Unity Bancorp, Inc.64 Old Highway 22
Clinton, NJ 08809
800 618-BANK
www.unitybank.com
NewsNewsNewsNewsNews
For Immediate Release:
April 23, 2008
News Media & Financial Analyst Contact:
Alan J. Bedner, EVP
Chief Financial Officer
(908) 713-4308
Unity Bancorp Reports First Quarter Results
Clinton, NJ - Unity Bancorp, Inc. (NASDAQ: UNTY), parent company of Unity Bank, reported net income of $1.2 million, or $0.18 per diluted share, for the quarter ended March 31, 2008, compared to net income of $680 thousand, or $0.10 per diluted share, for the quarter ended December 31, 2007 and $1.5 million, or $0.20 per diluted share, for the quarter ended March 31, 2007. Return on average assets and average common equity for the first quarter of 2008 were 0.65% and 10.50%, respectively, compared to 0.38% and 5.77%, respectively for the fourth quarter of 2007, and 0.87% and 12.74%, respectively, for the first quarter of 2007. Results for December 31, 2007 include a $404 thousand after tax expense, or $0.06 per share, for the impairment of Federal Home Loan Mortgage Corporation perpetual preferred securities.
Total assets at March 31, 2008, were $807.9 million, an 18.6% increase from March 31, 2007. The increase in assets from the prior year was due to growth in the Company’s earning assets. Total loans at March 31, 2008, were $602.9 million, a 16.9% increase from March 31, 2007. The growth in the loan portfolio occurred in all product lines. The SBA portfolio grew $17.8 million, or 23.0% from a year ago, in part due to the Company’s previously announced strategy to hold more loans for long term investment.
“I am very pleased with our robust growth this quarter, as we continue to increase our market share in a challenging environment,” said Unity President and Chief Executive Officer, James A. Hughes. “With the Federal Reserve’s recent reduction in interest rates I am extremely optimistic that our net interest margin will expand throughout the remainder of the year.”
At March 31, 2008, the allowance for loan losses was $8.7 million, or 1.43% of total loans, compared to 1.50% of total loans at March 31, 2007. Nonperforming assets at March 31, 2008, were $4.4 million, or 0.73% of total loans and other real estate owned (OREO), a decline of $2.4 million, compared to nonperforming assets of $6.8 million or 1.31% of total loans and OREO at March 31, 2007. The Company has reviewed its portfolio and determined that is does not have significant exposure to subprime loans.
“We continue to be pleased with the performance of our loan portfolio in the current economic environment”, said Mr. Hughes. “We have had a substantial decline in nonaccrual assets from the prior year and continue to aggressively manage the collections process.”
Total deposits at March 31, 2008, were $642.3 million, an 18.6% increase from March 31, 2007. This increase was primarily the result of growth in time deposit and demand deposit accounts, partially offset by the decline in savings and interest-bearing checking deposits. Demand deposits grew $5.0 million, or 6.6% from March 31, 2007. Time deposits increased $134.9 million, or 83.5% from March 31, 2007.
Total shareholders’ equity was $47.9 million at March 31, 2008, consistent with March 31, 2007, due to an increase in retained profits of the Company offset by the purchase of 380 thousand shares of common stock. The Company does not anticipate additional purchases of shares for the foreseeable future, as retained profits will be used for future growth.
Net interest income was $6.6 million for the first quarter of 2008, an increase of 10.2% compared to the same period a year ago. Net interest income was primarily benefited by an increase in interest-earning assets offset by a decline in net interest margin. Net interest margin was 3.64% for the first quarter of 2008, compared to 3.75% for the first quarter of 2007. Due to the recent decline in short-term interest rates, the Company expects that the net interest margin will expand in 2008.
The provision for loan losses for the first quarter of 2008 was $450 thousand, compared to $200 thousand for the first quarter of 2007. Net loan charge-offs for the quarter ended March 31, 2008 were $183 thousand, compared to net loan charge-offs of $67 thousand for the quarter ended March 31, 2007.
Total noninterest income for the first quarter of 2008 was $1.5 million, down 13.3%, from the same period a year ago. Gains on sales of SBA loans amounted to $576 thousand for the first quarter of 2008, compared to $679 thousand for the quarter ended March 31, 2007, reflecting lower premiums on loans sold due to current market conditions. Service charges on deposits for the first quarter of 2008 were $320 thousand, a decrease of 8.3% compared to the first quarter of 2007, primarily due to the acceleration of the electronic clearing of checks under “Check 21.” Service and loan fees were $300 thousand for the first quarter of 2008, a decrease of $66 thousand from a year ago.
