Unity Bancorp, Inc.
64 Old Highway 22
Clinton, NJ 08809
800 618-BANK
www.unitybank.com
NewsNewsNewsNewsNews
For Immediate Release:
October 22, 2009
News Media & Financial Analyst Contact:
Alan J. Bedner, EVP
Chief Financial Officer
(908) 713-4308
Unity Bancorp Reports Third Quarter and Nine Month Results
Clinton, NJ - Unity Bancorp, Inc. (NASDAQ: UNTY), parent company of Unity Bank, reported a net loss attributable to common shareholders of $1.1 million or ($0.16) per diluted share for the quarter ended September 30, 2009, compared to a net loss of $1.0 million or ($0.14) per diluted share, for the third quarter of 2008. For the nine months ended September 30, 2009, the Company reported a net loss attributable to common shareholders of $2.3 million, or ($0.33) per diluted share, compared to net income of $1.3 million, or $0.19 per diluted share, for the same period a year ago.
James A. Hughes, Unity Bancorp’s President and CEO, said, “As a result of continued stress in our Small Business (“SBA”) portfolio, we substantially increased our loan loss provision this quarter. The increase was necessary to bolster our reserves so that we can aggressively deal with problem credits. We anticipate elevated provisions until economic conditions improve. Meanwhile, we are continuing to grow our customer relationships and invest in our future. This year we are having record core deposit growth, and we are extremely optimistic that our redefined strategic plan will enhance our franchise. Our capital levels continue to be strong and we expect 2010 to be a year of turnaround for our performance.”
Net Interest Income
Since September 30, 2008, the Federal Open Market Committee has lowered interest rates 175 basis points in an attempt to stimulate economic activity. These decreases have resulted in lower yields on earning assets, in addition to lower funding costs. During the remainder of 2009, we expect net interest margin to expand as higher cost certificates of deposit reprice in the current lower rate environment. For the quarter ended September 30, 2009, net interest income was $6.9 million, flat from the quarter ended June 30, 2009, and a decrease of 3.2% from the quarter ended September 30, 2008.
Factors affecting third quarter net interest income include:
| · | The yield on interest-earning assets decreased 81 basis points to 5.64% from 6.45% for the same period last year. |
| · | The cost of interest-bearing liabilities decreased 48 basis points to 2.80% from 3.28% for the same period last year. |
| · | Average earning assets, consisting primarily of loans, rose 7.4%. |
| · | Net interest margin was 3.17%, a 38 basis point decline from 3.55% in the third quarter of 2008. |
Year-to-date, net interest income was $20.5 million, flat from prior year 2008. Factors affecting year-to-date net interest income include:
| · | Net interest margin for the nine months ended 2009 was 3.20%, a decline of 41 basis points from the same period last year. |
| · | The yield on earning assets decreased from 6.64% for the first nine months of 2008, to 5.81% for the first nine months of 2009. |
| · | The cost of interest-bearing liabilities decreased from 3.43% for the first nine months of 2008, to 2.98% for the first nine months of 2009. |
Noninterest Income
Historically, Unity has generated noninterest income from gains on the sale of its SBA loans. In the fourth quarter of 2008, Unity exited the National SBA program as a line of business and closed all SBA loan production offices outside its primary trade area. Consequently, this decision has impacted noninterest income by substantially reducing gains on sales of SBA loans.
For the quarter ended September 30, 2009, noninterest income increased $1.5 million from the quarter ended September 30, 2008. Noninterest income was affected by the following factors:
| · | Service charges on deposit accounts remained relatively flat compared to the prior year period. |
| · | Loan fee income amounted to $398 thousand, an increase of 19.2% due to increased loan prepayment fees. |
| · | There were no other-than-temporary impairment charges on investment securities, compared to $946 thousand in the prior year period. |
| · | Gains on the sale of residential mortgage loans amounted to $71 thousand. |
| · | There were no sales of SBA loans, compared to gains of $215 thousand a year ago. |
| · | Gains on the sales of investment securities amounted to $158 thousand compared to a loss of $512 thousand in the prior year period. |
For the nine months ended September 30, 2009, noninterest income amounted to $1.6 million, a decline of $534 thousand from the nine months ended September 30, 2008. Noninterest income was affected by the following factors:
| · | Service charges on deposit accounts and loan fee income remained relatively flat compared to the prior year period. |
| · | Other-than-temporary impairment charges on investment securities amounted to $1.7 million, compared to $1.2 million in the prior year period. |
| · | Gains on sales of SBA loans amounted to $29 thousand, compared to $1.2 million a year ago. |
| · | Gains on the sales of residential mortgage loans amounted to $184 thousand, compared to $21 thousand from the prior year period. |
| · | Gains on the sale of investment securities amounted to $675 thousand, compared to a loss of $393 thousand from the prior year period. |
Noninterest Expense
As a result of current market conditions, the Company effected head-count reductions, primarily related to the closing of SBA loan production offices and instituted a salary freeze. In addition, the Company undertook other expense saving measures. However, these expense reductions were offset by increases in FDIC insurance premiums.
For the quarter ended September 30, 2009, noninterest expenses were $6.1 million, an increase of 5.7% from the quarter ended September 30, 2008. The following factors affected our noninterest expense:
| · | Compensation and benefits expense amounted to $2.9 million, a decrease of $39 thousand, or 1.3% due to reduced head count. |
| · | Communications and delivery, and occupancy expense declined by 4.2% and 13.5%, respectively, due to reduced communications costs from renegotiated contracts, a decline in capital expenditures and a reduction in rental expense from a renegotiated lease. |
| · | FF&E and professional services expense remained flat from the prior year period. |
| · | Loan collection costs increased $109 thousand, due to increased collection costs on delinquent loans. |
| · | FDIC insurance premiums increased $234 thousand, due to the increase in FDIC insurance rates. |
For the nine months ended September 30, 2009, noninterest expenses were $17.9 million, an increase of 4.1% from the same period a year ago. The following factors affected our noninterest expense:
| · | Compensation and benefits expense amounted to $8.4 million, a decrease of $762 thousand, or 8.3% due to reduced head count. |
| · | Communications and delivery, and occupancy expense declined by 6.8% and 8.2%, respectively, due to reduced communications costs from renegotiated contracts and a decline in capital expenditures and a reduction in rental expense from a renegotiated lease. |
| · | FF&E expense increased $157 thousand, primarily due to depreciation expense on new equipment and software and increased software maintenance charges. |
| · | Professional fees increased $154 thousand, due to increased consulting, legal and audit costs. |
| · | Loan collection costs increased $248 thousand, due to increased collection costs on delinquent loans. |
| · | FDIC insurance premiums increased $1.1 million, due primarily to the increase in FDIC insurance rates and a $408 thousand special assessment in the second quarter of 2009. |
Financial Condition
At September 30, 2009, total assets were $922.7 million, a 6.8% increase from a year ago.
