##### Table of Contents

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United States

Securities and Exchange Commission

Washington, D.C. 20549



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Form 10-Q



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QUARTERLY REPORT PURSUANT TO SECTION
13 or 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934



For the quarter ended September 30, 2005



Commission File #0 - 13314



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SMITHTOWN BANCORP, INC.

(Exact name of registrant as specified in its charter)



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|                                                               |  |                                  
|-------------------------------------------------------------- |  | ---------------------------------
|New York                                                       |  | 11-2695037                       
|(State or other jurisdiction of incorporation or organization) |  | (IRS Employer Identification No.)
|                                                               | 
|100 Motor Parkway, Suite 160, Hauppauge, NY                    |  | 11788-5138                       
|(Address of Principal Executive Office)                        |  | (Zip Code)                       



(631) 360-9300

(Registrants telephone number, including area code)



---



Indicate by
check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No ̈



Check whether the registrant is an accelerated filer.    Yes  x    No ̈



Indicate
by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act.):    Yes ̈No  x



Indicate the number of shares outstanding of each of the issuers classes of common stock, as of the latest practicable date:



Shares of Common Stock ($.01 Par Value) Outstanding as of November 7, 2005

5,923,726



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##### Table of Contents

SMITHTOWN BANCORP, INC.



INDEX



|                               |  |                                                                                                                           
|------------------------------ |  | --------------------------------------------------------------------------------------------------------------------------
|Part I - FINANCIAL INFORMATION
|                               | 
|Item 1.                        |  | Financial Statements                                                                                                      
|                               | 
|                               |  | Unaudited Consolidated Balance Sheets as of September 30, 2005 and December 31, 2004                                      
|                               | 
|                               |  | Unaudited Consolidated Statements of Income for the Three Months Ended September 30, 2005 and 2004                        
|                               | 
|                               |  | Unaudited Consolidated Statements of Income for the Nine Months Ended September 30, 2005 and 2004                         
|                               | 
|                               |  | Unaudited Consolidated Statements of Changes in Stockholders Equity For the Nine Months Ended September 30, 2005 and 2004
|                               | 
|                               |  | Unaudited Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2005 and 2004                     
|                               | 
|Item 2.                        |  | Managements Discussion and Analysis of Financial Condition and Results of Operations                                     
|                               | 
|Item 3.                        |  | Quantitative and Qualitative Disclosures About Market Risk                                                                
|                               | 
|Item 4.                        |  | Controls and Procedures                                                                                                   
|                              
|Part II - OTHER INFORMATION   
|                               | 
|Item 1.                        |  | Legal Proceedings - None                                                                                                  
|                               | 
|Item 2.                        |  | Change in Securities and Use of Proceeds                                                                                  



Issuer Purchases of Equity Securities



|                                       |  |                                         |  |                                       |  |                                                                                           |  |                                                                                                                       
|-------------------------------------- |  | --------------------------------------- |  | ------------------------------------- |  | ----------------------------------------------------------------------------------------- |  | ----------------------------------------------------------------------------------------------------------------------
|                                       |  | (a)                                     |  | (b)                                   |  | (c)                                                                                       |  | (d)                                                                                                                   
|Period                                 |  | TotalNumberof Shares(or Units)Purchased |  | Average Price Paid Per Share(or Unit) |  | Total Number ofShares(or Units) Purchased as Part of Publicly Announced Plans or Programs |  | Maximum Number (or Approximate Dollar Value) of Shares(or Units) That May Yet Be Purchased Under the Plans or
Programs
|July 1, 2005  July 31, 2005           |  | 4,600                                   |  | 24.67                                 |  | (1)                                                                                       |  | (1)                                                                                                                   
|August 1, 2005 - August 31, 2005       |  | 0                                       |  | 0                                     |  |                                                                                           |  |                                                                                                                       
|September 1, 2005 - September 30, 2005 |  | 0                                       |  | 0                                     |  |                                                                                           |  |                                                                                                                       
|                                       |  |                                         |  |                                       |  |                                                                                           |  |                                                                                                                       
|Total                                  |  | 0                                       |  | 0                                     |  |                                                                                           |  |                                                                                                                       

---

|(1) | During 2005, the Board of Directors reapproved a Stock Repurchase Plan authorizing the repurchase of Bancorp stock at market prices.
|--- | ------------------------------------------------------------------------------------------------------------------------------------



Item 3. Defaults upon Senior Securities  None



Item 4. Submission of Matters to a Vote
of Security Holders  None



Item 5.
Subsequent Event - None



Item 6. Other
Information  None



Item 7.
Exhibits and Reports on Form 8-K



2



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##### Table of Contents

|(1) | Exhibits
|--- | --------



|                                                         |  |                                                                                               
|-------------------------------------------------------- |  | ----------------------------------------------------------------------------------------------
|Exhibit Number Referred to in Item 601 of Regulation S-K |  | Description of Exhibit                                                                        
|31.1                                                     |  | Certification of Chief Executive Officer pursuant to Rule 13a-14(a)                           
|                                                         | 
|31.2                                                     |  | Certification of Chief Financial Officer pursuant to Rule 13a-14(a)                           
|                                                         | 
|32.1                                                     |  | Certification of Chief Executive Officer pursuant to Rule 13a-14(b) and 18 U.S.C. Section 1350
|                                                         | 
|32.2                                                     |  | Certification of Chief Financial Officer pursuant to Rule 13a-14(b) and 18 U.S.C. Section 1350



|(2) | Reports on Form 8-K
|--- | -------------------



|                                                                                            
|--------------------------------------------------------------------------------------------
|Results of Operation and Financial Condition  Filed July 27, 2005Incorporated by Reference 
|Other Events and Regulation FD Disclosure  Filed August 8,2005 Incorporated by Reference   
|Other Events and Regulation FD Disclosure  Filed August 31, 2005Incorporated by Reference  
|Other Events and Regulation FD Disclosure  Filed September 27,2005Incorporated by Reference



Signatures



3



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##### Table of Contents

SMITHTOWN BANCORP, INC.

CONSOLIDATED BALANCE SHEETS

(unaudited)

(in thousands, except share data)



|                                                                                      |  |                   |         |   |                  |   |         |  
|------------------------------------------------------------------------------------- |  | ----------------- | ------- | - | ---------------- | - | ------- | -
|                                                                                      |  | As of             |        
|                                                                                      |  | September 30,2005 |         |   | December 31,2004 |  
|ASSETS                                                                                |  |                   |         |   |                  |   |         |  
|Cash and due from banks                                                               |  | $                 | 11,661  |   |                  | $ | 8,581   |  
|Federal funds sold                                                                    |  |                   | 9,763   |   |                  |   | 1,052   |  
|                                                                                      |  |                   |         |   |                  |   |         |  
|Total cash and cash equivalents                                                       |  |                   | 21,424  |   |                  |   | 9,633   |  
|Investment securities:                                                                |  |                   |         |   |                  |   |         |  
|Obligations of U.S. government treasuries                                             |  |                   | 6,895   |   |                  |   |        |  
|Obligations of U.S. government agencies                                               |  |                   | 87,409  |   |                  |   | 30,192  |  
|Mortgage - backed securities                                                          |  |                   | 5,843   |   |                  |   | 5,141   |  
|Obligations of state and political subdivisions                                       |  |                   | 14,605  |   |                  |   | 15,004  |  
|Other securities                                                                      |  |                   | 1,998   |   |                  |   | 3,005   |  
|                                                                                      |  |                   |         |   |                  |   |         |  
|Total investment securities                                                           |  |                   | 116,750 |   |                  |   | 53,342  |  
|Restricted securities                                                                 |  |                   | 3,755   |   |                  |   | 5,555   |  
|Loans                                                                                 |  |                   | 651,917 |   |                  |   | 570,093 |  
|Less: allowance for loan losses                                                       |  |                   | 5,346   |   |                  |   | 4,912   |  
|                                                                                      |  |                   |         |   |                  |   |         |  
|Loans, net                                                                            |  |                   | 646,571 |   |                  |   | 565,181 |  
|                                                                                      |  |                  
|Bank premises and equipment                                                           |  |                   | 18,664  |   |                  |   | 15,366  |  
|Other assets                                                                          |  |                   |         |   |                  |   |         |  
|Cash value of bank-owned life insurance                                               |  |                   | 17,415  |   |                  |   | 16,942  |  
|Goodwill                                                                              |  |                   | 1,809   |   |                  |   | 388     |  
|Intangible assets                                                                     |  |                   | 523     |   |                  |   | 465     |  
|Other                                                                                 |  |                   | 10,910  |   |                  |   | 10,131  |  
|                                                                                      |  |                   |         |   |                  |   |         |  
|Total other assets                                                                    |  |                   | 30,657  |   |                  |   | 27,926  |  
|                                                                                      |  |                  
|Total assets                                                                          |  | $                 | 837,821 |   |                  | $ | 677,003 |  
|                                                                                      |  |                   |         |   |                  |   |         |  
|LIABILITIES AND STOCKHOLDERS EQUITY                                                  |  |                   |         |   |                  |   |         |  
|Liabilities                                                                           |  |                   |         |   |                  |   |         |  
|Deposits:                                                                             |  |                   |         |   |                  |   |         |  
|Demand (non-interest bearing)                                                         |  | $                 | 107,993 |   |                  | $ | 90,466  |  
|Money market                                                                          |  |                   | 222,155 |   |                  |   | 164,878 |  
|NOW                                                                                   |  |                   | 35,699  |   |                  |   | 32,434  |  
|Savings                                                                               |  |                   | 47,404  |   |                  |   | 55,258  |  
|Time                                                                                  |  |                   | 291,180 |   |                  |   | 171,278 |  
|                                                                                      |  |                   |         |   |                  |   |         |  
|Total deposits                                                                        |  |                   | 704,431 |   |                  |   | 514,314 |  
|Dividends payable                                                                     |  |                   | 355     |   |                  |   | 296     |  
|Other borrowings                                                                      |  |                   | 62,000  |   |                  |   | 99,500  |  
|Subordinated debt                                                                     |  |                   | 11,000  |   |                  |   | 11,000  |  
|Other liabilities                                                                     |  |                   | 6,644   |   |                  |   | 4,950   |  
|                                                                                      |  |                   |         |   |                  |   |         |  
|Total liabilities                                                                     |  |                   | 784,430 |   |                  |   | 630,060 |  
|Stockholders equity                                                                  |  |                   |         |   |                  |   |         |  
|Common Stock - $.01 par value (20,000,000 shares authorized; 7,167,280 shares issued) |  |                   | 72      |   |                  |   | 72      |  
|Additional paid in capital                                                            |  |                   | 4,408   |   |                  |   | 4,408   |  
|Unearned stock awards                                                                 |  |                   | (102    | ) |                  |   |        |  
|Retained earnings                                                                     |  |                   | 59,407  |   |                  |   | 52,480  |  
|Accumulated other comprehensive income (loss)                                         |  |                   | (332    | ) |                  |   | 45      |  
|                                                                                      |  |                   |         |   |                  |   |         |  
|                                                                                      |  |                   | 63,453  |   |                  |   | 57,005  |  
|Treasury stock (1,243,554 shares at cost)                                             |  |                   | (10,062 | ) |                  |   | (10,062 | )
|                                                                                      |  |                   |         |   |                  |   |         |  
|Total stockholders equity                                                            |  |                   | 53,391  |   |                  |   | 46,943  |  
|                                                                                      |  |                   |         |   |                  |   |         |  
|Total liabilities and stockholders equity                                            |  | $                 | 837,821 |   |                  | $ | 677,003 |  
|                                                                                      |  |                   |         |   |                  |   |         |  



