**EXHIBIT
      99.1**





**DISCLOSURE
      RE FEE DISPUTE WITH DELOITTE & TOUCHE, LLP**





As
      previously disclosed by State Bancorp, Inc. (the "Company") in its Current
      Report on Form 8-K filed on August 18, 2005, on August 12, 2005 the Audit
      Committee of the Board of Directors of the Company dismissed Deloitte &
Touche, LLP ("Deloitte") as the Company's independent registered public
      accounting firm. The reports of Deloitte on the financial statements of the
      Company for the
      Company 's
      two
      most recent fiscal years ended December
      31, 200 4
      contained no adverse opinion or disclaimer of opinion and were not qualified
      or
      modified as to uncertainty, audit scope or accounting principle. During the
      Company's two most recent fiscal years ended December
      31, 200 4
      and
      during the subsequent interim period preceding the replacement of Deloitte
      there
      were no disagreements with Deloitte on any matter of accounting principles
      or
      practices, financial statement disclosure, or auditing scope or procedure,
      which
      disagreements if not resolved to the satisfaction of Deloitte would have caused
      them to make reference thereto in their reports on the financial statements
      of
      the Company for such years.





On
      August
      12, 2005, the Audit Committee of the Board of Directors of the Company engaged
      Crowe Chizek and Company LLC ("Crowe Chizek") as the Company's independent
      auditors with respect to the audit of the Company's consolidated financial
      statements for the fiscal year ended December 31, 2005. During the
      Company 's
      two
      most recent fiscal years ended December
      31, 200 4,
      and
      during the subsequent interim period preceding the replacement of Deloitte, the
      Company did not
      consult with Crowe Chizek regarding the application of accounting principles
      to
      a specified transaction, either completed or proposed, or the type of audit
      opinion that might be rendered on the Company’s financial
      statements.





At
      the
      time that the Company filed the aforementioned Form 8-K, Deloitte furnished
      the
      Company with a letter addressed to the Securities and Exchange Commission
      stating that it agreed with the above statements made by the Company regarding
      Deloitte. A copy of that letter, dated August 17, 2005, was filed as Exhibit
      16.1 to the Form 8-K.





Prior
      to
      replacing Deloitte, the Company paid Deloitte audit fees for 2004 in the amount
      of $401,140, which was the amount quoted by Deloitte in its 2004 engagement
      letter. Subsequently, the Company received bills from Deloitte in the amount
      of
      $509,734 for additional audit fees for 2004 and 2005, which amount is disputed
      by the Company. Due to the continuing nature of this dispute, the Company has
      been unable to obtain a reissued audit report from Deloitte on the Company's
      December 31, 2004 and 2003 financial statements included in this Form 10-K,
      which Deloitte previously reported on in its audit report dated March 11,
      2005.