8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): October 16, 2006

SUFFOLK BANCORP

(Exact name of registrant as specified in its charter)

New York	0-13580	11-2708279
(State or other jurisdiction of incorporation or organization)	(Commission File Number)	(IRS Employer Identification No.)

4 West Second Street, Riverhead, New York	11901
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (631) 727-5667

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Page 2 of 4

Item 2.02 Results of Operations and Financial Condition.

Attached as an exhibit is the Company’s press release titled, “SUFFOLK BANCORP ANNOUNCES EARNINGS FOR THE THIRD QUARTER OF 2006,” dated October 16, 2006

Page 3 of 4

SIGNATURE

Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	SUFFOLK BANCORP
Dated October 16, 2006	By:	/s/ Douglas Ian Shaw
		Senior Vice President & Corporate Secretary

Page 4 of 4

EXHIBIT INDEX

99.1 Earnings release for the three months ended September 30, 2006, dated October 16, 2006.

EX-99.1

Exhibit 99.1

PRESS RELEASE

FOR IMMEDIATE RELEASE
Contact:	Douglas Ian Shaw	4 West Second Street
	Corporate Secretary	Riverhead, NY 11901
	(631) 727-5667	(631) 727-5667 (Voice) - (631) 727-3214 (FAX)
		invest@suffolkbancorp.com

SUFFOLK BANCORP ANNOUNCES EARNINGS FOR THE THIRD QUARTER OF 2006

Riverhead, New York, October 16, 2006 — Suffolk Bancorp (NASDAQ—SUBK) today released the results of its operations during the third quarter of 2006. Earnings-per-share for the quarter were $0.60, an increase of 7.1 percent from $0.56 during the comparable period of 2005. Net income for the quarter was $6,168,000, up 5.5 percent from the same quarter last year. Earnings-per-share for the year to date were $1.65, an increase of 7.8 percent from $1.53 during the comparable period of 2005. Net income for the year to date was $17,031,000, up 4.5 percent from the same period last year. A detailed financial summary follows the text of this release.

President and Chief Executive Officer, Thomas S. Kohlmann, commented, “We are pleased to be able to report a 7.1 percent increase in earnings-per-share in comparison to the third quarter of 2005, return on average equity of 24.49 percent, return on average assets of 1.75 percent, and a net interest margin of 5.17 percent. Ratios like these are evidence of solid performance, and the first two are of direct and enduring importance to our shareholders and the value they derive from their investment in Suffolk Bancorp. This is the result of our disciplined approach to both sides of our balance sheet in the face of three main factors. First is the extended period of time during which the yield curve has been inverted for the terms in which we invest, resulting in a convergence of rates of both assets and liabilities. Second is competition for loans. Third has been what we believe are truly unsustainable rates for certain time deposits posted by institutions that have been willing to sacrifice profitability and therefore shareholder value to gain market share. This highly competitive environment has limited our opportunities to grow in the short term. The discerning reader will note that average assets at Suffolk increased by a modest 30 basis points. We have made a conscious decision to maintain our return to our shareholders to the extent that the market will permit, and bide our time while those institutions that have compromised loan quality or yield, or overpaid for deposits, are shaken out of the industry.”

He went on to say, “Our performance has been the result of our adherence to the ‘marginal-cost-of-funds approach’ to managing our balance sheet, where we make selective use of borrowed funds, and tightly focused deposit programs to accommodate our best customers to minimize increases in the cost of funds. Also supporting earnings per share has been the tax benefit of increased investment in municipal securities, and the effect of our ongoing share repurchase program. It is easy to overreact to competition in the short run, and much more difficult to remain focused in the long run. But we believe that it is our obligation to our shareholders, customers, and employees alike to be a steady partner in building their business and ours.”