See
notes to consolidated financial statements.



4



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##### Table of Contents

SMITHTOWN BANCORP, INC.

CONSOLIDATED STATEMENTS OF INCOME

(unaudited)

(in thousands, except share and per share data)



|                                                    |  |                                         |           |      |   |          
|--------------------------------------------------- |  | --------------------------------------- | --------- | ---- | - | ---------
|                                                    |  | For the Three Months EndedSeptember 30,
|                                                    |  | 2005                                    |           | 2004
|Interest income                                     |  |                                         |           |      |   |          
|Interest on loans                                   |  | $                                       | 11,432    |      | $ | 8,674    
|Interest on federal funds sold                      |  |                                         | 146       |      |   | 43       
|Interest and dividends on investment securities:    |  |                                         |           |      |   |          
|Taxable:                                            |  |                                         |           |      |   |          
|Obligations of U.S. government treasuries           |  |                                         | 62        |      |   |         
|Obligations of U.S. government agencies             |  |                                         | 815       |      |   | 278      
|Mortgage - backed securities                        |  |                                         | 47        |      |   | 66       
|Other securities                                    |  |                                         | 26        |      |   | 52       
|                                                    |  |                                         |           |      |   |          
|Subtotal                                            |  |                                         | 950       |      |   | 396      
|Exempt from federal income taxes:                   |  |                                         |           |      |   |          
|Obligations of state & political subdivisions       |  |                                         | 119       |      |   | 165      
|Other interest income                               |  |                                         | 54        |      |   | 33       
|                                                    |  |                                         |           |      |   |          
|Total interest income                               |  |                                         | 12,701    |      |   | 9,311    
|                                                    |  |                                         |           |      |   |          
|Interest expense                                    |  |                                         |           |      |   |          
|Money market accounts (including savings)           |  |                                         | 1,196     |      |   | 700      
|Time deposits of $100,000 or more                   |  |                                         | 882       |      |   | 569      
|Other time deposits                                 |  |                                         | 1,518     |      |   | 857      
|Other borrowings                                    |  |                                         | 600       |      |   | 404      
|Subordinated debentures                             |  |                                         | 185       |      |   | 128      
|                                                    |  |                                         |           |      |   |          
|Total interest expense                              |  |                                         | 4,381     |      |   | 2,658    
|                                                    |  |                                         |           |      |   |          
|Net interest income                                 |  |                                         | 8,320     |      |   | 6,653    
|Provision for loan losses                           |  |                                         | 300       |      |   | 60       
|                                                    |  |                                         |           |      |   |          
|Net interest income after provision for loan losses |  |                                         | 8,020     |      |   | 6,593    
|                                                    |  |                                         |           |      |   |          
|Other noninterest income                            |  |                                         |           |      |   |          
|Trust department income                             |  |                                         | 116       |      |   | 94       
|Service charges on deposit accounts                 |  |                                         | 500       |      |   | 373      
|Revenues from insurance agency                      |  |                                         | 900       |      |   | 415      
|Net gain on sales of investment securities          |  |                                         |          |      |   | 49       
|Increase in cash value of bank owned life insurance |  |                                         | 157       |      |   | 152      
|Net income from equity investment                   |  |                                         | 15        |      |   | 21       
|Other income                                        |  |                                         | 445       |      |   | 387      
|                                                    |  |                                         |           |      |   |          
|Total other noninterest income                      |  |                                         | 2,133     |      |   | 1,491    
|                                                    |  |                                         |           |      |   |          
|Other operating expenses                            |  |                                         |           |      |   |          
|Salaries                                            |  |                                         | 2,652     |      |   | 1,965    
|Pension and other employee benefits                 |  |                                         | 575       |      |   | 409      
|Net occupancy expense of bank premises              |  |                                         | 800       |      |   | 326      
|Furniture and equipment expense                     |  |                                         | 487       |      |   | 336      
|Other expense                                       |  |                                         | 929       |      |   | 836      
|                                                    |  |                                         |           |      |   |          
|Total other operating expenses                      |  |                                         | 5,443     |      |   | 3,872    
|                                                    |  |                                         |           |      |   |          
|Income before income taxes                          |  |                                         | 4,710     |      |   | 4,212    
|Provision for income taxes                          |  |                                         | 1,764     |      |   | 1,570    
|                                                    |  |                                         |           |      |   |          
|Net income                                          |  | $                                       | 2,946     |      | $ | 2,642    
|                                                    |  |                                         |           |      |   |          
|Basic earnings per share                            |  | $                                       | 0.50      |      | $ | 0.45     
|Diluted earnings per share                          |  | $                                       | 0.50      |      | $ | 0.45     
|Cash dividends declared                             |  | $                                       | 0.06      |      | $ | 0.05     
|Weighted average shares outstanding                 |  |                                         | 5,923,726 |      |   | 5,932,102
|Comprehensive income                                |  | $                                       | 2,515     |      | $ | 3,044    



See
notes to consolidated financial statements.



5



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##### Table of Contents

SMITHTOWN BANCORP, INC.

CONSOLIDATED STATEMENTS OF INCOME

(unaudited)

(in thousands, except share and per share data)



