Letter To Our Shareholders

July 10, 2015

Dear Shareholders:

Our second quarter operating results were strong with unaudited Net Income of $812,648. This compares favorably to $726,645 in the first quarter and $737,742 for the second quarter last year. We're running ahead of our 2015 budget so far. Total Assets grew from $217,250,799 on 12/31/14 to $228,131,760 on 3/31/15 and $238,300,958 on 6/30/15.

Our YTD Return on Average Assets (ROAA) of 1.36% and Return on Average Equity (ROAE) of 15.08% place us among the top performing community banks in New York.

In my few shareholder letters, I've reiterated the investments we've made to prepare for the future. These include our new Oneonta branch and new corporate office in Geneva. It's important that we continue to invest in our people, technology, and facilities.

We just kicked off a new capital offering. You will be receiving the offering information in the near future. We expect to raise up to $3.75 million in this common stock offering to improve our regulatory capital ratios and support continued growth. While USNY Bank is already considered "Well-Capitalized" by the bank regulatory agencies, we think building a stronger balance sheet seems prudent. The new capital offering is scheduled to close on 9/15/15, so it's important that you review the materials and respond promptly.

Generating local core deposits to fund our loan growth continues to be a priority for our bank team. There are always new challenges in any business, but I believe that deposit generation will remain one of our key challenges for the foreseeable future. The Oneonta branch has exceeded our projections for deposit growth, but 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.


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

  • 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

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