U.S.B. Holding Co., Inc., Parent of Union State Bank, Reports First Quarter 2001 Earnings

Apr 24, 2001, 01:00 ET from U.S.B. Holding Co., Inc.

    ORANGEBURG, N.Y., April 24 /PRNewswire Interactive News Release/ -- Thomas
 E. Hales, Chairman of the Board of U.S.B. Holding Co., Inc. (NYSE:   UBH) (the
 "Company") with consolidated assets of $1.87 billion, the parent company of
 Union State Bank (the "Bank"), today announced that the Company earned $0.30
 per diluted common share for the first quarter of 2001, an increase of
 3.4 percent compared to the $0.29 per diluted common share for the first
 quarter of 2000.  The Company's net income of $5.1 million for the three
 months ended March 31, 2001 was slightly higher than that for the comparable
 period in 2000.  The increase in diluted earnings per common share reflects
 lower adjusted weighted average shares due to the Company's stock repurchase
 program and a lower level of dilutive shares, as well as the Company's ability
 to effectively operate in an uncertain business climate.
     Net interest income decreased 2.8 percent to $14.5 million for the quarter
 ended March 31, 2001, compared to the prior year period, primarily as a result
 of a decrease in the net interest margin as compared to the prior year period.
 The decrease resulting from the net interest margin was partially offset by an
 increase in average earning assets to $1.79 billion for the quarter ended
 March 31, 2001 compared to $1.62 billion for the quarter ended March 31, 2000,
 an increase of 10.7 percent.  The net interest margin on a tax equivalent
 basis was 3.34 percent for the quarter ended March 31, 2001 compared to
 3.78 percent for the first quarter of 2000.
     As a result of slower loan growth and a decrease of $6.7 million in loans
 outstanding at March 31, 2001 from December 31, 2000, the provision for loan
 losses decreased $250,000, as compared to the prior year period.  The
 Company's non-performing assets declined slightly to 1.04 percent of total
 assets at March 31, 2001 compared to 1.05 percent at December 31, 2000, and
 were 0.14 percent of total assets at March 31, 2000.
     Sales and subsequent repurchases of investment securities took place as
 opportunities became available to restructure the "available for sale"
 security portfolio resulting in increased yields, while slightly increasing
 the weighted average life of the portfolio, and simultaneously generating
 security gains of $682,000 (approximately $400,000 after tax).  The increased
 yields gained from the foregoing transactions will partially offset a
 reduction in yield resulting from the repayment of higher yielding callable
 U.S. government agency securities, which were called during the first quarter
 of 2001.  The proceeds from the called securities were invested in floating
 rate securities to reduce interest rate exposure.
     The increase in non-interest income primarily reflects higher letter of
 credit fees compared to the prior year period.  Non-interest expenses
 increased 8.2 percent for the quarter ended March 31, 2001 as compared to the
 prior year period, primarily to support increased business volume and balance
 sheet growth from $1.70 billion at March 31, 2000 to $1.87 billion at
 March 31, 2001, an increase of 10.1 percent.  Non-interest expenses were also
 impacted by an increase in intangible amortization of $223,000 (approximately
 $130,000 after tax), and personnel and occupancy expense related to the
 acquisition of branches in Stamford, Connecticut, and New York City from La
 Jolla Bank in December 2000.  Excluding the increase in intangible
 amortization, non-interest expenses increased 5.4 percent compared to the
 prior year period.
     The Company continues to manage non-interest expenses as measured by its
 efficiency ratio (non-interest expenses divided by net interest income on a
 tax equivalent basis and other income, excluding gains on security and loan
 sales) of 52.6 percent for the quarter ended March 31, 2001, compared to
 47.8 percent for the prior year period and 60.4 percent for the Company's peer
 group (institutions with consolidated assets between one billion and three
 billion dollars for the year ended December 31, 2000, as reported in the
 Federal Reserve Board's December 2000 Bank Holding Company Performance
 Report).  A lower ratio indicates greater efficiency.
     Mr. Hales commented that, "The slowing economy and resulting impact on
 loan growth, as well as a narrowing net interest margin, which continued from
 the prior year, and the increase in non-performing assets from March 2000,
 have affected net income.  In spite of these factors, earnings remain strong,
 dividends remain consistent with the prior year and return on equity was
 16.75 percent for the quarter.  Although impacted by changing economic cycles,
 the Company continues to provide its stockholders with an above average
 return."
     The Company operates through its banking subsidiary, Union State Bank, a
 commercial bank currently with fifteen locations in Rockland County, where it
 has achieved the number one deposit market share position, nine locations in
 Westchester County, and one location each in Stamford, Connecticut, and New
 York City.  The Company's common stock is listed on the New York Stock
 Exchange trading under the symbol "UBH."  Further information on the Company
 can be found on the world wide web at http://www.unionstate.com.
 