Total noninterest expenses for the fourth quarter of 2008 were $5.8 million, an increase of 6.5% from the prior year’s comparable quarter. Compensation and benefits expense increased 9.0% due to the increased staffing associated with branch expansion, the rollout of the Bank’s National SBA program and annual cost of living increases. Professional fees increased due to additional expenses associated with the implementation of Sarbanes Oxley.
As of March 31, 2008, the Company’s Tier I leverage capital ratio was 8.06%, Tier I risk-based capital ratio was 9.68%, and total risk-based capital ratio was 10.93%. All regulatory capital ratios exceeded the well-capitalized, federal capital adequacy requirements as of March 31, 2008.
Unity Bancorp, Inc. is a financial service organization headquartered in Clinton, New Jersey, with approximately $808 million in assets and $642 million in deposits. Unity Bank provides financial services to retail, corporate and small business customers through its 16 retail service centers located in Hunterdon, Middlesex, Somerset, Union and Warren Counties in New Jersey and Northampton County, Pennsylvania. For additional information about Unity, visit our website at www.unitybank.com, or call 800- 618-BANK.
This news release contains certain forward-looking statements, either expressed or implied, which are provided to assist the reader in understanding anticipated future financial performance. These statements involve certain risks, uncertainties, estimates and assumptions made by management, which are subject to factors beyond the company’s control and could impede its ability to achieve these goals. These factors include general economic conditions, trends in interest rates, the ability of our borrowers to repay their loans, and results of regulatory exams, among other factors.
| Unity Bancorp, Inc. | |||||||||||||||
| Consolidated Financial Highlights | |||||||||||||||
| (Dollars in thousands, except per share data) | |||||||||||||||
| Mar. 08 vs. | |||||||||||||||
| BALANCE SHEET DATA: | Mar. 31, 2008 | Dec. 31, 2007 | Mar. 31, 2007 | Dec. 07 | Mar. 07 | ||||||||||
| Assets | $ | 807,874 | $ | 752,196 | $ | 681,302 | 7.4 | % | 18.6 | % | |||||
| Deposits | 642,282 | 601,268 | 541,399 | 6.8 | 18.6 | ||||||||||
| Loans | 602,943 | 590,132 | 515,562 | 2.2 | 16.9 | ||||||||||
| Securities | 114,348 | 98,591 | 100,915 | 16.0 | 13.3 | ||||||||||
| Shareholders' equity | 47,896 | 47,260 | 47,825 | 1.3 | 0.1 | ||||||||||
| Allowance for loan losses | 8,650 | 8,383 | 7,757 | 3.2 | 11.5 | ||||||||||
| FINANCIAL DATA - QUARTER TO DATE: | |||||||||||||||
| Net income before taxes | $ | 1,870 | $ | 922 | $ | 2,081 | 102.8 | % | (10.1) | % | |||||
| Federal and state income tax provision | 626 | 242 | 630 | 158.7 | (0.6) | ||||||||||
| Net income | 1,244 | 680 | 1,451 | 82.9 | (14.3) | ||||||||||
| Per share-basic | 0.18 | 0.10 | 0.21 | 80.0 | (14.3) | ||||||||||
| Per share-diluted | 0.18 | 0.10 | 0.20 | 80.0 | (10.0) | ||||||||||
| Return on average assets | 0.65 | % | 0.38 | % | 0.87 | % | 71.1 | (25.3) | |||||||
| Return on average common equity | 10.50 | 5.77 | 12.74 | 82.0 | (17.6) | ||||||||||
| Efficiency ratio | 71.95 | 74.07 | 70.46 | (2.9) | 2.1 | ||||||||||
| SHARE INFORMATION: | |||||||||||||||
| Closing price per share | $ | 7.85 | $ | 8.50 | $ | 11.30 | (7.6) | % | (30.5) | % | |||||
