Letter To Our Shareholders

July 18, 2016

Dear Shareholders:

We continue to generate solid operating results. Our second quarter unaudited Net Income was $894,907 as compared to $812,648 for the same period last year. Total Assets were $294,790,881 on 6/30/16, which is up 23.7 % from $238,300,958 on 6/30/15, and up 14.8% from $256,688,117 on 12/31/15. Our strong loan generation has been the key driver of our earnings and asset growth.

USNY Bank was nationally recognized in this month's issue of Independent Banker®, the award-winning magazine of the Independent Community Bankers of America® (ICBA), for being a Top 50 Overall Loan Producer in 2015 for all banks in our asset size category.

Each of our branch locations continue to do well. Geneva had a new Smart ATM and Night Drop installed in a kiosk at the outside drive-up lane in May. Customers are now able to make deposits of checks and cash right from their vehicle. Cooperstown continues to maintain their #1 market position. Oneonta has grown to about $35 million in deposits since it opened in late 2014.

We are fortunate to have such experienced, knowledgeable, friendly, customer-focused bank teams in all of our branches. These teams provide high-quality personal service to our bank customers. Customers know they'll get great service and that their deposits are used to benefit our local communities in many ways. That's why we say "What Starts Here, Stays Here".

I want to thank our shareholders too. Our success to date has been the result of the combination of your investment with the support of loyal customers and the ongoing efforts of our bank team. We work hard to make sure everyone benefits from the success of USNY Bank.


R. Michael Briggs

President & CEO

Please Note: The Bank's new holding company, UpState New York Bancorp, Inc., was approved and created effective July 1, 2016. You will be receiving a letter (if you haven't already) from Computershare, our transfer agent, requesting you to exchange your existing shares of USNY Bank common stock for an equal number of shares in UpState New York Bancorp, Inc. The letter explains the exchange process and asks you sign an enclosed form. You will be asked to mail the signed form with your existing share certificates in an enclosed return envelope. You will then receive a statement from Computershare detailing your current ownership position, since the holding company shares will be held in book-form (not certificated like the bank shares).

USNY Bank-389 Hamilton Street-Geneva, NY 14456

Phone: 315-789-1500

Shareholder Relations: Nancy C. Murray

Transfer Agent: Computershare

Board of Directors

  • Jeffrey S. Gifford-Chairman
  • R. Michael Briggs
  • H. Todd Bullard
  • H. Taylor Fitch
  • Murray P. Heaton
  • J. Michael Moffat
  • Alexandra K. Nolan
  • Robert F. O'Neill
  • Robert W. Ranger

Bank Officers

  • Christine M. Amos
  • Jessica L. Baker
  • R.Michael Briggs
  • Jeffrey E. Franklin
  • Michael A. Fratto
  • Karen Luttrell
  • Rachel Lutz Jessup
  • Amy L. McNicholas
  • Nancy C. Murray
  • Peter J. Prinicipato
  • Michael G. Scaglione
  • Robert W. Sollenne
  • Heidi J.Westfall
  • Scott D. White
  • James E. Willson