|                                                    |  |                                        |           |      |   |          
|--------------------------------------------------- |  | -------------------------------------- | --------- | ---- | - | ---------
|                                                    |  | For the Nine Months EndedSeptember 30,
|                                                    |  | 2005                                   |           | 2004
|Interest income                                     |  |                                        |           |      |   |          
|Interest on loans                                   |  | $                                      | 31,379    |      | $ | 24,691   
|Interest on federal funds sold                      |  |                                        | 476       |      |   | 135      
|Interest and dividends on investment securities:    |  |                                        |           |      |   |          
|Taxable:                                            |  |                                        |           |      |   |          
|Obligations of U.S. government treasuries           |  |                                        | 134       |      |   |         
|Obligations of U.S. government agencies             |  |                                        | 1,991     |      |   | 679      
|Mortgage - backed securities                        |  |                                        | 135       |      |   | 225      
|Other securities                                    |  |                                        | 100       |      |   | 200      
|                                                    |  |                                        |           |      |   |          
|Subtotal                                            |  |                                        | 2,360     |      |   | 1,104    
|                                                    |  |                                        |           |      |   |          
|Exempt from federal income taxes:                   |  |                                        |           |      |   |          
|Obligations of state & political subdivisions       |  |                                        | 348       |      |   | 535      
|Other interest income                               |  |                                        | 149       |      |   | 57       
|                                                    |  |                                        |           |      |   |          
|Total interest income                               |  |                                        | 34,712    |      |   | 26,522   
|                                                    |  |                                        |           |      |   |          
|Interest expense                                    |  |                                        |           |      |   |          
|Money market accounts (including savings)           |  |                                        | 2,904     |      |   | 1,956    
|Time deposits of $100,000 or more                   |  |                                        | 2,271     |      |   | 1,613    
|Other time deposits                                 |  |                                        | 4,067     |      |   | 2,627    
|Other borrowings                                    |  |                                        | 1,789     |      |   | 1,045    
|Subordinated debentures                             |  |                                        | 508       |      |   | 345      
|                                                    |  |                                        |           |      |   |          
|Total interest expense                              |  |                                        | 11,539    |      |   | 7,586    
|                                                    |  |                                        |           |      |   |          
|Net interest income                                 |  |                                        | 23,173    |      |   | 18,936   
|Provision for loan losses                           |  |                                        | 525       |      |   | 60       
|                                                    |  |                                        |           |      |   |          
|Net interest income after provision for loan losses |  |                                        | 22,648    |      |   | 18,876   
|Other noninterest income                            |  |                                        |           |      |   |          
|Trust department income                             |  |                                        | 330       |      |   | 302      
|Service charges on deposit accounts                 |  |                                        | 1,475     |      |   | 1,286    
|Revenues from insurance agency                      |  |                                        | 2,664     |      |   | 415      
|Net gain on sales of investment securities          |  |                                        | 13        |      |   | 337      
|Increase in cash value of bank owned life insurance |  |                                        | 473       |      |   | 475      
|Net income from equity investment                   |  |                                        | 53        |      |   | 102      
|Other income                                        |  |                                        | 1,174     |      |   | 711      
|                                                    |  |                                        |           |      |   |          
|Total other noninterest income                      |  |                                        | 6,182     |      |   | 3,628    
|                                                    |  |                                        |           |      |   |          
|Other operating expenses                            |  |                                        |           |      |   |          
|Salaries                                            |  |                                        | 7,520     |      |   | 5,327    
|Pension and other employee benefits                 |  |                                        | 1,743     |      |   | 1,181    
|Net occupancy expense of bank premises              |  |                                        | 2,405     |      |   | 1,143    
|Furniture and equipment expense                     |  |                                        | 1,364     |      |   | 907      
|Other expense                                       |  |                                        | 3,007     |      |   | 2,339    
|                                                    |  |                                        |           |      |   |          
|Total other operating expenses                      |  |                                        | 16,039    |      |   | 10,897   
|                                                    |  |                                        |           |      |   |          
|Income before income taxes                          |  |                                        | 12,791    |      |   | 11,607   
|Provision for income taxes                          |  |                                        | 4,798     |      |   | 4,257    
|                                                    |  |                                        |           |      |   |          
|Net income                                          |  | $                                      | 7,993     |      | $ | 7,350    
|                                                    |  |                                        |           |      |   |          
|Basic earnings per share                            |  | $                                      | 1.36      |      | $ | 1.24     
|Diluted earnings per share                          |  | $                                      | 1.36      |      | $ | 1.24     
|Cash dividends declared                             |  | $                                      | 0.18      |      | $ | 0.15     
|Weighted average shares outstanding                 |  |                                        | 5,923,726 |      |   | 5,939,053
|Comprehensive income                                |  | $                                      | 7,616     |      | $ | 7,111    



See
notes to consolidated financial statements.



6



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##### Table of Contents

SMITHTOWN BANCORP, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY

(unaudited)

(in thousands, except shares outstanding)



|                                      |  |                   |   |  |                |        |   |                  |   |       |               |  |   |                      |   |  |                                            |         |   |                           |   |      |   |  |   |      |   |  |   |        |  
|------------------------------------- |  | ----------------- | - |  | -------------- | ------ | - | ---------------- | - | ----- | ------------- |  | - | -------------------- | - |  | ------------------------------------------ | ------- | - | ------------------------- | - | ---- | - |  | - | ---- | - |  | - | ------ | -
|                                      |  | Common Stock      |   |  | CapitalSurplus |        |   | RetainedEarnings |   |       | TreasuryStock |  |   | Unearned StockAwards |   |  | AccumulatedOther ComprehensiveIncome(Loss) |         |   | Total StockholdersEquity |  
|                                      |  | SharesOutstanding |   |  | Amount         |        |   |                  |   |       |               | 
|Balance at 12/31/2003                 |  | 2,974,237         |   |  | $              | 4,480  |   |                  | $ |       |               |  | $ | 43,656               |   |  | $                                          | (9,378  | ) |                           | $ |      |   |  | $ | 420  |   |  | $ | 39,178 |  
|Comprehensive income:                 |  |                   |   |  |                |        |   |                  |   |       |               |  |   |                      |   |  |                                            |         |   |                           |   |      |   |  |   |      |   |  |   |        |  
|Net income                            |  |                   |   |  |                |        |   |                  |   |       |               |  |   | 7,350                |   |  |                                            |         |   |                           |   |      |   |  |   |      |   |  |   | 7,350  |  
|Other comprehensive loss , net of tax |  |                   |   |  |                |        |   |                  |   |       |               |  |   |                      |   |  |                                            |         |   |                           |   |      |   |  |   | (239 | ) |  |   | (239   | )
|                                      |  |                   |   |  |                |        |   |                  |   |       |               |  |   |                      |   |  |                                            |         |   |                           |   |      |   |  |   |      |   |  |   |        |  
|Total comprehensive income            |  |                   |   |  |                |        |   |                  |   |       |               |  |   |                      |   |  |                                            |         |   |                           |   |      |   |  |   |      |   |  |   | 7,111  |  
|2-for-1 stock split                   |  | 2,974,237         |   |  |                | 36     |   |                  |   | (36   | )             |  |   |                      |   |  |                                            |         |   |                           |   |      |   |  |   |      |   |  |   |        |  
|Change in par value                   |  |                   |   |  |                | (4,444 | ) |                  |   | 4,444 |               |  |   |                      |   |  |                                            |         |   |                           |   |      |   |  |   |      |   |  |   |        |  
|Cash dividends declared               |  |                   |   |  |                |        |   |                  |   |       |               |  |   | (889                 | ) |  |                                            |         |   |                           |   |      |   |  |   |      |   |  |   | (889   | )
|Treasury stock purchases              |  | (24,676           | ) |  |                |        |   |                  |   |       |               |  |   |                      |   |  |                                            | (682    | ) |                           |   |      |   |  |   |      |   |  |   | (682   | )
|                                      |  |                   |   |  |                |        |   |                  |   |       |               |  |   |                      |   |  |                                            |         |   |                           |   |      |   |  |   |      |   |  |   |        |  
|Balance at 9/30/2004                  |  | 5,923,798         |   |  | $              | 72     |   |                  | $ | 4,408 |               |  | $ | 50,117               |   |  | $                                          | (10,060 | ) |                           | $ |      |   |  | $ | 181  |   |  | $ | 44,718 |  
|                                      |  |                   |   |  |                |        |   |                  |   |       |               |  |   |                      |   |  |                                            |         |   |                           |   |      |   |  |   |      |   |  |   |        |  
|Balance at 12/31/2004                 |  | 5,923,726         |   |  | $              | 72     |   |                  | $ | 4,408 |               |  | $ | 52,480               |   |  | $                                          | (10,062 | ) |                           | $ |      |   |  | $ | 45   |   |  | $ | 46,943 |  
|Comprehensive income:                 |  |                   |   |  |                |        |   |                  |   |       |               |  |   |                      |   |  |                                            |         |   |                           |   |      |   |  |   |      |   |  |   |        |  
|Net income                            |  |                   |   |  |                |        |   |                  |   |       |               |  |   | 7,993                |   |  |                                            |         |   |                           |   |      |   |  |   |      |   |  |   | 7,993  |  
|Other comprehensive loss, net of tax  |  |                   |   |  |                |        |   |                  |   |       |               |  |   |                      |   |  |                                            |         |   |                           |   |      |   |  |   | (377 | ) |  |   | (377   | )
|                                      |  |                   |   |  |                |        |   |                  |   |       |               |  |   |                      |   |  |                                            |         |   |                           |   |      |   |  |   |      |   |  |   |        |  
|Total comprehensive income            |  |                   |   |  |                |        |   |                  |   |       |               |  |   |                      |   |  |                                            |         |   |                           |   |      |   |  |   |      |   |  |   | 7,616  |  
|Cash dividends declared               |  |                   |   |  |                |        |   |                  |   |       |               |  |   | (1,066               | ) |  |                                            |         |   |                           |   |      |   |  |   |      |   |  |   | (1,066 | )
|Stock awards vested                   |  |                   |   |  |                |        |   |                  |   |       |               |  |   |                      |   |  |                                            |         |   |                           |   | 12   |   |  |   |      |   |  |   | 12     |  
|Stock awards granted                  |  | (4,600            | ) |  |                |        |   |                  |   |       |               |  |   |                      |   |  |                                            | 114     |   |                           |   | (114 | ) |  |   |      |   |  |   |       |  
|Treasury stock purchases              |  | 4,600             |   |  |                |        |   |                  |   |       |               |  |   |                      |   |  |                                            | (114    | ) |                           |   |      |   |  |   |      |   |  |   | (114   | )
|                                      |  |                   |   |  |                |        |   |                  |   |       |               |  |   |                      |   |  |                                            |         |   |                           |   |      |   |  |   |      |   |  |   |        |  
|Balance at 9/30/2005                  |  | 5,923,726         |   |  | $              | 72     |   |                  | $ | 4,408 |               |  | $ | 59,407               |   |  | $                                          | (10,062 | ) |                           | $ | (102 | ) |  | $ | (332 | ) |  | $ | 53,391 |  
|                                      |  |                   |   |  |                |        |   |                  |   |       |               |  |   |                      |   |  |                                            |         |   |                           |   |      |   |  |   |      |   |  |   |        |  



See
notes to consolidated financial statements.