| Cash dividends declared | 0.05 | 0.05 | 0.05 | - | - | ||||||||||
| Book value per share | 7.10 | 7.03 | 6.84 | 1.0 | 3.8 | ||||||||||
| Average diluted shares outstanding (QTD) | 6,925 | 6,979 | 7,301 | (0.8) | (5.1) | ||||||||||
| CAPITAL RATIOS: | |||||||||||||||
| Total equity to total assets | 5.93 | % | 6.28 | % | 7.02 | % | (5.6) | % | (15.5) | % | |||||
| Tier I capital to average assets (leverage) | 8.06 | 8.25 | 9.24 | (2.3) | (12.7) | ||||||||||
| Tier I capital to risk-adjusted assets | 9.68 | 9.81 | 11.43 | (1.3) | (15.3) | ||||||||||
| Total risk-based capital | 10.93 | 11.06 | 14.21 | (1.2) | (23.1) | ||||||||||
| CREDIT QUALITY AND RATIOS: | |||||||||||||||
| Nonperforming assets | $ | 4,408 | $ | 5,567 | $ | 6,771 | (20.8) | % | (34.9) | % | |||||
| Net charge offs to average loans (QTD) | 0.12 | % | 0.24 | % | 0.05 | % | (50.0) | 140.0 | |||||||
| Allowance for loan losses to total loans | 1.43 | 1.42 | 1.50 | 0.7 | (4.7) | ||||||||||
| Nonperforming assets to total loans and OREO | 0.73 | 0.94 | 1.31 | (22.3) | (44.3) | ||||||||||
| Unity Bancorp, Inc. | |||||||||||||||
| Consolidated Balance Sheets | |||||||||||||||
| (In thousands) | Mar. 08 vs. | ||||||||||||||
| Mar. 31, 2008 | Dec. 31, 2007 | Mar. 31, 2007 | Dec. 07 | Mar. 07 | |||||||||||
| ASSETS | |||||||||||||||
| Cash and due from banks | $ | 19,698 | $ | 14,336 | $ | 15,697 | 37.4 | % | 25.5 | % | |||||
| Federal funds sold and interest bearing deposits | 44,042 | 21,976 | 23,417 | 100.4 | 88.1 | ||||||||||
| Securities: | |||||||||||||||
| Available for sale | 79,726 | 64,855 | 62,794 | 22.9 | 27.0 | ||||||||||
| Held to maturity | 34,622 | 33,736 | 38,121 | 2.6 | (9.2) | ||||||||||
| Total securities | 114,348 | 98,591 | 100,915 | 16.0 | 13.3 | ||||||||||
| Loans: | |||||||||||||||
| SBA - Held for sale | 23,632 | 24,640 | 9,298 | (4.1) | 154.2 | ||||||||||
| SBA - Held to Maturity | 71,798 | 68,875 | 68,314 | 4.2 | 5.1 | ||||||||||
| Commercial | 372,695 | 365,786 | 318,905 | 1.9 | 16.9 | ||||||||||
| Residential mortgage | 76,734 | 73,697 | 63,615 | 4.1 | 20.6 | ||||||||||
| Consumer | 58,084 | 57,134 | 55,430 | 1.7 | 4.8 | ||||||||||
| Total loans | 602,943 | 590,132 | 515,562 | 2.2 | 16.9 | ||||||||||
| Less: Allowance for loan losses | 8,650 | 8,383 | 7,757 | 3.2 | 11.5 | ||||||||||
| Net loans | 594,293 | 581,749 | 507,805 | 2.2 | 17.0 | ||||||||||
| Goodwill and other intangibles | 1,585 | 1,588 | 1,599 | (0.2) | (0.9) | ||||||||||
| Premises and equipment, net | 12,067 | 12,102 | 11,525 | (0.3) | 4.7 | ||||||||||
| Accrued interest receivable | 4,131 | 3,994 | 3,594 | 3.4 | 14.9 | ||||||||||
| Loan servicing asset | 1,990 | 2,056 | 2,261 | (3.2) | (12.0) | ||||||||||
| Bank Owned Life Insurance | 5,622 | 5,570 | 5,421 | 0.9 | 3.7 | ||||||||||
| FHLB/ACBB Stock | 4,170 | 4,395 | 3,403 | (5.1) | 22.5 | ||||||||||
| Other assets | 5,928 | 5,839 | 5,665 | 1.5 | 4.6 | ||||||||||
| Total Assets | $ | 807,874 | $ | 752,196 | $ | 681,302 | 7.4 | % | 18.6 | % | |||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||
| Deposits: | |||||||||||||||
| Noninterest-bearing demand deposits | $ | 80,960 | $ | 70,601 | $ | 75,928 | 14.7 | % | 6.6 | % | |||||
| Interest-bearing deposits: | |||||||||||||||
| Interest bearing checking | 76,256 | 78,020 | 89,313 | (2.3) | (14.6) | ||||||||||
| Savings | 188,628 | 196,388 | 214,636 | (4.0) | (12.1) | ||||||||||
