**UNITED        STATES**

**SECURITIES        AND EXCHANGE COMMISSION**

**WASHINGTON,**
**D.C.**
**20549**

**FORM**
**10-Q**

| **U.S.B.                    HOLDING CO., INC.**                                              |
|----------------------------------------------------------------------------------------------|
| (Exact                    Name of Registrant as Specified in Its                    Charter) |

| **DELAWARE**                                                                      |   | **36-3197969**                                          |
|-----------------------------------------------------------------------------------|--------|---------------------------------------------------------|
| (State                    or other jurisdiction of incorporation or organization) |   | (I.R.S.                    Employer Identification No.) |

| **100                    DUTCH HILL ROAD, ORANGEBURG, NEW YORK** |   | **10962**                     |
|------------------------------------------------------------------|--------|-------------------------------|
| (Address                    of Principal Executive Offices)      |   | (Zip                    Code) |

| **845-365-4600**                                                                           |
|--------------------------------------------------------------------------------------------|
| (Registrant's                    Telephone Number (including area                    code) |

| **CLASS**                                                  | **NUMBER                    OF SHARES****OUTSTANDING                    AT AUGUST 2, 2005** |
|------------------------------------------------------------|---------------------------------------------------------------------------------------------|
| Common                    stock, par value $0.01 per share | 20,623,247                                                                                  |

----

**U.S.B.      HOLDING CO., INC.**

**TABLE      OF CONTENTS**

| **PART                  I.  **FINANCIAL                  INFORMATION | **PAGE                  NO.**                                        |
|---------------------------------------------------------------------------|----------------------------------------------------------------------|
|                                                                      |                                                                 |   |
| **ITEM                  1.**                                              | FINANCIAL                  STATEMENTS (UNAUDITED)                    |   |
|                                                                      |                                                                 |   |
|                                                                      | CONDENSED                  CONSOLIDATED STATEMENTS OF                |   |
|                                                                      | CONDITION                  AS OF JUNE 30, 2005 AND                   |   |
|                                                                      | DECEMBER                  31, 2004                                   | 1 |
|                                                                      |                                                                 |   |
|                                                                      | CONDENSED                  CONSOLIDATED STATEMENTS OF                |   |
|                                                                      | INCOME                  FOR THE THREE MONTHS ENDED                   |   |
|                                                                      | JUNE                  30, 2005 AND 2004                              | 2 |
|                                                                      |                                                                 |   |
|                                                                      | CONDENSED                  CONSOLIDATED STATEMENTS OF                |   |
|                                                                      | INCOME                  FOR THE SIX MONTHS ENDED                     |   |
|                                                                      | JUNE                  30, 2005 AND 2004                              | 3 |
|                                                                      |                                                                 |   |
|                                                                      | CONDENSED                  CONSOLIDATED STATEMENTS OF                |   |
|                                                                      | CASH                  FLOWS FOR THE SIX MONTHS ENDED                 |   |
|                                                                      | JUNE                  30, 2005 AND 2004                              | 4 |
|                                                                      |                                                                 |   |
|                                                                      | CONDENSED                  CONSOLIDATED STATEMENTS OF                |   |
|                                                                      | CHANGES                  IN STOCKHOLDERS’ EQUITY FOR           |   |
|                                                                      | THE                  SIX MONTHS ENDED JUNE 30, 2005 AND 2004         | 5 |
|                                                                      |                                                                 |   |
|                                                                      | NOTES                  TO CONDENSED CONSOLIDATED FINANCIAL           |   |
|                                                                      | STATEMENTS                                                           | 7 |
|                                                                      |                                                                 |   |
| **ITEM                  2.**                                              | MANAGEMENT'S                  DISCUSSION AND ANALYSIS OF             |   |
|                                                                      | FINANCIAL                  CONDITION AND RESULTS OF OPERATIONS       | 20 |
|                                                                      |                                                                 |   |
| **ITEM                  3.**                                              | QUANTITATIVE                  AND QUALITATIVE DISCLOSURES            |   |
|                                                                      | ABOUT                  MARKET RISK                                   | 31 |
|                                                                      |                                                                 |   |
| **ITEM                  4.**                                              | CONTROLS                  AND PROCEDURES                             | 32 |
|                                                                      |                                                                 |   |
| **PART                  II. **OTHER                  INFORMATION     |                                                                 |
|                                                                      |                                                                 |   |
| **ITEM                  2.**                                              | UNREGISTERED                  SALES OF EQUITY SECURITIES             |   |
|                                                                      | AND                  USE OF PROCEEDS                                 | 33 |
|                                                                      |                                                                 |   |
| **ITEM                  4.**                                              | SUBMISSION                  OF MATTERS TO A VOTE OF SECURITY HOLDERS | 33 |
|                                                                      |                                                                 |   |
| **ITEM                  6.**                                              | EXHIBITS                                                             | 34 |
|                                                                      |                                                                 |   |
| **SIGNATURES**                                                            |                                                                 |   |
|                                                                      |                                                                 |   |
|                                                                      |                                                                 |   |

----

**ITEM      1.**
**PART      I - FINANCIAL INFORMATION**

**U.S.B.      HOLDING CO., INC.**

**CONDENSED      CONSOLIDATED STATEMENTS OF CONDITION (UNAUDITED) **

|                                                                                                                                                                               |   |  **(000’s,                except share data)**  |          |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------|---------------|
| **ASSETS**                                                                                                                                                                         |   | **June                30,****2005**                             |          | **December                31,****2004** |   |
| Cash                and due from banks                                                                                                                                             |   | $                                                               | 60,569        |   | $ | 48,295 |   |
| Federal                funds sold                                                                                                                                                  |   |                                                            | 34,300        |   |   | 17,000 |   |
| Cash                and cash equivalents                                                                                                                                           |   |                                                            | **94,869**    |   |   | **65,295** |   |
| Interest                on deposits in other banks                                                                                                                                 |   |                                                            | 213           |   |   | 334 |   |
| Securities:                                                                                                                                                                        |   |                                                            |          |   |   |   |   |
| Available                for sale (at estimated fair value)                                                                                                                        |   |                                                            | 440,426       |   |   | 589,572 |   |
| Held                to maturity (estimated fair value of $756,510 in 2005 and                $507,428 in 2004)                                                                     |   |                                                            | 744,974       |   |   | 502,201 |   |
| Loans,                net of allowance for loan losses of $15,624 in 2005 and $15,226 in                2004                                                                       |   |                                                            | 1,501,443     |   |   | 1,492,872 |   |
| Premises                and equipment, net                                                                                                                                         |   |                                                            | 14,602        |   |   | 15,616 |   |
| Accrued                interest receivable                                                                                                                                         |   |                                                            | 17,339        |   |   | 17,312 |   |
| Federal                Home Loan Bank of New York stock                                                                                                                            |   |                                                            | 34,842        |   |   | 31,135 |   |
| Intangible                assets, net                                                                                                                                              |   |                                                            | 4,462         |   |   | 5,087 |   |
| Goodwill                                                                                                                                                                           |   |                                                            | 1,380         |   |   | 1,380 |   |
| Other                assets                                                                                                                                                        |   |                                                            | 24,232        |   |   | 25,466 |   |
| **TOTAL                ASSETS**                                                                                                                                                    |   | **$**                                                           | **2,878,782** |   | **$** | **2,746,270** |   |
| **LIABILITIES                AND STOCKHOLDERS’ EQUITY**                                                                                                                      |   |                                                            |          |   |   |   |   |
| **Liabilities:**                                                                                                                                                                   |   |                                                            |          |   |   |   |   |
| Non-interest                bearing deposits                                                                                                                                       |   | $                                                               | 348,078       |   | $ | 317,874 |   |
| Interest                bearing deposits:                                                                                                                                          |   |                                                            |          |   |   |   |   |
| NOW                accounts                                                                                                                                                        |   |                                                            | 176,980       |   |   | 165,809 |   |
| Money                market accounts                                                                                                                                               |   |                                                            | 169,962       |   |   | 200,647 |   |
| Savings                deposits                                                                                                                                                    |   |                                                            | 450,772       |   |   | 420,171 |   |
| Time                deposits                                                                                                                                                       |   |                                                            | 751,725       |   |   | 753,717 |   |
| **Total                deposits**                                                                                                                                                  |   |                                                            | **1,897,517** |   |   | **1,858,218** |   |
| Accrued                interest payable                                                                                                                                            |   |                                                            | 6,902         |   |   | 6,782 |   |
| Accrued                expenses and other liabilities                                                                                                                              |   |                                                            | 18,474        |   |   | 12,206 |   |
| Securities                sold under agreements to repurchase                                                                                                                      |   |                                                            | 615,977       |   |   | 542,323 |   |
| Federal                Home Loan Bank of New York advances                                                                                                                         |   |                                                            | 81,836        |   |   | 82,709 |   |
| Subordinated                debt issued in connection with corporation-obligated                  mandatory redeemable capital securities of subsidiary                trusts |   |                                                            | 61,858        |   |   | 61,858 |   |
| **Total                liabilities**                                                                                                                                               |   |                                                            | **2,682,564** |   |   | **2,564,096** |   |
| Minority-interest                in junior preferred stock of consolidated subsidiary                                                                                              |   |                                                            | 128           |   |   | 128 |   |
| Commitments                and contingencies (Note 12)                                                                                                                             |   |                                                            |          |   |   |   |   |
| **Stockholders’                equity:**                                                                                                                                     |   |                                                            |          |   |   |   |   |
| Preferred                stock, no par value                                                                                                                                       |   |                                                            |          |   |   |   |   |
| Authorized                shares: 10,000,000; no shares outstanding in 2005 and 2004                                                                                               |   |                                                            | —       |   |   | — |   |
| Common                stock, $0.01 par value; authorized shares 50,000,000;Issued                shares of 22,020,668 in 2005 and 22,004,701 in 2004                               |   |                                                            | 220           |   |   | 220 |   |
| Additional                paid-in capital                                                                                                                                          |   |                                                            | 184,359       |   |   | 184,166 |   |
| Retained                earnings                                                                                                                                                   |   |                                                            | 36,982        |   |   | 26,336 |   |
| Treasury                stock at cost, common shares 1,420,523 in 2005 and 1,657,887 in                2004                                                                        |   |                                                            | (21,000       | ) |   | (22,855 | ) |
| Common                stock held for benefit plans                                                                                                                                 |   |                                                            | (2,906        | ) |   | (2,780 | ) |
| Deferred                compensation obligation                                                                                                                                    |   |                                                            | 2,906         |   |   | 2,746 |   |
| Accumulated                other comprehensive loss                                                                                                                                |   |                                                            | (4,471        | ) |   | (5,787 | ) |
| **Total                stockholders’ equity**                                                                                                                                |   |                                                            | **196,090**   |   |   | **182,046** |   |
| **TOTAL                LIABILITIES AND STOCKHOLDERS’ EQUITY**                                                                                                                |   | **$**                                                           | **2,878,782** |   | **$** | **2,746,270** |   |