| · | Total loans decreased $28.5 million, or 4.2%, from $685.0 million at September 30, 2008. SBA 7(a), SBA 504, commercial and residential loans decreased 1.7%, 13.1%, 4.5%, and 3.0%, respectively, partially offset by an increase in consumer loans of 3.1%. |
| · | Total securities increased $72.1 million as Unity took advantage of favorable credit spreads to invest excess liquidity. |
| · | Total deposits increased 9.6% or $66.0 million to $750.7 million at September 30, 2009. This increase was due to a $115.7 million increase in savings deposits, a $4.8 million increase in interest- bearing checking accounts and a $1.4 million increase in demand deposits. These increases were partially offset by a $55.9 million decrease in time deposits. The increase in savings accounts and checking accounts is due to a high yield savings product that requires a related checking account. During the remainder of 2009, the Company expects continued migration of time deposits to lower rate accounts. |
| · | Total borrowed funds decreased $30.0 million from a year ago. |
| · | Shareholders’ equity was $67.4 million at September 30, 2009, an increase of $20.8 million, primarily due to the issuance of $20.6 million of preferred stock under the U.S. Department of Treasury’s Capital Purchase Program. |
| · | Book value per common share was $6.88. |
| · | At September 30, 2009 the leverage, Tier I and Total Risk Based Capital ratios were 9.08%, 11.83% and 13.09%, respectively, all in excess of the ratios required to be deemed “well capitalized”. |
Credit Quality
| · | Nonperforming assets totaled $27.5 million at September 30, 2009, or 4.17% of total loans and other real estate owned (“OREO”) compared to $11.0 million, or 1.60% of total loans and OREO a year ago. The SBA 7(a), SBA 504, commercial and residential and consumer nonaccrual loans were $5.8, $6.0, $6.5 and $6.4 million, respectively. OREO amounted to $2.8 million. The increase in nonperforming assets was primarily related to an increase in SBA and residential mortgage accounts. The majority of nonperforming assets are secured by real estate. |
| · | The allowance for loan losses totaled $12.4 million at September 30, 2009, or 1.90% of total loans. The provision for loan losses for the third quarter of 2009 amounted to $3.0 million, an increase of $900 thousand from the same period a year ago. The provision for loan losses for the nine months ended September 30, 2009, amounted to $6.0 million, an increase of $2.8 million from the same period a year ago. |
| · | Net charge-offs were $1.2 million for the three months ended September 30, 2009, compared to $1.1 million for the same period a year ago. Net charge-offs were $3.9 million for the nine months ended September 30, 2009, compared to $1.7 million for the same period a year ago. |
Unity Bancorp, Inc. is a financial service organization headquartered in Clinton, New Jersey, with approximately $923 million in assets and $751 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. | ||||||||||||||||||||
| SUMMARY FINANCIAL HIGHLIGHTS | ||||||||||||||||||||
| September 30, 2009 | ||||||||||||||||||||
| 2009.Q3 VS. | ||||||||||||||||||||
| 2009.Q2 | 2008.Q3 | |||||||||||||||||||
| Amounts in thousands, except percentages and per share amounts | 9/30/2009 | 6/30/2009 | 9/30/2008 | % | % | |||||||||||||||
| BALANCE SHEET DATA: | ||||||||||||||||||||
| Total Assets | $ | 922,689 | $ | 913,446 | $ | 864,083 | 1.0 | % | 6.8 | % | ||||||||||
| Total Deposits | 750,665 | 731,763 | 684,680 | 2.6 | % | 9.6 | % | |||||||||||||
| Total Loans | 656,520 | 665,331 | 685,023 | -1.3 | % | -4.2 | % | |||||||||||||
| Total Securities | 171,501 | 164,794 | 99,410 | 4.1 | % | 72.5 | % | |||||||||||||
| Total Shareholders' Equity | 67,385 | 67,064 | 46,539 | 0.5 | % | 44.8 | % | |||||||||||||
| Allowance for loan losses | (12,445 | ) | (10,665 | ) | (9,913 | ) | 16.7 | % | 25.5 | % | ||||||||||
| FINANCIAL DATA - QUARTER TO DATE: | ||||||||||||||||||||
| Net Income (loss) Before Taxes | $ | (1,090 | ) | $ | (1,752 | ) | $ | (1,141 | ) | -37.8 | % | -4.5 | % | |||||||
| Income taxes (benefit) | (343 | ) | (552 | ) | (139 | ) | -37.9 | % | 146.8 | % | ||||||||||
| Net income (loss) | (747 | ) | (1,200 | ) | (1,002 | ) | -37.8 | % | -25.4 | % | ||||||||||
| Preferred Dividends & Discount Accretion | 371 | 372 | - | -0.3 | % | 100.0 | % | |||||||||||||
| Loss Attributable to Common Shareholders | $ | (1,118 | ) | $ | (1,572 | ) | $ | (1,002 | ) | -28.9 | % | 11.6 | % | |||||||
| Net Loss Per Share - Basic | $ | (0.16 | ) | $ | (0.22 | ) | $ | (0.14 | ) | -28.9 | % | 11.4 | % | |||||||
| Net Loss Per Share - Diluted | $ | (0.16 | ) | $ | (0.22 | ) | $ | (0.14 | ) | -29.1 | % | 12.7 | % | |||||||
| Return on Average Assets | -0.33 | % | -0.54 | % | -0.47 | % | -39.2 | % | -30.5 | % | ||||||||||
| Return on Average Common Equity | -9.14 | % | -12.97 | % | -8.45 | % | -29.6 | % | 8.1 | % | ||||||||||
| Efficiency Ratio | 77.72 | % | 80.58 | % | 70.51 | % | -3.6 | % | 10.2 | % | ||||||||||
| FINANCIAL DATA - YEAR TO DATE: | ||||||||||||||||||||
| Net Income (loss) Before Taxes | $ | (1,774 | ) | $ | (685 | ) | $ | 2,328 | 159.0 | % | -176.2 | % | ||||||||
| Income taxes (benefit) | (559 | ) | (216 | ) | 982 | 158.8 | % | -156.9 | % | |||||||||||
| Net income (loss) | (1,215 | ) | (469 | ) | 1,346 | 159.1 | % | -190.3 | % | |||||||||||
| Preferred Dividends & Discount Accretion | 1,122 | 751 | - | 49.4 | % | 100.0 | % | |||||||||||||
| (Loss Attributable) Income Available to Common Shareholders | $ | (2,337 | ) | $ | (1,220 | ) | $ | 1,346 | 91.6 | % | -273.6 | % | ||||||||
| Net (Loss) Income Per Share - Basic | $ | (0.33 | ) | $ | (0.17 | ) | $ | 0.19 | 91.6 | % | -272.9 | % | ||||||||
