Press Release

SOLVAY BANK CORP. ANNOUNCES SECOND QUARTER RESULTS

July 28, 2009 - Solvay Bank Corp., the holding company for Solvay Bank, announced today that its net income through the second quarter of 2009 was $2.7 million, decreasing $37 thousand or 1.3% over the prior year. The decline in earnings is directly related to a sharp rise in FDIC insurance premiums of $478 thousand, up 442.6% over 2008. Earnings in the second quarter alone were down 3.5% over prior year due to the increased assessment. The increase in premiums are a result of the need to recapitalize the insurance fund that pays depositors of failed banks. Without factoring in the increased FDIC costs, Solvay Bank's year-to-date net income would have been $3.0 million, up 10.2% over the same period for 2008. Total assets were $537.1 million, which represents an increase of $13.5 million or 2.6% over last year. Total deposits increased $10.5 million or 2.2% over the same period to a record $480.0 million. Total Loans increased to an all-time high of $364.8 million, up $6.8 million or 1.9% from the prior year.

Paul P. Mello, CPA, President and Chief Executive Officer reported, "We are having a tremendous year as earnings are up 10% without considering the increases in FDIC premiums, which are beyond our control. Our Bank continues to post solid growth in our core deposit products as well as strong increases in our mortgage, consumer and commercial lending areas. Although we are disappointed that we have to incur increased FDIC insurance premiums in order to pay for other bank's mistakes, we remain focused on servicing our customers and continue to pursue market opportunities."

Founded in 1917, Solvay Bank is the oldest independent commercial bank headquartered and operating in Onondaga County and is committed to providing its customers with the very best in financial products and customer service. Solvay Bank has a Main Office located at 1537 Milton Avenue in Solvay and six branches conveniently located in Fairmount, Camillus, Liverpool, North Syracuse, downtown Syracuse and Westvale. Solvay Bank also owns a full service general insurance agency, Solvay Bank Insurance Agency, Inc.