| Time, under $100,000 | 211,739 | 168,244 | 105,724 | 25.9 | 100.3 | ||||||||||
| Time, $100,000 and over | 84,699 | 88,015 | 55,798 | (3.8) | 51.8 | ||||||||||
| Total deposits | 642,282 | 601,268 | 541,399 | 6.8 | 18.6 | ||||||||||
| Borrowed funds and subordinated debentures | 110,465 | 100,465 | 89,744 | 10.0 | 23.1 | ||||||||||
| Accrued interest payable | 794 | 635 | 523 | 25.0 | 51.8 | ||||||||||
| Accrued expenses and other liabilities | 6,437 | 2,568 | 1,811 | 150.7 | 255.4 | ||||||||||
| Total liabilities | 759,978 | 704,936 | 633,477 | 7.8 | 20.0 | ||||||||||
| Commitments and Contingencies | - | - | - | ||||||||||||
| Shareholders' equity: | |||||||||||||||
| Common stock, no par value, 12,500 shares authorized | 49,600 | 49,447 | 44,677 | 0.3 | 11.0 | ||||||||||
| Retained earnings | 3,379 | 2,472 | 4,067 | 36.7 | (16.9) | ||||||||||
| Treasury stock at cost | (4,169) | (4,169) | (242) | - | 1,622.7 | ||||||||||
| Accumulated other comprehensive loss, net of tax | (914) | (490) | (677) | 86.5 | 35.0 | ||||||||||
| Total shareholders' equity | 47,896 | 47,260 | 47,825 | 1.3 | 0.1 | ||||||||||
| Total Liabilities and Shareholders' Equity | $ | 807,874 | $ | 752,196 | $ | 681,302 | 7.4 | % | 18.6 | % | |||||
| COMMON SHARES AT PERIOD END: | |||||||||||||||
| Issued | 7,151 | 7,131 | 7,019 | ||||||||||||
| Outstanding | 6,747 | 6,727 | 6,995 | ||||||||||||
| Treasury | 404 | 404 | 24 | ||||||||||||
| N/M= Not meaningful | |||||||||||||||
| Unity Bancorp, Inc. | |||||||||||||||
| Consolidated Statements of Income | |||||||||||||||
| (In thousands, except per share data) | |||||||||||||||
| Mar. 08 vs. | |||||||||||||||
| FOR THE THREE MONTHS ENDED: | Mar. 31, 2008 | Dec. 31, 2007 | Mar. 31, 2007 | Dec. 07 | Mar. 07 | ||||||||||
| INTEREST INCOME | |||||||||||||||
| Fed funds sold and interest on deposits | $ | 180 | $ | 195 | $ | 262 | (7.7) | % | (31.3) | % | |||||
| FHLB/ACBB Stock | 100 | 78 | 58 | ||||||||||||
| Securities: | |||||||||||||||
| Available for sale | 875 | 835 | 722 | 4.8 | 21.2 | ||||||||||
| Held to maturity | 437 | 443 | 540 | (1.4) | (19.1) | ||||||||||
| Total securities | 1,312 | 1,278 | 1,262 | 2.7 | 4.0 | ||||||||||
| Loans: | |||||||||||||||
| SBA | 2,328 | 2,307 | 2,340 | 0.9 | (0.5) | ||||||||||
| Commercial | 6,735 | 6,772 | 5,988 | (0.5) | 12.5 | ||||||||||
| Residential mortgage | 1,079 | 1,093 | 888 | (1.3) | 21.5 | ||||||||||
| Consumer | 901 | 934 | 904 | (3.5) | (0.3) | ||||||||||
| Total loan interest income | 11,043 | 11,106 | 10,120 | (0.6) | 9.1 | ||||||||||
| Total interest income | 12,635 | 12,657 | 11,702 | (0.2) | 8.0 | ||||||||||
| INTEREST EXPENSE | |||||||||||||||
| Interest bearing demand deposits | 366 | 448 | 552 | (18.3) | (33.7) | ||||||||||
| Savings deposits | 1,349 | 1,776 | 2,171 | (24.0) | (37.9) | ||||||||||
| Time deposits | 3,220 | 3,089 | 1,970 | 4.2 | 63.5 | ||||||||||
| Borrowed funds and subordinated debentures | 1,065 | 997 | 990 | 6.8 | 7.6 | ||||||||||
| Total interest expense | 6,000 | 6,310 | 5,683 | (4.9) | 5.6 | ||||||||||
| Net interest income | 6,635 | 6,347 | 6,019 | 4.5 | 10.2 | ||||||||||
| Provision for loan losses | 450 | 550 | 200 | (18.2) | 125.0 | ||||||||||
| Net interest income after provision for loan losses | 6,185 | 5,797 | 5,819 | 6.7 | 6.3 | ||||||||||
| NONINTEREST INCOME | |||||||||||||||
| Service charges on deposit accounts | 320 | 357 | 349 | (10.4) | (8.3) | ||||||||||