| Net (Loss) Income Per Share - Diluted | $ | (0.33 | ) | $ | (0.17 | ) | $ | 0.19 | 91.2 | % | -276.0 | % | ||||||||
| Return on Average Assets (annualized) | -0.18 | % | -0.11 | % | 0.22 | % | 71.6 | % | -180.4 | % | ||||||||||
| Return on Average Common Equity (annualized) | -6.38 | % | -5.02 | % | 3.77 | % | 26.9 | % | -269.3 | % | ||||||||||
| Efficiency Ratio | 77.12 | % | 76.82 | % | 70.68 | % | 0.4 | % | 9.1 | % | ||||||||||
| SHARE INFORMATION: | ||||||||||||||||||||
| Market Price Per Share | $ | 4.20 | $ | 3.55 | $ | 4.00 | 18.3 | % | 5.0 | % | ||||||||||
| Dividends Paid Per Share | - | - | - | 0.0 | % | 0.0 | % | |||||||||||||
| Book Value Per Common Share | 6.88 | 6.85 | 6.55 | 0.4 | % | 5.1 | % | |||||||||||||
| Average Diluted Shares Outstanding (QTD) | 7,190 | 7,168 | 7,259 | 0.3 | % | -1.0 | % | |||||||||||||
| CAPITAL RATIOS: | ||||||||||||||||||||
| Total Equity to Total Assets | 7.30 | % | 7.34 | % | 5.39 | % | -0.5 | % | 35.6 | % | ||||||||||
| Leverage Ratio | 9.08 | % | 9.30 | % | 7.42 | % | -2.3 | % | 22.4 | % | ||||||||||
| Tier 1 Risk-Based Capital Ratio | 11.83 | % | 11.88 | % | 9.07 | % | -0.4 | % | 30.4 | % | ||||||||||
| Total Risk-Based Capital Ratio | 13.09 | % | 13.13 | % | 10.33 | % | -0.3 | % | 26.7 | % | ||||||||||
| CREDIT QUALITY AND RATIOS: | ||||||||||||||||||||
| Nonperforming Assets | 27,461 | 23,240 | 10,954 | 18.2 | % | 150.7 | % | |||||||||||||
| QTD Net Chargeoffs (annualized) to QTD Average Loans | 0.73 | % | 0.69 | % | 0.67 | % | 6.6 | % | 8.8 | % | ||||||||||
| Allowance for Loan Losses to Total Loans | 1.90 | % | 1.60 | % | 1.45 | % | 18.3 | % | 31.0 | % | ||||||||||
| Nonperforming Assets to Total Loans and OREO | 4.17 | % | 3.49 | % | 1.60 | % | 19.3 | % | 160.6 | % | ||||||||||
| Nonperforming Assets to Total Assets | 2.98 | % | 2.54 | % | 1.27 | % | 17.0 | % | 134.8 | % | ||||||||||
| UNITY BANCORP, INC. | ||||||||||||||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||||||||||||||
| September 30, 2009 | ||||||||||||||||||||
| 2009.Q3 VS. | ||||||||||||||||||||
| 2009.Q2 | 2008.Q3 | |||||||||||||||||||
| Amounts in thousands | 9/30/2009 | 6/30/2009 | 9/30/2008 | % | % | |||||||||||||||
| ASSETS | ||||||||||||||||||||
| Cash and due from banks | $ | 17,035 | $ | 17,295 | $ | 21,987 | -1.5 | % | -22.5 | % | ||||||||||
| Federal funds sold and interest-bearing deposits | 48,853 | 37,232 | 29,356 | 31.2 | % | 66.4 | % | |||||||||||||
| Cash and cash equivalents | 65,888 | 54,527 | 51,343 | 20.8 | % | 28.3 | % | |||||||||||||
| Securities available for sale | 140,906 | 132,719 | 70,144 | 6.2 | % | 100.9 | % | |||||||||||||
| Securities held to maturity | 30,595 | 32,075 | 29,266 | -4.6 | % | 4.5 | % | |||||||||||||
| Total securities | 171,501 | 164,794 | 99,410 | 4.1 | % | 72.5 | % | |||||||||||||
| SBA loans held for sale | 21,364 | 23,161 | 19,863 | -7.8 | % | 7.6 | % | |||||||||||||
| SBA loans held to maturity | 79,342 | 82,157 | 82,551 | -3.4 | % | -3.9 | % | |||||||||||||
| SBA 504 loans | 71,432 | 72,619 | 82,227 | -1.6 | % | -13.1 | % | |||||||||||||
| Commercial loans | 298,019 | 299,411 | 311,988 | -0.5 | % | -4.5 | % | |||||||||||||
| Residential mortgage loans | 124,313 | 125,466 | 128,216 | -0.9 | % | -3.0 | % | |||||||||||||
| Consumer loans | 62,050 | 62,517 | 60,178 | -0.7 | % | 3.1 | % | |||||||||||||
| Total loans | 656,520 | 665,331 | 685,023 | -1.3 | % | -4.2 | % | |||||||||||||
| Allowance for loan losses | (12,445 | ) | (10,665 | ) | (9,913 | ) | 16.7 | % | 25.5 | % | ||||||||||
| Net loans | 644,075 | 654,666 | 675,110 | -1.6 | % | -4.6 | % | |||||||||||||
| Premises and equipment, net | 11,911 | 12,067 | 12,475 | -1.3 | % | -4.5 | % | |||||||||||||
| Bank owned life insurance (BOLI) | 5,946 | 5,890 | 5,727 | 1.0 | % | 3.8 | % | |||||||||||||
| Federal Home Loan Bank stock | 4,677 | 5,127 | 5,307 | -8.8 | % | -11.9 | % | |||||||||||||
| Accrued interest receivable | 4,230 | 4,263 | 4,364 | -0.8 | % | -3.1 | % | |||||||||||||
| Goodwill and other intangibles | 1,563 | 1,566 | 1,577 | -0.2 | % | -0.9 | % | |||||||||||||
| Loan servicing asset | 977 | 1,142 | 1,721 | -14.4 | % | -43.2 | % | |||||||||||||
| Other assets | 11,921 | 9,404 | 7,049 | 26.8 | % | 69.1 | % | |||||||||||||
| Total Assets | $ | 922,689 | $ | 913,446 | $ | 864,083 | 1.0 | % | 6.8 | % | ||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||
| Noninterest-bearing checking | $ | 83,534 | $ | 83,639 | $ | 82,167 | -0.1 | % | 1.7 | % | ||||||||||
| Total interest-bearing checking | 92,401 | 84,842 | 87,587 | 8.9 | % | 5.5 | % | |||||||||||||
| Total savings | 263,758 | 211,876 | 148,026 | 24.5 | % | 78.2 | % | |||||||||||||
| Time deposits, under $100,000 | 209,050 | 239,893 | 274,845 | -12.9 | % | -23.9 | % | |||||||||||||
| Time deposits, $100,000 and over | 101,922 | 111,513 | 92,055 | -8.6 | % | 10.7 | % | |||||||||||||
| Total deposits | 750,665 | 731,763 | 684,680 | 2.6 | % | 9.6 | % | |||||||||||||
| Borrowed Funds | 85,000 | 95,000 | 115,000 | -10.5 | % | -26.1 | % | |||||||||||||
| Subordinated debentures | 15,465 | 15,465 | 15,465 | 0.0 | % | 0.0 | % | |||||||||||||
| Accrued interest payable | 797 | 847 | 869 | -5.9 | % | -8.3 | % | |||||||||||||
| Accrued expenses and other liabilities | 3,377 | 3,307 | 1,530 | 2.1 | % | 120.7 | % | |||||||||||||
| Total Liabilities | 855,304 | 846,382 | 817,544 | 1.1 | % | 4.6 | % | |||||||||||||
| Cumulative Perpetual Preferred stock | 18,418 | 18,305 | - | 0.6 | % | 100.0 | % | |||||||||||||
| Common stock | 55,351 | 55,264 | 52,453 | 0.2 | % | 5.5 | % | |||||||||||||
| Retained earnings (deficit) | (1,253 | ) | (135 | ) | 591 | 828.1 | % | -312.0 | % | |||||||||||