*See      notes to condensed consolidated financial statements.*

----

**U.S.B.          HOLDING CO., INC.**

**CONDENSED          CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) **

|                                                                                                                                                                                     |   | **(000’s,                except share data)****Three                Months Ended****June                30,** |           |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------|----------------|
|                                                                                                                                                                                     |   | **2005**                                                                                                            |           | **2004** |   |
| **INTEREST                INCOME:**                                                                                                                                                      |   |                                                                                                                |           |   |   |
| Interest                and fees on loans                                                                                                                                                |   | $                                                                                                                   | 24,990         |   | $ | 22,118 |   |
| Interest                on federal funds sold                                                                                                                                            |   |                                                                                                                | 173            |   |   | 63 |   |
| Interest                and dividends on securities:                                                                                                                                     |   |                                                                                                                |           |   |   |   |   |
| U.S.                government agencies                                                                                                                                                  |   |                                                                                                                | 8,680          |   |   | 9,687 |   |
| Mortgage-backed                securities                                                                                                                                                |   |                                                                                                                | 4,257          |   |   | 3,062 |   |
| Obligations                of states and political subdivisions                                                                                                                          |   |                                                                                                                | 1,003          |   |   | 918 |   |
| Corporate                and other                                                                                                                                                       |   |                                                                                                                | 40             |   |   | 31 |   |
| Interest                on deposits in other banks                                                                                                                                       |   |                                                                                                                | 1              |   |   | ― |   |
| Dividends                on Federal Home Loan Bank of New York stock                                                                                                                     |   |                                                                                                                | 348            |   |   | 141 |   |
| **Total                interest income**                                                                                                                                                 |   |                                                                                                                | **39,492**     |   |   | **36,020** |   |
|  **INTEREST                EXPENSE:**                                                                                                                                               |   |                                                                                                                |           |   |   |   |   |
| Interest                on deposits                                                                                                                                                      |   |                                                                                                                | 7,569          |   |   | 5,929 |   |
| Interest                on borrowings                                                                                                                                                    |   |                                                                                                                | 6,826          |   |   | 7,295 |   |
| Interest                on subordinated debt issued in connection withcorporation                - obligated mandatory redeemable capital                securities of subsidiary trusts |   |                                                                                                                | 1,182          |   |   | 979 |   |
| **Total                interest expense**                                                                                                                                                |   |                                                                                                                | **15,577**     |   |   | **14,203** |   |
|  **NET                INTEREST INCOME**                                                                                                                                             |   |                                                                                                                | **23,915**     |   |   | **21,817** |   |
| Provision                for credit losses                                                                                                                                               |   |                                                                                                                | 85             |   |   | 343 |   |
| **Net                interest income after provision for credit losses**                                                                                                                 |   |                                                                                                                | **23,830**     |   |   | **21,474** |   |
|  **NON-INTEREST                INCOME:**                                                                                                                                            |   |                                                                                                                |           |   |   |   |   |
| Service                charges and fees                                                                                                                                                  |   |                                                                                                                | 927            |   |   | 1,072 |   |
| Other                income                                                                                                                                                              |   |                                                                                                                | 952            |   |   | 955 |   |
| Gains                on securities transactions                                                                                                                                          |   |                                                                                                                | —        |   |   | 85 |   |
| **Total                non-interest income**                                                                                                                                             |   |                                                                                                                | **1,879**      |   |   | **2,112** |   |
|  **NON-INTEREST                EXPENSES:**                                                                                                                                          |   |                                                                                                                |           |   |   |   |   |
| Salaries                and employee benefits                                                                                                                                            |   |                                                                                                                | 8,268          |   |   | 7,733 |   |
| Occupancy                and equipment                                                                                                                                                   |   |                                                                                                                | 1,812          |   |   | 1,941 |   |
| Advertising                and business development                                                                                                                                      |   |                                                                                                                | 595            |   |   | 808 |   |
| Professional                fees                                                                                                                                                         |   |                                                                                                                | 470            |   |   | 458 |   |
| Communications                                                                                                                                                                           |   |                                                                                                                | 327            |   |   | 320 |   |
| Stationery                and printing                                                                                                                                                   |   |                                                                                                                | 152            |   |   | 181 |   |
| FDIC                insurance                                                                                                                                                            |   |                                                                                                                | 70             |   |   | 74 |   |
| Amortization                of intangibles                                                                                                                                               |   |                                                                                                                | 285            |   |   | 279 |   |
| Other                expense                                                                                                                                                             |   |                                                                                                                | 1,009          |   |   | 1,031 |   |
| **Total                non-interest expenses**                                                                                                                                           |   |                                                                                                                | **12,988**     |   |   | **12,825** |   |
| Income                before income taxes                                                                                                                                                |   |                                                                                                                | 12,721         |   |   | 10,761 |   |
| Provision                for income taxes                                                                                                                                                |   |                                                                                                                | 3,912          |   |   | 3,724 |   |
| **NET                INCOME**                                                                                                                                                            |   | **$**                                                                                                               | **8,809**      |   | **$** | **7,037** |   |
| **BASIC                EARNINGS PER COMMON SHARE**                                                                                                                                       |   | **$**                                                                                                               | **0.43**       |   | **$** | **0.34** |   |
| **DILUTED                EARNINGS PER COMMON SHARE**                                                                                                                                     |   | **$**                                                                                                               | **0.41**       |   | **$** | **0.33** |   |
| **WEIGHTED                AVERAGE COMMON SHARES**                                                                                                                                        |   |                                                                                                                | **20,549,961** |   |   | **20,419,775** |   |
| **ADJUSTED                WEIGHTED AVERAGE COMMON SHARES**                                                                                                                               |   |                                                                                                                | **21,351,037** |   |   | **21,298,563** |   |
| **DIVIDENDS                PER COMMON SHARE**                                                                                                                                            |   | **$**                                                                                                               | **0.14**       |   | **$** | **0.105** |   |