| Service and loan fee income | 300 | 433 | 366 | (30.7) | (18.0) | ||||||||||
| Gain on SBA loan sales | 576 | 580 | 679 | (0.7) | (15.2) | ||||||||||
| Gain on sales of other loans | - | - | - | - | (100.0) | ||||||||||
| Bank owned life insurance | 51 | 50 | 49 | 2.0 | 4.1 | ||||||||||
| Net securities (loss) gains | 70 | (603) | 10 | 100.0 | 100.0 | ||||||||||
| Other income | 138 | 236 | 226 | (41.5) | (38.9) | ||||||||||
| Total noninterest income | 1,455 | 1,053 | 1,679 | 38.2 | (13.3) | ||||||||||
| NONINTEREST EXPENSES | |||||||||||||||
| Compensation and benefits | 3,220 | 2,952 | 2,955 | 9.1 | 9.0 | ||||||||||
| Processing and communications | 570 | 675 | 550 | (15.6) | 3.6 | ||||||||||
| Occupancy, net | 701 | 761 | 673 | (7.9) | 4.2 | ||||||||||
| Furniture and equipment | 388 | 462 | 400 | (16.0) | (3.0) | ||||||||||
| Professional fees | 198 | 184 | 136 | 7.6 | 45.6 | ||||||||||
| Loan servicing costs | 102 | 161 | 90 | (36.6) | 13.3 | ||||||||||
| Advertising | 62 | 145 | 94 | (57.2) | (34.0) | ||||||||||
| Other | 529 | 588 | 519 | (10.0) | 1.9 | ||||||||||
| Total noninterest expenses | 5,770 | 5,928 | 5,417 | (2.7) | 6.5 | ||||||||||
| Income before taxes | 1,870 | 922 | 2,081 | 102.8 | (10.1) | ||||||||||
| Federal and state income tax provision | 626 | 242 | 630 | 158.7 | (0.6) | ||||||||||
| Net Income | $ | 1,244 | $ | 680 | $ | 1,451 | 82.9 | % | (14.3) | % | |||||
| Net Income Per Common Share-Basic | $ | 0.18 | $ | 0.10 | $ | 0.21 | 80.0 | % | (14.3) | % | |||||
| Net Income Per Common Share-Diluted | $ | 0.18 | $ | 0.10 | $ | 0.20 | 80.0 | % | (10.0) | % | |||||
| AVERAGE COMMON SHARES OUTSTANDING: | |||||||||||||||
| Basic | 6,739 | 6,769 | 6,976 | ||||||||||||
| Diluted | 6,925 | 6,979 | 7,301 | ||||||||||||
| Unity Bancorp, Inc. | ||||||||||||||
| Consolidated Average Balance Sheets | ||||||||||||||
| with Resultant Interest and Rates | ||||||||||||||
| (Tax-equivalent basis, dollars in thousands) | ||||||||||||||
| Three Months Ended | ||||||||||||||
| March 31, 2008 | December 31, 2007 | |||||||||||||
| Balance | Interest | Rate | Balance | Interest | Rate | |||||||||
| ASSETS | ||||||||||||||
Interest-earning assets: | ||||||||||||||
| Federal funds sold and interest-bearing deposits with banks | $ | 22,925 | $ | 180 | 3.16 | % | $ | 17,961 | $ | 195 | 4.31 | % | ||
| FHLB/ACBB Stock | 4,174 | 100 | 9.64 | 3,786 | 78 | 8.17 | ||||||||
| Securities: | ||||||||||||||
| Available for sale | 70,757 | 908 | 5.13 | 67,765 | 875 | 5.16 | ||||||||
| Held to maturity | 34,147 | 455 | 5.33 | 35,157 | 461 | 5.25 | ||||||||
| Total securities | 104,904 | 1,363 | 5.20 | 102,922 | 1,336 | 5.19 | ||||||||
| Loans, net of unearned discount: | ||||||||||||||
| SBA | 98,614 | 2,328 | 9.44 | 90,120 | 2,307 | 10.24 | ||||||||
| Commercial | 372,343 | 6,735 | 7.28 | 362,512 | 6,772 | 7.41 | ||||||||
| Residential mortgage | 74,341 | 1,079 | 5.81 | 74,057 | 1,093 | 5.90 | ||||||||
| Consumer | 57,482 | 901 | 6.30 | 56,421 | 934 | 6.57 | ||||||||
| Total loans | 602,780 | 11,043 | 7.36 | 583,110 | 11,106 | 7.57 | ||||||||
| Total interest-earning assets | 734,783 | 12,686 | 6.93 | 707,779 | 12,715 | 7.10 | ||||||||
| Noninterest-earning assets: | ||||||||||||||
| Cash and due from banks | 14,991 | 14,518 | ||||||||||||
| Allowance for loan losses | (8,690) | (8,499) | ||||||||||||