| Treasury stock at cost | (4,169 | ) | (4,169 | ) | (4,169 | ) | 0.0 | % | 0.0 | % | ||||||||||
| Accumulated other comprehensive loss | (962 | ) | (2,201 | ) | (2,336 | ) | -56.3 | % | -58.8 | % | ||||||||||
| Total Shareholders' Equity | 67,385 | 67,064 | 46,539 | 0.5 | % | 44.8 | % | |||||||||||||
| Total Liabilities and Shareholders' Equity | $ | 922,689 | $ | 913,446 | $ | 864,083 | 1.0 | % | 6.8 | % | ||||||||||
| Common Shares at Period End: | ||||||||||||||||||||
| Shares Issued | 7,544 | 7,544 | 7,535 | |||||||||||||||||
| Shares Outstanding | 7,119 | 7,119 | 7,110 | |||||||||||||||||
| Treasury Shares | 425 | 425 | 425 | |||||||||||||||||
| UNITY BANCORP, INC. | ||||||||||||||||||||
| QTD CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||||||
| September 30, 2009 | ||||||||||||||||||||
| For the Three Months Ended | 2009.Q3 VS. | |||||||||||||||||||
| 2009.Q2 | 2008.Q3 | |||||||||||||||||||
| Amounts in thousands, except percentages and per share amounts | 9/30/2009 | 6/30/2009 | 9/30/2008 | % | % | |||||||||||||||
| Interest Income - Cash | $ | 32 | $ | 29 | $ | 113 | 10.3 | % | -71.7 | % | ||||||||||
| Interest Income - FHLB/ACBB Stock | 101 | 122 | 58 | -17.2 | % | 74.1 | % | |||||||||||||
| Interest Income - AFS Investments | 1,482 | 1,509 | 907 | -1.8 | % | 63.4 | % | |||||||||||||
| Interest Income - HTM Investments | 389 | 391 | 381 | -0.5 | % | 2.1 | % | |||||||||||||
| Interest Income - Total Investments | 1,871 | 1,900 | 1,288 | -1.5 | % | 45.3 | % | |||||||||||||
| Interest Income - SBA Loans | 1,498 | 1,564 | 2,043 | -4.2 | % | -26.7 | % | |||||||||||||
| Interest Income - SBA 504 Loans | 1,147 | 1,285 | 1,424 | -10.7 | % | -19.5 | % | |||||||||||||
| Interest Income - Commercial Loans | 4,973 | 5,051 | 5,453 | -1.5 | % | -8.8 | % | |||||||||||||
| Interest Income - Mortgage Loans | 1,772 | 1,783 | 1,720 | -0.6 | % | 3.0 | % | |||||||||||||
| Interest Income - Consumer Loans | 791 | 797 | 866 | -0.8 | % | -8.7 | % | |||||||||||||
| Interest Income - Total Loans | 10,181 | 10,480 | 11,506 | -2.9 | % | -11.5 | % | |||||||||||||
| Total Interest Income | 12,185 | 12,531 | 12,965 | -2.8 | % | -6.0 | % | |||||||||||||
| Interest Expense - Total Checking | 264 | 267 | 404 | -1.1 | % | -34.7 | % | |||||||||||||
| Interest Expense - Total Savings | 1,032 | 912 | 774 | 13.2 | % | 33.3 | % | |||||||||||||
| Interest Expense - Total CDs | 2,950 | 3,409 | 3,553 | -13.5 | % | -17.0 | % | |||||||||||||
| Interest Expense - Borrowings | 1,081 | 1,085 | 1,152 | -0.4 | % | -6.2 | % | |||||||||||||
| Total Interest Expense | 5,327 | 5,673 | 5,883 | -6.1 | % | -9.5 | % | |||||||||||||
| Net Interest Income Before Provision | 6,858 | 6,858 | 7,082 | 0.0 | % | -3.2 | % | |||||||||||||
| Provision for Loan Losses | 3,000 | 1,500 | 2,100 | 100.0 | % | 42.9 | % | |||||||||||||
| Net Interest Income After Provision | 3,858 | 5,358 | 4,982 | -28.0 | % | -22.6 | % | |||||||||||||
| Branch Fee Income | 373 | 335 | 381 | 11.3 | % | -2.1 | % | |||||||||||||
| Loan Fee Income | 398 | 294 | 334 | 35.4 | % | 19.2 | % | |||||||||||||
| Bank Owned Life Insurance (BOLI) | 56 | 55 | 53 | 1.8 | % | 5.7 | % | |||||||||||||
| Gain (Loss) on Sale of Mortgage Loans | 71 | 49 | - | 44.9 | % | 100.0 | % | |||||||||||||
| Gain (Loss) on Sale of SBA Loans | - | - | 215 | 0.00 | % | -100.0 | % | |||||||||||||
| Gain (Loss) on Sale of SBA 504 Loans | - | - | - | 0.00 | % | 0.00 | % | |||||||||||||
| Other-than-temporary impairment charges | - | (1,749 | ) | (946 | ) | -100.0 | % | -100.0 | % | |||||||||||
| Net security gains (losses) | 158 | 2 | (512 | ) | 7800.0 | % | -130.9 | % | ||||||||||||
| Other Income | 106 | 107 | 131 | -0.9 | % | -19.1 | % | |||||||||||||
| Total Noninterest Income (Loss) | 1,162 | (907 | ) | (344 | ) | -228.1 | % | -437.8 | % | |||||||||||
| Total Compensation and Benefits | 2,909 | 2,853 | 2,948 | 2.0 | % | -1.3 | % | |||||||||||||
| Occupancy Expense | 595 | 647 | 688 | -8.0 | % | -13.5 | % | |||||||||||||
| Communications and Delivery Expense | 531 | 482 | 554 | 10.2 | % | -4.2 | % | |||||||||||||
| Furniture, Fixtures and Equipment Expense | 414 | 471 | 423 | -12.1 | % | -2.1 | % | |||||||||||||
| Professional Services Expense | 274 | 260 | 285 | 5.4 | % | -3.9 | % | |||||||||||||
| Loan Expense | 315 | 180 | 206 | 75.0 | % | 52.9 | % | |||||||||||||
| FDIC Insurance Expense | 351 | 708 | 117 | -50.4 | % | 200.0 | % | |||||||||||||
| Advertising Expense | 147 | 151 | 158 | -2.6 | % | -7.0 | % | |||||||||||||
| Other Expense | 574 | 451 | 400 | 27.3 | % | 43.5 | % | |||||||||||||
| Total Noninterest Expense | 6,110 | 6,203 | 5,779 | -1.5 | % | 5.7 | % | |||||||||||||
| Net Income (Loss) Before Taxes | (1,090 | ) | (1,752 | ) | (1,141 | ) | -37.8 | % | -4.5 | % | ||||||||||
| Income taxes (benefit) | (343 | ) | (552 | ) | (139 | ) | -37.9 | % | 146.8 | % | ||||||||||
| Net Income (Loss) | (747 | ) | (1,200 | ) | (1,002 | ) | -37.8 | % | -25.4 | % | ||||||||||
| Preferred Dividends & Discount Accretion | 371 | 372 | - | -0.3 | % | 100.0 | % | |||||||||||||
| Loss Attributable to Common Shareholders | $ | (1,118 | ) | $ | (1,572 | ) | $ | (1,002 | ) | -28.9 | % | 11.6 | % | |||||||
| Effective Tax Rate | 31.47 | % | 31.51 | % | 12.18 | % | ||||||||||||||
| Net Loss Per Share - Basic | (0.16 | ) | (0.22 | ) | (0.14 | ) | ||||||||||||||
| Net Loss Per Share - Diluted | (0.16 | ) | (0.22 | ) | (0.14 | ) | ||||||||||||||
| Average Shares Outstanding - Basic | 7,119 | 7,119 | 7,107 | |||||||||||||||||
| Average Shares Outstanding - Diluted | 7,190 | 7,168 | 7,259 | |||||||||||||||||
| UNITY BANCORP, INC. | ||||||||||||||||
| YTD CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
| September 30, 2009 | ||||||||||||||||