*See      notes to condensed consolidated financial statements.*

----

**U.S.B.            HOLDING CO., INC.**

**CONDENSED            CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)**

|                                                                                                                                                                                      |   | **(000’s,                except share data)****Six                Months Ended****June                30,** |           |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------|----------------|
|                                                                                                                                                                                      |   | **2005**                                                                                                          |           | **2004** |   |
| **INTEREST                INCOME:**                                                                                                                                                       |   |                                                                                                              |           |   |   |
| Interest                and fees on loans                                                                                                                                                 |   | $                                                                                                                 | 48,621         |   | $ | 43,648 |   |
| Interest                on federal funds sold                                                                                                                                             |   |                                                                                                              | 528            |   |   | 148 |   |
| Interest                and dividends on securities:                                                                                                                                      |   |                                                                                                              |           |   |   |   |   |
| U.S.                government agencies                                                                                                                                                   |   |                                                                                                              | 16,366         |   |   | 18,367 |   |
| Mortgage-backed                securities                                                                                                                                                 |   |                                                                                                              | 8,528          |   |   | 6,030 |   |
| Obligations                of states and political subdivisions                                                                                                                           |   |                                                                                                              | 1,929          |   |   | 1,771 |   |
| Corporate                and other                                                                                                                                                        |   |                                                                                                              | 75             |   |   | 60 |   |
| Interest                on deposits in other banks                                                                                                                                        |   |                                                                                                              | 3              |   |   | ― |   |
| Dividends                on Federal Home Loan Bank of New York stock                                                                                                                      |   |                                                                                                              | 663            |   |   | 252 |   |
| **Total                interest income**                                                                                                                                                  |   |                                                                                                              | **76,713**     |   |   | **70,276** |   |
| **INTEREST                EXPENSE:**                                                                                                                                                      |   |                                                                                                              |           |   |   |   |   |
| Interest                on deposits                                                                                                                                                       |   |                                                                                                              | 14,164         |   |   | 11,976 |   |
| Interest                on borrowings                                                                                                                                                     |   |                                                                                                              | 13,342         |   |   | 14,303 |   |
| Interest                on subordinated debt issued in connection with corporation                - obligated mandatory redeemable capital                securities of subsidiary trusts |   |                                                                                                              | 2,304          |   |   | 1,863 |   |
| **Total                interest expense**                                                                                                                                                 |   |                                                                                                              | **29,810**     |   |   | **28,142** |   |
| **NET                INTEREST INCOME**                                                                                                                                                    |   |                                                                                                              | **46,903**     |   |   | **42,134** |   |
| Provision                for credit losses                                                                                                                                                |   |                                                                                                              | 476            |   |   | 554 |   |
| **Net                interest income after provision for credit losses**                                                                                                                  |   |                                                                                                              | **46,427**     |   |   | **41,580** |   |
|  **NON-INTEREST                INCOME:**                                                                                                                                             |   |                                                                                                              |           |   |   |   |   |
| Service                charges and fees                                                                                                                                                   |   |                                                                                                              | 1,831          |   |   | 2,168 |   |
| Other                income                                                                                                                                                               |   |                                                                                                              | 1,875          |   |   | 1,675 |   |
| Gains                on securities transactions                                                                                                                                           |   |                                                                                                              | ―        |   |   | 1,197 |   |
| **Total                non-interest income**                                                                                                                                              |   |                                                                                                              | **3,706**      |   |   | **5,040** |   |
|  **NON-INTEREST                EXPENSES:**                                                                                                                                           |   |                                                                                                              |           |   |   |   |   |
| Salaries                and employee benefits                                                                                                                                             |   |                                                                                                              | 16,589         |   |   | 15,017 |   |
| Occupancy                and equipment                                                                                                                                                    |   |                                                                                                              | 3,862          |   |   | 3,814 |   |
| Advertising                and business development                                                                                                                                       |   |                                                                                                              | 1,170          |   |   | 1,479 |   |
| Professional                fees                                                                                                                                                          |   |                                                                                                              | 1,138          |   |   | 864 |   |
| Communications                                                                                                                                                                            |   |                                                                                                              | 668            |   |   | 680 |   |
| Stationery                and printing                                                                                                                                                    |   |                                                                                                              | 313            |   |   | 384 |   |
| FDIC                insurance                                                                                                                                                             |   |                                                                                                              | 146            |   |   | 150 |   |
| Amortization                of intangibles                                                                                                                                                |   |                                                                                                              | 576            |   |   | 545 |   |
| Other                expense                                                                                                                                                              |   |                                                                                                              | 1,870          |   |   | 1,895 |   |
| **Total                non-interest expenses**                                                                                                                                            |   |                                                                                                              | **26,332**     |   |   | **24,828** |   |
| Income                before income taxes                                                                                                                                                 |   |                                                                                                              | 23,801         |   |   | 21,792 |   |
| Provision                for income taxes                                                                                                                                                 |   |                                                                                                              | 7,601          |   |   | 7,398 |   |
| **NET                INCOME**                                                                                                                                                             |   | **$**                                                                                                             | **16,200**     |   | **$** | **14,394** |   |
| **BASIC                EARNINGS PER COMMON SHARE**                                                                                                                                        |   | **$**                                                                                                             | **0.79**       |   | **$** | **0.70** |   |
| **DILUTED                EARNINGS PER COMMON SHARE**                                                                                                                                      |   | **$**                                                                                                             | **0.76**       |   | **$** | **0.67** |   |
| **WEIGHTED                AVERAGE COMMON SHARES**                                                                                                                                         |   |                                                                                                              | **20,483,800** |   |   | **20,449,660** |   |
| **ADJUSTED                WEIGHTED AVERAGE COMMON SHARES**                                                                                                                                |   |                                                                                                              | **21,354,284** |   |   | **21,355,536** |   |
| **DIVIDENDS                PER COMMON SHARE**                                                                                                                                             |   | **$**                                                                                                             | **0.27**       |   | **$** | **0.21** |   |

*See      notes to condensed consolidated financial statements*

----

**U.S.B.            HOLDING CO., INC.**

**CONDENSED            CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)**

|                                                                                                                                                                                                                                                                |   | **(000’s)****Six                  Months Ended****June                  30,** |         |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------|--------------|
|                                                                                                                                                                                                                                                                |   | **2005**                                                                            |         | **2004** |   |
| **OPERATING                  ACTIVITIES:**                                                                                                                                                                                                                          |   |                                                                                |         |
| Net                  income                                                                                                                                                                                                                                         |   | $                                                                                   | 16,200       |   | $ | 14,394 |   |
| Adjustments                  to reconcile net income to net cash provided by operating                  activities:                                                                                                                                                 |   |                                                                                |              |   |   |  |   |
| Provision                  for credit losses                                                                                                                                                                                                                        |   |                                                                                | 476          |   |   | 554 |   |
| Depreciation                  and amortization                                                                                                                                                                                                                      |   |                                                                                | 1,751        |   |   | 1,672 |   |
| Amortization                  of discounts on securities - net                                                                                                                                                                                                      |   |                                                                                | (250         | ) |   | (146 | ) |
| Deferred                  income tax benefit, net                                                                                                                                                                                                                   |   |                                                                                | (1,719       | ) |   | (2,005 | ) |
| Gains                  on securities transactions                                                                                                                                                                                                                   |   |                                                                                | —      |   |   | (1,197 | ) |
| Non-cash                  benefit plan expense                                                                                                                                                                                                                      |   |                                                                                | 170          |   |   | 250 |   |
| Increase                  in accrued interest receivable                                                                                                                                                                                                            |   |                                                                                | (27          | ) |   | (1,523 | ) |
| Increase                  (decrease) in accrued interest payable                                                                                                                                                                                                    |   |                                                                                | 120          |   |   | (388 | ) |
| Other                  - net                                                                                                                                                                                                                                        |   |                                                                                | 6,078        |   |   | 1,375 |   |
| **Net                  cash provided by operating activities**                                                                                                                                                                                                      |   |                                                                                | **22,799**   |   |   | **12,986** |   |
| **INVESTING                  ACTIVITIES:**                                                                                                                                                                                                                          |   |                                                                                |              |   |   |  |   |
| Proceeds                  from sales of securities available for sale                                                                                                                                                                                               |   |                                                                                | —      |   |   | 105,418 |   |
| Proceeds                  from principal repayments, redemptions and maturities of:                                                                                                                                                                                 |   |                                                                                |         |   |   |   |   |
| Securities                  available for sale                                                                                                                                                                                                                      |   |                                                                                | 165,748      |   |   | 235,427 |   |
| Securities                  held to maturity                                                                                                                                                                                                                        |   |                                                                                | 31,130       |   |   | 29,460 |   |
| Purchases                  of securities available for sale                                                                                                                                                                                                         |   |                                                                                | (14,750      | ) |   | (323,901 | ) |
| Purchases                  of securities held to maturity                                                                                                                                                                                                           |   |                                                                                | (270,233     | ) |   | (14,707 | ) |
| Net                  purchases of Federal Home Loan Bank of New York stock                                                                                                                                                                                          |   |                                                                                | (3,707       | ) |   | (11,934 | ) |
| Net                  liabilities assumed in Reliance Bank acquisition                                                                                                                                                                                               |   |                                                                                | —      |   |   | 10,697 |   |
| Net                  decrease (increase) in interest bearing deposits in other                  banks                                                                                                                                                               |   |                                                                                | 121          |   |   | (268 | ) |
| Net                  increase in loans outstanding                                                                                                                                                                                                                  |   |                                                                                | (8,962       | ) |   | (49,027 | ) |
| Purchases                  of premises and equipment - net                                                                                                                                                                                                          |   |                                                                                | (161         | ) |   | (1,820 | ) |
| **Net                  cash provided by investing activities**                                                                                                                                                                                                      |   |                                                                                | **(100,814** | **)** |   | **(20,655** | **)** |
| **FINANCING                  ACTIVITIES:**                                                                                                                                                                                                                          |   |                                                                                |              |   |   |  |   |
| Net                  increase in non-interest bearing deposits, NOW, money market and                  savings                  accounts                                                                                                                            |   |                                                                                | 41,291       |   |   | 71,194 |   |
| Net                  (decrease) increase in time deposits, net of withdrawals and                  maturities                                                                                                                                                       |   |                                                                                | (1,992       | ) |   | 7,097 |   |
| Net                  increase (decrease) in securities sold under agreements to repurchase                  -                  short-term                                                                                                                           |   |                                                                                | 73,654       |   |   | (56,350 | ) |
| Net                  decrease of Federal Home Loan Bank of New York advances -                  short-term                                                                                                                                                          |   |                                                                                | —      |   |   | (10,500 | ) |
| Proceeds                  from securities sold under agreements to repurchase -                  long-term                                                                                                                                                          |   |                                                                                | —      |   |   | 75,000 |   |
| Repayment                  of securities sold under agreements to repurchase -                  long-term                                                                                                                                                           |   |                                                                                | ―      |   |   | (50,000 | ) |
| Repayment                  of Federal Home Loan Bank of New York advances - long term                                                                                                                                                                               |   |                                                                                | (873         | ) |   | (820 | ) |
| Net                  proceeds from issuance of subordinated debt issued in connection                  with  corporation                  - obligated mandatory redeemable capital securities of subsidiary                  trusts                       |   |                                                                                | —      |   |   | 9,975 |   |
| Cash                  dividends paid                                                                                                                                                                                                                                |   |                                                                                | (5,554       | ) |   | (4,293 | ) |
| Proceeds                  from exercise of common stock options                                                                                                                                                                                                     |   |                                                                                | 2,472        |   |   | 477 |   |
| Purchases                  of treasury stock                                                                                                                                                                                                                        |   |                                                                                | (1,409       | ) |   | (4,842 | ) |
| **Net                  cash used for financing activities**                                                                                                                                                                                                         |   | **$**                                                                               | **107,589**  |   | **$** | **36,938** |   |
| **Increase                  in Cash and Cash Equivalents**                                                                                                                                                                                                          |   | **$**                                                                               | **29,574**   |   | **$** | **29,269** |   |
| **Cash                  and Cash Equivalents, Beginning of Period**                                                                                                                                                                                                 |   |                                                                                | **65,295**   |   |   | **67,451** |   |
| **Cash                  and Cash Equivalents, End of Period**                                                                                                                                                                                                       |   | **$**                                                                               | **94,869**   |   | **$** | **96,720** |   |
| **Supplemental                  Disclosures:**                                                                                                                                                                                                                      |   |                                                                                |              |   |   |   |   |
| Interest                  paid                                                                                                                                                                                                                                      |   | $                                                                                   | (29,690      | ) | $ | (28,530 | ) |
| Income                  tax payments                                                                                                                                                                                                                                |   | $                                                                                   | (9,090       | ) | $ | (11,011 | ) |
| Purchases                  of held to maturity securities not yet settled                                                                                                                                                                                           |   | $                                                                                   | 3,247        |   | $ | 5,000 |   |
| Sales                  of available for sale securities not yet settled, including interest                  receivable                                                                                                                                             |   | $                                                                                   | —      |   | $ | (924 | ) |
| Amortization                  of loss on transfer of available for sale securities to held to                  maturity                  securities                                                                                                                 |   | $                                                                                   | 339          |   | $ | — |   |
| Loans                  acquired in acquisition of Reliance Bank, including interest                  receivable                                                                                                                                                     |   | $                                                                                   | —      |   | $ | 10,869 |   |
| Deposits                  assumed in acquisition of Reliance Bank, including interest                  payable                                                                                                                                                      |   | $                                                                                   | —      |   | $ | 23,933 |   |
| Other                  assets (including intangibles and goodwill) acquired in acquisition                  of                  Reliance Bank,                              net of other liabilities assumed |   | $                                                                                   | —      |   | $ | 2,367 |   |
| Change                  in shares held in trust for deferred compensation                                                                                                                                                                                           |   | $                                                                                   | (160         | ) | $ | (72 | ) |
| Change                  in deferred compensation obligation                                                                                                                                                                                                         |   | $                                                                                   | 160          |   | $ | 72 |   |
| Change                  in accumulated other comprehensive income                                                                                                                                                                                              |   | $                                                                                   | 1,316        |   | $ | 13,421 |   |
| Non-cash                  exercise of stock options and related tax benefit                                                                                                                                                                                         |   | $                                                                                   | 3,725        |   | $ | 2,119 |   |
| Non-cash                  purchases of treasury stock related to the exercise of stock                  options                                                                                                                                                     |   | $                                                                                   | (2,805       | ) | $ | (1,599 | ) |
| Issuance                  of treasury stock related to the exercise of stock options                                                                                                                                                                                |   | $                                                                                   | 6,069        |   | $ | 2,100 |   |

