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): January 16, 2007

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))

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 FOURTH QUARTER AND THE FULL YEAR OF 2006,” dated January 16, 2007

Page 2 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 January 16, 2007	By:	/s/ Douglas Ian Shaw
		Senior Vice President & Corporate Secretary

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EXHIBIT INDEX

99.1 Earnings release for the twelve months ended December 31, 2006, dated January 16, 2007.

Page 4 of 4

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 FOURTH QUARTER AND THE FULL YEAR OF 2006

Riverhead, New York, January 16, 2007 — Suffolk Bancorp (NASDAQ - SUBK) today released the results of its operations during the fourth quarter and full year of 2006. Earnings-per-share for the year were $2.20, an increase of 5.3 percent from $2.09 during 2005. Net income for the year was $22,628,000, up 2.4 percent from the same period last year. Earnings-per-share for the quarter were $0.55, a decrease of 1.8 percent from $0.56 during the comparable period of 2005. Net income for the quarter was $5,597,000, down 3.5 percent from the same quarter last year. A detailed financial summary follows the text of this release.

President and Chief Executive Officer, Thomas S. Kohlmann, commented, “Return on average equity was 20.81 percent for the quarter, and 22.16 for the year. That compares to 9.73 percent for banks in the New York metropolitan area at September 30, 2006, the date of the most recently available information (source: SNL Securities). Return on average assets was 1.61 percent for both the quarter and year, again compared to 0.89 percent for the New York metro area. Our net interest margin was 5.23 percent and 5.16 percent, compared to 3.87 percent in greater New York. The quality of our assets is high, with net recoveries of 1/10^th of a basis point for the quarter, and net charge-offs of 0.28 percent for the year even including the one significant charge-off in our recent past, now behind us as discussed in previous press releases. The Allowance for Loan Losses stands at more than nine times non-performing loans.”

He went on to say, “Nonetheless, it has been a challenging year for reasons we have previously discussed. The yield curve has remained stubbornly, persistently flat or inverted, causing the rates of interest on the assets in which banks typically invest and the monies which fund them to converge. We have been able to maintain our net interest margin by choosing our assets selectively with an eye to maintaining taxable-equivalent yield, and strict adherence to the ‘marginal-cost-of-funds approach’ to managing our funding. However, excess capacity in the industry and the resulting, unsustainable pricing for both assets and liabilities by our competitors, has made it difficult to grow for now. We are more concerned with the profitability of our enterprise in the long-term, and we do not want to encumber it with low-yielding assets or over-priced liabilities that will compromise our net interest margin when the yield curve finally rights itself, as it will, eventually and inevitably. Then we will be able to grow once again with a balance sheet of the quality our shareholders have come to expect. In the meantime, our objective is to maintain the standing of our business, including most importantly the relationships with customers that underlie any successful commercial banking company.”

Mr. Kohlmann concluded, “Boards of Directors and management of commercial banking companies deal completely in other people’s money, whether that of customers, or that of the shareholders who own the business. At Suffolk Bancorp, we believe that every decision we make, whether strategic or tactical, has to be rooted firmly in our fiduciary duty to those constituents. We have always endeavored to make our stock one that investors consider a core holding in their portfolio, positioned to provide good returns over the longest term possible. We believe that we have the discipline to remain firmly focused on that objective, which is the foundation of ongoing shareholder value.”

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
January 16, 2007
Page 2 of 4