| CURRENT YTD | PRIOR YTD | CURRENT YTD VS. PRIOR YTD | ||||||||||||||
| Amounts in thousands, except percentages and per share amounts | 9/30/2009 | 9/30/2008 | $ | % | ||||||||||||
| Interest Income - Cash | $ | 78 | $ | 404 | $ | (326 | ) | -80.7 | % | |||||||
| Interest Income - FHLB/ACBB Stock | 219 | 234 | (15 | ) | -6.4 | % | ||||||||||
| Interest Income - AFS Investments | 4,670 | 2,714 | 1,956 | 72.1 | % | |||||||||||
| Interest Income - HTM Investments | 1,167 | 1,216 | (49 | ) | -4.0 | % | ||||||||||
| Interest Income - Total Investments | 5,837 | 3,930 | 1,907 | 48.5 | % | |||||||||||
| Interest Income - SBA Loans | 4,668 | 6,399 | (1,731 | ) | -27.1 | % | ||||||||||
| Interest Income - SBA 504 Loans | 3,663 | 4,134 | (471 | ) | -11.4 | % | ||||||||||
| Interest Income - Commercial Loans | 15,040 | 16,145 | (1,105 | ) | -6.8 | % | ||||||||||
| Interest Income - Mortgage Loans | 5,419 | 4,008 | 1,411 | 35.2 | % | |||||||||||
| Interest Income - Consumer Loans | 2,383 | 2,613 | (230 | ) | -8.8 | % | ||||||||||
| Interest Income - Total Loans | 31,173 | 33,299 | (2,126 | ) | -6.4 | % | ||||||||||
| Total Interest Income | 37,307 | 37,867 | (560 | ) | -1.5 | % | ||||||||||
| Interest Expense - Total Checking | 801 | 1,120 | (319 | ) | -28.5 | % | ||||||||||
| Interest Expense - Total Savings | 2,588 | 3,041 | (453 | ) | -14.9 | % | ||||||||||
| Interest Expense - Total CDs | 10,084 | 9,779 | 305 | 3.1 | % | |||||||||||
| Interest Expense - Borrowings | 3,344 | 3,372 | (28 | ) | -0.8 | % | ||||||||||
| Total Interest Expense | 16,817 | 17,312 | (495 | ) | -2.9 | % | ||||||||||
| Net Interest Income Before Provision | 20,490 | 20,555 | (65 | ) | -0.3 | % | ||||||||||
| Provision for Loan Losses | 6,000 | 3,200 | 2,800 | 87.5 | % | |||||||||||
| Net Interest Income After Provision | 14,490 | 17,355 | (2,865 | ) | -16.5 | % | ||||||||||
| Branch Fee Income | 1,038 | 1,042 | (4 | ) | -0.4 | % | ||||||||||
| Loan Fee Income | 946 | 936 | 10 | 1.1 | % | |||||||||||
| Bank Owned Life Insurance (BOLI) | 166 | 157 | 9 | 5.7 | % | |||||||||||
| Gain (Loss) on Sale of Mortgage Loans | 184 | 21 | 163 | 776.2 | % | |||||||||||
| Gain (Loss) on Sale of SBA Loans | 29 | 1,208 | (1,179 | ) | -97.6 | % | ||||||||||
| Gain (Loss) on Sale of SBA 504 Loans | - | - | - | 0.00 | % | |||||||||||
| Other-than-temporary impairment charges | (1,749 | ) | (1,201 | ) | (548 | ) | 45.6 | % | ||||||||
| Net security gains (losses) | 675 | (393 | ) | 1,068 | -271.8 | % | ||||||||||
| Other Income | 316 | 369 | (53 | ) | -14.4 | % | ||||||||||
| Total Noninterest Income (Loss) | $ | 1,605 | $ | 2,139 | $ | (534 | ) | -25.0 | % | |||||||
| Total Compensation and Benefits | 8,386 | 9,148 | (762 | ) | -8.3 | % | ||||||||||
| Occupancy Expense | 1,929 | 2,102 | (173 | ) | -8.2 | % | ||||||||||
| Communications and Delivery Expense | 1,554 | 1,668 | (114 | ) | -6.8 | % | ||||||||||
| Furniture, Fixtures and Equipment Expense | 1,381 | 1,224 | 157 | 12.8 | % | |||||||||||
| Professional Services Expense | 780 | 626 | 154 | 24.6 | % | |||||||||||
| Loan Expense | 694 | 446 | 248 | 55.6 | % | |||||||||||
| FDIC Insurance Expense | 1,361 | 291 | 1,070 | 367.7 | % | |||||||||||
| Advertising Expense | 373 | 299 | 74 | 24.7 | % | |||||||||||
| Other Expense | 1,411 | 1,362 | 49 | 3.6 | % | |||||||||||
| Total Noninterest Expense | 17,869 | 17,166 | 703 | 4.1 | % | |||||||||||
| Net Income (Loss) Before Taxes | (1,774 | ) | 2,328 | (4,102 | ) | -176.2 | % | |||||||||
| Income taxes (benefit) | (559 | ) | 982 | (1,541 | ) | -156.9 | % | |||||||||
| Net Income (Loss) | (1,215 | ) | 1,346 | (2,561 | ) | -190.3 | % | |||||||||
| Preferred Dividends & Discount Accretion | 1,122 | - | 1,122 | 100.0 | % | |||||||||||
| (Loss Attributable) Income Available to Common Shareholders | $ | (2,337 | ) | $ | 1,346 | $ | (3,683 | ) | -273.6 | % | ||||||
| Effective Tax Rate | 31.5 | % | 42.2 | % | ||||||||||||
| Net (Loss) Income Per Share - Basic | (0.33 | ) | 0.19 | |||||||||||||
| Net (Loss) Income Per Share - Diluted | (0.33 | ) | 0.19 | |||||||||||||
| Average Shares Outstanding - Basic | 7,119 | 7,091 | ||||||||||||||
| Average Shares Outstanding - Diluted | 7,170 | 7,268 | ||||||||||||||
| UNITY BANCORP, INC. | ||||||||||||||||||||||||
| QUARTER TO DATE NET INTEREST MARGIN | ||||||||||||||||||||||||
| September 30, 2009 | ||||||||||||||||||||||||
| For the Three Months Ended | ||||||||||||||||||||||||
| September 30, 2009 | June 30, 2009 | |||||||||||||||||||||||
| Amounts in thousands, except percentages | Average Balance | Interest | Rate/Yield | Average Balance | Interest | Rate/Yield | ||||||||||||||||||
| Interest-earning Assets: | ||||||||||||||||||||||||
| Federal funds sold and interest-bearing deposits | $ | 32,940 | $ | 32 | 0.39 | % | $ | 14,153 | $ | 29 | 0.82 | % | ||||||||||||
| Federal Home Loan Bank stock | 4,677 | 101 | 8.57 | % | 4,972 | 122 | 9.84 | % | ||||||||||||||||
| Securities available for sale | 131,360 | 1,495 | 4.55 | % | 130,751 | 1,522 | 4.66 | % | ||||||||||||||||
| Securities held to maturity | 31,418 | 407 | 5.18 | % | 34,457 | 409 | 4.75 | % | ||||||||||||||||
| Total securities | 162,778 | 1,902 | 4.67 | % | 165,208 | 1,931 | 4.68 | % | ||||||||||||||||
| SBA Loans | 102,691 | 1,498 | 5.83 | % | 102,255 | 1,564 | 6.12 | % | ||||||||||||||||
| SBA 504 loans | 71,764 | 1,147 | 6.34 | % | 74,209 | 1,285 | 6.95 | % | ||||||||||||||||
| Commercial loans | 301,010 | 4,973 | 6.55 | % | 303,589 | 5,051 | 6.67 | % | ||||||||||||||||
| Residential mortgage loans | 123,786 | 1,772 | 5.73 | % | 124,227 | 1,783 | 5.74 | % | ||||||||||||||||
| Consumer loans | 62,459 | 791 | 5.02 | % | 63,280 | 797 | 5.05 | % | ||||||||||||||||