     Forward-Looking Statements: The Company has made, and may continue to
 make, various forward-looking statements with respect to earnings, credit
 quality and other financial and business matters for periods subsequent to
 March 31, 2001.  The Company cautions that these forward-looking statements
 are subject to numerous assumptions, risks and uncertainties, and that
 statements relating to subsequent periods increasingly are subject to greater
 uncertainty because of the increased likelihood of changes in underlying
 factors and assumptions.  Actual results could differ materially from forward-
 looking statements.
     In addition to the underlying factors previously disclosed by the Company
 and identified elsewhere herein, the following factors and assumptions could
 cause actual results to differ materially from such forward-looking
 statements: competitive pressures on loan and deposit product pricing; other
 actions of competitors; changes in economic conditions, including changes in
 interest rates and the shape of the U.S. Treasury yield curve; the extent and
 timing of actions of the Federal Reserve board; customer deposit
 disintermediation; changes in customers' acceptance of the Company's products
 and services; increases in Federal and state income taxes and/or the Company's
 effective income tax rate; and the extent and timing of legislative and
 regulatory actions and reform, including the Gramm-Leach-Blilely Act enacted
 in 1999.
     The Company's forward-looking statements are only as of the date on which
 such statements are made.  By making any forward-looking statements, the
 Company assumes no duty to update them to reflect new, changing or
 unanticipated events or circumstances.
 
                            U.S.B. HOLDING CO., INC.
 
                         SELECTED FINANCIAL INFORMATION
                (in thousands, except ratios and share amounts)
 
                                                        Three Months Ended
                                                              March 31,
     Consolidated summary of operations:                 2001           2000
 
       Interest income                                $34,326        $31,337
       Interest expense                                19,862         16,450
       Net interest income                             14,464         14,887
       Provision for loan losses                          200            450
       Non-interest income                              1,382          1,289
       Net security gains                                 682              -
       Non-interest expenses                            8,592          7,941
       Income before income taxes                       7,736          7,785
       Provision for income taxes                       2,665          2,725
       Net income                                      $5,071         $5,060
 
     Consolidated common share data(1):
       Basic earnings per share                         $0.31          $0.31
       Diluted earnings per share                       $0.30          $0.29
       Weighted average shares                     16,549,499     16,570,436
       Adjusted weighted average shares            16,957,443     17,211,293
       Cash dividends per share                         $0.08          $0.07
 
                                   March 31,    December 31,     March 31,
     Consolidated balance sheet
      data at period end:               2001            2000          2000
       Securities available
         for sale, at estimated
         fair value                 $489,711        $426,909      $424,750
       Securities held to maturity   160,659         225,590       196,115
       Loans, net of
         unearned income           1,080,060       1,086,781       960,406
       Allowance for loan losses      11,446          11,338        11,097
       Total assets                1,871,852       1,886,265     1,700,005
       Deposits                    1,438,161       1,489,487     1,239,219
       Borrowings                    271,741         243,244       326,463
       Corporation - Obligated
         mandatory redeemable
         capital securities of
         subsidiary trust             20,000          20,000        20,000
       Stockholders' equity          123,408         117,877        97,799
       Tier 1 capital               $134,021        $129,961      $127,167
       Common shares
         outstanding(1)           16,707,073      16,591,111    16,542,896
       Book value per
         common share(1)               $7.39           $7.10         $5.91
 