7



---

##### Table of Contents

SMITHTOWN BANCORP, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

(in thousands)



|                                                                                  |  |                                         |          |   |      |   |         |  
|--------------------------------------------------------------------------------- |  | --------------------------------------- | -------- | - | ---- | - | ------- | -
|                                                                                  |  | For the Nine Months Ended September 30, |         
|                                                                                  |  | 2005                                    |          |   | 2004 |  
|Cash flows from operating activities                                              |  |                                         |          |   |      |   |         |  
|Net income                                                                        |  | $                                       | 7,993    |   |      | $ | 7,350   |  
|Adjustments to reconcile net income to net cash provided by operating activities: |  |                                         |          |   |      |   |         |  
|Depreciation on premises and equipment                                            |  |                                         | 1,271    |   |      |   | 773     |  
|Provision for loan losses                                                         |  |                                         | 525      |   |      |   | 60      |  
|Net gain on sale of investment securities                                         |  |                                         | (13      | ) |      |   | (337    | )
|Net increase in other liabilities                                                 |  |                                         | 1,740    |   |      |   | 2,218   |  
|Net increase in other assets                                                      |  |                                         | (1,153   | ) |      |   | (2,324  | )
|Net increase in deferred taxes                                                    |  |                                         | (950     | ) |      |   | (235    | )
|Increase in cash surrender value of officers life insurance policies             |  |                                         | (473     | ) |      |   | (475    | )
|Amortization of investment security premiums and accretion of discounts, net      |  |                                         | (212     | ) |      |   | (62     | )
|                                                                                  |  |                                         |          |   |      |   |         |  
|Cash provided by operating activities                                             |  |                                         | 8,728    |   |      |   | 6,968   |  
|Cash flows from investing activities                                              |  |                                         |          |   |      |   |         |  
|Mortgage-backed securities:                                                       |  |                                         |          |   |      |   |         |  
|Proceeds from calls, repayments, maturities and sales of available for sale       |  |                                         | 3,185    |   |      |   | 2,462   |  
|Proceeds from calls, repayments and maturities of held to maturity                |  |                                         | 62       |   |      |   | 104     |  
|Other securities:                                                                 |  |                                         |          |   |      |   |         |  
|Proceeds from calls, repayments, maturities and sales of available for sale       |  |                                         | 23,564   |   |      |   | 23,104  |  
|Proceeds from calls, repayments and maturities of held to maturity                |  |                                         | 457      |   |      |   | 283     |  
|Purchase of investment securities:                                                |  |                                         |          |   |      |   |         |  
|Available for sale                                                                |  |                                         | (91,057  | ) |      |   | (25,430 | )
|Held to maturity                                                                  |  |                                         | (50      | ) |      |   |        |  
|Net redemptions of Federal Home Loan Bank stock                                   |  |                                         | 1,800    |   |      |   |        |  
|Loans made to customers, net                                                      |  |                                         | (81,825  | ) |      |   | (93,383 | )
|Purchase of premises and equipment                                                |  |                                         | (4,569   | ) |      |   | (2,539  | )
|Acquisition of insurance agency                                                   |  |                                         |         |   |      |   | (1,037  | )
|                                                                                  |  |                                         |          |   |      |   |         |  
|Cash used in investing activities                                                 |  |                                         | (148,433 | ) |      |   | (96,436 | )
|Cash flows from financing activities                                              |  |                                         |          |   |      |   |         |  
|Net increase in demand deposits, money market, NOW and savings                    |  |                                         | 70,215   |   |      |   | 54,397  |  
|Net increase in time deposits                                                     |  |                                         | 119,902  |   |      |   | 13,096  |  
|Cash dividends paid                                                               |  |                                         | (1,007   | ) |      |   | (862    | )
|Net increase (decrease) in other borrowings                                       |  |                                         | (37,500  | ) |      |   | 21,750  |  
|Purchase of treasury stock                                                        |  |                                         | (114     | ) |      |   | (682    | )
|                                                                                  |  |                                         |          |   |      |   |         |  
|Cash provided by financing activities                                             |  |                                         | 151,496  |   |      |   | 87,699  |  
|                                                                                  |  |                                         |          |   |      |   |         |  
|Net change in cash and cash equivalents                                           |  |                                         | 11,791   |   |      |   | (1,769  | )
|Cash and cash equivalents, beginning of period                                    |  |                                         | 9,633    |   |      |   | 14,765  |  
|                                                                                  |  |                                         |          |   |      |   |         |  
|Cash and cash equivalents, end of period                                          |  | $                                       | 21,424   |   |      | $ | 12,996  |  
|                                                                                  |  |                                         |          |   |      |   |         |  
|Supplemental disclosures of cash flow information                                 |  |                                         |          |   |      |   |         |  
|Cash paid during the year for:                                                    |  |                                         |          |   |      |   |         |  
|Interest                                                                          |  | $                                       | 10,775   |   |      | $ | 7,477   |  
|Income taxes                                                                      |  |                                         | 5,190    |   |      |   | 4,281   |  
|                                                                                  |  |                                         |          |   |      |   |         |  



See
notes to consolidated financial statements.



8



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##### Table of Contents

Notes to Consolidated Financial Statements  Unaudited

(in thousands, except share and per share data)



Note 1  Financial Statement Presentation



The consolidated financial statements include the accounts of Smithtown Bancorp, Inc. (the Company) and its wholly-owned
subsidiary, Bank of Smithtown (the Bank) (collectively referred to as the Company). The Companys financial condition and operating results principally reflect those of the Bank. All intercompany balances and amounts
have been eliminated. For further information refer to the consolidated financial statements and notes thereto included in the Companys Annual Report on Form 10-K for the year ended December 31, 2004.



The accompanying unaudited interim consolidated financial statements have been prepared
pursuant to the rules and regulations for reporting on Form 10-Q. Accordingly, certain disclosures required by U.S. generally accepted accounting principles are not included herein. These interim statements should be read in conjunction with the
consolidated financial statements and notes included in the Annual Report on Form 10-K filed by the Company with the Securities and Exchange Commission. The December 31, 2004 consolidated balance sheet was derived from the Companys
December 31, 2004 audited financial statements included in the Annual Report on Form 10-K.



Interim statements are subject to possible adjustments in connection with the annual audit of the Company for the year ending December 31, 2005. In the opinion of management, the accompanying unaudited interim
consolidated financial statements contain all adjustments (consisting of normal recurring accruals) necessary to present fairly the Companys financial position and its results of operations for the periods presented.



In preparing the consolidated financial statements, management is required to make estimates
and assumptions that affect the reported asset and liability balances and revenue and expense amounts and the disclosure of contingent assets and liabilities. Actual results could differ significantly from those estimates.



Note 2  Earnings Per Common Share



Earnings per common share are calculated by dividing net income by the weighted average
number of common shares outstanding for the respective period. Diluted earnings per share, which reflect the potential dilution that could occur if dilutive stock awards were fully vested and resulted in the issuance of common stock that then shared
in the earnings of the Company, is computed by dividing net income by the weighted average number of common shares outstanding for the respective period.



|                                                     |  |                    |           |                   |   |                   |  |                   |           |  |   |          
|---------------------------------------------------- |  | ------------------ | --------- | ----------------- | - | ----------------- |  | ----------------- | --------- |  | - | ---------
|                                                     |  | Three Months Ended |           | Nine Months Ended
|                                                     |  | September 30,2005  |           | September 30,2004 |   | September 30,2005 |  | September 30,2004
|Computation of per share income                      |  |                    |           |                   |   |                   |  |                   |           |  |   |          
|(in thousands, except per share data)                |  |                    |           |                   |   |                   |  |                   |           |  |   |          
|                                                     |  |                    |           |                  
|Net income                                           |  | $                  | 2,946     |                   | $ | 2,642             |  | $                 | 7,993     |  | $ | 7,350    
|                                                     |  |                    |           |                  
|Common equivalent shares:                            |  |                    |           |                   |   |                   |  |                   |           |  |   |          
|                                                     |  |                    |           |                  
|Weighted average common shares outstanding           |  |                    | 5,923,726 |                   |   | 5,932,102         |  |                   | 5,923,726 |  |   | 5,939,053
|Weighted average common equivalent shares            |  |                    | 305       |                   |   |                  |  |                   | 98        |  |   |         
|                                                     |  |                    |           |                   |   |                   |  |                   |           |  |   |          
|Weighted average common and common equivalent shares |  |                    | 5,924,031 |                   |   | 5,932,102         |  |                   | 5,923,824 |  |   | 5,939,053
|                                                     |  |                    |           |                   |   |                   |  |                   |           |  |   |          
|Basic earnings per share                             |  | $                  | 0.50      |                   | $ | 0.45              |  | $                 | 1.36      |  | $ | 1.24     
|                                                     |  |                    |           |                   |   |                   |  |                   |           |  |   |          
|Diluted earnings per share                           |  | $                  | 0.50      |                   | $ | 0.45              |  | $                 | 1.36      |  | $ | 1.24     
|                                                     |  |                    |           |                   |   |                   |  |                   |           |  |   |          



Note
3  Employee Benefits



During 2005, the Bank continues to fund a 401(K)
Defined Contribution Plan and an Employee Stock Ownership Plan for substantially all of its employees. Expenses related to these two plans for the three month and nine month comparative periods were:



|                                 |  |                                          |    |                                         |   |      |  |      |     |  |   |    
|-------------------------------- |  | ---------------------------------------- | -- | --------------------------------------- | - | ---- |  | ---- | --- |  | - | ---
|                                 |  | For the Three Months Ended September 30, |    | For the Nine Months Ended September 30,
|                                 |  | 2005                                     |    | 2004                                    |   | 2005 |  | 2004
|401(K) Defined Contribution Plan |  | $                                        | 36 |                                         | $ | 30   |  | $    | 106 |  | $ | 85 
|Employee Stock Ownership Plan    |  |                                          | 45 |                                         |   | 45   |  |      | 135 |  |   | 135



It is expected that the Banks
costs for these two plans for the twelve months ending December 31, 2005 will be approximately $145 and $180, respectively. Bank of Smithtown also continues to sponsor post-retirement medical and life insurance plans for a closed group of prior
employees. The following table details the interest cost, amortization cost of the unrecognized transition obligation, and the amortization of the net gain for the comparable three and nine month periods.



