Letter To Our Shareholders

April 20, 2018

Dear Shareholders:

We had strong operating results and generated record earnings in the first quarter. Unaudited Net Income was $1,264,492 for the three-month period that ended on 3/31/18, up 25.8% compared to the same period last year. Annualized Return on Average Assets (ROAA) was 1.39% and Return on Average Equity (ROAE) was 14.20%. These results represented solid bank performance and benefits from the new federal tax law, which contained reduced corporate income taxes.

Earnings per share (EPS) was approximately $.59 for the quarter and as compared to $.47 per share for the same period last year. Our Total Assets rose about 4.5% for the quarter, up from $362,088,659 on 12/31/17 to $378,208,096 on 3/31/18. We've experienced steady growth in both loans and deposits. As you know, growth in local deposits is absolutely essential for us.

I'm optimistic that we can keep this forward momentum going. We will stick to our business plan, while constantly looking for future opportunities. These opportunities will come if we continue to focus on the big things: generating local deposits, delivering personalized customer service, maintaining credit quality, providing staff development and utilizing bank technology. We have a strong bank team in place and we'll continue to add new resources as appropriate.

All four branches are doing well and significantly contributing to our overall success. A new community board was recently formed in Penn Yan, just like those we've created with all our branches. These Community Board members are well-known in the area and include: Tom Podsiadlo, Jere Horning, Tim Trombley, Kyle Gifford, and Amy Hoffman. They can provide additional local connections and enhance our efforts to grow and contribute to the community.

Our Annual Shareholder Meeting is scheduled for April 27, 2018, at the Ramada Inn in Geneva. The nine current directors have been nominated for new one-year terms. We've also scheduled a presentation for our Cooperstown/Oneonta area shareholders on May 17, 2018, at the Fenimore Art Museum in Cooperstown. We hope you can attend if you aren't able to join us in Geneva.

Thank you for your investment in UpState New York Bancorp, Inc. Your strong support has been so important to us. If you have any questions related to the holding company or bank, please contact me by phone at 315-789-7168 or by email at mike.briggs@usnybank.com.

R. Michael Briggs

President & CEO

Board of Directors

Chairman: Jeffrey S. Gifford

Vice Chairwoman: Alexandra K. Nolan


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