Mr. Kohlmann concluded, “We will, of course, pursue select opportunities to grow, but only when they are consistent with our core business model, and likely to contribute shareholder value in the long term through enduring, profitable relationships with solid, reliable customers. We have been around for 116 years, and that is no accident. Current management, and those that have preceded us have long understood the wisdom of consistency, and the value of discipline in limiting our business practices at all times to those which are sustainable over the course of the full business cycle.”

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 27 offices in Suffolk County, New York.

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

This press release may include statements which look to the future. These can include remarks about Suffolk Bancorp, the banking industry, and the economy in general. These remarks are based on current plans and expectations. They are subject, however, 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; and changes in government regulations.

PRESS RELEASE October 16, 2006 Page 2 of 4

STATISTICAL SUMMARY

(unaudited, in thousands of dollars except for share and per share data)

	3rd Q 2006			3rd Q 2005			Change		9 Mos. 2006			9 Mos. 2005			Change
EARNINGS
Earnings-Per-Share - Basic	$	0.60		$	0.56		7.1	%	$	1.65		$	1.53		7.8	%
Cash Dividends-Per-Share		0.22			0.20		10.0	%		0.66			0.59		11.9	%
Net Income		6,168			5,845		5.5	%		17,031			16,302		4.5	%
Net Interest Income		16,420			16,482		(0.4	)%		49,244			47,878		2.9	%
AVERAGE BALANCES
Average Assets	$	1,406,066		$	1,402,183		0.3	%	$	1,413,778		$	1,389,996		1.7	%
Average Net Loans		893,092			858,713		4.0	%		899,929			849,146		6.0	%
Average Investment Securities		415,837			427,191		(2.7	)%		414,290			433,106		(4.3	)%
Average Interest-Earning Assets		1,313,722			1,289,238		1.9	%		1,316,909			1,285,772		2.4	%
Average Deposits		1,164,313			1,233,442		(5.6	)%		1,151,619			1,209,597		(4.8	)%
Average Borrowings		127,959			45,535		181.0	%		145,577			58,891		147.2	%
Average Interest -Bearing Liabilities		852,458			829,747		2.7	%		869,495			847,967		2.5	%
Average Equity		100,724			98,820		1.9	%		99,430			100,085		(0.7	)%
RATIOS
Return on Average Equity		24.49	%		23.66	%	3.5	%		22.84	%		21.72	%	5.2	%
Return on Average Assets		1.75	%		1.67	%	4.8	%		1.61	%		1.56	%	3.2	%
Average Equity/Assets		7.16	%		7.05	%	1.6	%		7.03	%		7.20	%	(2.4	)%
Net Interest Margin (FTE)		5.17	%		5.21	%	(0.8	)%		5.14	%		5.04	%	2.0	%
Efficiency Ratio		52.18	%		48.28	%	8.1	%		52.37	%		50.58	%	3.5	%
Tier 1 Leverage Ratio Sept. 30		7.70	%		7.16	%	7.5	%
Tier 1 Risk-based Capital Ratio Sept. 30		10.13	%		9.91	%	2.2	%
Total Risk-based Capital Ratio Sept. 30		10.83	%		10.79	%	0.4	%
ASSET QUALITY during period:
Net Charge-offs (Recoveries)	$	(98	)	$	(47	)	108.5	%	$	3,246		$	(49	)	6,724.5	%
Net Charge-offs/Average Net Loans (annual) at end of period:		(0.04	)%		(0.02	)%	100.0	%		0.38	%		(0.01	)%	3,900.0	%
Non-accrual & Restructured Loans	$	1,355		$	5,168		(73.8	)%
Foreclosed Real Estate (“OREO”)		—			—		0.0	%
Total Non-performing Assets		1,355			5,168		(73.8	)%
Allowance/Non-performing Assets		555.50	%		181.58	%	205.9	%
Allowance/Loans, Net of Discount		0.85	%		1.06	%	(19.8	)%
Net Loans/Deposits		75.10	%		71.59	%	4.9	%
EQUITY
Shares Outstanding		10,236,298			10,430,221		(1.9	)%
Common Equity	$	108,012		$	100,700		7.3	%
Book Value Per Common Share		10.55			9.65		9.3	%
Tangible Common Equity		107,198			99,886		7.3	%
Tangible Book Value Per Common Share		10.47			9.58		9.3	%
LOAN DISTRIBUTION at end of period:
Commercial, Financial & Agricultural Loans	$	183,716			182,024		0.9	%
Commercial Real Estate Mortgages		304,136			301,041		1.0	%
Real Estate - Construction Loans		71,063			56,380		26.0	%
Residential Mortgages (1st and 2nd Liens)		142,121			127,202		11.7	%
Home Equity Loans		76,616			79,976		(4.2	)%
Consumer Loans		108,557			135,395		(19.8	)%
Other Loans		778			1,303		(40.3	)%
Total Loans (Net of Unearned Discounts)	$	886,987		$	883,321		0.4	%