9



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##### Table of Contents

|                           |  |               |    |                   |   |                          |  |               |   |  |   |   
|-------------------------- |  | ------------- | -- | ----------------- | - | ------------------------ |  | ------------- | - |  | - | --
|                           |  | Interest Cost |    | Amortization Cost |   | Amortization of Net Gain |  | Total Expense
|For the Three Months Ended |  |               |    |                   |   |                          |  |               |   |  |   |   
|September 30, 2005         |  | $             | 5  |                   | $ | 8                        |  | $             | 2 |  | $ | 11
|September 30, 2004         |  |               | 5  |                   |   | 8                        |  |               | 1 |  |   | 12
|For the Nine Months Ended  |  |               |    |                   |   |                          |  |               |   |  |   |   
|September 30, 2005         |  | $             | 14 |                   | $ | 24                       |  | $             | 5 |  | $ | 33
|September 30, 2004         |  |               | 15 |                   |   | 24                       |  |               | 4 |  |   | 35



Since the plans hold no assets, the
Bank did not contribute and does not expect to contribute to the plans during 2004 and 2005, other than to fund the payments for the benefits. The Bank has also adopted a nontax qualified Executive and Director Incentive Retirement Plan. While this
plan is funded from the general assets of the Bank, life insurance policies were acquired for the purpose of serving as the primary funding source. Benefits under the Incentive Retirement Plan are based solely on the amount contributed by the Bank.
The contributions accrued under this plan for the three and nine month periods were:



|                          |  |                                         |    |                                        |   |      |  |      |     |  |   |    
|------------------------- |  | --------------------------------------- | -- | -------------------------------------- | - | ---- |  | ---- | --- |  | - | ---
|                          |  | For the Three Months EndedSeptember 30, |    | For the Nine Months EndedSeptember 30,
|                          |  | 2005                                    |    | 2004                                   |   | 2005 |  | 2004
|Incentive Retirement Plan |  | $                                       | 57 |                                        | $ | 60   |  | $    | 164 |  | $ | 158



The Bank has a similar supplemental
life insurance plan for all members of management, funded with similar life insurance policies. The benefit provides post retirement life insurance up to a maximum of two and one half times annual salary. At September 30, 2005 and 2004, the
combined cash value of these insurance policies was $13,674 and $13,184. The Bank has also established a nontax qualified Deferred Compensation Plan for certain directors and executive officers. This group of employees defers a portion of its
compensation. A liability has been accrued for the obligation under this plan. During 2004 the Bank adopted a Supplemental Executive Retirement Plan for the Chief Executive Officer. This plan is partially funded by a life insurance policy with a
cash value at September 30, 2005 and 2004 of $3,741 and $3,580. The Banks expense for this plan for the comparable three and nine month periods were:



|                                       |  |                                          |    |                                         |   |      |  |      |     |  |   |   
|-------------------------------------- |  | ---------------------------------------- | -- | --------------------------------------- | - | ---- |  | ---- | --- |  | - | --
|                                       |  | For the Three Months Ended September 30, |    | For the Nine Months Ended September 30,
|                                       |  | 2005                                     |    | 2004                                    |   | 2005 |  | 2004
|Supplemental Executive Retirement Plan |  | $                                        | 69 |                                         | $ | 23   |  | $    | 206 |  | $ | 23



Item 2.- Managements Discussion and Analysis of Financial Plan and Results of Operations

(in thousands, except share and per share data)



This report may
contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations, but actual results may differ materially from anticipated
future results. Forward-looking statements may be identified by the use of the words believe, expect, anticipate, project, estimate, will be, will continue,
will likely result, or similar expressions. The Companys ability to predict results or the actual effect of future strategic plans is inherently uncertain. Factors that could have a material adverse effect on the operation of the
Company and its subsidiaries include, but are not limited to, changes in: general economic conditions, interest rates, deposit flows, loan demand, competition, accounting principles and guidelines, and governmental, regulatory and technological
factors affecting the Companys operations, pricing, products, and services. The factors included here are not exhaustive. Other sections of this report may include additional factors that could adversely impact the Companys performance.



Investors are cautioned not to place undue reliance on forward-looking
statements as a prediction of actual results. Except as required by applicable law or regulation, the Company undertakes no obligation to republish or revise forward-looking statements to reflect events or circumstances after the date hereof or to
reflect the occurrences of unanticipated results. Investors are advised, however, to consult any further disclosures the Company makes on related subjects in its reports to the Securities and Exchange Commission.



Summary



Results of operation for the third quarter of 2005 were positive. Most significant during
the quarter were the following statistics:



| |  |  | EPS growth over third quarter of 2004 equal to 11.11% and over the nine months ended September 30, 2004 equal to 9.68%
| | - |  | ----------------------------------------------------------------------------------------------------------------------



| |  |  | An increase in net interest income of $1,667 or 25.06% during the three months ending September 30, 2005 as compared to the same period in 2004
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | An increasing net interest margin to 4.45%
| | - |  | ------------------------------------------



| |  |  | Loan and deposit growth for the quarter equal to 5.33% and 9.18%, respectively
| | - |  | ------------------------------------------------------------------------------



| |  |  | A reduction in borrowings of $20,000 or 24.39%
| | - |  | ----------------------------------------------



10



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##### Table of Contents

Asset growth during third quarter of 2005 was 5.44%, primarily the result of deposit and corresponding loan growth.
During the quarter, as the high pace of deposit growth continued, borrowings were paid down, new loans were funded and various investment securities were purchased. The balance of the deposit funds was temporarily invested in federal funds sold
awaiting further loan closings. As was characteristic of the first six months of 2005, loan closings continued at a strong pace, drawdowns on construction loans increased , and loan payoffs remained high, but lower than experienced during the first
six months of the year. Deposits increased by 9.18%, with the largest growth in time and money market accounts. Much of the deposit inflow resulted from the continued growth at our newest branch locations as well as from the Elite Money Market
account and various certificate of deposit promotions. The Companys year-to date efficiency ratio decreased from 56.08% at June 30 to 54.82% at September 30, 2005. This ratio continues to be higher than in the past, but is certainly
on a downward slope. The higher level of the ratio has been due to the additional expenses associated with the Companys growth. Three new branch openings during 2004 and 2005, the move to new corporate headquarters during the fourth quarter of
2004, and the full impact of the Seigerman Mulvey insurance agency acquisition during 2004 with its associated expenses have all contributed to this higher than normal efficiency ratio. Increasing efficiencies are expected to continue throughout the
year as a result of both the single location of all support staff at the new headquarters as well as further integration of the insurance agency into the Bank. Capital remains strong at September 30, with regulatory ratios in the well capitalized
level.



Comparison of Financial Position at
September 30, 2005 and December 31, 2004



Total assets of the Company
at September 30, 2005 and December 31, 2004 were $837,821 as compared to $677,003, an increase of 23.75%. The largest areas of growth during the nine month period on a percentage basis were in investment securities, bank premises and
equipment and goodwill, respectively. Investment securities increased by 118.87%, premises and equipment by 21.46%, and goodwill by 366.24%. The growth in investment securities was funded by an increase in deposits of 36.97%. Loan growth during this
period increased by 14.35% and continues to be the largest driver of asset growth on a dollar basis.