| Other assets | 30,304 | 29,130 | ||||||||||||
| Total noninterest-earning assets | 36,605 | 35,149 | ||||||||||||
| Total Assets | $ | 771,388 | $ | 742,928 | ||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||
| Interest-bearing demand deposits | $ | 78,999 | 366 | 1.86 | $ | 81,759 | 448 | 2.17 | ||||||
| Savings deposits | 190,574 | 1,349 | 2.85 | 195,241 | 1,776 | 3.61 | ||||||||
| Time deposits | 276,426 | 3,220 | 4.69 | 253,790 | 3,089 | 4.83 | ||||||||
| Total interest-bearing deposits | 545,999 | 4,935 | 3.64 | 530,790 | 5,313 | 3.97 | ||||||||
| Borrowed funds and subordinated debentures | 100,850 | 1,065 | 4.25 | 86,826 | 997 | 4.56 | ||||||||
| Total interest-bearing liabilities | 646,849 | 6,000 | 3.73 | 617,616 | 6,310 | 4.05 | ||||||||
| Noninterest-bearing liabilities: | ||||||||||||||
| Demand deposits | 74,709 | 76,406 | ||||||||||||
| Other liabilities | 2,191 | 2,267 | ||||||||||||
| Total noninterest-bearing liabilities | 76,900 | 78,673 | ||||||||||||
| Shareholders' equity | 47,639 | 46,639 | ||||||||||||
| Total Liabilities and Shareholders' Equity | $ | 771,388 | $ | 742,928 | ||||||||||
| Net interest spread | 6,686 | 3.20 | % | 6,405 | 3.05 | % | ||||||||
| Tax-equivalent basis adjustment | (51) | (58) | ||||||||||||
| Net interest income | $ | 6,635 | $ | 6,347 | ||||||||||
| Net interest margin | 3.64 | % | 3.62 | % | ||||||||||
| Unity Bancorp, Inc. | ||||||||||||||
| Consolidated Average Balance Sheets | ||||||||||||||
| with Resultant Interest and Rates | ||||||||||||||
| (Tax-equivalent basis, dollars in thousands) | ||||||||||||||
| Three Months Ended | ||||||||||||||
| March 31, 2008 | March 31, 2007 | |||||||||||||
| Balance | Interest | Rate | Balance | Interest | Rate | |||||||||
| ASSETS | ||||||||||||||
| Interest-earning assets: | ||||||||||||||
| Federal funds sold and interest-bearing deposits with banks | $ | 22,925 | $ | 180 | 3.16 | % | $ | 20,650 | $ | 262 | 5.15 | % | ||
| FHLB/ACBB Stock | 4,174 | 100 | 9.64 | 2,748 | 58 | 8.56 | ||||||||
| Securities: | ||||||||||||||
| Available for sale | 70,757 | 908 | 5.13 | 62,157 | 734 | 4.72 | ||||||||
| Held to maturity | 34,147 | 455 | 5.33 | 42,287 | 558 | 5.28 | ||||||||
| Total securities | 104,904 | 1,363 | 5.20 | 104,444 | 1,292 | 4.95 | ||||||||
| Loans, net of unearned discount: | ||||||||||||||
| SBA | 98,614 | 2,328 | 9.44 | 81,783 | 2,340 | 11.44 | ||||||||
| Commercial | 372,343 | 6,735 | 7.28 | 318,638 | 5,988 | 7.62 | ||||||||
| Residential mortgage | 74,341 | 1,079 | 5.81 | 62,903 | 888 | 5.65 | ||||||||
| Consumer | 57,482 | 901 | 6.30 | 53,419 | 904 | 6.86 | ||||||||
| Total loans | 602,780 | 11,043 | 7.36 | 516,743 | 10,120 | 7.91 | ||||||||
| Total interest-earning assets | 734,783 | 12,686 | 6.93 | 644,585 | 11,732 | 7.34 | ||||||||
| Noninterest-earning assets: | ||||||||||||||
| Cash and due from banks | 14,991 | 12,228 | ||||||||||||
| Allowance for loan losses | (8,690) | (7,877) | ||||||||||||
| Other assets | 30,304 | 29,495 | ||||||||||||
| Total noninterest-earning assets | 36,605 | 33,846 | ||||||||||||
| Total Assets | $ | 771,388 | $ | 678,431 | ||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||
| Interest-bearing demand deposits | $ | 78,999 | 366 | 1.86 | $ | 97,570 | 552 | 2.29 | ||||||
| Savings deposits | 190,574 | 1,349 | 2.85 | 210,879 | 2,171 | 4.18 | ||||||||