PRESS RELEASE October 16, 2006 Page 3 of 4

CONSOLIDATED STATEMENTS OF CONDITION

(unaudited, in thousands of dollars except for share and per share data)

	September 30,						Change
	2006			2005
ASSETS
Cash & Due From Banks	$	54,458		$	55,856		(2.5	)%
Federal Funds Sold		13,300			5,700		133.3	%
Investment Securities:
Available for Sale, at Fair Value		402,545			404,695		(0.5	)%
Obligations of States & Political Subdivisions		10,323			11,138		(7.3	)%
Federal Reserve Bank Stock		638			638		0.0	%
Federal Home Loan Bank Stock		4,131			1,930		114.0	%
Corporate Bonds & Other Securities		100			100		0.0	%
Total Investment Securities		417,737			418,501		(0.2	)%
Total Loans		886,987			883,321		0.4	%
Allowance for Loan Losses		7,527			9,384		(19.8	)%
Net Loans		879,460			873,937		0.6	%
Premises & Equipment, Net		22,127			22,609		(2.1	)%
Accrued Interest Receivable, Net		7,446			6,274		18.7	%
Excess of Cost Over Fair Value of Net Assets Acquired		814			814		0.0	%
Other Assets		17,186			17,097		0.5	%
TOTAL ASSETS	$	1,412,528		$	1,400,788		0.8	%
LIABILITIES & STOCKHOLDERS’ EQUITY
Demand Deposits	$	432,129		$	439,470		(1.7	)%
Saving, N.O.W. & Money Market Deposits		467,320			560,371		(16.6	)%
Time Certificates of $100,000 or More		80,083			18,889		324.0	%
Other Time Deposits		191,588			202,034		(5.2	)%
Total Deposits		1,171,120			1,220,764		(4.1	)%
Federal Home Loan Bank Borrowings		60,000			18,500		224.3	%
Repurchase Agreements		52,935			37,275		42.0	%
Dividend Payable on Common Stock		2,252			2,088		7.9	%
Accrued Interest Payable		2,597			1,276		103.5	%
Other Liabilities		15,612			20,185		(22.7	)%
TOTAL LIABILITIES		1,304,516			1,300,088		0.3	%
STOCKHOLDERS’ EQUITY
Common Stock (par value $2.50; 15,000,000 shares authorized; 10,236,298 and 10,430,221 shares outstanding at September 30, 2006 and 2005, respectively)		33,884			33,884		0.0	%
Surplus		19,619			19,440		0.9	%
Treasury Stock at Par (3,317,438 and 3,123,515 shares, respectively)		(8,294	)		(7,809	)	6.2	%
Retained Earnings		63,917			55,727		14.7	%
		109,126			101,242		7.8	%
Accumulated Other Comprehensive (Loss) Income, Net of Tax		(1,114	)		(542	)	105.5	%
TOTAL STOCKHOLDERS’ EQUITY		108,012			100,700		7.3	%
TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY	$	1,412,528		$	1,400,788		0.8	%