The composition of the loan portfolio at September 30, 2005 and December 31, 2004 remained relatively stable with a slight increase in construction lending and was as follows:



|                          |  |                    |         |   |                   |        |   |  |   |         |   |  |        |  
|------------------------- |  | ------------------ | ------- | - | ----------------- | ------ | - |  | - | ------- | - |  | ------ | -
|                          |  | September 30, 2005 |         |   | December 31, 2004 |       
|Real estate loans         |  |                    |         |   |                   |        |   |  |   |         |   |  |        |  
|Construction              |  | $                  | 162,508 |   |                   | 24.87  | % |  | $ | 120,204 |   |  | 21.06  | %
|Residential               |  |                    | 102,627 |   |                   | 15.71  |   |  |   | 105,301 |   |  | 18.45  |  
|Commercial                |  |                    | 346,715 |   |                   | 53.06  |   |  |   | 302,281 |   |  | 52.95  |  
|Commercial and industrial |  |                    | 39,064  |   |                   | 5.98   |   |  |   | 40,968  |   |  | 7.18   |  
|Consumer                  |  |                    | 2,195   |   |                   | .33    |   |  |   | 1,893   |   |  | .33    |  
|Other loans               |  |                    | 344     |   |                   | .05    |   |  |   | 190     |   |  | .03    |  
|Unearned discount         |  |                    | (1,536  | ) |                   |       |   |  |   | (744    | ) |  |       |  
|                          |  |                    |         |   |                   |        |   |  |   |         |   |  |        |  
|                          |  | $                  | 651,917 |   |                   | 100.00 | % |  | $ | 570,093 |   |  | 100.00 | %
|                          |  |                    |         |   |                   |        |   |  |   |         |   |  |        |  



While loans past due 30 through 89
days increased to $8,228 as of September 30, 2005 from $61 as of December 31, 2004 they have decreased from $10,530 at June 30, 2005. There were no loans past due 90 days or more and still accruing at September 30, 2005 or
December 31, 2004. Of the $8,228 in loans past due 30-89 days, the majority remains to be one loan to a borrower who continues to be delinquent on his mortgage. This one loan totals $7,378, the collateral for which consists of a leasehold
mortgage on two six story office buildings located on Madison Avenue in New York City appraised at $11,800. While the loan is not at a 90 day delinquency status, the borrower remains in technical default under the lease. Progress has been made in
satisfying the technical problems, but these problems have not yet been completely resolved. Prospects for resolution still appear to be very good. During the course of the third quarter an additional loan to the same borrower which was reported as
90 days or more past due as of June 30, 2005 was sold. The new loan to the new borrower was financed by the Bank. No losses were incurred by the Bank resulting from this sale and subsequent refinance. Nonaccrual loans at September 30, 2005
were $21 and $0 at December 31, 2004. The allowance for loan loss account at September 30, 2005 and December 31, 2004 was $5,346 and $4,912. The increase was the result of net chargeoffs of $91 and a provision for loan losses of $525.
Based on specific reserves for internally classified loans and multiple factors including historical loss experience and current economic conditions, management feels the level of the allowance for loan losses provides adequate coverage. At
September 30, 2005 and December 31, 2004, the Banks ratio of the allowance for loan losses as a percentage of end of period loans was .82% and .86%, respectively. Based on various factors including asset quality, collateral and low
loan to value ratios, management believes the allowance account to be adequate. In determining the allowance for loan losses, there is not an exact amount but rather a range for what constitutes an appropriate amount. The determination of this
amount as of any balance sheet date is subjective in nature and requires material estimates based on historical experience, the economic environment, trends in the portfolio, concentrations of loan balances and various other factors. The portion of
the loan loss allowance allocated to each loan category does not represent the total available for probable incurred losses which may occur within the loan category since the loan loss allowance is a valuation applicable to the entire loan
portfolio. Management has also set up a reserve for unfunded loan commitments and the balance in this account at third quarter end 2005 and year end 2004 was $523 and $474.



Investment securities increased by 118.87% from December 31, 2004 to September 30, 2005. The composition of the portfolio at these two
dates was as follows:



|                                                |  |                   |         |                  |   |       
|----------------------------------------------- |  | ----------------- | ------- | ---------------- | - | ------
|                                                |  | September 30,2005 |         | December 31,2004
|Securities available for sale                   |  |                   |         |                  |   |       
|Obligations of U.S. government                  |  | $                 | 6,895   |                  | $ |      
|Obligations of U.S. government agencies         |  |                   | 87,409  |                  |   | 30,192
|Mortgage-backed securities                      |  |                   | 5,738   |                  |   | 4,976 
|Obligations of state and political subdivisions |  |                   | 13,593  |                  |   | 13,585
|Other securities                                |  |                   | 1,998   |                  |   | 3,005 
|                                                |  |                   |         |                  |   |       
|Total securities available for sale             |  | $                 | 115,633 |                  | $ | 51,758
|                                                |  |                  
|Held to maturity                                |  |                   |         |                  |   |       
|Mortgage-backed securities                      |  | $                 | 105     |                  | $ | 165   
|Obligations of state and political subdivisions |  |                   | 1,012   |                  |   | 1,419 
|                                                |  |                   |         |                  |   |       
|Total held to maturity                          |  |                   | 1,117   |                  |   | 1,584 
|                                                |  |                   |         |                  |   |       
|Total investment securities                     |  | $                 | 116,750 |                  | $ | 53,342
|                                                |  |                   |         |                  |   |       



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##### Table of Contents

As a result of the large growth in deposits during the first nine months of the year, the Bank channeled a substantial
portion of these funds into higher yielding investment securities, rather than maintaining a very high federal funds position awaiting loan closings. A majority of the securities purchased were short term treasury and agency securities with a book
value of $80,828 and an average weighted yield of 3.93%. The yield on the total investment portfolio at September 30, 2005 and December 31, 2004 was 4.04% and 4.55%, respectively. Restricted securities decreased from $5,555 to $3,755, a
32.40% reduction, resulting from the lower volume of Federal Home Loan Bank stock due to the significantly reduced borrowing position of the Bank from December 31, 2004 to September 30, 2005.



Bank premises and equipment increased from December 31, 2004 to September 30, 2005
by 21.46%, a result of the opening of our newest branch office in Port Washington which opened in April of this year. Renovations at our Hauppauge Route 111 location and construction costs at two of our newest branch offices, expected to open during
early 2006, have also contributed to this increase. Other assets increased by 9.78%, primarily the result of the increase in goodwill. The first anniversary of the Banks ownership of the Seigerman Mulvey insurance agency was August 31,
2005. The Bank paid the sellers the first installment payment on the purchase price under a three year agreement, and this payment increased the goodwill on the Banks balance sheet.



On the liability side of the balance sheet, total deposits increased by 36.97% from year end 2004 to September 30, 2005. The
composition of deposits was as follows:



|                              |  |                   |         |                  |   |        
|----------------------------- |  | ----------------- | ------- | ---------------- | - | -------
|                              |  | September 30,2005 |         | December 31,2004
|Demand (non interest bearing) |  | $                 | 107,993 |                  | $ | 90,466 
|Money market                  |  |                   | 222,155 |                  |   | 164,878
|NOW                           |  |                   | 35,699  |                  |   | 32,434 
|Savings                       |  |                   | 47,404  |                  |   | 55,258 
|Time                          |  |                   | 291,180 |                  |   | 171,278
|                              |  |                   |         |                  |   |        
|Total deposits                |  | $                 | 704,431 |                  | $ | 514,314
|                              |  |                   |         |                  |   |        



The large increase in deposits was the
result of various factors. The opening of the new corporate headquarters branch office and the Port Washington office contributed to the growth. The Bank also introduced a new Elite money market account earlier in the year, which pays a high,
competitive interest rate for balances over $25 thousand. Various CD campaigns were also run during the early part of first quarter and again toward the end of the second quarter and third quarter in anticipation of future rate increases by the
Federal Reserve Bank. Time deposits with maturities of one, two and five years sustained the largest growth in balances. Although the cost of deposits has increased from 2.08% at December 31, 2004 to 2.33% at September 30, 2005, these
funds have been invested in higher yielding investment securities and loans.



Other borrowings decreased from $99,500 at December 31, 2004 to $62,000 at September 30, 2005. As deposits flowed into the Bank during the first weeks of the quarter, the overnight borrowings were paid down. During the third
quarter of 2005, $5,000 of Federal Home Loan Bank advances matured and were paid off. At September 30, 2005, the $62,000 in outstanding term borrowings was comprised of eleven advances from the Federal Home Loan Bank with maturities ranging from
January 2006 to March 2011. The weighted average maturity of these borrowings is 2 years 6 months. The weighted average rate of the borrowings is 3.55%.



Stockholders equity increased from $46,943 to $53,391, an increase of 13.74% from year end December 2004 to quarter end September 30, 2005. This growth was the
result of dividends declared of $1,066, net income of $7,993, the decrease in accumulated other comprehensive income of $376 and the purchase of treasury stock to fund unearned stock awards of $102. The Company and the Bank are subject to the risk
based capital guidelines administered by bank regulatory agencies. The guidelines require all banks and bank holding companies to maintain a minimum ratio of total risk based capital to total risk weighted assets of 8%, including Tier I capital to
total risk weighted assets of 4% and a Tier I capital to average assets ratio of at least 4%. As of September 30, 2005, the most recent notification from the corresponding regulatory agency categorized the Company as well capitalized under the
regulatory framework for prompt corrective action. There are no conditions or events since such notifications that management believes have changed this classification. As of September 30, 2005, the Companys capital ratios were 10.42%,
9.52% and 7.74%, well above these minimum guidelines.



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##### Table of Contents

Comparison of Operating Results for the Three Months Ended September 30, 2005 and
2004



Net income for the three months ended September 30, 2005 and 2004
was $2,946 and $2,642, an increase of 11.51%. Net income has continued to increase for each of the three quarters of 2005. This increase from first to second to third quarter has been 14.86% and 9.19%. Total interest income increased by $3,390 or
36.41%. The largest growth in interest income over the two periods was interest on federal funds sold and interest on U.S. government agency securities, which increased by 239.53% and 193.17%, due to the significantly higher average balance of both
asset accounts during 2005. Interest on loans increased by 31.80% during third quarter 2005 also a result of the increased portfolio balance. Interest income on the investment portfolio increased by 90.55% during third quarter 2005 as compared to
third quarter 2004. The purchase of securities during the nine month period of 2005 resulted in this increased interest income. The yield on interest earning assets for the periods ending September 30, 2005 and 2004 was 6.76% and 6.18%.



