Earnings slip at Orangeburg-based USB Holding Co.
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- October
- 26
Rising interest rates contributed to a decline in third-quarter earnings at USB Holding Co. Inc., the parent company of Union State Bank.
USB, based in Orangeburg, said its net income fell 3.4 percent to $8.15 million from $8.43 million in last year’s third quarter, largely because of a decrease in net interest income.
The bank holding company reported its results last night.
With the Federal Reserve pushing up its benchmark lending rate over much of the past year, many banks have seen their profit margins squeezed as the difference between interest payments on deposits narrowed against the interest received from loans.
â€Ε“The net interest margin may continue to be negatively affected if the U.S. Treasury yield curve maintains an inverted position resulting in short-term interest rates at higher levels than medium- to long-term interest rates, …â€? the bank warned in a written statement.
Earnings per share of 36 cents was down a penny from 37 cents a share.
Union State Bank had deposits of $1.99 billion as of Sept. 30, down from $2.08 billion a year earlier. Loans, net of unearned income, were up, however, to $1.53 billion from $1.47 billion.
USB shares closed at $23.07 yesterday, up 16 cents, of 0.70 percent, on the New York Stock Exchange.