*See notes to condensed consolidated financial      statements*

----

**U.S.B.              HOLDING CO., INC.**

**CONDENSED              CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED)**

**FOR      THE SIX MONTHS ENDED JUNE 30, 2005**

**(000’s      except share data)**

|                                                                                                                                                                    |   | **Common****Stock****Shares****Outstanding** |           | **Common****Stock****Par****Value** |   |  **Additional****Paid-In****Capital** |   |   **Retained****Earnings** |        |   **Treasury****Stock** |   | **Common****Stock****Held                for****Benefit                Plans** |   |  **Deferred****Compensation****Obligation** |        | **Accumulated****Other****Comprehensive****Income                (Loss)** |   |  **Total****Stockholders’****Equity** |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------|----------------|-------------------------------------|--------|--------------------------------------------|--------|--------------------------------------|-------------|-----------------------------------|--------|--------------------------------------------------------------------------------|--------|--------------------------------------------------|-------------|---------------------------------------------------------------------------|--------|--------------------------------------------------|--------|
| Balance                at January 1, 2005                                                                                                                               |   |                                         | 20,346,814     |                                | $      | 220                                        |   | $                                    | 184,166     |                              | $      | 26,336                                                                         |   | $                                                | (22,855     | )                                                                         | $      | (2,780                                           | )      | $ | 2,746 |   | $ | (5,787 | ) | $ | 182,046 |   |
|  Net                Income                                                                                                                                         |   |                                         |           |                                |   |                                       |   |                                 |        |                              |   | 16,200                                                                         |   |                                             |        |                                                                      |   |                                             |   |   |   |   |   |   |   |   | 16,200 |   |
|  Other                comprehensive income:Net                unrealized securitiesgain                arising during theperiod,                net of tax of $709 |   |                                         |           |                                |   |                                       |   |                                 |        |                              |   |                                                                           |   |                                             |        |                                                                      |   |                                             |   |   |   |   |   | 1,316 |   |   | 1,316 |   |
| Other                comprehensive income                                                                                                                               |   |                                         |           |                                |   |                                       |   |                                 |        |                              |   |                                                                           |   |                                             |        |                                                                      |   |                                             |   |   |   |   |   | 1,316 |   |   | 1,316 |   |
| Total                comprehensive income                                                                                                                               |   |                                         |           |                                |   |                                       |   |                                 |        |                              |   |                                                                           |   |                                             |        |                                                                      |   |                                             |   |   |   |   |   |   |   |   | 17,516 |   |
|  Cash                dividends:Common                ($0.27 per share)                                                                                             |   |                                         |           |                                |   |                                       |   |                                 |        |                              |   | (5,544                                                                         | )      |                                             |        |                                                                      |   |                                             |   |   |   |   |   |   |   |   | (5,544 | ) |
| Junior                preferred stock                                                                                                                                   |   |                                         |           |                                |   |                                       |   |                                 |        |                              |   | (10                                                                            | )      |                                             |        |                                                                      |   |                                             |   |   |   |   |   |   |   |   | (10 | ) |
| Common                stock options exercisedand                related tax benefit                                                                                     |   |                                         | 442,926        |                                |   |                                       |   |                                 | 128         |                              |   |                                                                           |   |                                             | 6,069       |                                                                      |   |                                             |   |   |   |   |   |   |   |   | 6,197 |   |
|  Purchases                of treasury stock                                                                                                                        |   |                                         | (189,595       | )                                   |   |                                       |   |                                 |        |                              |   |                                                                           |   |                                             | (4,214      | )                                                                         |   |                                             |   |   |   |   |   |   |   |   | (4,214 | ) |
|  ESOP                shares committed tobe                released                                                                                                 |   |                                         |           |                                |   |                                       |   |                                 | 65          |                              |   |                                                                           |   |                                             |        |                                                                      |   | 34                                               |   |   |   |   |   |   |   |   | 99 |   |
|  Deferred                compensationobligation                                                                                                                    |   |                                         |           |                                |   |                                       |   |                                 |        |                              |   |                                                                           |   |                                             |        |                                                                      |   | (160                                             | )      |   | 160 |   |   |   |   |   | ― |   |
| **Balance                at June 30, 2005**                                                                                                                             |   |                                         | **20,600,145** |                                | **$**  | **220**                                    |   | **$**                                | **184,359** |                              | **$**  | **36,982**                                                                     |   | **$**                                            | **(21,000** | **)**                                                                     | **$**  | **(2,906**                                       | **)**  | **$** | **2,906** |   | **$** | **(4,471** | **)** | **$** | **196,090** |   |