Total interest expense increased by 64.82% for the three months ending September 30,
2005 as compared to the same period in 2004. This was a result of both an increase in volume and an increase in rate on deposits and borrowings during 2005. The largest increase in interest expense for the three month period was in expense of time
deposits, resulting from an increased average balance of $268,199 as compared to $169,538 during third quarter 2004 as well as an increased cost of interest payments. The cost for this interest during third quarter 2005 was 3.55% as compared to
3.35% during the same period in 2004. Increased interest expense was also the result of the higher cost of interest payments on the subordinated debt during 2005 as compared to 2004. The next largest increase in interest expense was the cost of
money market accounts. This increased interest expense resulted from the increased money market average balances and average rate paid during the third quarter of 2005 as compared to the same period in 2004. The average cost for money market
accounts during third quarter 2005 was 2.10% as compared to 1.27% during the same period in 2004. The combination of significantly increased interest income along with less of an increased interest expense resulted in higher net interest income for
the quarter. Net interest income was 25.06% higher for the third quarter of 2005 as compared to the same quarter in 2004. Based on our continuing review of the overall loan portfolio, and of the current asset quality of the portfolio, including the
classification of loans through our internal review and classification process, a provision for loan losses of $300 was recorded during the third quarter of 2005 as compared to $60 for the same period in 2004. This provision maintains the allowance
at an adequate level as determined through our internal analysis.



Other
noninterest income increased by 43.06%, primarily the result of revenue received from the Bank of Smithtown Insurance Agency. As of August 31, 2004, the Bank acquired the Seigerman Mulvey agency and its gross revenue is now included as part of
the Banks other income. This income totaled $916 for the third quarter of 2005. Revenue from the insurance agency for the single month of September 2004 when it was owned by the Bank was $415. Service charges on deposit accounts also increased
this year as a result of a new Overdraft Honor program implemented in early February 2005. This program provides overdraft coverage for customers meeting certain requirements, and has been very successful in providing increased fee income. Other
miscellaneous income also increased due to increased debit card fee income and loan fee income. Net income from the Banks equity investments during the third quarter of 2004 was comprised of two months of income from SMTB Financial Group LLC
(SMTB), when its ownership was in the form of a joint venture and totalled 50%, in addition to three months of income from the Banks financial services subsidiary, and this income totaled $21. As a result of the purchase of
Seigerman Mulvey as of August 31, 2004, only the financial services subsidiary remains as an equity investment, and this income for the third quarter of 2005 totaled $15. Other operating expenses increased by 40.57% as a result of various
factors, almost all of which are related to the Banks continued growth. The largest increase in this category of expenses was in net occupancy expenses of bank premises. This increase was 145.40% over the comparable period in 2004, and was
primarily the increased rental and overhead expenses as well as the construction costs of new branch and corporate headquarter facilities. The second largest increased category of non interest expense was furniture and equipment expense and it was
44.94% higher this quarter than the same quarter in 2004 and is also related to the increased branch network and new headquarters. Salary and benefit expenses increased for the three month period by a total of 35.93%. Increased staffing needs has
gone along with the branch and corporate headquarters growth. The higher costs for group medical insurance, even with a portion of this increase passed along to employees, has caused the Banks expense to increase significantly. Other
miscellaneous expenses also grew by 11.12%. These miscellaneous expenses are related to normal operating costs as well as operating expenses of Bank of Smithtown Insurance Agency. The major categories of increases included audit and accounting fees,
ATM and debit card fees, legal fees and the provision for contingent liabilities. Earnings per share increased by 11.11% for the three month period ending September 30, 2005 as compared to the same period ending September 30, 2004.



Comparison of Operating Results for the Nine
Months Ended September 30, 2005 and 2004



Net income for the nine months
ended September 30, 2005 and 2004 was $7,993 and $7,350, an increase of 8.75%. Total interest income increased 30.88% over the two comparable periods, due in the majority to the increased federal funds income and investment security income. The
average balance on outstanding loans for the nine month periods ended September 30, 2005 and 2004 increased by 16.38% and the average yield on these balances increased by 9.24% from 6.49% to 7.09%. Investment security average balances over the
two nine month periods also increased by 68.60%, with the corresponding yield earned on these securities decreasing by 10.42%. Interest income on federal funds sold also increased during 2005 as a result of the greatly increased average balance. The
large deposit inflow experienced during the first nine months of 2005 was responsible for the increase in earning assets as these funds were deployed into the three primary interest earning asset categories. During the first quarter , as loan growth
was slower than it has been in the past several years, most of the deposit inflow was channeled into federal funds sold and short term investment securities. As loan volume regained much of its momentum during the second and third quarters of 2005,
a larger portion of the deposit inflows were redeployed into these new loan originations.



Interest expense for the first nine months of 2005 was 52.11% higher than the expense of the comparable period in 2004. Again, this was due to the 25.24% increased average balance and 21.63% increased cost. The
greatest increase in deposit expense for the first nine months of 2005 was in time deposits, which rose by 49.48%. The cost of other borrowings increased by 71.20% during 2005 resulting from the increased average outstanding balance of Federal Home
Loan Bank advances. The cost of interest on the subordinated debt was also 47.25% higher during the nine months of 2005 as compared to 2004, due to the higher level of LIBOR, to which this borrowing cost is indexed.



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##### Table of Contents

The following table sets forth certain information relating to the Companys consolidated statements of financial
condition and its consolidated statements of income for the periods indicated and reflects the average yield on assets and average cost of liabilities. These yields and costs are derived by dividing income or expense by the average balance of assets
or liabilities, respectively, for the periods shown. The resulting spread is the rate equivalent of net interest income.



AVERAGE BALANCE SHEET AND YIELD ANALYSIS



|                                                                |  |                                              |         |          |                                             |             |  |      |                |  |          |         |             |   |        |  |      |  
|--------------------------------------------------------------- |  | -------------------------------------------- | ------- | -------- | ------------------------------------------- | ----------- |  | ---- | -------------- |  | -------- | ------- | ----------- | - | ------ |  | ---- | -
|                                                                |  | For the Nine Months Ended September 30, 2005 |         |          | For the Nine Months EndedSeptember 30, 2004 |            
|                                                                |  | AverageBalance                               |         | Interest |                                             | AverageRate |  |      | AverageBalance |  | Interest |         | AverageRate |  
|ASSETS                                                          |  |                                              |         |          |                                             |             |  |      |                |  |          |         |             |   |        |  |      |  
|                                                                |  |                                              |         |          |                                             |            
|Interest-earning assets:                                        |  |                                              |         |          |                                             |             |  |      |                |  |          |         |             |   |        |  |      |  
|Investment securities:                                          |  |                                              |         |          |                                             |             |  |      |                |  |          |         |             |   |        |  |      |  
|Taxable                                                         |  | $                                            | 80,721  |          | $                                           | 2,360       |  | 3.90 | %              |  | $        | 38,084  |             | $ | 1,103  |  | 3.86 | %
|Nontaxable                                                      |  |                                              | 14,612  |          |                                             | 526         |  | 4.80 |                |  |          | 18,461  |             |   | 811    |  | 5.86 |  
|                                                                |  |                                              |         |          |                                             |             |  |      |                |  |          |         |             |   |        |  |      |  
|Total investment securities                                     |  |                                              | 95,333  |          |                                             | 2,886       |  | 4.04 |                |  |          | 56,545  |             |   | 1,914  |  | 4.51 |  
|                                                                |  |                                              |         |          |                                             |            
|Loans                                                           |  |                                              | 590,450 |          |                                             | 31,379      |  | 7.09 |                |  |          | 507,335 |             |   | 24,691 |  | 6.49 |  
|Federal funds sold                                              |  |                                              | 22,564  |          |                                             | 476         |  | 2.78 |                |  |          | 17,141  |             |   | 135    |  | 1.03 |  
|Restricted securities                                           |  |                                              | 3,890   |          |                                             | 147         |  | 5.06 |                |  |          | 1,956   |             |   | 55     |  | 3.76 |  
|Balances due from banks                                         |  |                                              | 107     |          |                                             | 2           |  | 2.61 |                |  |          | 356     |             |   | 2      |  | 0 75 |  
|                                                                |  |                                              |         |          |                                             |             |  |      |                |  |          |         |             |   |        |  |      |  
|Total interest-earning assets                                   |  |                                              | 712,344 |          |                                             | 34,890      |  | 6.53 |                |  |          | 583,333 |             |   | 26,797 |  | 6.13 |  
|Non-interest-earning assets                                     |  |                                              | 52,943  |          |                                             |             |  |      |                |  |          | 38,333  |             |   |        |  |      |  
|                                                                |  |                                              |         |          |                                             |             |  |      |                |  |          |         |             |   |        |  |      |  
|Total assets                                                    |  | $                                            | 765,287 |          |                                             |             |  |      |                |  | $        | 621,666 |             |   |        |  |      |  
|                                                                |  |                                              |         |          |                                             |             |  |      |                |  |          |         |             |   |        |  |      |  
|LIABILITIES AND STOCKHOLDERS EQUITY                            |  |                                              |         |          |                                             |             |  |      |                |  |          |         |             |   |        |  |      |  
|Liabilities                                                     |  |                                              |         |          |                                             |             |  |      |                |  |          |         |             |   |        |  |      |  
|Interest-bearing liabilities:                                   |  |                                              |         |          |                                             |             |  |      |                |  |          |         |             |   |        |  |      |  
|Savings deposits (including NOW)                                |  | $                                            | 85,548  |          | $                                           | 169         |  | 0.26 | %              |  | $        | 88,950  |             | $ | 309    |  | 0.46 | %
|Money market                                                    |  |                                              | 204,300 |          |                                             | 2,735       |  | 1.79 |                |  |          | 178,423 |             |   | 1,647  |  | 1.23 |  
|Time deposits                                                   |  |                                              | 241,458 |          |                                             | 6,338       |  | 3.51 |                |  |          | 167,816 |             |   | 4,240  |  | 3.37 |  
|                                                                |  |                                              |         |          |                                             |             |  |      |                |  |          |         |             |   |        |  |      |  
|Total interest-bearing deposits                                 |  |                                              | 531,306 |          |                                             | 9,242       |  | 2.33 |                |  |          | 435,189 |             |   | 6,196  |  | 1.90 |  
|Other borrowings                                                |  |                                              | 68,529  |          |                                             | 1,789       |  | 3.49 |                |  |          | 41,560  |             |   | 1,045  |  | 3.36 |  
|Subordinated debt                                               |  |                                              | 11,000  |          |                                             | 508         |  | 6.08 |                |  |          | 11,000  |             |   | 345    |  | 4.12 |  
|                                                                |  |                                              |         |          |                                             |             |  |      |                |  |          |         |             |   |        |  |      |  
|Total interest-bearing liabilities                              |  |                                              | 610,835 |          |                                             | 11,539      |  | 2.53 |                |  |          | 487,749 |             |   | 7,586  |  | 2.08 |  
|Non-interest bearing liabilities:                               |  |                                              |         |          |                                             |             |  |      |                |  |          |         |             |   |        |  |      |  
|Demand deposits                                                 |  |                                              | 100,144 |          |                                             |             |  |      |                |  |          | 91,359  |             |   |        |  |      |  
|Other liabilities                                               |  |                                              | 3,925   |          |                                             |             |  |      |                |  |          | 670     |             |   |        |  |      |  
|                                                                |  |                                              |         |          |                                             |             |  |      |                |  |          |         |             |   |        |  |      |  
|Total liabilities                                               |  |                                              | 714,904 |          |                                             |             |  |      |                |  |          | 579,778 |             |   |        |  |      |  
|Stockholders equity                                            |  |                                              | 50,383  |          |                                             |             |  |      |                |  |          | 41,888  |             |   |        |  |      |  
|                                                                |  |                                              |         |          |                                             |             |  |      |                |  |          |         |             |   |        |  |      |  
|Total liabilities & stockholders equity                         |  | $                                            | 765,287 |          |                                             |             |  |      |                |  | $        | 621,666 |             |   |        |  |      |  
|                                                                |  |                                              |         |          |                                             |             |  |      |                |  |          |         |             |   |        |  |      |  
|Net interest income/interest rate spread                        |  |                                              |         |          | $                                           | 23,351      |  | 4.00 | %              |  |          |         |             | $ | 19,211 |  | 4.05 | %
|                                                                |  |                                              |         |          |                                             |             |  |      |                |  |          |         |             |   |        |  |      |  
|Net earning assets/net yield on average interest earning assets |  | $                                            | 101,509 |          |                                             |             |  | 4.36 | %              |  | $        | 95,584  |             |   |        |  | 4.39 | %
|                                                                |  |                                              |         |          |                                             |             |  |      |                |  |          |         |             |   |        |  |      |  