| Time deposits | 276,426 | 3,220 | 4.69 | 170,508 | 1,970 | 4.69 | ||||||||
| Total interest-bearing deposits | 545,999 | 4,935 | 3.64 | 478,957 | 4,693 | 3.97 | ||||||||
| Borrowed funds and subordinated debentures | 100,850 | 1,065 | 4.25 | 75,133 | 990 | 5.34 | ||||||||
| Total interest-bearing liabilities | 646,849 | 6,000 | 3.73 | 554,090 | 5,683 | 4.16 | ||||||||
| Noninterest-bearing liabilities: | ||||||||||||||
| Demand deposits | 74,709 | 75,222 | ||||||||||||
| Other liabilities | 2,191 | 2,927 | ||||||||||||
| Total noninterest-bearing liabilities | 76,900 | 78,149 | ||||||||||||
| Shareholders' equity | 47,639 | 46,192 | ||||||||||||
| Total Liabilities and Shareholders' Equity | $ | 771,388 | $ | 678,431 | ||||||||||
| Net interest spread | 6,686 | 3.20 | % | 6,049 | 3.18 | % | ||||||||
| Tax-equivalent basis adjustment | (51) | (30) | ||||||||||||
| Net interest income | $ | 6,635 | $ | 6,019 | ||||||||||
| Net interest margin | 3.64 | % | 3.75 | % | ||||||||||
| Unity Bancorp, Inc. | |||||||||||
| Allowance for Loan Losses and Loan Quality Schedules | |||||||||||
| (Dollars in thousands) | |||||||||||
| 3/31/2008 | 12/31/2007 | 9/30/2007 | 6/30/2007 | 3/31/2007 | |||||||
| ALLOWANCE FOR LOAN LOSSES: | |||||||||||
| Balance, beginning of quarter | $ | 8,383 | $ | 8,183 | $ | 7,997 | $ | 7,757 | $ | 7,624 | |
| Provision charged to expense | 450 | 550 | 450 | 350 | 200 | ||||||
| 8,833 | 8,733 | 8,447 | 8,107 | 7,824 | |||||||
| Less: Charge offs | |||||||||||
| SBA | 264 | 260 | 270 | 124 | 116 | ||||||
| Commercial | - | 126 | 24 | 5 | - | ||||||
| Residential mortgage | 25 | - | - | - | - | ||||||
| Consumer | 6 | 20 | 28 | - | 2 | ||||||
| Total Charge Offs | 295 | 406 | 322 | 129 | 118 | ||||||
| Add: Recoveries | |||||||||||
| SBA | 60 | 53 | 41 | 12 | 41 | ||||||
| Commercial | 2 | 3 | 7 | 2 | 6 | ||||||
| Residential mortgage | - | - | - | - | - | ||||||
| Consumer | 50 | - | 10 | 5 | 4 | ||||||
| Total Recoveries | 112 | 56 | 58 | 19 | 51 | ||||||
| Net Charge Offs | 183 | 350 | 264 | 110 | 67 | ||||||
| Balance, end of quarter | $ | 8,650 | $ | 8,383 | $ | 8,183 | $ | 7,997 | $ | 7,757 | |
| LOAN QUALITY INFORMATION: | |||||||||||
| Nonperforming loans | $ | 4,142 | $ | 5,461 | $ | 4,185 | $ | 4,611 | $ | 6,515 | |
| Other real estate owned, net | 266 | 106 | 134 | 366 | 256 | ||||||
| Nonperforming assets | $ | 4,408 | $ | 5,567 | $ | 4,319 | $ | 4,977 | $ | 6,771 | |
| Loans 90 days past due and still accruing | $ | 546 | $ | 155 | $ | 340 | $ | 167 | $ | 145 | |
| Allowance for loan losses to: | |||||||||||
| Total loans at period end | 1.43 | % | 1.42 | % | 1.44 | % | 1.48 | % | 1.50 | % | |
| Nonperforming loans | 208.84 | 153.49 | 195.53 | 173.43 | 119.06 | ||||||
| Nonperforming assets | 196.23 | 150.57 | 189.47 | 160.68 | 114.56 | ||||||
| Net charge offs to average loans (QTD) | 0.12 | 0.24 | 0.19 | 0.08 | 0.05 | ||||||
| Net charge offs to average loans (YTD) | 0.12 | 0.14 | 0.11 | 0.07 | 0.05 | ||||||
| Nonperforming loans to total loans | 0.69 | 0.93 | 0.74 | 0.85 | 1.26 | ||||||
| Nonperforming assets to total loans and OREO | 0.73 | 0.94 | 0.76 | 0.92 | 1.31 | ||||||
| Unity Bancorp, Inc. | |||||||||||
| Quarterly Financial Data | |||||||||||
| 03/31/08 | 12/31/07 | 09/30/07 | 06/30/07 | 03/31/07 | |||||||
| SUMMARY OF INCOME (in thousands) : | |||||||||||
| Interest income | $ | 12,635 | $ | 12,657 | $ | 12,566 | $ | 11,975 | $ | 11,702 | |