* See      notes to condensed consolidated financial statements.*

----

**U.S.B.              HOLDING CO., INC.**

**CONDENSED              CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED)**

**FOR      THE SIX MONTHS ENDED JUNE 30, 2004**

**(000’s      except share data)**

|                                                                                                                                                                            |   | **Common****Stock****Shares****Outstanding** |           | **Common****Stock****Par****Value** |   |  **Additional****Paid-In****Capital** |   |   **Retained****Earnings** |        |   **Treasury****Stock** |   | **Common****Stock****Held                for****Benefit                Plans** |   |  **Deferred****Compensation****Obligation** |        | **Accumulated****Other****Comprehensive****Loss** |   |  **Total****Stockholders’****Equity** |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------|----------------|-------------------------------------|--------|--------------------------------------------|--------|--------------------------------------|-------------|-----------------------------------|--------|--------------------------------------------------------------------------------|--------|--------------------------------------------------|-------------|---------------------------------------------------|--------|--------------------------------------------------|--------|
| Balance                at January 1, 2004                                                                                                                                       |   |                                         | 19,487,790     |                                | $      | 209                                        |   | $                                    | 159,628     |                              | $      | 31,655                                                                         |   | $                                                | (18,225     | )                                                 | $      | (2,491                                           | )      | $ | 2,327 |   | $ | (4,810 | ) | $ | 168,293 |   |
| Net                Income                                                                                                                                                       |   |                                         |           |                                |   |                                       |   |                                 |        |                              |   | 14,394                                                                         |   |                                             |        |                                              |   |                                             |   |   |   |   |   |   |   |   | 14,394 |   |
|  Other                comprehensive loss:Net                unrealized securitiesloss                arising during the period,net                of tax benefit of $9,405 |   |                                         |           |                                |   |                                       |   |                                 |        |                              |   |                                                                           |   |                                             |        |                                              |   |                                             |   |   |   |   |   | (13,608 | ) |   | (13,608 | ) |
| Reclassification                adjustmentof                net loss for securitiessold,                net of taxes of $130                                                    |   |                                         |           |                                |   |                                       |   |                                 |        |                              |   |                                                                           |   |                                             |        |                                              |   |                                             |   |   |   |   |   | 187 |   |   | 187 |   |
| Other                comprehensive loss                                                                                                                                         |   |                                         |           |                                |   |                                       |   |                                 |        |                              |   |                                                                           |   |                                             |        |                                              |   |                                             |   |   |   |   |   | (13,421 | ) |   | (13,421 | ) |
| Total                comprehensive income                                                                                                                                       |   |                                         |           |                                |   |                                       |   |                                 |        |                              |   |                                                                           |   |                                             |        |                                              |   |                                             |   |   |   |   |   |   |   |   | 973 |   |
|  Cash                dividends:Common                ($0.21 per share)Junior                preferred stock                                                                |   |                                         |           |                                |   |                                       |   |                                 |        |                              |   | (4,283(10                                                                      | ))     |                                             |        |                                              |   |                                             |   |   |   |   |   |   |   |   | (4,283(10 | )) |
|  Common                stock options exercised and related tax benefit                                                                                                     |   |                                         | 194,668        |                                |   | 1                                          |   |                                 | 497         |                              |   |                                                                           |   |                                             | 2,100       |                                              |   |                                             |   |   |   |   |   |   |   |   | 2,598 |   |
|  Purchases                of treasury stock                                                                                                                                |   |                                         | (299,771       | )                                   |   |                                       |   |                                 |        |                              |   |                                                                           |   |                                             | (6,441      | )                                                 |   |                                             |   |   |   |   |   |   |   |   | (6,441 | ) |
|  ESOP                shares committed tobe                released                                                                                                         |   |                                         |           |                                |   |                                       |   |                                 | 118         |                              |   |                                                                           |   |                                             |        |                                              |   | 65                                               |   |   |   |   |   |   |   |   | 183 |   |
|  Deferred                compensationobligation                                                                                                                            |   |                                         |           |                                |   |                                       |   |                                 |        |                              |   |                                                                           |   |                                             |        |                                              |   | (72                                              | )      |   | 72 |   |   |   |   |   | ― |   |
| **Balance                at June 30, 2004**                                                                                                                                     |   |                                         | **19,382,687** |                                | **$**  | **210**                                    |   | **$**                                | **160,243** |                              | **$**  | **41,756**                                                                     |   | **$**                                            | **(22,566** | **)**                                             | **$**  | **(2,498**                                       | **)**  | **$** | **2,399** |   | **$** | **(18,231** | **)** | **$** | **161,313** |   |

*See      notes to condensed consolidated financial statements.*

----

**U.S.B.            HOLDING CO., INC.**

**NOTES            TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)**

**1.**
**Principles      of Consolidation**

**2.**
**Basis      of Presentation**

----

**U.S.B.            HOLDING CO., INC.**

**NOTES              TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)**

|   | These                condensed consolidated financial statements should be read in conjunction                with the Company’s Consolidated Financial Statements for the year ended                December 31, 2004 and related notes included in the Company’s 2004 Annual                Report to Stockholders and Form                10-K. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **3.** | **Pending                Accounting                Pronouncements** |
|--------|---------------------------------------------------------------------|

**Accounting      for Exchanges of Nonmonetary Assets: **

**Accounting      for Stock-Based Compensation: **

----

**U.S.B.            HOLDING CO., INC.**

**NOTES              TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)**

**Accounting      for Conditional Asset Retirement Obligations: **

**Accounting      Changes and Error Corrections:**

**4.**
**Acquisition      of Reliance Bank**

----

** **U.S.B.              HOLDING CO., INC.****

**NOTES                TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)**

| **5.  ** | **Intangible                Assets** |
|--------------------|--------------------------------------|

|   | The                gross carrying amount and accumulated amortization of intangible                assets                acquired in connection with branch and bank acquisitions were $9.0                million                and $4.8 million as of June 30, 2005, and $9.0 million and $4.2 million                as                of December 31, 2004. The intangible amortization expense for the                three                and six months ended June 30, 2005 was $0.3 million and $0.6 million,                as                compared to $0.3 million and $0.5 million, respectively, for the                2004                prior periods. The annual amortization expense for the remaining                life of                all intangibles will vary throughout the amortization periods for                the                remaining 14 years, during which periods the maximum amount of                amortization will be $1.1 million. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**6.**
**Accounting      for Stock-Based Compensation**

----

**U.S.B.            HOLDING CO., INC.**

**NOTES              TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)**

|                                                                                                                                                                          |   |  **(000’s,                except share data)**  |     |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------|----------|
|                                                                                                                                                                          |   |  **Three**                                            |     | **Six**  |   |
|                                                                                                                                                                          |   | **Months                Ended** **Months Ended**      |     | **Months                Ended** **Months Ended**  |   |
|                                                                                                                                                                          |   | **June                30,****2005**                             |     | **June                30,****2004** |   | **June                30,****2005** |   | **June                30,****2004** |   |
| Net                income, as reported                                                                                                                                        |   | $                                                               | 8,809    |   | $ | 7,037 |   | $ | 16,200 |   | $ | 14,394 |   |
| Less:                preferred stock dividends                                                                                                                                |   |                                                                 | 10       |   |  | 10 |   |  | 10 |   |  | 10 |   |
| Less:                total stock-based compensation expense determined under fair value                based                method for all awards, net of related tax effects |   |                                                                 | 692      |   |  | 805 |   |  | 872 |   |  | 951 |   |
| Pro                forma net income available to common stockholders                                                                                                          |   | $                                                               | 8,107    |   | $ | 6,222 |   | $ | 15,318 |   | $ | 13,433 |   |
| Earnings                per common share:                                                                                                                                     |   |                                                            |     |   |   |   |   |   |   |   |   |   |   |
| Basic                - as reportedBasic                - pro forma                                                                                                            |   | $                                                               | 0.430.39 |   | $ | 0.340.30 |   | $ | 0.790.75 |   | $ | 0.700.66 |   |
| Diluted                - as reportedDiluted                - pro forma                                                                                                        |   | $                                                               | 0.410.38 |   | $ | 0.330.29 |   | $ | 0.760.72 |   | $ | 0.670.63 |   |

**7.**
**Earnings      Per Common Share (“EPS”)**

----

**U.S.B.          HOLDING CO., INC.**

**NOTES            TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)**

|                                                                                                                                                              |   |  **(000’s                except share data)** |       |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------|------------|
|                                                                                                                                                              |   | **Three                Months Ended**                    |       | **Six                Months Ended** |   |
|                                                                                                                                                              |   | **June                30,****2005**                      |       | **June                30,****2004** |   | **June                30,****2005** |   | **June                30,****2004** |   |
| **Numerator:**                                                                                                                                                    |   |                                                     |       |   |   |   |   |
| Net                income                                                                                                                                         |   | $                                                        | 8,809      |   | $ | 7,037 |   | $ | 16,200 |   | $ | 14,394 |   |
| Less                preferred stock dividends                                                                                                                     |   |                                                     | 10         |   |   | 10 |   |   | 10 |   |   | 10 |   |
|                                                                                                                                                              |   |                                                     |       |   |   |   |
| Net                income for basic and diluted                 earnings per common share - net income                 available to common stockholders |   | $                                                        | 8,799      |   | $ | 7,027 |   | $ | 16,190 |   | $ | 14,384 |   |
|                                                                                                                                                              |   |                                                     |       |   |   |   |   |   |   |   |   |   |   |
| **Denominator:**                                                                                                                                                  |   |                                                     |       |   |   |   |   |   |   |   |   |   |   |
| Denominator                for basic earnings per                      common share - weighted average shares                       |   |                                                     | 20,549,961 |   |   | 20,419,775 |   |   | 20,483,800 |   |   | 20,449,660 |   |
|                                                                                                                                                              |   |                                                     |       |   |   |   |   |   |   |   |   |   |   |
| Effects                of dilutive securities:                 Director and employee ― stock options                                                   |   |                                                     | 801,076    |   |   | 878,788 |   |   | 870,484 |   |   | 905,876 |   |
|                                                                                                                                                              |   |                                                     |       |   |   |   |   |   |   |   |   |   |   |
| Denominator                for diluted earnings per                 common share - adjusted weighted                 average shares                     |   |                                                     | 21,351,037 |   |   | 21,298,563 |   |   | 21,354,284 |   |   | 21,355,536 |   |
|                                                                                                                                                              |   |                                                     |       |   |   |   |   |   |   |   |   |   |   |
| Basic                earnings per common share                                                                                                                    |   | $                                                        | 0.43       |   | $ | 0.34 |   | $ | 0.79 |   | $ | 0.70 |   |
| Diluted                earnings per common share                                                                                                                  |   | $                                                        | 0.41       |   | $ | 0.33 |   | $ | 0.76 |   | $ | 0.67 |   |

