Letter to Our Shareholders

July 19, 2019


Dear Shareholder:

USNY Bank had unaudited Net Income of $1,226,991 for the three-month period ending on June 30, 2019. This was down 16.7% as compared to $1,473,081 for the same quarter last year. Our Return on Average Assets (ROAA) was 1.19% and Return on Average Equity (ROAE) was 11.64% for the quarter. Earnings per share (EPS) was $0.56 for the quarter as compared to $0.68 for the same quarter last year and $0.57 for the first quarter.

Second quarter earnings were impacted by our decision to put an additional $350,000 into our Allowance for Loan and Lease Losses (ALLL) to make sure we have sufficient reserves in place to address specific problem credits and a difficult agricultural economy. Despite this additional provision, our YTD earnings were still strong and compare favorably to most banks in our peer group. I think we’re taking prudent steps in light of where we are in the economic cycle.

Our Balance Sheet continues to grow. Total Assets rose about 1.6% for the second quarter from $424,874,364 on March 31, 2019 to $431,589,544 on June 30, 2019. For the same period, total Net Loans increased 1.6% from $369,820,927 to $375,696,913. Total Deposits grew 1.5% during the quarter from $378,137,162 to $383,740,489.

We had our first two retirements this quarter: Vice President Chris Amos on May 31st and Chief Credit Officer Jim Willson on June 27th. Both Chris and Jim have been important contributors to the success of the Bank and will certainly be difficult to replace. We wish them the best.

We’re very excited to announce that we are unveiling our new website this month. We have also updated our mobile banking app and online account opening platform. These updates will allow us to combine our high-quality branch experience with a high-quality digital banking channel.

I would like you to know that there are current shareholders with stock available for sale. Please contact Nancy Murray at 315-781-8051 if you are interested in purchasing additional shares.

No Shareholder Letter would be complete without a push for additional local deposits. We are working hard to generate core deposits. Please talk us up to your friends and family.

If you have any questions related to the holding company or the bank, please don’t hesitate to contact me by phone at 315-789-7168 or by email @ mike.briggs.@usnybank.com.


Michael Briggs

President & CEO