     Selected financial ratios:
       Return on average
         total assets                  1.08%           1.11%         1.20%
       Return on average common
         stockholders' equity         16.75%          18.93%        21.01%
       Leverage ratio                  7.15%           7.12%         7.57%
       Allowance for loan losses
         to total loans                1.06%           1.04%         1.16%
       Non-performing assets
         to total assets               1.04%           1.05%         0.14%
       Efficiency ratio               52.55%          47.76%        47.80%
       Net interest spread - tax
         equivalent                    3.18%           3.46%         3.64%
       Net interest margin - tax
         equivalent                    3.34%           3.61%         3.78%
 
     (1)  Share amounts for the March 31, 2000 period are adjusted for the five
          percent common stock dividend distributed in May 2000.
 
 
                            U.S.B. HOLDING CO., INC.
 
                         SELECTED FINANCIAL INFORMATION
                          AVERAGE BALANCE INFORMATION
 
                                                        Three Months Ended
                                                              March 31,
                                                         2001           2000
                                                               (000's)
     ASSETS
     Federal funds sold                               $44,189        $24,291
     Securities(1)                                    673,791        663,120
     Loans(2)                                       1,075,412        933,131
     Earning assets                                 1,793,392      1,620,542
     Total Assets                                  $1,880,726     $1,681,488
 
     LIABILITIES AND
     STOCKHOLDERS' EQUITY
     Non-interest bearing deposits                   $184,269       $169,699
     Interest bearing deposits                      1,283,503      1,027,420
     Total deposits                                 1,467,772      1,197,119
     Borrowings                                       255,078        348,676
     Interest bearing liabilities                   1,538,581      1,376,096
     Corporation-Obligated mandatory
       redeemable capital securities
       of subsidiary trust                             20,000         20,000
     Stockholders' Equity                            $121,100        $96,315
 
     (1)  Securities exclude the mark-to-market adjustment required by SFAS
          No. 115.
 
     (2)  Loans are net of unearned discount and the allowance for loan losses.
          Nonaccruing loans are included in average balances for purposes of
          computing average loans, average earning assets and total assets.
 
 
                            U.S.B. HOLDING CO., INC.
 
                       SUPPLEMENTAL FINANCIAL INFORMATION
 
                                                Consolidated Balance Sheet Data
                                                            at March 31,
                                                         2001           2000
                                                               (000's)
     Commercial (time and demand) loans              $122,756       $117,492
     Construction and land development loans          272,661        197,136
     Commercial mortgages                             432,622        414,256
     Residential mortgages                            191,309        177,715
     Home equity loans                                 44,121         36,170
     Credit card loans                                  6,393          7,221
     Other loans                                       10,198         10,416
     Deferred commitment fees                           2,827          2,637
     Intangibles                                        7,435            645
     Other real estate owned                               34             34
     Non-accrual loans                                 19,410          2,369
     Restructured loans                                   154            556
     Non-interest bearing deposits                    179,607        166,883
     Interest bearing deposits                      1,258,554      1,072,336
 
                                                     Consolidated Income Data
                                                    for the Three Month Period
                                                           Ended March 31,
                                                         2001           2000
                                                              (000's)
     Interest income - FTE                            $34,830        $31,773
     Net interest income - FTE                         14,968         15,323
     Deposit service charges                              838            897
     Other income                                         544            392
     Salaries and employee benefits expense             5,046          4,696
     Occupancy and equipment expense                    1,543          1,478
     Advertising and business development expense         354            387
     Professional fees expense                            183            270
     Communications expense                               262            246
     Stationery and printing expense                      223            190
     Amortization of intangibles                          226              3
     Other expense                                        755            671
     Net charge-offs                                       92             40
 
