January 28, 2010

Dear Shareholder:

The first quarter of 2010 again exhibited strong performance for Steuben Trust Corporation. At the April 15 Annual Meeting of Shareholders, we spoke about the first quarter 2010 as well as the 2009 performance, noting that the Company enjoyed a ranking in the top eight of all New York State banks consisting of a group of 112. So, despite the industry and economic strains apparent even in the more stable Upstate New York environment, there have clearly also been opportunities to create a positive variance which Steuben Trust has achieved.

Earnings for the quarter were $931,000 up 6% over the first quarter 2009. This is earning per share of $0.57. Your Board of Directors was pleased to declare an increase in the dividend at their meeting on April 15, 2010, to $0.225 per share payable to shareholders of record April 20, 2010. This is 4.7% greater than fourth quarter 2009 dividend.

Also at the annual meeting, all Directors were re-elected for another term and the 2010 Long-term Stock Incentive Plan was approved. We also spoke about the Company's information technology systems and our expanding customer "continuum of convenience" service model, including the most recent option for customers to receive electronic statements. As e-statements are increasingly associated with secure access, ease of use and archival our customers are signing up at our website mysteubentrust.com.

Spring planting for area farms is underway; and the summer season is around the corner. We hope it is particularly enjoyable for you and your family. If you have any questions about banking or your Company, I would be delighted to hear from you at brenda.copeland@steubentrust.com or 607.324.9530

Sincerely,

Brenda L. Copeland
President & CEO