	%
Other interest-earning assets		20,386			65			1.28	%		8,246			16			78.00	%
Total earning assets		1,742,477			20,909			4.81	%		1,311,914			14,060			4.30	%
Non-interest earning assets		118,393									96,979
Allowance for loan losses		(9,335	)								(8,077	)
Total Assets	$	1,851,535								$	1,400,816
Sources of Funds:
Interest bearing deposits:
NOW	$	249,647		$	453			0.73	%	$	250,143		$	347			0.56	%
Money market		230,766			1,165			2.02	%		91,597			287			1.26	%
Savings		226,511			372			0.66	%		220,075			191			0.35	%
Time		494,823			2,469			2.00	%		263,248			834			1.27	%
Total interest bearing deposits		1,201,747			4,459			1.49	%		825,063			1,659			0.81	%
Borrowed funds		145,937			973			2.67	%		173,841			874			2.02	%
Subordinated debentures		27,863			316			4.55	%		27,852			313			4.51	%
Total interest bearing liabilities		1,375,547			5,748			1.68	%		1,026,756			2,846			1.11	%
Non-interest bearing liabilities:
Demand deposits		272,667									222,558
Other liabilities		10,935									3,736
Total non-interest bearing liabilities		283,602									226,294
Stockholders' equity		192,386									147,766
Total Liabilities and Stockholders' Equity	$	1,851,535								$	1,400,816
Net Interest Income and Margin (5)					15,161			3.49	%					11,214			3.43	%
Tax-equivalent basis adjustment					(171	)								(229	)
Net Interest Income				$	14,990								$	10,985

(1) Includes loan fee income

(2) Average rates on securities are calculated on amortized costs

(3) Full taxable equivalent basis, using an effective tax rate of 30.09% in 2019 and 2018 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

SB ONE BANCORP

COMPARATIVE AVERAGE BALANCES AND AVERAGE INTEREST RATES

(Dollars In Thousands)

(Unaudited)

	Three Months Ended June 30, 2019									Three Months Ended March 31, 2019
	Average						Average			Average						Average
	Balance			Interest			Rate (2)			Balance			Interest			Rate (2)
Earning Assets:
Securities:
Tax exempt (3)	$	46,888		$	508			4.35	%	$	62,654		$	675			4.37	%
Taxable		158,258			1,277			3.24	%		142,137			1,175			3.35	%
Total securities		205,146			1,785			3.49	%		204,791			1,850			3.66	%
Total loans receivable (1) (4)		1,516,945			19,059			5.04	%		1,500,604			18,160			4.91	%
Other interest-earning assets		20,386			65			1.28	%		14,691			49			1.35	%
Total earning assets		1,742,477			20,909			4.81	%		1,720,086			20,059			4.73	%
Non-interest earning assets		118,393									114,358
Allowance for loan losses		(9,335	)								(8,815	)
Total Assets	$	1,851,535								$	1,825,629
Sources of Funds:
Interest bearing deposits:
NOW	$	249,647		$	453			0.73	%	$	255,959		$	446			0.71	%
Money market		230,766			1,165			2.02	%		240,936			1,178			1.98	%
Savings		226,511			372			0.66	%		221,608			327			0.60	%
Time		494,823			2,469			2.00	%		436,376			1,913			1.78	%
Total interest bearing deposits		1,201,747			4,459			1.49	%		1,154,879			3,864			1.36	%
Borrowed funds		145,937			973			2.67	%		188,983			1,214			2.61	%
Subordinated debentures		27,863			316			4.55	%		27,860			315			4.59	%
Total interest bearing liabilities		1,375,547			5,748			1.68	%		1,371,722			5,393			1.59	%
Non-interest bearing liabilities:
Demand deposits		272,667									259,363
Other liabilities		10,935									6,481
Total non-interest bearing liabilities		283,601									265,844
Stockholders' equity		192,386									188,063
Total Liabilities and Stockholders' Equity	$	1,851,535								$	1,825,629
Net Interest Income and Margin (5)					15,161			3.49	%					14,666			3.46	%
Tax-equivalent basis adjustment					(171	)								(227	)
Net Interest Income				$	14,990								$	14,439

(1) Includes loan fee income

(2) Average rates on securities are calculated on amortized costs

(3) Full taxable equivalent basis, using an effective tax rate of 30.09% in 2019 and 2018 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

SB ONE BANCORP

COMPARATIVE AVERAGE BALANCES AND AVERAGE INTEREST RATES

(Dollars In Thousands)

(Unaudited)

