U.S.B. Holding Co., Inc., the Parent Company for Union State Bank, to Redeem Floating Rate Trust Preferred Securities of USB Sta
15 May 2007 - 7:16AM
PR Newswire (US)
ORANGEBURG, N.Y., May 14 /PRNewswire-FirstCall/ -- U.S.B. Holding
Co., Inc. (the "Company") (NYSE:UBH), the parent company for Union
State Bank (the "Bank"), and USB Statutory Trust III, a subsidiary
of the Company (the "Trust"), announced today that all 10,000 of
the Floating Rate Capital Securities (the "Securities") issued by
the Trust will be redeemed on June 26, 2007 (the "Securities
Redemption Date") at a redemption price equal to the $1,000
liquidation amount of each security, plus all accrued and unpaid
interest per security to, but not including, the Securities
Redemption Date. The floating rate on the Securities is set
quarterly on certain predetermined dates at an interest rate that
is equal to 3-month LIBOR plus 3.45 percent per annum, currently at
8.80 percent. All interest accruing on the Securities will cease to
accrue effective the Securities Redemption Date. The Trust is
taking such action pursuant to Annex I of the Amended and Restated
Declaration of Trust of USB Statutory Trust III, dated June 26,
2002. U.S. Bank National Association, as successor Institutional
Trustee to State Street Bank and Trust Company of Connecticut,
National Association, the predecessor Institutional Trustee, will
notify the holders of record of the redemption of the Securities.
The redemption of the Securities is being made in connection with
the concurrent redemption by the Company of all of its $10,310,000
Floating Rate Junior Subordinated Deferrable Interest Debentures
(the "Debentures") due June 26, 2032, which are held exclusively by
the Trust, on June 26, 2007 (the "Debentures Redemption Date") at a
redemption price equal to the principal outstanding amount of the
Debentures, plus interest accrued and unpaid on the Debentures to,
but not including, the Debentures Redemption Date. The Securities
have been included as a component of Tier 1 and Total Capital in
determining the Company's leverage and risk-based capital
positions. With the redemption of the Securities, the Company
remains "well capitalized" as defined under current Federal banking
and regulatory capital guidelines. Additionally, the Company's net
interest margin will be favorably impacted as the Securities,
currently costing 8.80 percent, will be redeemed by using sources
of available funding that are, at present, approximately 350 basis
points lower in cost, or 5.30 percent. However, as a result of the
redemption of the Debentures and the Securities, the Company
expects to incur in the second quarter of 2007 an after-tax charge
to earnings of approximately $177,000, representing the write-off
of unamortized debt issuance costs. The Company operates through
its banking subsidiary, Union State Bank, a commercial bank
currently with 31 branches, of which 29 are located in Rockland,
Westchester and Orange Counties, New York, and one branch each
located in Stamford, Connecticut, and New York City, New York. The
Bank also operates four loan production offices in Rockland,
Westchester, and Orange Counties, New York, and Stamford,
Connecticut. Further information on the Company can be found on the
Bank's website at http://www.unionstate.com/. Forward-Looking
Statements: This press release contains a number of
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. These forward-looking
statements may be identified by the use of such words as "believe,"
"expect," "anticipate," "intend," "should," "will," "would,"
"could," "may," "planned," "estimated," "potential," "outlook,"
"predict," "project" and similar terms and phrases, including
references to assumptions. Forward-looking statements are based on
various assumptions and analyses made by us in light of our
management's experience and its perception of historical trends,
current conditions and expected future developments, as well as
other factors we believe are appropriate under the circumstances.
These statements are not guarantees of future performance and are
subject to risks, uncertainties and other factors (many of which
are beyond our control) that could cause actual results to differ
materially from future results expressed or implied by such
forward-looking statements. These factors include, without
limitation, the following: the timing and occurrence or non-
occurrence of events may be subject to circumstances beyond our
control; there may be increases in competitive pressure among
financial institutions or from non-financial institutions; changes
in the interest rate environment may reduce interest margins or
affect the value of investments; changes in deposit flows, loan
demand or real estate values may adversely affect our business;
changes in accounting principles, policies or guidelines may cause
our financial condition to be perceived differently; general
economic conditions, either nationally or locally in some or all of
the areas in which we do business, or conditions in the securities
markets or the banking industry may be less favorable than we
currently anticipate; legislative or regulatory changes may
adversely affect our business; applicable technological changes may
be more difficult or expensive than we anticipate; success or
consummation of new business initiatives may be more difficult or
expensive than we anticipate; or litigation or matters before
regulatory agencies, whether currently existing or commencing in
the future, may delay the occurrence or non-occurrence of events
longer than we anticipate. 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. You should consider these risks and uncertainties in
evaluating forward-looking statements and you should not place
undue reliance on these statements. DATASOURCE: U.S.B. Holding Co.,
Inc. CONTACT: Thomas M. Buonaiuto, Executive Vice President &
Chief Financial Officer of U.S.B. Holding Co., Inc.,
+1-845-365-4615 Web site: http://www.unionstate.com/
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