THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

U.S.B. Holding Co., Inc. (UBH)

4/28/2006 Proxy Information

Michael H. Fury served as Secretary of U.S.B. Holding Co., Inc. (USB) from 1982 to 2004; Secretary of Union State Bank (Bank) from 1982 to 2004 and General Counsel of USB from 1982 to 1998 and the Bank from 1969 to 1998.

During 2005, some of the Directors and executive officers of the Company (and members of their immediate families and corporations, organizations, trusts and estates with which these individuals are associated) were indebted to the Bank in amounts in excess of $60,000. However, all such loans, which did not exceed a total of $1,292,000 (or approximately 0.63% of stockholders’ equity at February 28, 2006) at any one time during 2005, were made in the ordinary course of business, did not involve more than normal risk of collectibility or present other unfavorable features, and were made on substantially the same terms, including interest rate and collateral requirements, as those prevailing at the same time for comparable loan transactions with unaffiliated persons, and no such loan is classified at present as a non-accrual, past due, restructured or potential problem loan.

Outside of normal customer relationships, none of the Directors, executive officers or 5% stockholders of the Company (or members of their immediate families) presently maintains, directly or indirectly, any significant business or personal relationship with the Company or the Bank, other than such as might arise by virtue of his position with, or ownership interest in, the Company, except as follows: Kevin J. Plunkett is a partner in the law firm of Thacher Proffitt & Wood LLP, which was employed by the Company and the Bank during 2005, and Thacher Proffitt & Wood LLP received approximately $57,000 for services rendered and related out-of-pocket disbursements. This law firm also represented the Bank for loan closings for which additional fees of approximately $527,000 were paid by customers of the Bank during 2005. Mr. Plunkett does not have a direct business relationship with the Company or the Bank. Mr. Michael H. Fury is a partner in the law firm of Fury, Kennedy & Griffin, which firm represented the Bank for loan closings for which fees of approximately $19,000 were paid by customers of the Bank during 2005.

Charitable Contributions

The Company reviews annually contributions made to any not-for-profit or other charitable organizations on which the Company’s Directors serve as an officer or director or in any other executive capacity. Based on such review, the Company has not made any contributions to any not-for-profit or other charitable organizations for which any Director has any involvement as previously described for which such contribution exceeds more than two (2) percent of such organization’s gross consolidated annual revenues or two (2) percent of the Company’s gross consolidated annual revenues.