	Six Months Ended June 30,
	2019									2018
	Average						Average			Average						Average
	Balance			Interest			Rate (2)			Balance			Interest			Rate (2)
Earning Assets:
Securities:
Tax exempt (3)	$	54,728		$	1,183			4.36	%	$	59,883		$	1,253			4.22	%
Taxable		150,242			2,452			3.29	%		123,635			1,540			2.51	%
Total securities		204,970			3,635			3.58	%		183,518			2,793			3.07	%
Total loans receivable (1) (4)		1,508,820			37,219			4.97	%		1,088,238			24,462			4.53	%
Other interest-earning assets		17,554			114			1.31	%		10,576			46			0.88	%
Total earning assets		1,731,344			40,968			4.77	%		1,282,332			27,301			4.29	%
Non-interest earning assets		116,385									96,349
Allowance for loan losses		(9,076	)								(7,792	)
Total Assets	$	1,838,653								$	1,370,889
Sources of Funds:
Interest bearing deposits:
NOW	$	252,786		$	899			0.72	%	$	254,884		$	745			0.59	%
Money market		235,823			2,343			2.00	%		94,016			535			1.15	%
Savings		224,073			699			0.63	%		221,005			268			0.24	%
Time		465,761			4,382			1.90	%		264,189			1,569			1.20	%
Total interest bearing deposits		1,178,443			8,323			1.42	%		834,094			3,117			0.75	%
Borrowed funds		167,341			2,187			2.64	%		143,034			1,380			1.95	%
Subordinated debentures		27,861			631			4.57	%		27,851			628			4.55	%
Total interest bearing liabilities		1,373,645			11,141			1.64	%		1,004,979			5,125			1.03	%
Non-interest bearing liabilities:
Demand deposits		266,052									215,665
Other liabilities		8,720									4,418
Total non-interest bearing liabilities		274,772									220,083
Stockholders' equity		190,236									145,827
Total Liabilities and Stockholders' Equity	$	1,838,653								$	1,370,889
Net Interest Income and Margin (5)					29,827			3.47	%					22,176			3.49	%
Tax-equivalent basis adjustment					(398	)								(423	)
Net Interest Income				$	29,429								$	21,753

(1) Includes loan fee income

(2) Average rates on securities are calculated on amortized costs

(3) Full taxable equivalent basis, using an effective tax rate of 30.09% in 2019 and 2018 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

SB ONE BANCORP

Segment Reporting

(Dollars In Thousands)

(Unaudited)

	Three Months Ended June 30, 2019						Three Months Ended June 30, 2018
	Banking and						Banking and
	Financial		Insurance				Financial		Insurance
	Services		Services		Total		Services		Services		Total
Net interest income from external sources	$	14,990	$	-	$	14,990	$	10,985	$	-	$	10,985
Other income from external sources		2,247		2,145		4,392		1,009		1,872		2,881
Depreciation and amortization		516		11		527		444		6		450
Income before income taxes		7,500		580		8,080		3,288		600		3,888
Income tax expense (1)		1,604		232		1,836		656		240		896
Total assets		1,859,422		6,922		1,866,344		1,425,250		12,052		1,437,302

	Six Months Ended June 30, 2019						Six Months Ended June 30, 2018
	Banking and						Banking and
	Financial		Insurance				Financial		Insurance
	Services		Services		Total		Services		Services		Total
Net interest income from external sources	$	29,429	$	-	$	29,429	$	21,753	$	-	$	21,753
Other income from external sources		3,279		4,746		8,025		1,934		3,804		5,738
Depreciation and amortization		1,041		23		1,064		892		12		904
Income before income taxes		13,557		1,846		15,403		3,902		1,509		5,411
Income tax expense (1)		2,598		738		3,336		507		604		1,111
Total assets		1,859,422		6,922		1,866,344		1,425,250		12,052		1,437,302

⁽¹⁾ Calculated at statutory tax rate of 30.09% in 2019 and 2018 for the insurance services segment

SB ONE BANCORP

Non-GAAP Reporting

(Dollars In Thousands)

(Unaudited)

	Three Months Ended June 30,
	2019			2018
Net income (GAAP)	$	6,244		$	2,992
Merger related expenses net of tax (1)		-			321
Non-recurring rebrand expenses net of tax (2)		-			152
Non-recurring discontinued operations expense net of tax (3)		353			-
Net income, as adjusted	$	6,597		$	3,465
Average diluted shares outstanding (GAAP)		9,406,175			7,906,600
Diluted EPS, as adjusted	$	0.70		$	0.44
Average assets		1,851,535			1,400,816
Return on average assets, as adjusted		1.43	%		0.99	%
Return on average equity, as adjusted		13.72	%		9.38	%

⁽¹⁾ The tax effect on the merger related expense was $125 thousand QTD 2018

⁽²⁾ The tax effect of the non-recurring rebrand expenses was $54 thousand

⁽³⁾ The tax effect on the discontinued operations was $152 thousand

	Three Months Ended
	June 30, 2019			March 31, 2019
Net income (GAAP)	$	6,244		$	5,823
Non-recurring discontinued operations expense net of tax (1)		353			-
Net income, as adjusted	$	6,597		$	5,823
Average diluted shares outstanding (GAAP)		9,406,175			9,460,118
Diluted EPS, as adjusted	$	0.70		$	0.62
Average assets		1,851,535			1,825,629
Return on average assets, as adjusted		1.43	%		1.28	%
Return on average equity, as adjusted		13.72	%		12.39	%

⁽¹⁾ The tax effect on the discontinued operations was $152 thousand

	Six Months Ended June 30,
	2019			2018
Net income (GAAP)	$	12,067		$	4,300
Merger related expenses net of tax (1)		-			2,688
Non-recurring expenses inclusive of rebrand net of tax (2)		-			152
Non-recurring discontinued operations expense net of tax (3)		353			-
Net income, as adjusted	$	12,420		$	7,140
Average diluted shares outstanding (GAAP)		9,431,177			7,848,468
Diluted EPS, as adjusted	$	1.32		$	0.91
Average assets		1,838,653			1,370,889
Return on average assets, as adjusted		1.35	%		1.04	%
Return on average equity, as adjusted		13.06	%		9.79	%

⁽¹⁾ The tax effect on the merger related expense was $1.1 million YTD 2018

⁽²⁾ The tax effect of the non-recurring rebrand expenses was $54 thousand

⁽³⁾ The tax effect on the discontinued operations was $152 thousand