| Total loans | 661,710 | 10,181 | 6.12 | % | 667,560 | 10,480 | 6.29 | % | ||||||||||||||||
| Total Interest-earning Assets | 862,105 | $ | 12,216 | 5.64 | % | 851,893 | $ | 12,562 | 5.91 | % | ||||||||||||||
| Noninterest-earning assets: | ||||||||||||||||||||||||
| Cash and due from banks | 18,502 | 18,397 | ||||||||||||||||||||||
| Allowance for loan losses | (11,478 | ) | (11,095 | ) | ||||||||||||||||||||
| Other assets | 34,355 | 32,770 | ||||||||||||||||||||||
| Total Noninterest-earning Assets | 41,379 | 40,072 | ||||||||||||||||||||||
| Total Assets | $ | 903,484 | $ | 891,965 | ||||||||||||||||||||
| Interest-bearing Liabilities: | ||||||||||||||||||||||||
| Total interest-bearing checking | $ | 88,284 | $ | 264 | 1.19 | % | $ | 85,313 | $ | 267 | 1.26 | % | ||||||||||||
| Total savings | 239,427 | 1,032 | 1.71 | % | 189,977 | 912 | 1.93 | % | ||||||||||||||||
| Total time deposits | 323,484 | 2,950 | 3.62 | % | 360,885 | 3,409 | 3.79 | % | ||||||||||||||||
| Total Interest-bearing Deposits | 651,195 | 4,246 | 2.59 | % | 636,175 | 4,588 | 2.89 | % | ||||||||||||||||
| Total borrowings | 100,465 | 1,081 | 4.21 | % | 107,163 | 1,085 | 4.01 | % | ||||||||||||||||
| Total Interest-bearing Liabilities | 751,660 | $ | 5,327 | 2.80 | % | 743,338 | $ | 5,673 | 3.05 | % | ||||||||||||||
| Noninterest-bearing Liabilities: | ||||||||||||||||||||||||
| Noninterest-bearing checking | 79,965 | 77,630 | ||||||||||||||||||||||
| Other Liabilities | 4,945 | 4,148 | ||||||||||||||||||||||
| Total Noninterest-bearing Liabilities | 84,910 | 81,778 | ||||||||||||||||||||||
| Total Shareholders' Equity | 66,914 | 66,849 | ||||||||||||||||||||||
| Total Liabilities and Shareholders' Equity | $ | 903,484 | $ | 891,965 | ||||||||||||||||||||
| Net Interest Spread | 6,889 | 2.84 | % | 6,889 | 2.86 | % | ||||||||||||||||||
| Tax-equivalent Basis Adjustment | (31 | ) | (31 | ) | ||||||||||||||||||||
| Net Interest Income | $ | 6,858 | $ | 6,858 | ||||||||||||||||||||
| Net Interest Margin | 3.17 | % | 3.24 | % | ||||||||||||||||||||
| UNITY BANCORP, INC. | ||||||||||||||||||||||||
| QUARTER TO DATE NET INTEREST MARGIN | ||||||||||||||||||||||||
| September 30, 2009 | ||||||||||||||||||||||||
| For the Three Months Ended | ||||||||||||||||||||||||
| September 30, 2009 | September 30, 2008 | |||||||||||||||||||||||
| Amounts in thousands, except percentages | Average Balance | Interest | Rate/Yield | Average Balance | Interest | Rate/Yield | ||||||||||||||||||
| Interest-earning Assets: | ||||||||||||||||||||||||
| Federal funds sold and interest-bearing deposits | $ | 32,940 | $ | 32 | 0.39 | % | $ | 24,118 | $ | 113 | 1.86 | % | ||||||||||||
| Federal Home Loan Bank stock | 4,677 | 101 | 8.57 | % | 4,415 | 58 | 5.23 | % | ||||||||||||||||
| Securities available for sale | 131,360 | 1,495 | 4.55 | % | 72,658 | 920 | 5.06 | % | ||||||||||||||||
| Securities held to maturity | 31,418 | 407 | 5.18 | % | 31,209 | 399 | 5.11 | % | ||||||||||||||||
| Total securities | 162,778 | 1,902 | 4.67 | % | 103,867 | 1,319 | 5.08 | % | ||||||||||||||||
| SBA Loans | 102,691 | 1,498 | 5.83 | % | 102,383 | 2,043 | 7.98 | % | ||||||||||||||||
| SBA 504 loans | 71,764 | 1,147 | 6.34 | % | 76,288 | 1,424 | 7.43 | % | ||||||||||||||||
| Commercial loans | 301,010 | 4,973 | 6.55 | % | 317,338 | 5,453 | 6.84 | % | ||||||||||||||||
| Residential mortgage loans | 123,786 | 1,772 | 5.73 | % | 114,058 | 1,720 | 6.03 | % | ||||||||||||||||
| Consumer loans | 62,459 | 791 | 5.02 | % | 59,933 | 866 | 5.75 | % | ||||||||||||||||
| Total loans | 661,710 | 10,181 | 6.12 | % | 670,000 | 11,506 | 6.84 | % | ||||||||||||||||
| Total Interest-earning Assets | 862,105 | $ | 12,216 | 5.64 | % | 802,400 | $ | 12,996 | 6.45 | % | ||||||||||||||
| Noninterest-earning assets: | ||||||||||||||||||||||||
| Cash and due from banks | 18,502 | 19,166 | ||||||||||||||||||||||
| Allowance for loan losses | (11,478 | ) | (9,092 | ) | ||||||||||||||||||||
| Other assets | 34,355 | 32,229 | ||||||||||||||||||||||
| Total Noninterest-earning Assets | 41,379 | 42,303 | ||||||||||||||||||||||
| Total Assets | $ | 903,484 | $ | 844,703 | ||||||||||||||||||||
| Interest-bearing Liabilities: | ||||||||||||||||||||||||
| Total interest-bearing checking | $ | 88,284 | $ | 264 | 1.19 | % | $ | 87,903 | $ | 404 | 1.83 | % | ||||||||||||
| Total savings | 239,427 | 1,032 | 1.71 | % | 161,707 | 774 | 1.90 | % | ||||||||||||||||
| Total time deposits | 323,484 | 2,950 | 3.62 | % | 353,743 | 3,553 | 4.00 | % | ||||||||||||||||
| Total Interest-bearing Deposits | 651,195 | 4,246 | 2.59 | % | 603,353 | 4,731 | 3.12 | % | ||||||||||||||||
| Total borrowings | 100,465 | 1,081 | 4.21 | % | 110,684 | 1,152 | 4.14 | % | ||||||||||||||||
| Total Interest-bearing Liabilities | 751,660 | $ | 5,327 | 2.80 | % | 714,037 | $ | 5,883 | 3.28 | % | ||||||||||||||
| Noninterest-bearing Liabilities: | ||||||||||||||||||||||||
| Noninterest-bearing checking | 79,965 | 81,157 | ||||||||||||||||||||||
| Other Liabilities | 4,945 | 2,321 | ||||||||||||||||||||||
| Total Noninterest-bearing Liabilities | 84,910 | 83,478 | ||||||||||||||||||||||
| Total Shareholders' Equity | 66,914 | 47,188 | ||||||||||||||||||||||
| Total Liabilities and Shareholders' Equity | $ | 903,484 | $ | 844,703 | ||||||||||||||||||||
| Net Interest Spread | 6,889 | 2.84 | % | 7,113 | 3.17 | % | ||||||||||||||||||
| Tax-equivalent Basis Adjustment | (31 | ) | $ | (31 | ) | |||||||||||||||||||
| Net Interest Income | $ | 6,858 | 7,082 | |||||||||||||||||||||
| Net Interest Margin | 3.17 | % | 3.55 | % | ||||||||||||||||||||
| UNITY BANCORP, INC. | ||||||||||||||||||||||||
| YEAR TO DATE NET INTEREST MARGIN | ||||||||||||||||||||||||
| September 30, 2009 | ||||||||||||||||||||||||