**8.**
**Securities**

----

**U.S.B.          HOLDING CO., INC.**

**NOTES            TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)**

|                                                            |   | **(000’s)**           |        |
|-----------------------------------------------------------------|--------|-----------------------------|-------------|
|   **June                30, 2005**                    |   |  **Amortized****Cost** |        | **Gross****Unrealized****Gains** |   | **Gross****Unrealized****Losses** |   | **Estimated****Fair****Value** |   |
| **Available                for Sale:**                          |   |                        |        |   |   |   |   |
| U.S.                government agencies                         |   | $                           | 72,918      |   | $ | 332 |   | $ | ― |   | $ | 73,250 |   |
| Mortgage-backed                securities                       |   |                        | 365,224     |   |   | 1,841 |   |   | 290 |   |   | 366,775 |   |
| Obligations                of states and political subdivisions |   |                        | 230         |   |   | 23 |   |   | ― |   |   | 253 |   |
| Corporate                securities                             |   |                        | 115         |   |   | 33 |   |   | ― |   |   | 148 |   |
| **Total                securities available for sale**          |   | **$**                       | **438,487** |   | **$** | **2,229** |   | **$** | **290** |   | **$** | **440,426** |   |
|  **Held                to Maturity:**                      |   |                        |        |   |   |   |   |   |   |   |   |   |   |
| U.S.                government agencies                         |   | $                           | 643,807     |   | $ | 8,447 |   | $ | 236 |   | $ | 652,018 |   |
| Obligations                of states and political subdivisions |   |                        | 101,167     |   |   | 3,509 |   |   | 184 |   |   | 104,492 |   |
| **Total                securities held to maturity**            |   | **$**                       | **744,974** |   | **$** | **11,956** |   | **$** | **420** |   | **$** | **756,510** |   |

|                                                            |   | **(000’s)**           |        |
|-----------------------------------------------------------------|--------|-----------------------------|-------------|
|   **December                31, 2004**                |   |  **Amortized****Cost** |        | **Gross****Unrealized****Gains** |   | **Gross****Unrealized****Losses** |   | **Estimated****Fair****Value** |   |
| **Available                for Sale:**                          |   |                        |        |   |   |   |   |   |   |
| U.S.                government agencies                         |   | $                           | 165,142     |   | $ | 99 |   | $ | 461 |   | $ | 164,780 |   |
| Mortgage-backed                securities                       |   |                        | 423,143     |   |   | 2,103 |   |   | 1,575 |   |   | 423,671 |   |
| Obligations                of states and political subdivisions |   |                        | 920         |   |   | 51 |   |   | ― |   |   | 971 |   |
| Corporate                securities                             |   |                        | 114         |   |   | 36 |   |   | ― |   |   | 150 |   |
| **Total                securities available for sale**          |   | **$**                       | **589,319** |   | **$** | **2,289** |   | **$** | **2,036** |   | **$** | **589,572** |   |
|  **Held                to Maturity:**                      |   |                        |        |   |   |   |   |   |   |   |   |   |   |
| U.S.                government agencies                         |   | $                           | 418,371     |   | $ | 3,596 |   | $ | 1,521 |   | $ | 420,446 |   |
| Obligations                of states and political subdivisions |   |                        | 83,830      |   |   | 3,503 |   |   | 351 |   |   | 86,982 |   |
| **Total                securities held to maturity**            |   | **$**                       | **502,201** |   | **$** | **7,099** |   | **$** | **1,872** |   | **$** | **507,428** |   |

|   | Available                for sale and held to maturity obligations of states and political                subdivisions are not subject to Federal income tax. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

**9.**
**Loans**

----

**U.S.B.          HOLDING CO., INC.**

**NOTES            TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)**

**10.**
**Borrowings      and Stockholders’ Equity**

----

**U.S.B.          HOLDING CO., INC.**

**NOTES            TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)**

|                                           |   |                                                |    |
|------------------------------------------------|--------|-----------------------------------------------------|---------|
|                                           |   | **(000’s                except percentages)** |    |
| **Short-Term                Borrowings**       |   | **2005**                                            |    | **2004** |   |
| Balance                at June 30              |   | $                                                   | 100,977 |   | $ | 225,282 |   |
| Average                balance outstanding     |   | $                                                   | 19,416  |   | $ | 168,502 |   |
| Weighted-average                interest rate: |   |                                                |    |   |   |   |   |
| As                of June 30                   |   |                                                | 3.29    | % |   | 1.20 | % |
| Paid                during period              |   |                                                | 2.90    | % |   | 1.12 | % |

----

**U.S.B.          HOLDING CO., INC.**

**NOTES            TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)**

|                                                |   | **(000’s                except percentages)** |   |
|-----------------------------------------------------|--------|-----------------------------------------------------|--------|
|   **Long-Term                Borrowings** |   |  **Within****1                Year**           |   | **After                1****But                Within****5                Years** |   |  **After****5                Years** |   |  **2005****Total** |   |  2004Total |   |
| Contractual                Payment Date:            |   |                                                |   |   |   |   |   |   |   |   |   |
| Total                long-term borrowing            |   | $                                                   | 30,018 |   | $ | 115,084 |   | $ | 451,734 |   | $ | 596,836 |   | $ | 597,709 |   |
| Weighted-average                interest rate       |   |                                                | 4.65   | % |   | 5.26 | % |   | 4.07 | % |   | 4.33 | % |   | 4.33 | % |
| Expected                Call Date:                  |   |                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                long-term borrowing            |   | $                                                   | 72,018 |   | $ | 246,084 |   | $ | 278,734 |   | $ | 596,836 |   | $ | 597,709 |   |
| Weighted-average                interest rate       |   |                                                | 3.21   | % |   | 4.05 | % |   | 4.86 | % |   | 4.33 | % |   | 4.33 | % |

----

**U.S.B.          HOLDING CO., INC.**

**NOTES            TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)**

**11. **
**Corporation-Obligated        Mandatory Redeemable Capital Securities of Subsidiary        Trusts**

**12.**
**Commitments      and Contingencies**

----

**U.S.B.          HOLDING CO., INC.**

**NOTES            TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)**

----

**U.S.B.            HOLDING CO., INC.**

**NOTES              TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)**

|   | **13.** |   | **Segment                Information** |
|--------|---------|--------|----------------------------------------|

----

**U.S.B.            HOLDING CO., INC.**

**ITEM            2.**
**MANAGEMENT’S            DISCUSSION AND ANALYSIS**

**OF            FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

***Forward-Looking      Statements***

*This      Quarterly Report on Form 10-Q 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 the Company      in      light of management's experience and its perception of historical trends,      current conditions and expected future developments, as well as other factors      the Company believes 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 the Company’s 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 the Company’s 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 the Company’s investments; changes in      deposit flows, loan demand or real estate values may adversely affect the      Company’s business; changes in accounting principles, policies or guidelines may      cause the Company’s financial condition to be perceived differently; general      economic conditions, either nationally or locally in some or all of the areas      in      which the Company does business, or conditions in the securities markets or      the      banking industry may be less favorable than the Company currently anticipates;      legislative or regulatory changes may adversely affect the Company’s business;      applicable technological changes may be more difficult or expensive than the      Company anticipates; success or consummation of new business initiatives may      be      more difficult or expensive than the Company anticipates; 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      the      Company anticipates.*

*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. These risks and uncertainties should be considered in      evaluating forward-looking statements and undue reliance should not be placed      on      these statements.*

