S E N E C A - C A Y U G A B A N C O R P , I N C .

2018

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Each year is unique with new opportunities, and 2018 ofered many. We completed our merger with Medina Savings and Loan. This transaction helped grow the balance sheet, but more importantly it opened new markets. Our robust product oferings in the Orleans County market should be an area of growth for years to come.

We took advantage of another opportunity by forming Generations Commercial Bank. This limited-purpose entity was launched to enable us to gather deposits from municipalities and other entities that receive public funds. Generations Commercial Bank addresses a cornerstone of our value to the communities we serve. By ofering municipalities a fair return on their deposits, we provide ofcials the opportunity to do a better job of stewarding the public funds in their trust. By the deposits coming to Generations instead of an out-of-town institution, those funds go right back to work in local communities.

In addition to our traditional avenues of growth, our Senior Vice President of Growth and Proftability identifed an opportunity that provided us with a $10 million deposit. The deposit was the result of an application fled with the New York State Department

of Financial Services to designate the Village of Union Springs as a Banking Development District. These low-cost deposits enable Generations to ofer discounted loan rates for business loans in the Village of Union Springs to encourage entrepreneurs to locate there or for existing businesses to expand, make repairs to their property or enhance their product oferings. Consumer-directed benefts include afordable transportation loans, credit rescue loans, mortgage refnancing, senior home improvement loans and premium returns on select deposit types.

As we have said throughout 2018, last year was spent building solid foundations to support our future growth. Besides the eforts noted previously, we have also improved our internet-based product oferings such that deposit accounts can be opened online and mortgage applications can also be made online. We have also implemented our Customer Contact Center so that customers’ calls are more efciently serviced by our knowledgeable employees. Just recently we also obtained approval to ofer FHA mortgages directly, which is a signifcant product in our markets. The competition has never been more intense with the rise of non-traditional lenders and internet-only banks competing for market share. Even in the face of these and

more traditional challengers, we are confdent that the steps taken will secure our place in the future—helping to build our communities.

In 2018, the company adopted a new accounting standard update which requires equity securities, including shares held in mutual funds, to be measured at fair market value with changes in the fair market value to be recognized through net income. This change in accounting negatively impacted our net income by $462,000 by recording unrealized losses as a reduction of non-interest income. The adjustment is as of a point in time, refects as unrealized change in valuation of the equity securities portfolio and does not refect in any way on the operations of the retail bank, or any subsidiaries.

We are confident that the steps taken will secure our place in the future—helping to build our communities.

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Last year, our 148th in business, we continued our commitment to the towns and villages we call home. We supported dozens of community and charitable groups representing causes important to our home towns such as fghting cancer, combating youth drug and alcohol abuse, feeding the hungry, afordable housing and supporting women’s rights. As an example, Generations hosted our 4th annual Taste & Tunes event, raising thousands of dollars to support area food pantries.

Generations added James Gardner, a member of Medina Savings and Loan Board of Directors, to the Generations Board following the merger. Mr. Gardner is the Vice President of Commercial Operations at The Barden & Robeson Corporation in Middleport, NY. He has a long association with the Orleans County Habitat for Humanity and the Home Builders Association.

JAMES GARDNER

Howard Scutt, a Generations Bank Director Emeritus, passed away in February of 2019. Mr. Scutt, a long-time resident of Seneca Falls, enjoyed a successful career at Goulds Pumps including serving as the

Vice President of Finance from 1974 to 1984. In addition to serving on our Board of Directors for over 30 years, he held leadership positions with many non-proft organizations in the Seneca Falls community.

The team at Generations is hard at work to make 2019 a success! Thank you for your continued investment in our company.

MENZO D. CASE President & CEO

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NET INCOMEBANK’S CORE CAPITAL RATIO

EARNINGS PER COMMON SHARE

12 1,661.0

13 2,376.6

14 2,055.9

15 1,092.3

16 (1,196.1)

17 715.4

18 (766.0)

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12 10.05

13 9.78

14 9.84

15 9.40

16 9.44

17 9.28

18 8.82

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12 0.72

13 1.03

14 0.88

15 0.45

16 (0.53)

17 0.31

18 (0.31)

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CO M PA N Y F I N A N C I A L S U M M A RY The summary information presented below at or for each of the years presented is derived in part from the audited consolidated fnancial statements of Seneca-Cayuga Bancorp, Inc. and should be read in conjunction with our consolidated fnancial statements and notes issued under separate cover (dollars in thousands).

At December 31, 2018 2017 2016

S E L E C T E D F I N A N C I A L C O N D I T I O N D AT A :

Total assets $ 317,780 $ 290,512 $ 272,684 Loans receivable, net 244,100 219,238 204,236 Securities 25,392 29,344 26,219 Deposits 259,609 225,680 200,297 Borrowings 25,569 34,780 42,667 Shareholders’ equity 26,986 25,772 24,878

For the year ended December 31, 2018 2017 2016

S E L E C T E D O P E R AT I N G D AT A :

Interest and dividend income $ 11,615 $ 11,465 $ 10,931 Interest expense 2,628 2,375 2,374 Net interest income 8,987 9,090 8,557 Provision for loan losses 175 420 2,315 Net interest income after provision for loan losses 8,812 8,670 6,242 Non-interest income 2,560 2,712 2,727 Non-interest expense 12,284 10,667 10,921 Income from continuing operations before tax (912) 715 (1,952) Provision for income taxes (146) - (756) Net income $ (766) $ 715 $ (1,196)