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SOURCE U.S.B. Holding Co., Inc.
    ORANGEBURG, N.Y., April 24 /PRNewswire Interactive News Release/ -- Thomas
 E. Hales, Chairman of the Board of U.S.B. Holding Co., Inc. (NYSE:   UBH) (the
 "Company") with consolidated assets of $1.87 billion, the parent company of
 Union State Bank (the "Bank"), today announced that the Company earned $0.30
 per diluted common share for the first quarter of 2001, an increase of
 3.4 percent compared to the $0.29 per diluted common share for the first
 quarter of 2000.  The Company's net income of $5.1 million for the three
 months ended March 31, 2001 was slightly higher than that for the comparable
 period in 2000.  The increase in diluted earnings per common share reflects
 lower adjusted weighted average shares due to the Company's stock repurchase
 program and a lower level of dilutive shares, as well as the Company's ability
 to effectively operate in an uncertain business climate.
     Net interest income decreased 2.8 percent to $14.5 million for the quarter
 ended March 31, 2001, compared to the prior year period, primarily as a result
 of a decrease in the net interest margin as compared to the prior year period.
 The decrease resulting from the net interest margin was partially offset by an
 increase in average earning assets to $1.79 billion for the quarter ended
 March 31, 2001 compared to $1.62 billion for the quarter ended March 31, 2000,
 an increase of 10.7 percent.  The net interest margin on a tax equivalent
 basis was 3.34 percent for the quarter ended March 31, 2001 compared to
 3.78 percent for the first quarter of 2000.
     As a result of slower loan growth and a decrease of $6.7 million in loans
 outstanding at March 31, 2001 from December 31, 2000, the provision for loan
 losses decreased $250,000, as compared to the prior year period.  The
 Company's non-performing assets declined slightly to 1.04 percent of total
 assets at March 31, 2001 compared to 1.05 percent at December 31, 2000, and
 were 0.14 percent of total assets at March 31, 2000.
     Sales and subsequent repurchases of investment securities took place as
 opportunities became available to restructure the "available for sale"
 security portfolio resulting in increased yields, while slightly increasing
 the weighted average life of the portfolio, and simultaneously generating
 security gains of $682,000 (approximately $400,000 after tax).  The increased
 yields gained from the foregoing transactions will partially offset a
 reduction in yield resulting from the repayment of higher yielding callable
 U.S. government agency securities, which were called during the first quarter
 of 2001.  The proceeds from the called securities were invested in floating
 rate securities to reduce interest rate exposure.
     The increase in non-interest income primarily reflects higher letter of
 credit fees compared to the prior year period.  Non-interest expenses
 increased 8.2 percent for the quarter ended March 31, 2001 as compared to the
 prior year period, primarily to support increased business volume and balance
 sheet growth from $1.70 billion at March 31, 2000 to $1.87 billion at
 March 31, 2001, an increase of 10.1 percent.  Non-interest expenses were also
 impacted by an increase in intangible amortization of $223,000 (approximately
 $130,000 after tax), and personnel and occupancy expense related to the
 acquisition of branches in Stamford, Connecticut, and New York City from La
 Jolla Bank in December 2000.  Excluding the increase in intangible
 amortization, non-interest expenses increased 5.4 percent compared to the
 prior year period.
     The Company continues to manage non-interest expenses as measured by its
 efficiency ratio (non-interest expenses divided by net interest income on a
 tax equivalent basis and other income, excluding gains on security and loan
 sales) of 52.6 percent for the quarter ended March 31, 2001, compared to
 47.8 percent for the prior year period and 60.4 percent for the Company's peer
 group (institutions with consolidated assets between one billion and three
 billion dollars for the year ended December 31, 2000, as reported in the
 Federal Reserve Board's December 2000 Bank Holding Company Performance
 Report).  A lower ratio indicates greater efficiency.
     Mr. Hales commented that, "The slowing economy and resulting impact on
 loan growth, as well as a narrowing net interest margin, which continued from
 the prior year, and the increase in non-performing assets from March 2000,
 have affected net income.  In spite of these factors, earnings remain strong,
 dividends remain consistent with the prior year and return on equity was
 16.75 percent for the quarter.  Although impacted by changing economic cycles,
 the Company continues to provide its stockholders with an above average
 return."
     The Company operates through its banking subsidiary, Union State Bank, a
 commercial bank currently with fifteen locations in Rockland County, where it
 has achieved the number one deposit market share position, nine locations in
 Westchester County, and one location each in Stamford, Connecticut, and New
 York City.  The Company's common stock is listed on the New York Stock
 Exchange trading under the symbol "UBH."  Further information on the Company
 can be found on the world wide web at http://www.unionstate.com.
 