**OVERVIEW**

----

**U.S.B.            HOLDING CO., INC.**

**ITEM            2.**
**MANAGEMENT’S            DISCUSSION AND ANALYSIS**

**OF            FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

**Critical      Accounting Policies**

----

**U.S.B.            HOLDING CO., INC.**

**ITEM            2.**
**MANAGEMENT’S            DISCUSSION AND ANALYSIS**

**OF            FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

**COMPARISON      OF FINANCIAL CONDITION AS OF JUNE 30, 2005 AND **

**DECEMBER      31, 2004**

----

**U.S.B.            HOLDING CO., INC.**

**ITEM            2.**
**MANAGEMENT’S            DISCUSSION AND ANALYSIS**

**OF            FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

----

**U.S.B.            HOLDING CO., INC.**

**ITEM            2.**
**MANAGEMENT’S            DISCUSSION AND ANALYSIS**

**OF            FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

----

**U.S.B.            HOLDING CO., INC.**

**ITEM            2.**
**MANAGEMENT’S            DISCUSSION AND ANALYSIS**

**OF            FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

**COMPARISON      OF RESULTS OF OPERATIONS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2005 AND      2004**

**Earnings**

----

**U.S.B.            HOLDING CO., INC.**

**ITEM            2.**
**MANAGEMENT’S            DISCUSSION AND ANALYSIS**

**OF            FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

**Net      Interest Income**

----

**U.S.B.            HOLDING CO., INC.**

**ITEM            2.**
**MANAGEMENT’S            DISCUSSION AND ANALYSIS**

**OF            FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

----

**U.S.B.            HOLDING CO., INC.**

**ITEM            2.**
**MANAGEMENT’S            DISCUSSION AND ANALYSIS**

**OF            FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

**Provision      for Credit Losses**

----

**U.S.B.            HOLDING CO., INC.**

**ITEM            2.**
**MANAGEMENT’S            DISCUSSION AND ANALYSIS**

**OF            FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

**Non-Interest      Income**

**Non-Interest      Expenses**

----

**U.S.B.            HOLDING CO., INC.**

**ITEM            2.**
**MANAGEMENT’S            DISCUSSION AND ANALYSIS**

**OF            FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

| ·   | Decrease                  of $129,000 (6.6 percent) and increase of $48,000 (1.3 percent)                  in                  occupancy and equipment expense. The decrease for the three month                  period                  was primarily due to a reevaluation of maintenance contracts, lower                  utility costs, and a decrease in rent expense as a result of closing                  a                  White Plains branch during the 2005 first quarter. The increase                  for the                  six month period was primarily due to higher depreciation expense                  from                  investments in technology and snow plowing expense for various                  locations                  during the winter months. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Decrease                  of $213,000 (26.4 percent) and $309,000 (20.9 percent) in advertising                  and                  business development. The decrease reflects a reduction in television                  advertising, as well as less expenses related to promotional                  events. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Increase                  of $12,000 (2.6 percent) and $274,000 (31.7 percent) in professional                  fees.                  The increase for the six month period is due to higher legal fees                  related                  to a non-performing real estate construction loan and costs related                  to                  compliance with the Sarbanes-Oxley Act of                  2002. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Increase                  of $6,000 (2.2 percent) and $31,000 (5.7 percent) in amortization                  of                  intangibles. The increase reflects amortization of an additional                  intangible asset related to the acquisition of Reliance Bank in                  the first                  quarter of 2004. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Decrease                  of $29,000 (16.0 percent) and $71,000 (18.5 percent) in stationery                  and                  printing. The decrease was primarily due to a lower amount of office                  related equipment and supplies purchased in                  2005. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Income      Taxes**

----

**U.S.B.            HOLDING CO., INC.**

**ITEM            3.**
**QUANTITATIVE            AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**

----

**U.S.B.              HOLDING CO., INC.**

**ITEM              4.**
**CONTROLS              AND PROCEDURES**

----

**PART      II - OTHER INFORMATION**

**ITEM      2.**
**UNREGISTERED      SALES OF EQUITY SECURITIES **

**AND      USE OF PROCEEDS**

|   **Period**             |   |     **Total                Number****of                Shares****Purchased** |    |     **Average****Price                Paid****Per                Share** |   |  **Total                Number****of                Shares****Purchased                as****Part                of Publicly****Announced****Programs** |   | **Maximum****Number                of****Shares                that****may                yet be****Purchased****Under                the****Programs****1** |   |
|------------------------------------|--------|--------------------------------------------------------------------------------------------------|---------|----------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| April                1 to April 30 |   |                                                                                             | ― |                                                                                         |   | ―                                                                                                                                                      |   |                                                                                                                                                         | N/A    |   |   | 288,700 |   |
| May                1 to May 31     |   |                                                                                             | 70,315  |                                                                                         |   | 20.78                                                                                                                                                        |   |                                                                                                                                                         | 55,500 |   |   | 233,200 |   |
| June                1 to June 30   |   |                                                                                             | ― |                                                                                         |   | ―                                                                                                                                                      |   |                                                                                                                                                         | N/A    |   |   | 233,200 |   |
| **Total**                          |   |                                                                                             | 70,315  |                                                                                         | $      | 20.78                                                                                                                                                        |   |                                                                                                                                                         | 55,500 |   |   | 233,200 |   |

**ITEM      4.**
**SUBMISSION      OF MATTERS TO A VOTE OF SECURITY HOLDERS **

| I. | Election                of two directors, Messrs. Kevin J. Plunkett and Kenneth J. Torsoe,                constituting Class II members of the Board of Directors, to a three-year                term of office. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **Votes:**                             |   | **For**        |   | **Withheld**                              |
|----------------------------------------|--------|----------------|--------|-------------------------------------------|
| **Kevin                  J. Plunkett** |   | **16,197,342** |   | **1,723,827**                             |
| **Kenneth                  J. Torsoe** |   | **17,211,560** |   | **                    709,609** |

| II. |   | The                  appointment of the Company’s independent registered public accounting                  firm, Deloitte & Touche, LLP, for the audit of the Company’s                  consolidated financial statements for the year ending December                  31, 2005                  was ratified with 17,824,909 shares voting for, 89,336 shares voting                  against, and 6,925 shares                  abstaining. |
|-----|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**ITEM          4.**
**SUBMISSION          OF MATTERS TO A VOTE OF SECURITY HOLDERS**

| III. |   | The                  approval and adoption of the 2005 Employee Stock Option Plan was                  ratified                  with 11,434,675 shares voting for, 2,244,749 shares voting against,                  and                  28,003 shares abstaining. |
|------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| IV. |   | Theapproval                  and adoption of the 2005 Director Stock Option Plan was ratified                  with                  11,177,900 shares voting for, 2,411,039 shares voting against,                  and 118,489                  shares abstaining. |
|-----|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**ITEM      6.**
**EXHIBITS**

**Exhibit      No.**
**Exhibit**

| (3)                (a) | Restated                Certificate of Incorporation of Registrant (incorporated herein by                reference to Registrant’s Quarterly Report on Form 10-Q for the quarter                ended June 30, 2002 (“2002 Second Quarter 10-Q”), Exhibit                (3)(a)).                                                                                                                                                              |
|------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (3)                (b) | Bylaws                of Registrant (incorporated herein by reference to Registrant’s                Registration Statement on Form S-14 (File No. 2-79734), Exhibit                (3)(b)).                                                                                                                                                                                                                                                                |
| (4)                (a) | Junior                Subordinated Indenture, dated February 5, 1997, between Registrant                and The                Chase Manhattan Bank, as trustee (incorporated herein by reference                to                Registrant’s Annual Report on Form 10-K for the year ended December 31,                1996 (File No. 001-12811) (“1996 10-K”), Exhibit                (4)(a)).                                              |
| (4)                (b) | Guarantee                Agreement, dated February 5, 1997, by and between Registrant and                The Chase                Manhattan Bank, as trustee for the holders of 9.58% Capital Securities                of                Union State Capital Trust I (incorporated herein by reference to                Registrant’s 1996 10-K, Exhibit (4)(b)).                                                                                          |
| (4)                (c) | Amended                and Restated Declaration of Trust of Union State Capital Trust I                (incorporated herein by reference to Registrant’s 1996 10-K, Exhibit                (4)(c)).                                                                                                                                                                                                                                                         |
| (4)                (d) | Junior                Subordinated Indenture, dated July 31, 2001, between Registrant and                State                Street Bank and Trust Company of Connecticut, National Association,                as                trustee (incorporated herein by reference to Registrant’s Quarterly Report                on Form 10-Q for the quarter ended September 30, 2001 (“2001 Third Quarter                10-Q”), Exhibit (4)(d)). |
| (4)                (e) | Guarantee                Agreement, dated July 31, 2001, by and between Registrant and State                Street                Bank and Trust Company of Connecticut, National Association, as trustee                for the holders of Capital Securities of Union State Statutory Trust                II                (incorporated herein by reference to Registrant’s 2001 Third Quarter 10-Q,                Exhibit (4)(e)).                   |
| (4)                (f) | Amended                and Restated Declaration of Trust of Union State Statutory Trust                II                (incorporated herein by reference to Registrant’s 2001 Third Quarter 10-Q,                Exhibit (4)(f)).                                                                                                                                                                                                                         |
| (4)                (g) | Indenture,                dated June 26, 2002, between Registrant and State Street Bank and                Trust                Company of Connecticut, National Association, as trustee, (incorporated                herein by reference to Registrant’s 2002 Second Quarter 10-Q), Exhibit                (4)(g)).                                                                                                                                       |

----

**ITEM          6.**
**EXHIBITS          (cont'd)**

| (4)                  (h)  | Guarantee                  Agreement dated June 26, 2002, by and between Registrant and State                  Street                  Bank and Trust Company of Connecticut, National Association, as                  trustee                  for the holders of Capital Securities of USB Statutory Trust III,                  (incorporated herein by reference to Registrant’s 2002 Second Quarter                  10-Q, Exhibit (4)(h)). |
|---------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (4)                  (i)  | Amended                  and Restated Declaration of Trust of USB Statutory Trust III,                  (incorporated herein by reference to Registrant’s 2002 Second Quarter                  10-Q, Exhibit (4)(i)).                                                                                                                                                                                                                             |
| (4)                  (j)  | Registrant’s                  Dividend Reinvestment and Stock Purchase Plan (incorporated herein                  by                  reference to Registrant’s Form S-3 Registration Statement filed December                  14, 1993 (file No. 33-72788)).                                                                                                                                                                              |
| (4)                  (k)  | Amended                  and Restated Declaration of Trust of Union State Statutory Trust                  IV dated                  March 25, 2004 (incorporated herein by reference to the Registrant’s                  Quarterly Report on Form 10-Q for the quarter ended March 31, 2004                  (“2004                  First Quarter 10-Q”), Exhibit (10)(ad)).                                                       |
| (4)                  (l)  | Indenture                  dated March 25, 2004 between Registrant and Wilmington Trust Company,                  as                  Trustee (incorporated herein by reference to the Registrant’s 2004 First                  Quarter 10-Q, Exhibit (10)(ae)).                                                                                                                                                                                  |
| (4)                  (m)  | Guarantee                  Agreement dated March 24, 2004 by and between registrant and Wilmington                  Trust Company, as Trustee for the holders of Capital Securities                  of Union                  State Bank Statutory Trust IV (incorporated herein by reference                  to the                  Registrant’s 2004 First Quarter 10-Q, Exhibit                  (10)(af)).                                 |
| (10)                  (a) | Agreement                  of Employment dated as of November 16, 2003 between the Company                  and the                  Bank and Thomas E. Hales (incorporated herein by reference to Registrant’s                  Annual Report on Form 10-K for the year ended December 31, 2003,                  Exhibit                  (10)(a)).                                                                                             |
| (10)                  (b) | Agreement                  of Employment dated as of July 28, 2004 between the Company and                  the Bank                  and Raymond J. Crotty (incorporated herein by reference to Registrant’s                  Quarterly Report on Form 10-Q for the quarter ended June 30, 2004                  (“2004                  Second Quarter 10-Q”), Exhibit (10)(b)).                                                    |
| (10)                  (c) | Registrant’s                  1993 Incentive Stock Option Plan (incorporated herein by reference                  to                  Registrant’s Quarterly Report on Form 10-Q for the quarter ended September                  30, 1999 (File No. 002-79734), Exhibit (10)(e)).                                                                                                                                                          |
| (10)                  (d) | Registrant’s                  Employee Stock Ownership Plan (With 401(k) Provisions) (incorporated                  herein by reference to Registrant’s Annual Report on Form 10-K for the                  year ended December 31, 2001 (“2001 10-K”), Exhibit                  (10)(g)).                                                                                                                                      |
| (10)                  (e) | Registrant’s                  Director Stock Option Plan (incorporated herein by reference to                  Registrant’s 1996 10-K, Exhibit                  (10)(f)).                                                                                                                                                                                                                                                                   |

