Letter To Our Shareholders

October 22, 2018


Dear Shareholders:

UpState New York Bancorp, Inc. and its subsidiary (USNY Bank) had another solid quarter.


USNY Bank had unaudited Net Income of $1,425,055 for the three-month period that ended 9/30/18, up 22.6% compared to $1,162,652 for the same period last year. Unaudited YTD Net Income was $4,162,628 for the nine-month period that ended 9/30/18, up 24.0% compared to $3,356,680 for the same period last year. Our Annual Net Income for 2017 was $4,152,380.


Earnings per share (EPS) was about $.66 for the quarter as compared to $.54 per share for the same period last year and $.68 for the second quarter. Annualized YTD Return on Average Assets (ROAA) was 1.47% and Return on Average Equity (ROAE) was 14.82% as of 9/30/18.


Total Assets rose from $390,333,139 on 6/30/18 to $391,528,218 on 9/30/18. Total Net Loans increased from $342,003,172 on 6/30/18 to $346,393,136 on 9/30/18. Total Deposits declined from $348,305,663 on 6/30/18 to $345,141,524 on 9/30/18.


As we continue to grow, we continue to invest in people. Alec Pierce was hired as a new Credit Analyst to support our growing commercial and agricultural loan portfolio. We also made some internal personnel moves. Amber Ralston will make the transition from our Geneva branch to become a Retail Loan Processor at our administration office. Credit Analyst Josh Burden will move to our Oneonta branch in just a few weeks to become a Commercial Lender, working with Chris Amos. Tara Plate will become our new Document Control Specialist in the near future.


We recently acknowledged these employee service milestones at our annual Employee Meeting: Assistant Vice President & Mortgage Loan Originator Jessica Baker for 10 years; Vice President & Commercial Lender Mike Fratto for 10 years; BSA/AML Compliance Assistant Jenn Woznick for 10 years and Vice President Michael Scaglione for 5 years.


I often mention the importance of deposits in this quarterly shareholder letter. Deposits are the real lifeblood of the bank. We've experienced increases in our Cost of Funds recently and expect this trend to continue, so generating new local core deposit relationships will become even more important in the future. I'd encourage you to bring your deposit accounts to the bank and encourage your friends to join our bank family by opening their accounts here too.


Thanks for your continued support.


Sincerely,



R. Michael Briggs

President & CEO











Board of Directors


Chairman: Jeffrey S. Gifford

Vice Chairwoman: Alexandra K. Nolan


Directors:

R. Michael Briggs

H. Todd Bullard

H. Taylor Fitch

Jeffrey S. Gifford

Jeffrey K. Haggerty

Murray P. Heaton

J. Michael Moffat

Alexandra K. Nolan

Steven C. Smith

Bank Officers

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