Letter To Our Shareholders

April 28, 2014

Dear Bank Shareholder:

It's hard to believe that we've completed one-third of 2014 already. USNY Bank generated very solid financial performance in the first quarter and we expect our April results to be ahead of our budget. Total Assets increased about 6% from $179,849,192 on 12/31/13 to $190,782,469 on 3/31/14. This is a result of our continued loan growth, which has always been the driver of our earnings success. Net Income (unaudited) was $530,063 for the three months ending 3/31/14. Our estimated Return on Average Assets (ROAA) was 1.16% and Return on Average Equity (ROAE) was 12.48%. While these results aren't as strong as last year, they will continue to place us among the higher performing banks in the state.

We were recently ranked 17th in the country for our 2013 performance by SNL Financial, a nationally-recognized bank information firm, for banks with under $500million in assets. Bauer Financial has continued to give us a "five-star" rating for financial strength and Seifried & Brew, a Pennsylvania-based bank advisory firm, has listed us as a top performing bank as well.

We've taken several important steps to help us prepare for the future. We've continued to make significant technology investments to increase efficiency and maintain the high level of modern bank technology that our customers expect. Our 2013 investments in new bank websites, online account opening, online residential mortgage applications, remote deposit anywhere, document imaging, and electronic board packages are beginning to show returns. We also have begun construction on a new Oneonta full-service branch under the Bank of Cooperstown name, which we expect to open before Labor Day. 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. And we're already working to gain new customers.

We had our Annual Shareholder Meeting in Geneva on 4/17/14 and will have a Shareholder Presentation at the Otesaga in Cooperstown at 9AM on 5/15/14. I hope that you're able to join us in Cooperstown if you were unable to attend the Annual Shareholder Meeting.

As we continue to grow, the development of local core deposits will become even more critical to us. These deposits remain in our local communities as business loans, residential mortgages, consumer loans, bank investments, or contributions to various civic organizations.

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