----

**ITEM            6.**
**EXHIBITS            (cont'd)**

| (10)                    (f) | Registrant’s                    1998 Director Stock Option Plan (incorporated herein by reference                    to                    Registrant’s Form S-8 Registration Statement, filed June 5, 1998 (File No.                    333-56169), Exhibit (99.1)).                                                                                                                                                                                                         |
|-----------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (10)                    (g) | Registrant’s                    Key Employees’ Supplemental Investment Plan, as amended July 1, 1997 and                    September 1, 1998 (incorporated herein by reference to the Plan’s Annual                    Report on Form 11-K for the year ended December 31, 1998, (File                    No.                    001-12811, Exhibit (10)(j)).                                                                                                          |
| (10)                    (h) | Registrant’s                    Key Employees’ Supplemental Diversified Investment Plan dated September 1,                    1998 (incorporated herein by reference to the Plan’s Annual Report on Form                    11-K for the year ended December 31, 1998 (File No. 001-12811),                    Exhibit                    (10)(k)).                                                                                                                     |
| (10)                    (i) | Registrant’s                    1997 Employee Stock Option Plan (incorporated herein by reference                    to                    Exhibit A to Registrant’s Proxy Statement filed April 16, 1997 (File No.                    001-12811)).                                                                                                                                                                                                                           |
| (10)                    (j) | Tappan                    Zee Financial, Inc. 1996 Stock Option Plan for Officers and Employees                    (“Employees Stock Option Plan”) (incorporated herein by reference to                    Exhibit A to Tappan Zee Financial, Inc.’s Proxy Statement for use in                    connection with its 1996 Annual Meeting of Shareholders (File                    No.                    000-26466) (“Tappan Zee 1996 Proxy Statement”)). |
| (10)                    (k) | Tappan                    Zee Financial, Inc. 1996 Stock Option Plan for Outside Directors                    (“Outside                    Director Option Plan”) (incorporated herein by reference to Exhibit B to                    the Tappan Zee 1996 Proxy Statement).                                                                                                                                                                                                  |
| (10)                    (l) | Amendment                    No. 1 to the Outside Director Option Plan (incorporated herein                    by                    reference to the Tappan Zee 1997 10-K, Exhibit 10.2.1).                                                                                                                                                                                                                                                                                              |
| (10)                    (m) | Amendment                    No. 2 to the Outside Director Option Plan (incorporated herein                    by                    reference to Appendix B to the Tappan Zee 1997 Proxy                    Statement).                                                                                                                                                                                                                                                                  |
| (10)                    (n) | Deferred                    Compensation Plan for Directors of Tarrytowns Bank, FSB (Incorporated                    herein by reference to the Registration Statement on Form S-1                    (file No.                    33-94128) filed on June 30, 1995, as amended, Exhibit                    10.7).                                                                                                                                                                        |
| (10)                    (o) | Forms                    of Stock Option Agreement by and between Tappan Zee Financial,                    Inc., and                    recipients of stock options granted pursuant to the Employees                    Stock Option                    Plan and the Outside Director Option Plan (incorporated herein                    by                    reference to the Tappan Zee 1997 10-K, Exhibit 10.16).                                                                   |
| (10)                    (p) | Registrant’s                    2005 Employee Stock Option Plan (incorporated herein by reference                    to                    Appendix A to the Registrant’s Proxy Statement filed April 28,                    2005).                                                                                                                                                                                                                                           |
| (10)                    (q) | Form                    of Employee Stock Option Agreement by and between the Registrant                    and                    recipients of stock options granted pursuant to the Employee                    Stock Option                    Plan (incorporated herein by reference to Exhibit 10.1 to the                    Registrant’s                    Form 8-K filed on June 16, 2005).                                                                               |

----

**ITEM              6.**
**EXHIBITS              (cont'd)**

| (10)                    (r)  | Registrant’s                    2005 Director Stock Option Plan (incorporated herein by reference                    to                    Appendix B to the Registrant’s Proxy Statement filed April 28,                    2005).                                                                                                                                                             |
|------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (10)                    (s)  | Form                    of Director Stock Option Agreement by and between the Registrant                    and                    recipients of stock options granted pursuant to the Director                    Stock Option                    Plan (incorporated herein by reference to Exhibit 10.2 to the                    Registrant’s                    Form 8-K filed on June 16, 2005). |
| (10)                    (t)  | Registrant’s                    Retirement Plan for Non-Employee Directors of U.S.B. Holding                    Co., Inc. and                    Certain Affiliates dated effective as of May 19, 1999, and as                    amended                    March 20, 2002 (incorporated herein by reference to the Registrant’s 2001                    10-K, Exhibit (10)(w)).               |
| (10)                    (u)  | Asset                    Purchase and Account Assumption Agreement by and between Union                    State Bank                    and La Jolla Bank dated May 25, 2000 (incorporated herein by                    reference to                    the Registrant’s Quarterly Report on Form 10-Q for the quarter ended June                    30, 2000, Exhibit (10)(oo)).                    |
| (10)                    (v)  | U.S.B.                    Holding Co., Inc. Severance Plan dated January 30, 2002 (incorporated                    herein by reference to Registrant’s 2001 10-K, Exhibit                    (10)(y)).                                                                                                                                                                                                |
| (10)                    (w)  | Asset                    Purchase and Liability Assumption Agreement dated as of June                    14, 2002, by                    and between Union State Bank and Fourth Federal Savings Bank                    (incorporated                    herein by reference to Registrant’s 2002 Second Quarter 10-Q, Exhibit                    (10)(z)).                                          |
| (10)                    (x)  | U.S.B.                    Holding Co., Inc. Executive Incentive Bonus Plan as amended February                    24,                    1999 (incorporated herein by reference to Exhibit A to Registrant’s Proxy                    Statement filed April 27, 1999 (File No. 002-79734)).                                                                                                           |
| (10)                    (y)  | Amendment                    No. 2 to the Key Employees’ Supplemental Investment Plan dated September                    1, 2003 (incorporated herein by reference to the Registrant’s Quarterly                    Report on Form 10-Q for the quarter ended September 30, 2003                    (“2003 Third                    Quarter 10-Q”), Exhibit (10)(ab)).              |
| (10)                    (z)  | Amendment                    No. 1 to the Key Employees’ Diversified Investment Plan dated September 1,                    2003 (incorporated herein by reference to the Registrant’s 2003 Third                    Quarter 10-Q, Exhibit (10)(ac)).                                                                                                                                            |
| (10)                    (aa) | Letter                    Agreement dated April 18, 2005 between the Registrant and Steven                    T.                    Sabatini (incorporated by reference to the Registrant’s Report on Form 8-K                    filed April 20, 2005).                                                                                                                                              |
| (31.1)                       | Certification                    of Chief Executive Officer Pursuant to Exchange Act Rule                    13a-14(a).*                                                                                                                                                                                                                                                                                    |
| (31.2)                       | Certification                    of Chief Financial Officer Pursuant to Exchange Act Rule                    13a-14(a).*                                                                                                                                                                                                                                                                                    |
| (32)                         | Certification                    of Chief Executive Officer and Chief Financial Officer Pursuant                    to 18                    U.S.C. Section 1350.*                                                                                                                                                                                                                                          |

----

**SIGNATURES**

**U.S.B.      HOLDING CO., INC.**

|                                                                                                                           |   |   |                                                                                                                                                                                                              |
|--------------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| /s/ Thomas              E. Hales                                                                                     |   |   | /s/ Steven              T. Sabatini                                                                                                                                                                          |
| Thomas                E. Hales Chairman                of the Board, Chief Executive Officer, and                Director |   |   | Steven T. SabatiniSenior                Executive Vice President, Chief Financial Officer, and Assistant                Secretary(Principal                Financial and Accounting                Officer)  |

----