Other noninterest income for the first
nine months of 2005 increased by 70.40% due primarily to the gross revenue from Seigerman Mulvey. Service charge income on deposit accounts has increased by 14.70% to date in 2005 due in a large part to the Overdraft Honor program. Other operating
expenses also increased during the first nine months of 2005 over the same period in 2004 due primarily to the growth of the Bank. These additional expenses are related to the new corporate headquarters, and the openings of the Motor Parkway and
Port Washington branches during 2005 as well as the Miller Place branch office opened during the fourth quarter of 2004. As brick and mortar have increased, additional expenses related to new staff hirings have been incurred. Salary and benefit
expenses have risen as a result of the growth in branch locations of the Bank. Other miscellaneous expenses increased by 28.56%, predominantly a result of the Seigerman Mulvey acquisition and its related operating costs. Also contributing to the
increase, based on our continuing review of the overall loan portfolio and of the current asset quality of the portfolio, including the classification of loans through our internal review and classification process, a provision for loan losses of
$525 was recorded for the first nine months of 2005 as compared to $60 for the same period in 2004. This provision maintains the allowance at an adequate level as determined through our internal analysis. Earnings per share for the first six months
of 2005 were 9.68% higher than the comparable period in 2004. Return on average assets for the 2005 and 2004 periods was 1.39% and 1.58% respectively, primarily reduced due to the significantly increased asset base.



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##### Table of Contents

Liquidity and Commitments



Liquidity provides the source of funds for anticipated deposit outflow and loan growth. The Banks primary sources of liquidity include
deposits, repayments of loan principal, maturities of investment securities, principal reductions on mortgage-backed securities, unpledged securities available for sale, overnight federal funds sold, and borrowing potential from
correspondent banks. The primary factors affecting these sources of liquidity are their immediate availability if necessary and current market rates of interest, which can cause fluctuations in levels of deposits and prepayments on loans and
securities. The Banks total liquidity level at September 30, 2005 was strong due to the high levels of unpledged marketable securities available for sale, and unused lines of credit from correspondent banks. In addition to these sources
of liquidity, additional borrowing potential from the Federal Home Loan Bank at September 30, 2005 was $78,648.



On September 30, 2005 total loan commitments outstanding were $186,775, of which $107,296 represented available lines on funded loans, and $6,477 represented letters
of credit. At December 31, 2004 these commitments totaled $129,366 with available lines of $71,238 and letters of credit of $8,503.



Impact of Inflation and Changing Prices



The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles, which require the measurement of financial
position and operating results in terms of historical dollars without considering the relative purchasing power of money over time due to inflation. The primary effect of inflation on the operations of the Company is reflected in increased operating
costs. Unlike most industrial companies, virtually all of the assets and liabilities of a financial institution are monetary in nature. As a result, changes in interest rates have a more significant effect on the performance of a financial
institution than do the effects of changes in the general rate of inflation and changes in prices. Interest rates do not necessarily move in the same direction or magnitude as the prices of goods and services. Interest rates are highly sensitive to
many factors, which are beyond the control of the Company, including the influence of domestic and foreign economic conditions and the monetary and fiscal policies of the United States government and federal agencies, particularly the Federal
Reserve Bank.



Item 3.- Quantitative and Qualitative Disclosures About Market Risk



Significant changes in the level of market interest rates may adversely affect the value of the Companys interest earning assets. This change in rates could also affect the level of net interest income and
ultimately net income of the Company. The Company utilizes the results of a dynamic simulation model to quantify the estimated exposure to net interest income fluctuations resulting from sustained interest rate changes. Management monitors simulated
net interest income sensitivity over a rolling two year horizon. This simulation captures the impact of changing interest rates on the interest income received and interest expense paid on all interest sensitive assets and liabilities. This
sensitivity is then compared to policy limits internally set by the Asset Liability Committee that specify a maximum tolerance level for net interest income exposure over a one year horizon given both an upward and downward shift in interest rates.
This simulation modeling is done on a quarterly basis. The last simulation model was prepared as of August 31, 2005 and was modeled on a 100 downward and 100 and 200 basis point upward shift in rates. A parallel and pro rata shift in rates over
a twenty four month period was assumed. The following reflects the Companys income sensitivity analysis over a one year time frame as of August 31, 2005 and May 31, 2005. The 100 basis point upward interest rate shift was not
performed in the May 31 simulation due to the then current interest rate environment. In the future all comparable periods will be tested.



(in thousands)



|                                                      |  |                                                             |  |                                                          |  |          |   |  |          |  
|----------------------------------------------------- |  | ----------------------------------------------------------- |  | -------------------------------------------------------- |  | -------- | - |  | -------- | -
|Change In Interest Rates In Basis Points (Rate Shock) |  | As of August 31, 2005Potential Change In NetInterest Income |  | As of May 31, 2005Potential Change In NetInterest Income | 
|                                                      |  | $ Change                                                    |  | % Change                                                 |  | $ Change |   |  | % Change |  
|Up 200 basis points                                   |  | 2,148                                                       |  | 6.17                                                     |  | 1,650    |   |  | 4.92     |  
|Up 100 basis points                                   |  | 1,481                                                       |  | 4.26                                                     |  |         |   |  |         |  
|Static                                                |  |                                                            |  |                                                         |  |         |   |  |         |  
|Down 100 basis points                                 |  | 28                                                          |  | 0.08                                                     |  | (1,184   | ) |  | (3.53    | )



Item 4.-Controls and Procedures



An evaluation
was performed under the supervision and with the participation of the Companys management, including the Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Companys disclosure
controls and procedures (as defined in Rule 131-15(e) promulgated under the Securities and Exchange Act of 1934, as amended) as of September 30, 2005. Based on that evaluation, the Companys management, including the Chief Executive
Officer and Chief Financial Officer, concluded that the Companys disclosure controls and procedures were effective. There has been no change in the Companys internal controls over financial reporting during the quarter that has
materially affected, or is reasonably likely to affect, the Companys internal control over financial reporting.



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SIGNATURES



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



SMITHTOWN BANCORP, INC.November 7, 2005/s/ Bradley E. RockBradley E. Rock, Chairman, President and Chief Executive
Officer/s/ Anita M. FlorekAnita M. Florek, Executive Vice President and Treasurer




16