STATISTICAL SUMMARY

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

	4th Q 2006			4th Q 2005			Change		YTD 2006			YTD 2005			Change
EARNINGS
Earnings-Per-Share - Basic	$	0.55		$	0.56		(1.8	)%	$	2.20		$	2.09		5.3	%
Cash Dividends-Per-Share		0.22			0.20		10.0	%		0.88			0.79		11.4	%
Net Income		5,597			5,800		(3.5	)%		22,628			22,102		2.4	%
Net Interest Income		16,466			16,483		(0.1	)%		65,710			64,361		2.1	%
AVERAGE BALANCES
Average Assets	$	1,393,475		$	1,374,513		1.4	%	$	1,408,651		$	1,386,079		1.6	%
Average Net Loans		870,805			869,033		0.2	%		892,588			854,158		4.5	%
Average Investment Securities		420,596			414,762		1.4	%		415,880			428,482		(2.9	)%
Average Interest-Earning Assets		1,304,947			1,284,867		1.6	%		1,313,894			1,285,544		2.2	%
Average Deposits		1,155,893			1,184,123		(2.4	)%		1,152,697			1,203,176		(4.2	)%
Average Borrowings		113,574			75,863		49.7	%		137,511			63,169		117.7	%
Average Interest -Bearing Liabilities		828,416			828,783		(0.0	)%		859,141			843,131		1.9	%
Average Equity		107,585			98,460		9.3	%		102,101			99,668		2.4	%
RATIOS
Return on Average Equity		20.81	%		23.56	%	(11.7	)%		22.16	%		22.18	%	(0.1	)%
Return on Average Assets		1.61	%		1.69	%	(5.0	)%		1.61	%		1.59	%	1.3	%
Average Equity/Assets		7.72	%		7.16	%	7.8	%		7.25	%		7.19	%	0.8	%
Net Interest Margin (FTE)		5.23	%		5.23	%	0.0	%		5.16	%		5.09	%	1.4	%
Efficiency Ratio		52.24	%		49.44	%	5.7	%		52.34	%		50.28	%	4.1	%
Tier 1 Leverage Ratio Dec.31		8.02	%		7.52	%	6.6	%
Tier 1 Risk-based Capital Ratio Dec. 31		10.56	%		9.96	%	6.0	%
Total Risk-based Capital Ratio Dec. 31		11.28	%		10.91	%	3.4	%
ASSET QUALITY
during period:
Net Charge-offs (Recoveries)	$	(3	)	$	5		(160.0	)%	$	3,243		$	(43	)	(7,641.9	)%
Net Charge-offs/Average Net Loans (annual) at end of period:		(0.00	)%		0.00	%	0.0	%		0.28	%		(0.01	)%	(2,900.0	)%
Non-accrual & Restructured Loans	$	824		$	4,459		(81.5	)%
Foreclosed Real Estate ("OREO")		—			—		0.0	%
Total Non-performing Assets		824			4,459		(81.5	)%
Allowance/Non-performing Assets		916.38	%		220.41	%	315.8	%
Allowance/Loans, Net of Discount		0.85	%		1.09	%	(22.0	)%
Net Loans/Deposits		77.60	%		77.26	%	0.4	%
EQUITY
Shares Outstanding		10,242,291			10,406,721		(1.6	)%
Common Equity	$	108,566		$	102,001		6.4	%
Book Value Per Common Share		10.60			9.80		8.1	%
Tangible Common Equity		107,752			101,187		6.5	%
Tangible Book Value Per Common Share		10.52			9.72		8.2	%
LOAN DISTRIBUTION
at end of period:
Commercial, Financial & Agricultural Loans	$	182,840			179,523		1.8	%
Commercial Real Estate Mortgages		292,458			308,436		(5.2	)%
Real Estate - Construction Loans		80,687			67,411		19.7	%
Residential Mortgages (1st and 2nd Liens)		155,107			131,006		18.4	%
Home Equity Loans		76,361			80,775		(5.5	)%
Consumer Loans		103,102			132,930		(22.4	)%
Other Loans		892			4,956		(82.0	)%
Total Loans (Net of Unearned Discounts)	$	891,447		$	905,037		(1.5	)%

PRESS RELEASE
January 16, 2007
Page 3 of 4

CONSOLIDATED STATEMENTS OF CONDITION

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

	December 31,						Change
	2006			2005
ASSETS
Cash & Due From Banks	$	43,576		$	48,530		(10.2	)%
Investment Securities:
Available for Sale, at Fair Value		403,246			400,038		0.8	%
Obligations of States & Political Subdivisions		9,913			11,378		(12.9	)%
Federal Reserve Bank Stock		638			638		0.0	%
Federal Home Loan Bank Stock		4,446			5,158		(13.8	)%
Corporate Bonds & Other Securities		100			100		0.0	%
Total Investment Securities		418,343			417,312		0.2	%
Total Loans		891,447			905,037		(1.5	)%
Allowance for Loan Losses		7,551			9,828		(23.2	)%
Net Loans		883,896			895,209		(1.3	)%
Premises & Equipment, Net		22,471			22,792		(1.4	)%
Accrued Interest Receivable, Net		7,609			6,747		12.8	%
Excess of Cost Over Fair Value of Net Assets Acquired		814			814		0.0	%
Other Assets		15,940			18,462		(13.7	)%
TOTAL ASSETS	$	1,392,649		$	1,409,866		(1.2	)%
LIABILITIES & STOCKHOLDERS' EQUITY
Demand Deposits	$	426,924		$	424,320		0.6	%
Saving, N.O.W. & Money Market Deposits		438,190			521,156		(15.9	)%
Time Certificates of $100,000 or More		81,842			15,825		417.2	%
Other Time Deposits		192,119			197,406		(2.7	)%
Total Deposits		1,139,075			1,158,707		(1.7	)%
Federal Funds Purchased		—			7,700		(100.0	)%
Federal Home Loan Bank Borrowings		67,000			83,000		(19.3	)%
Repurchase Agreements		53,135			37,275		42.5	%
Dividend Payable on Common Stock		2,253			2,081		8.3	%
Accrued Interest Payable		3,373			1,722		95.9	%
Other Liabilities		19,247			17,380		10.7	%
TOTAL LIABILITIES		1,284,083			1,307,865		(1.8	)%
STOCKHOLDERS' EQUITY
Common Stock (par value $2.50; 15,000,000 shares authorized; 10,242,291 and 10,406,721 shares outstanding at December 31, 2006 and 2005, respectively)		33,911			33,884		0.1	%
Surplus		19,931			19,440		2.5	%
Treasury Stock at Par (3,322,100 and 3,147,015 shares, respectively)		(8,305	)		(7,868	)	5.6	%
Retained Earnings		67,099			58,823		14.1	%
		112,636			104,279		8.0	%
Accumulated Other Comprehensive Loss, Net of Tax		(4,070	)		(2,278	)	78.7	%
TOTAL STOCKHOLDERS' EQUITY		108,566			102,001		6.4	%
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY	$	1,392,649		$	1,409,866		(1.2	)%