| September 30, 2009 | September 30, 2008 | |||||||||||||||||||||||
| Amounts in thousands, except percentages | Average Balance | Interest | Rate/Yield | Average Balance | Interest | Rate/Yield | ||||||||||||||||||
| Interest-earning Assets: | ||||||||||||||||||||||||
| Federal funds sold and interest-bearing deposits | $ | 19,222 | $ | 78 | 0.54 | % | $ | 23,135 | $ | 404 | 2.33 | % | ||||||||||||
| Federal Home Loan Bank stock | 5,190 | 219 | 5.64 | % | 4,330 | 234 | 7.22 | % | ||||||||||||||||
| Securities available for sale | 133,446 | 4,709 | 4.71 | % | 73,337 | 2,789 | 5.07 | % | ||||||||||||||||
| Securities held to maturity | 33,277 | 1,222 | 4.90 | % | 32,297 | 1,270 | 5.24 | % | ||||||||||||||||
| Total securities | 166,723 | 5,931 | 4.74 | % | 105,634 | 4,059 | 5.12 | % | ||||||||||||||||
| SBA Loans | 103,321 | 4,668 | 6.02 | % | 100,674 | 6,399 | 8.47 | % | ||||||||||||||||
| SBA 504 loans | 74,266 | 3,663 | 6.59 | % | 73,324 | 4,134 | 7.53 | % | ||||||||||||||||
| Commercial loans | 303,234 | 15,040 | 6.63 | % | 308,173 | 16,145 | 7.00 | % | ||||||||||||||||
| Residential mortgage loans | 125,667 | 5,419 | 5.75 | % | 89,551 | 4,008 | 5.97 | % | ||||||||||||||||
| Consumer loans | 62,630 | 2,383 | 5.09 | % | 58,679 | 2,613 | 5.95 | % | ||||||||||||||||
| Total loans | 669,118 | 31,173 | 6.22 | % | 630,401 | 33,299 | 7.05 | % | ||||||||||||||||
| Total Interest-earning Assets | 860,253 | $ | 37,401 | 5.81 | % | 763,500 | $ | 37,996 | 6.64 | % | ||||||||||||||
| Noninterest-earning assets: | ||||||||||||||||||||||||
| Cash and due from banks | 18,838 | 16,189 | ||||||||||||||||||||||
| Allowance for loan losses | (11,173 | ) | (8,866 | ) | ||||||||||||||||||||
| Other assets | 33,409 | 31,268 | ||||||||||||||||||||||
| Total Noninterest-earning Assets | 41,074 | 38,591 | ||||||||||||||||||||||
| �� | ||||||||||||||||||||||||
| Total Assets | $ | 901,327 | $ | 802,091 | ||||||||||||||||||||
| Interest-bearing Liabilities: | ||||||||||||||||||||||||
| Total interest-bearing checking | $ | 86,232 | $ | 801 | 1.24 | % | $ | 83,050 | $ | 1,120 | 1.80 | % | ||||||||||||
| Total savings | 192,559 | 2,588 | 1.80 | % | 179,254 | 3,041 | 2.27 | % | ||||||||||||||||
| Total time deposits | 357,073 | 10,084 | 3.78 | % | 304,298 | 9,779 | 4.29 | % | ||||||||||||||||
| Total Interest-bearing Deposits | 635,864 | 13,473 | 2.83 | % | 566,602 | 13,940 | 3.29 | % | ||||||||||||||||
| Total borrowings | 116,427 | 3,344 | 3.79 | % | 107,345 | 3,372 | 4.20 | % | ||||||||||||||||
| Total Interest-bearing Liabilities | 752,291 | $ | 16,817 | 2.98 | % | 673,947 | $ | 17,312 | 3.43 | % | ||||||||||||||
| Noninterest-bearing Liabilities: | ||||||||||||||||||||||||
| Noninterest-bearing checking | 77,730 | 78,259 | ||||||||||||||||||||||
| Other Liabilities | 4,297 | 2,354 | ||||||||||||||||||||||
| Total Noninterest-bearing Liabilities | 82,027 | 80,613 | ||||||||||||||||||||||
| Total Shareholders' Equity | 67,009 | 47,531 | ||||||||||||||||||||||
| Total Liabilities and Shareholders' Equity | $ | 901,327 | $ | 802,091 | ||||||||||||||||||||
| Net Interest Spread | 20,584 | 2.83 | % | 20,684 | 3.21 | % | ||||||||||||||||||
| Tax-equivalent Basis Adjustment | (94 | ) | (129 | ) | ||||||||||||||||||||
| Net Interest Income | $ | 20,490 | $ | 20,555 | ||||||||||||||||||||
| Net Interest Margin | 3.20 | % | 3.61 | % | ||||||||||||||||||||
| UNITY BANCORP, INC. | ||||||||||||||||||||
| ALLOWANCE FOR LOAN LOSSES AND LOAN QUALITY SCHEDULES | ||||||||||||||||||||
| September 30, 2009 | ||||||||||||||||||||
| Amounts in thousands, except percentages | 9/30/2009 | 6/30/2009 | 3/31/2009 | 12/31/2008 | 9/30/2008 | |||||||||||||||
| ALLOWANCE FOR LOAN LOSSES: | ||||||||||||||||||||
| Balance, Beginning of Quarter | $ | 10,665 | $ | 10,307 | $ | 10,326 | $ | 9,913 | $ | 8,945 | ||||||||||
| Provision for Loan Losses Charged to Expense | 3,000 | 1,500 | 1,500 | 1,300 | 2,100 | |||||||||||||||
| 13,665 | 11,807 | 11,826 | 11,213 | 11,045 | ||||||||||||||||
| Less: Chargeoffs | ||||||||||||||||||||
| SBA loans | 448 | 323 | 1,106 | 310 | 423 | |||||||||||||||
| SBA 504 loans | - | 112 | 200 | 500 | 500 | |||||||||||||||
| Commercial loans | 673 | 798 | 249 | 148 | 200 | |||||||||||||||
| Residential mortgage loans | 125 | 33 | 58 | - | - | |||||||||||||||
| Consumer loans | 11 | 11 | - | 5 | 78 | |||||||||||||||
| Total Chargeoffs | 1,257 | 1,277 | 1,613 | 963 | 1,201 | |||||||||||||||
| Add: Recoveries | ||||||||||||||||||||
| SBA loans | 14 | 56 | 33 | 72 | 40 | |||||||||||||||
| SBA 504 loans | 22 | - | 5 | - | - | |||||||||||||||
| Commercial loans | (1 | ) | 79 | 53 | 4 | 29 | ||||||||||||||
| Residential mortgage loans | - | - | - | - | - | |||||||||||||||
| Consumer loans | 2 | - | 3 | - | - | |||||||||||||||
| Total Recoveries | 37 | 135 | 94 | 76 | 69 | |||||||||||||||
| Net Chargeoffs | 1,220 | 1,142 | 1,519 | 887 | 1,132 | |||||||||||||||
| Balance, End of Quarter | $ | 12,445 | $ | 10,665 | $ | 10,307 | $ | 10,326 | $ | 9,913 | ||||||||||
| LOAN QUALITY INFORMATION: | ||||||||||||||||||||
| Nonperforming loans | $ | 24,687 | $ | 22,774 | $ | 19,886 | $ | 16,120 | $ | 10,636 | ||||||||||
| Other real estate owned (OREO) | 2,774 | 466 | 763 | 710 | 318 | |||||||||||||||
| Total nonperforming assets | 27,461 | 23,240 | 20,649 | 16,830 | 10,954 | |||||||||||||||
| Less: Amount guaranteed by Small Business Administration | 1,759 | 3,214 | 2,426 | 1,983 | $ | 998 | ||||||||||||||
| Net nonperforming assets | $ | 25,702 | $ | 20,026 | $ | 18,223 | $ | 14,847 | $ | 9,956 | ||||||||||
| Loans 90 Days Past Due & Still Accruing | $ | 1,609 | $ | 781 | $ | 853 | $ | 2,536 | $ | 3,532 | ||||||||||
| Allowance for Loan Losses to: | ||||||||||||||||||||
