Letter To Our Shareholders

January 12, 2016

Dear Shareholders:

Our fourth quarter operating results were strong with unaudited Net Income of $815,385. Unaudited 2015 Net Income was $3,287,166, which was significantly above 2014 Net Income of $2,645,751 (our previous record Net Income). Total Assets grew about 18% in 2015, from $217,250,799 on 12/31/14 to $256,688,117 on 12/31/15.

Our 2015 Return on Average Assets (ROAA) of 1.38% and Return on Average Equity (ROAE) of 14.60% place us among the top performing community banks in New York. This solid operating performance has supported the increase in our Book Value above the $12.50 offering price from the 2015 capital raise.

We continue to invest in our people. We recently announced the promotions of Rachel Lutz Jessup, our Branch Manager in Oneonta, and Jessica Baker, our Residential Mortgage Originator in Cooperstown and Oneonta. Both were named Assistant Vice Presidents in December. We previously had added John Wadsworth, an experienced agricultural and commercial loan officer, as a Vice President in Geneva.

Our continuing investments in bank technology have kept us ahead of most community banks in this area. Our recent investments in facilities are exemplified by the Bank of Cooperstown branch in Oneonta and Corporate Office in Geneva. We are also in the process of making needed updates to the Bank of the Finger Lakes branch in Geneva.

Developing local core deposits to fund our ongoing loan growth continues to be a priority for our bank team. It will remain a key challenge for the foreseeable future. While the Oneonta branch has exceeded expectations for deposit growth, it's imperative that we generate new deposits in all bank markets in order to fund our continued loan growth.

Thanks for your continued confidence in us. We appreciate your investment, your banking relationship and new customer referrals. Please keep us in mind when you talk to your friends and business associates. Remind them What Starts Here, Stays Here.

Best wishes to you and your family. Here's to a great year in 2016!


R. Michael Briggs

President & CEO

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