PRESS RELEASE
January 16, 2007
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
	12/31/06		12/31/05				2006		2005
INTEREST INCOME
Federal Funds Sold	$	177	$	11	1,509.1	%	$	281	$	91	208.8	%
United States Treasury Securities		110		97	13.4	%		397		385	3.1	%
Obligations of States & Political Subdivisions		1,163		711	63.6	%		4,001		2,240	78.6	%
Mortgage-Backed Securities		2,056		2,066	(0.5	)%		7,982		9,597	(16.8	)%
U.S. Government Agency Obligations		1,217		1,229	(1.0	)%		4,879		4,896	(0.3	)%
Corporate Bonds & Other Securities		85		33	157.6	%		343		147	133.3	%
Loans		17,187		15,717	9.4	%		68,326		58,317	17.2	%
Total Interest Income		21,995		19,864	10.7	%		86,209		75,673	13.9	%
INTEREST EXPENSE
Saving, N.O.W. & Money Market Deposits		1,185		1,026	15.5	%		4,791		3,689	29.9	%
Time Certificates of $100,000 or more		978		148	560.8	%		2,034		543	274.6	%
Other Time Deposits		1,819		1,401	29.8	%		6,714		4,888	37.4	%
Federal Funds Purchased & Repurchase Agreements		721		400	80.3	%		2,955		1,252	136.0	%
Interest on Other Borrowings		826		406	103.4	%		4,005		940	326.1	%
Total Interest Expense		5,529		3,381	63.5	%		20,499		11,312	81.2	%
Net-interest Income		16,466		16,483	(0.1	)%		65,710		64,361	2.1	%
Provision for Loan Losses		21		450	(95.3	)%		966		1,575	(38.7	)%
Net-interest Income After Provision		16,445		16,033	2.6	%		64,744		62,786	3.1	%
OTHER INCOME
Service Charges on Deposit Accounts		1,335		1,471	(9.2	)%		5,548		5,670	(2.2	)%
Other Service Charges, Commissions & Fees		848		657	29.1	%		3,097		2,542	21.8	%
Fiduciary Fees		322		325	(0.9	)%		1,252		1,183	5.8	%
Other Operating Income		312		358	(12.8	)%		775		771	0.5	%
Total Other Income		2,817		2,811	0.2	%		10,672		10,166	5.0	%
OTHER EXPENSE
Salaries & Employee Benefits		5,978		5,628	6.2	%		23,897		22,223	7.5	%
Net Occupancy Expense		988		985	0.3	%		3,950		3,764	4.9	%
Equipment Expense		559		478	16.9	%		2,113		2,055	2.8	%
Other Operating Expense		2,549		2,448	4.1	%		10,015		9,432	6.2	%
Total Other Expense		10,074		9,539	5.6	%		39,975		37,474	6.7	%
Income Before Provision for Income Taxes		9,188		9,305	(1.3	)%		35,441		35,478	(0.1	)%
Provision for Income Taxes		3,591		3,505	2.5	%		12,813		13,376	(4.2	)%
NET INCOME	$	5,597	$	5,800	(3.5	)%	$	22,628	$	22,102	2.4	%
Average: Common Shares Outstanding		10,238,718		10,412,798	(1.7	)%		10,279,870		10,570,896	(2.8	)%
Dilutive Stock Options		29,448		30,896	(4.7	)%		23,639		29,318	(19.4	)%
Average Total		10,268,166		10,443,694	(1.7	)%		10,303,509		10,600,214	(2.8	)%
EARNINGS PER COMMON SHARE
Basic	$	0.55	$	0.56	(1.8	)%	$	2.20	$	2.09	5.3	%
Diluted	$	0.55	$	0.56	(1.8	)%	$	2.20	$	2.09	5.3	%