Letter To Our Shareholders

January 27, 2014

Dear Bank Shareholder:

USNY Bank generated very solid financial performance again last year. Total Assets increased about 23% from $145,941,258 on 12/31/12 to $179,849,192 on 12/31/13. This is a result of our continued loan growth, which has also been the driver of our earnings success. Our Net Income (unaudited) was $665,958 for the three months and $2,355,331 for the twelve months ending 12/31/13. 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 about $9.30 per share as of 12/31/13. This is an increase from $8.27 per share as of 12/31/12.

Our estimated Return on Average Assets (ROAA) was 1.45% and Return on Average Equity (ROAE) was 15.72%. These 2013 results will continue to place us among the higher performing banks in the state. This year will bring additional challenges and I believe your bank team is ready to meet them. We took several important steps in 2013 to help prepare for the future.

We made significant technology investments last year to increase efficiency. We implemented the following projects: new bank websites, online account opening, online residential mortgage applications, remote deposit anywhere, document imaging, and electronic board packages.

We made some other long-term commitments. We purchased our existing branch in Geneva in August 2013, which allows us to better control occupancy costs and plan for the future. We also recently announced plans to open a new Oneonta full-service branch in mid-2014 under the Bank of Cooperstown name. We already have customers and shareholders in the Oneonta area, so we're very excited to expand our brand of banking in this important part of our market.

We increased our management depth by adding two experienced bankers: Rob Sollenne as our Chief Financial Officer and Karen Luttrell as our Compliance Officer. We also made a key internal promotion when we named Heidi Westfall as our Bank Operations Officer in 2013.

As we continue to grow, the development of local core deposits will become even more critical to us. These deposits remain in our communities as business loans, residential mortgages, consumer loans, bank investments, or contributions to various civic organizations. They also increase the ongoing value of the bank, which is important to all our shareholders.

Thank you for your ongoing support. Feel free to contact me with questions or suggestions.


R. Michael Briggs

President & CEO

Board of Directors

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

Bank Officers

  • R. Michael Briggs
  • Jeffrey E. Franklin
  • Scott D. White
  • James E. Willson
  • Rob Sollenne
  • Michael A. Fratto
  • Peter J. Principato
  • Christine M. Amos
  • Nancy C. Murray
  • Amy L. McNicholas
  • Heidi J. Westfall
  • Karen A. Luttrell