PRESS RELEASE October 16, 2006 Page 4 of 4

CONSOLIDATED STATEMENTS OF INCOME

(unaudited, in thousands of dollars except for share and per share data)

	For the 3 Months Ended				Change		For the Year to Date				Change
	9/30/06		9/30/05				2006		2005
INTEREST INCOME
Federal Funds Sold	$	63	$	29	117.2	%	$	104	$	80	30.0	%
United States Treasury Securities		96		96	0.0	%		287		288	(0.3	)%
Obligations of States & Political Subdivisions		1,078		625	72.5	%		2,838		1,529	85.6	%
Mortgage-Backed Securities		1,961		2,295	(14.6	)%		5,926		7,531	(21.3	)%
U.S. Government Agency Obligations		1,218		1,222	(0.3	)%		3,662		3,667	(0.1	)%
Corporate Bonds & Other Securities		87		39	123.1	%		258		114	126.3	%
Loans		17,355		15,042	15.4	%		51,139		42,600	20.0	%
Total Interest Income		21,858		19,348	13.0	%		64,214		55,809	15.1	%
INTEREST EXPENSE
Saving, N.O.W. & Money Market Deposits		1,293		974	32.8	%		3,606		2,663	35.4	%
Time Certificates of $100,000 or more		594		147	304.1	%		1,056		395	167.3	%
Other Time Deposits		1,796		1,310	37.1	%		4,895		3,487	40.4	%
Federal Funds Purchased and Repurchase Agree		728		363	100.6	%		2,234		852	162.2	%
Interest on Other Borrowings		1,027		72	1,326.4	%		3,179		534	495.3	%
Total Interest Expense		5,438		2,866	89.7	%		14,970		7,931	88.8	%
Net-interest Income		16,420		16,482	(0.4	)%		49,244		47,878	2.9	%
Provision for Loan Losses		345		450	(23.3	)%		945		1,125	(16.0	)%
Net-interest Income After Provision		16,075		16,032	0.3	%		48,299		46,753	3.3	%
OTHER INCOME
Service Charges on Deposit Accounts		1,359		1,429	(4.9	)%		4,213		4,199	0.3	%
Other Service Charges, Commissions & Fees		915		657	39.3	%		2,249		1,885	19.3	%
Fiduciary Fees		298		297	0.3	%		930		858	8.4	%
Other Operating Income		178		145	22.8	%		463		413	12.1	%
Total Other Income		2,750		2,528	8.8	%		7,855		7,355	6.8	%
OTHER EXPENSE
Salaries & Employee Benefits		5,906		5,516	7.1	%		17,919		16,595	8.0	%
Net Occupancy Expense		956		911	4.9	%		2,962		2,779	6.6	%
Equipment Expense		531		478	11.1	%		1,554		1,577	(1.5	)%
Other Operating Expense		2,609		2,273	14.8	%		7,466		6,984	6.9	%
Total Other Expense		10,002		9,178	9.0	%		29,901		27,935	7.0	%
Income Before Provision for Income Taxes		8,823		9,382	(6.0	)%		26,253		26,173	0.3	%
Provision for Income Taxes		2,655		3,537	(24.9	)%		9,222		9,871	(6.6	)%
NET INCOME	$	6,168	$	5,845	5.5	%	$	17,031	$	16,302	4.5	%
Average: Common Shares Outstanding		10,247,565		10,494,505	(2.4	)%		10,299,919		10,624,175	(3.1	)%
Dilutive Stock Options		28,675		28,388	1.0	%		29,227		28,762	1.6	%
Average Total		10,276,240		10,522,893	(2.3	)%		10,329,146		10,652,937	(3.0	)%
EARNINGS PER COMMON SHARE
Basic	$	0.60	$	0.56	7.1	%	$	1.65	$	1.53	7.8	%
Diluted	$	0.60	$	0.56	7.1	%	$	1.65	$	1.53	7.8	%