| Interest expense | 6,000 | 6,310 | 6,593 | 5,888 | 5,683 | ||||||
| Net interest income | 6,635 | 6,347 | 5,973 | 6,087 | 6,019 | ||||||
| Provision for loan losses | 450 | 550 | 450 | 350 | 200 | ||||||
| Net interest income after provision | 6,185 | 5,797 | 5,523 | 5,737 | 5,819 | ||||||
| Noninterest income | 1,455 | 1,053 | 1,460 | 1,748 | 1,679 | ||||||
| Noninterest expense | 5,770 | 5,928 | 5,501 | 5,267 | 5,417 | ||||||
| Income before income taxes | 1,870 | 922 | 1,482 | 2,218 | 2,081 | ||||||
| Federal and state income tax provision | 626 | 242 | 430 | 676 | 630 | ||||||
| Net Income | 1,244 | 680 | 1,052 | 1,542 | 1,451 | ||||||
| Net Income per Common Share: | |||||||||||
| Basic | $ | 0.18 | $ | 0.10 | $ | 0.15 | $ | 0.22 | $ | 0.21 | |
| Diluted | 0.18 | 0.10 | 0.15 | 0.21 | 0.20 | ||||||
| COMMON SHARE DATA: | |||||||||||
| Cash dividends declared | $ | 0.05 | $ | 0.05 | $ | 0.05 | $ | 0.05 | $ | 0.05 | |
| Book value at quarter end | 7.10 | 7.03 | 6.94 | 6.87 | 6.84 | ||||||
| Market value at quarter end | 7.85 | 8.50 | 11.08 | 11.45 | 11.30 | ||||||
| Average common shares outstanding: (000's) | |||||||||||
| Basic | 6,739 | 6,769 | 6,871 | 6,985 | 6,976 | ||||||
| Diluted | 6,925 | 6,979 | 7,107 | 7,295 | 7,301 | ||||||
| Common shares outstanding at period end (000's) | 6,747 | 6,727 | 6,813 | 7,002 | 6,995 | ||||||
| OPERATING RATIOS: | |||||||||||
| Return on average assets | 0.65 | % | 0.38 | % | 0.57 | % | 0.89 | % | 0.87 | % | |
| Return on average common equity | 10.50 | 5.77 | 8.89 | 13.14 | 12.74 | ||||||
| Efficiency ratio | 71.95 | 74.07 | 74.23 | 67.22 | 70.46 | ||||||
| BALANCE SHEET DATA (in thousands): | |||||||||||
| Assets | $ | 807,874 | $ | 752,196 | $ | 746,821 | $ | 732,403 | $ | 681,302 | |
| Deposits | 642,282 | 601,268 | 612,215 | 596,093 | 541,399 | ||||||
| Loans | 602,943 | 590,132 | 567,597 | 541,385 | 515,562 | ||||||
| Shareholders' equity | 47,896 | 47,260 | 47,261 | 48,242 | 47,825 | ||||||
| Allowance for loan losses | 8,650 | 8,383 | 8,183 | 7,997 | 7,757 | ||||||
| TAX-EQUIVALENT YIELDS AND RATES: | |||||||||||
| Interest-earning assets | 6.93 | % | 7.10 | % | 7.16 | % | 7.28 | % | 7.31 | % | |
| Interest-bearing liabilities | 3.73 | 4.05 | 4.27 | 4.15 | 4.16 | ||||||
| Net interest spread | 3.20 | 3.05 | 2.89 | 3.13 | 3.15 | ||||||
| Net interest margin | 3.64 | 3.62 | 3.44 | 3.71 | 3.75 | ||||||
| CREDIT QUALITY: | |||||||||||
| Nonperforming assets (in thousands) | $ | 4,408 | $ | 5,567 | $ | 4,319 | $ | 4,977 | $ | 6,771 | |
| Allowance for loan losses to period-end loans | 1.43 | % | 1.42 | % | 1.44 | % | 1.48 | % | 1.50 | % | |
| Net charge offs to average loans | 0.12 | 0.24 | 0.19 | 0.08 | 0.05 | ||||||
| Nonperforming assets to loans and OREO | 0.73 | 0.94 | 0.76 | 0.92 | 1.31 | ||||||
| CAPITAL AND OTHER: | |||||||||||
| Total equity to assets | 5.93 | % | 6.28 | % | 6.33 | % | 6.59 | % | 7.02 | % | |
| Tier I capital to average assets (leverage) | 8.06 | 8.25 | 8.37 | 9.21 | 9.24 | ||||||
| Tier I capital to risk-adjusted assets | 9.68 | 9.81 | 10.51 | 11.07 | 11.43 | ||||||
| Total capital to risk-adjusted assets | 10.93 | 11.06 | 11.76 | 13.72 | 14.21 | ||||||
| Number of banking offices | 17 | 17 | 16 | 15 | 15 | ||||||
| Number of ATMs | 20 | 20 | 19 | 18 | 18 | ||||||
| Number of employees | 188 | 201 | 197 | 195 | 179 | ||||||