     Forward-Looking Statements: The Company has made, and may continue to
 make, various forward-looking statements with respect to earnings, credit
 quality and other financial and business matters for periods subsequent to
 March 31, 2001.  The Company cautions that these forward-looking statements
 are subject to numerous assumptions, risks and uncertainties, and that
 statements relating to subsequent periods increasingly are subject to greater
 uncertainty because of the increased likelihood of changes in underlying
 factors and assumptions.  Actual results could differ materially from forward-
 looking statements.
     In addition to the underlying factors previously disclosed by the Company
 and identified elsewhere herein, the following factors and assumptions could
 cause actual results to differ materially from such forward-looking
 statements: competitive pressures on loan and deposit product pricing; other
 actions of competitors; changes in economic conditions, including changes in
 interest rates and the shape of the U.S. Treasury yield curve; the extent and
 timing of actions of the Federal Reserve board; customer deposit
 disintermediation; changes in customers' acceptance of the Company's products
 and services; increases in Federal and state income taxes and/or the Company's
 effective income tax rate; and the extent and timing of legislative and
 regulatory actions and reform, including the Gramm-Leach-Blilely Act enacted
 in 1999.
     The Company's forward-looking statements are only as of the date on which
 such statements are made.  By making any forward-looking statements, the
 Company assumes no duty to update them to reflect new, changing or
 unanticipated events or circumstances.
 
                            U.S.B. HOLDING CO., INC.
 
                         SELECTED FINANCIAL INFORMATION
                (in thousands, except ratios and share amounts)
 
                                                        Three Months Ended
                                                              March 31,
     Consolidated summary of operations:                 2001           2000
 
       Interest income                                $34,326        $31,337
       Interest expense                                19,862         16,450
       Net interest income                             14,464         14,887
       Provision for loan losses                          200            450
       Non-interest income                              1,382          1,289
       Net security gains                                 682              -
       Non-interest expenses                            8,592          7,941
       Income before income taxes                       7,736          7,785
       Provision for income taxes                       2,665          2,725
       Net income                                      $5,071         $5,060
 
     Consolidated common share data(1):
       Basic earnings per share                         $0.31          $0.31
       Diluted earnings per share                       $0.30          $0.29
       Weighted average shares                     16,549,499     16,570,436
       Adjusted weighted average shares            16,957,443     17,211,293
       Cash dividends per share                         $0.08          $0.07
 
                                   March 31,    December 31,     March 31,
     Consolidated balance sheet
      data at period end:               2001            2000          2000
       Securities available
         for sale, at estimated
         fair value                 $489,711        $426,909      $424,750
       Securities held to maturity   160,659         225,590       196,115
       Loans, net of
         unearned income           1,080,060       1,086,781       960,406
       Allowance for loan losses      11,446          11,338        11,097
       Total assets                1,871,852       1,886,265     1,700,005
       Deposits                    1,438,161       1,489,487     1,239,219
       Borrowings                    271,741         243,244       326,463
       Corporation - Obligated
         mandatory redeemable
         capital securities of
         subsidiary trust             20,000          20,000        20,000
       Stockholders' equity          123,408         117,877        97,799
       Tier 1 capital               $134,021        $129,961      $127,167
       Common shares
         outstanding(1)           16,707,073      16,591,111    16,542,896
       Book value per
         common share(1)               $7.39           $7.10         $5.91
 
