Letter to Our Shareholders
Dear Bank Shareholder:
USNY Bank generated very solid financial performance in 2012. Our Net Income (unaudited) was $457,822 for the three months and $1,954,347 for the twelve months ending 12/31/12. These results compare favorably to the same periods in 2011: Net Income was up 40% from $325,086 for the three months and up 50% from $1,305,132 for the twelve months. This improvement was the result of increases in our net interest income from our strong loan growth and increases in non-interest income from residential mortgages and government guaranteed loans. Estimated Return on Average Assets (ROAA) was 1.55% and Return on Average Equity (ROAE) was 16.56% for 2012. These will place among the higher performing banks in the state. 2013 will bring additional challenges, including reduced net interest margins and increased costs (including regulatory costs). I believe your bank team is ready to meet those challenges.
Total Assets increased 33% from $109,474,454 on 12/31/11 to $145,941,258 on 12/31/12. This comes from our ability to generate continued loan growth, which has been the driver of our earnings success. Shareholder equity has grown as a direct result of these retained earnings. Our audited financials won’t be ready for several weeks, but the Book Value of our common stock should be $8.27 per share as of 12/31/12 as compared to $7.04 per share as of 12/31/11.
I’ve frequently reminded shareholders from the 2010 stock offering about the warrant shares they received in conjunction with the shares of common stock. The warrants allow the purchase of additional shares of our common stock for the fixed price of $6.50 per share through August 20, 2013. Exercising these warrants will provide your bank with additional capital for future growth. Thank you to those shareholders who already exercised their warrants. I’d encourage you to contact either Nancy Murray or me at 315-789-1500 if you want to exercise your warrants now. Some shareholders have their common stock and/or warrant certificates held by major brokerage firms that hold them in safekeeping in NYC. Unfortunately, flooding from Hurricane Sandy left many of these shares either damaged or destroyed. This has created problems for shareholders exercising warrants or transferring common stock. Just another reason to exercise warrants now.
We just announced several new CD Specials. They are very competitive and will be in effect for a limited-time only. I encourage you to check them out and tell your friends about them.
Thanks for your continued support. Please feel free to contact me with questions or suggestions.
Sincerely,
R. Michael Briggs
President & CEO
| BOARD OF DIRECTORS | BANK OFFICERS |
| Robert W. Ranger-Chairman | R. Michael Briggs |
| R. Michael Briggs | Jeffrey E. Franklin |
| H. Todd Bullard | Scott D. White |
| H. Taylor Fitch | James E. Willson |
| Jeffrey S. Gifford | Michael A. Fratto |
| Murray P. Heaton | Dawn E. Maltman |
| J. Michael Moffat | Peter J. Principato |
| Alexandra K. Nolan | Christine M. Amos |
| Robert F. O'Neill | Edward L. Clark |
| Nancy C. Murray | |
| Amy L. McNicholas |