At and for the years ended December 31, 2018 2017 2016

P E R F O R M A N C E R AT I O S :

Return on average assets -0.26% 0.25% -0.43% Return on average equity -2.89% 2.81% -4.60% Interest rate spread(1) 3.42% 3.56% 3.68% Net interest margin(2) 3.50% 3.63% 3.77% Efciency ratio(3) 106.38% 90.38% 97.92% Operating expense to average total assets 4.20% 3.77% 3.94% Average interest-earning assets to average 108.54% 107.42% 108.47% interest-bearing liabilities

A S S E T Q U A L I T Y R AT I O S :

Non-performing assets to total assets 0.88% 0.93% 1.11% Non-performing loans to total loans 1.10% 1.12% 1.32% Allowance for loan losses to non-performing loans 57.40% 99.68% 115.26% Allowance for loan losses to total loans 0.63% 1.12% 1.52%

C A P I T A L R AT I O S :

Average equity to average assets 9.04% 8.99% 9.40% Equity to total assets at the end of period 8.49% 8.87% 9.12% Total bank capital to risk-weighted assets 12.62% 13.57% 13.60% Tier 1 bank capital to risk-weighted assets 11.97% 12.42% 12.35% Tier 1 bank capital to adjusted assets 8.82% 9.28% 9.44%

(1) Represents the diference between the weighted-average yield on interest-earning assets and the weighted-average cost of interest-bearing liabilities for the period. (2) Represents interest income as a percent of average interest-earning assets for the period. (3) The efciency ratio represents non-interest expense divided by the sum of net interest income and non-interest income, excluding net gains or losses on sale

of securities, net gain or loss on trading securities and security impairment losses.

STO C K H O L D E R I N FO R M AT I O N Seneca-Cayuga Bancorp, Inc. (the “Company”) is the federally chartered mid-tier stock holding company of Generations Bank (the “Bank”). The Company owns 100% of the common stock of the Bank and has not engaged in any signifcant business activity other than owning the Bank’s common stock and does not intend to expand materially its business activities (other than through the Bank).

Generations Bank was chartered in 1870 to provide a safe and secure depository institution for the small community of Seneca Falls and the developing communities in the northern Finger Lakes region and Western New York.  Today, with eleven ofces, we remain committed to meeting that mission, serving both individuals and businesses.

The Northern Finger Lakes region is located in the western portion of New York State between the cities of Rochester and Syracuse, New York.  Seneca Falls is located six miles south of Interstate 90, the major east-west highway that runs through the state of New York.  Our market now extends from Medina and Albion, New York, in the west to Auburn, New York, in the east.  We also have ofces in Union Springs, Waterloo, Phelps, Geneva and Farmington.

Generations Agency (the “Agency”) is a wholly-owned subsidiary of the Bank. The Agency services customers throughout the Finger Lakes Region, and ofers personal and commercial property insurance, life insurance, long-term-care planning, annuities and other products and services.

O U R CO M M O N STO C K The Common Stock of Seneca-Cayuga Bancorp, Inc. is traded on the OTC Pink Marketplace under the symbol SCAY. At March 21, 2019, we had approximately 232 holders of record of the common stock. Certain shares of the common stock are held in “nominee” or “street” name and accordingly, the number of benefcial owners of such shares is not known or included in the foregoing number. The following table shows the range of high and low market prices for our stock for the quarters indicated. There were no common stock dividends declared or paid in any quarter of the period presented in this report. The payment of any future cash dividends is dependent on the results of operations and fnancial condition of the Company, as well as tax considerations, economic and market conditions, regulatory restrictions, regulatory capital requirements and other factors.

Cash Year ended December 31, 2018 High Low Dividend

Declared Fourth quarter $ 12.50 $ 9.01 $ — Third quarter 13.00 12.00 — Second quarter 12.30 10.60 — First quarter 12.10 9.70 —

Cash Year ended December 31, 2017 High Low Dividend

Declared Fourth quarter $ 10.50 $ 9.75 $ — Third quarter 10.80 10.31 — Second quarter 11.11 10.66 — First quarter 12.00 11.11 —

GENERATIONS BANK BOARD OF DIRECTORS

BRADFORD M. JONES Chairman, Director1

MENZO D. CASE President/CEO, Director1,2

VINCENT P. SINICROPI Vice-Chairman, Director1,2

DR. JOSE ACEVEDO Director1,2

JAMES GARDNER Director1,2

CYNTHIA S. AIKMAN Director2

GERALD MACALUSO Director1,2

DR. FRANK J. NICCHI Director2

DR. AUGUST P. SINICROPI Director1,2

DAVID H. SWENSON Director1

SHAREHOLDER GENERAL INQUIRIES Lori M. Parish Corporate Secretary Seneca-Cayuga Bancorp, Inc. 20 E. Bayard Street Seneca Falls, NY 13148 315.568.5855 mygenbank.com

CORPORATE OFFICE Seneca-Cayuga Bancorp, Inc. 20 E. Bayard Street Seneca Falls, NY 13148

TRANSFER AGENT Computershare P.O. Box 505000 Louisville, KY 40202 800.368.5948 computershare.com/investor

INDEPENDENT AUDITORS Bonadio & Co., LLP 432 N. Franklin Street Suite 60 Syracuse, NY 13204

SPECIAL COUNSEL Luse Gorman, PC 5335 Wisconsin Avenue, NW Suite 780 Washington, D.C. 20015

1 Also Director for Seneca-Cayuga Bancorp, Inc. 2 Also Director for The Seneca Falls Savings Bank, MHC