     Selected financial ratios:
       Return on average
         total assets                  1.08%           1.11%         1.20%
       Return on average common
         stockholders' equity         16.75%          18.93%        21.01%
       Leverage ratio                  7.15%           7.12%         7.57%
       Allowance for loan losses
         to total loans                1.06%           1.04%         1.16%
       Non-performing assets
         to total assets               1.04%           1.05%         0.14%
       Efficiency ratio               52.55%          47.76%        47.80%
       Net interest spread - tax
         equivalent                    3.18%           3.46%         3.64%
       Net interest margin - tax
         equivalent                    3.34%           3.61%         3.78%
 
     (1)  Share amounts for the March 31, 2000 period are adjusted for the five
          percent common stock dividend distributed in May 2000.
 
 
                            U.S.B. HOLDING CO., INC.
 
                         SELECTED FINANCIAL INFORMATION
                          AVERAGE BALANCE INFORMATION
 
                                                        Three Months Ended
                                                              March 31,
                                                         2001           2000
                                                               (000's)
     ASSETS
     Federal funds sold                               $44,189        $24,291
     Securities(1)                                    673,791        663,120
     Loans(2)                                       1,075,412        933,131
     Earning assets                                 1,793,392      1,620,542
     Total Assets                                  $1,880,726     $1,681,488
 
     LIABILITIES AND
     STOCKHOLDERS' EQUITY
     Non-interest bearing deposits                   $184,269       $169,699
     Interest bearing deposits                      1,283,503      1,027,420
     Total deposits                                 1,467,772      1,197,119
     Borrowings                                       255,078        348,676
     Interest bearing liabilities                   1,538,581      1,376,096
     Corporation-Obligated mandatory
       redeemable capital securities
       of subsidiary trust                             20,000         20,000
     Stockholders' Equity                            $121,100        $96,315
 
     (1)  Securities exclude the mark-to-market adjustment required by SFAS
          No. 115.
 
     (2)  Loans are net of unearned discount and the allowance for loan losses.
          Nonaccruing loans are included in average balances for purposes of
          computing average loans, average earning assets and total assets.
 
 
                            U.S.B. HOLDING CO., INC.
 
                       SUPPLEMENTAL FINANCIAL INFORMATION
 
                                                Consolidated Balance Sheet Data
                                                            at March 31,
                                                         2001           2000
                                                               (000's)
     Commercial (time and demand) loans              $122,756       $117,492
     Construction and land development loans          272,661        197,136
     Commercial mortgages                             432,622        414,256
     Residential mortgages                            191,309        177,715
     Home equity loans                                 44,121         36,170
     Credit card loans                                  6,393          7,221
     Other loans                                       10,198         10,416
     Deferred commitment fees                           2,827          2,637
     Intangibles                                        7,435            645
     Other real estate owned                               34             34
     Non-accrual loans                                 19,410          2,369
     Restructured loans                                   154            556
     Non-interest bearing deposits                    179,607        166,883
     Interest bearing deposits                      1,258,554      1,072,336
 
                                                     Consolidated Income Data
                                                    for the Three Month Period
                                                           Ended March 31,
                                                         2001           2000
                                                              (000's)
     Interest income - FTE                            $34,830        $31,773
     Net interest income - FTE                         14,968         15,323
     Deposit service charges                              838            897
     Other income                                         544            392
     Salaries and employee benefits expense             5,046          4,696
     Occupancy and equipment expense                    1,543          1,478
     Advertising and business development expense         354            387
     Professional fees expense                            183            270
     Communications expense                               262            246
     Stationery and printing expense                      223            190
     Amortization of intangibles                          226              3
     Other expense                                        755            671
     Net charge-offs                                       92             40
 
                     MAKE YOUR OPINION COUNT -- Click Here
                http://tbutton.prnewswire.com/prn/11690X21455862
 
 SOURCE  U.S.B. Holding Co., Inc.