Item 8.01 Other Events

On May 11, 2009, Alliance Financial Corporation issued a press release announcing that it has received regulatory approval to redeem all of the 26,918 shares of its Fixed Rate Cumulative Perpetual Preferred Stock it sold to the U.S. Department of the Treasury ("Treasury Department") on December 19, 2008 in connection with the Treasury Department's Capital Purchase Program under the Troubled Assets Relief Program. A copy of the press release is attached hereto as Exhibit 99.1.

Item 9.01 Financial Statements and Exhibits

(a) Financial Statements of Businesses Acquired. Not applicable.

(b) Pro Forma Financial Information. Not applicable.

(c) Shell Company Transactions. Not applicable.

(d) Exhibits.

Exhibit No. Description
99.1 Press Release of Alliance Financial Corporation dated May 11, 2009

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