| Total Loans at Quarter End | 1.90 | % | 1.60 | % | 1.54 | % | 1.51 | % | 1.45 | % | ||||||||||
| Nonperforming loans | 50.41 | % | 46.83 | % | 51.83 | % | 64.06 | % | 93.19 | % | ||||||||||
| Total nonperforming assets | 45.32 | % | 45.89 | % | 49.92 | % | 61.36 | % | 90.50 | % | ||||||||||
| Net nonperforming assets | 48.42 | % | 53.26 | % | 56.56 | % | 69.55 | % | 99.57 | % | ||||||||||
QTD net chargeoffs (annualized) to QTD average loans | 0.73 | % | 0.69 | % | 0.91 | % | 0.52 | % | 0.67 | % | ||||||||||
| Nonperforming Loans to Total Loans | 3.76 | % | 3.42 | % | 2.97 | % | 2.35 | % | 1.55 | % | ||||||||||
| Nonperforming Assets to Total Loans & OREO | 4.17 | % | 3.49 | % | 3.08 | % | 2.45 | % | 1.60 | % | ||||||||||
| Nonperforming Assets to Total Assets | 2.98 | % | 2.54 | % | 2.33 | % | 1.87 | % | 1.27 | % | ||||||||||
| UNITY BANCORP, INC. | ||||||||||||||||||||
| QUARTERLY FINANCIAL DATA | ||||||||||||||||||||
| September 30, 2009 | ||||||||||||||||||||
| Amounts in thousands, except percentages and per share amounts | 9/30/2009 | 6/30/2009 | 3/31/2009 | 12/31/2008 | 9/30/2008 | |||||||||||||||
| SUMMARY OF INCOME: | ||||||||||||||||||||
| Total Interest Income | $ | 12,185 | $ | 12,531 | $ | 12,590 | $ | 12,898 | $ | 12,965 | ||||||||||
| Total Interest Expense | 5,327 | 5,673 | 5,816 | 6,162 | 5,883 | |||||||||||||||
| Net Interest Income Before Provision | 6,858 | 6,858 | 6,774 | 6,736 | 7,082 | |||||||||||||||
| Provision for Loan Losses | 3,000 | 1,500 | 1,500 | 1,300 | 2,100 | |||||||||||||||
| Net Interest Income After Provision | 3,858 | 5,358 | 5,274 | 5,436 | 4,982 | |||||||||||||||
| Total Noninterest Income (Loss) | 1,162 | (907 | ) | 1,348 | 555 | (344 | ) | |||||||||||||
| Total Noninterest Expense | 6,110 | 6,203 | 5,555 | 5,773 | 5,779 | |||||||||||||||
| Net Income (loss) Before Taxes | (1,090 | ) | (1,752 | ) | 1,067 | 218 | (1,141 | ) | ||||||||||||
| Income taxes (benefit) | (343 | ) | (552 | ) | 336 | (366 | ) | (139 | ) | |||||||||||
| Net income (loss) | (747 | ) | (1,200 | ) | 731 | 584 | (1,002 | ) | ||||||||||||
| Preferred Dividends & Discount Accretion | 371 | 372 | 379 | 110 | - | |||||||||||||||
| (Loss Attributable) Income Available to Common Shareholders | $ | (1,118 | ) | $ | (1,572 | ) | $ | 352 | $ | 474 | $ | (1,002 | ) | |||||||
| Net (Loss) Income Per Share - Basic | $ | (0.16 | ) | $ | (0.22 | ) | $ | 0.05 | $ | 0.07 | $ | (0.14 | ) | |||||||
| Net (Loss) Income Per Share - Diluted | $ | (0.16 | ) | $ | (0.22 | ) | $ | 0.05 | $ | 0.07 | $ | (0.14 | ) | |||||||
| COMMON SHARE DATA: | ||||||||||||||||||||
| Market Price Per Share | 4.20 | 3.55 | 3.19 | 3.90 | 4.00 | |||||||||||||||
| Dividends Paid | - | - | - | - | - | |||||||||||||||
| Book Value Per Common Share | 6.88 | 6.85 | 6.93 | 6.99 | 6.55 | |||||||||||||||
| Average Shares Outstanding - Basic | 7,119 | 7,119 | 7,119 | 7,113 | 7,107 | |||||||||||||||
| Average Shares Outstanding - Diluted | 7,190 | 7,168 | 7,148 | 7,190 | 7,259 | |||||||||||||||
| Shares Outstanding | 7,119 | 7,119 | 7,119 | 7,119 | 7,110 | |||||||||||||||
| OPERATING RATIOS (Annualized): | ||||||||||||||||||||
| Return on Average Assets | -0.33 | % | -0.54 | % | 0.33 | % | 0.26 | % | -0.47 | % | ||||||||||
| Return on Average Common Equity | -9.14 | % | -12.97 | % | 2.90 | % | 3.56 | % | -8.45 | % | ||||||||||
| Efficiency Ratio | 77.72 | % | 80.58 | % | 73.02 | % | 75.81 | % | 70.51 | % | ||||||||||
| BALANCE SHEET DATA: | ||||||||||||||||||||
| Total Assets | $ | 922,689 | $ | 913,446 | $ | 886,677 | $ | 898,310 | $ | 864,083 | ||||||||||
| Total deposits | 750,665 | 731,763 | 703,266 | 707,117 | 684,680 | |||||||||||||||
| Total loans | 656,520 | 665,331 | 669,902 | 685,946 | 685,023 | |||||||||||||||
| Total securities | 171,501 | 164,794 | 158,022 | 149,509 | 99,410 | |||||||||||||||
| Total Shareholders' Equity | 67,385 | 67,064 | 67,525 | 67,803 | 46,539 | |||||||||||||||
| Allowance for loan losses | (12,445 | ) | (10,665 | ) | (10,307 | ) | (10,326 | ) | (9,913 | ) | ||||||||||
| TAX EQUIVALENT YIELDS AND RATES: | ||||||||||||||||||||
| Interest-earning Assets | 5.64 | % | 5.91 | % | 5.87 | % | 6.18 | % | 6.45 | % | ||||||||||
| Interest-bearing Liabilities | 2.80 | % | 3.05 | % | 3.10 | % | 3.30 | % | 3.28 | % | ||||||||||
| Net Interest Spread | 2.84 | % | 2.86 | % | 2.77 | % | 2.88 | % | 3.17 | % | ||||||||||
| Net Interest Margin | 3.17 | % | 3.24 | % | 3.14 | % | 3.25 | % | 3.55 | % | ||||||||||
| CREDIT QUALITY: | ||||||||||||||||||||
| Nonperforming Assets | 27,461 | 23,240 | 20,649 | 16,830 | 10,954 | |||||||||||||||
| QTD Net Chargeoffs (annualized) to QTD Average Loans | 0.73 | % | 0.69 | % | 0.91 | % | 0.52 | % | 0.67 | % | ||||||||||
| Allowance for Loan Losses to Total Loans | 1.90 | % | 1.60 | % | 1.54 | % | 1.51 | % | 1.45 | % | ||||||||||
| Nonperforming Assets to Total Loans and OREO | 4.17 | % | 3.49 | % | 3.08 | % | 2.45 | % | 1.60 | % | ||||||||||
| Nonperforming Assets to Total Assets | 2.98 | % | 2.54 | % | 2.33 | % | 1.87 | % | 1.27 | % | ||||||||||
| CAPITAL RATIOS AND OTHER: | ||||||||||||||||||||
| Total Equity to Total Assets | 7.30 | % | 7.34 | % | 7.62 | % | 7.55 | % | 5.39 | % | ||||||||||
| Leverage Ratio | 9.08 | % | 9.30 | % | 9.28 | % | 9.54 | % | 7.42 | % | ||||||||||
| Tier 1 Risk-Based Capital Ratio | 11.83 | % | 11.88 | % | 12.32 | % | 12.02 | % | 9.07 | % | ||||||||||
| Total Risk-Based Capital Ratio | 13.09 | % | 13.13 | % | 13.57 | % | 13.27 | % | 10.33 | % | ||||||||||
| Number of Banking Offices | 16 | 16 | 16 | 16 | 16 | |||||||||||||||
| Number of ATMs | 19 | 19 | 19 | 19 | 19 | |||||||||||||||
| Number of Employees | 175 | 168 | 162 | 167 | 176 | |||||||||||||||