Unity Bancorp, Inc.
64 Old Highway 22
Clinton, NJ 08809
800-618-BANK
www.unitybank.com
NewsNewsNewsNewsNews
For Immediate Release:
July 20, 2015
News Media & Financial Analyst Contact:
Alan J. Bedner, EVP
Chief Financial Officer
(908) 713-4308
Unity Bancorp Reports Quarterly Net Income Increased 59%
and Six Month Net Income Increased 55%
Clinton, NJ - Unity Bancorp, Inc. (NASDAQ: UNTY), parent company of Unity Bank, reported increased second quarter and year-to-date earnings. Major contributing factors included strong loan growth, increased deposits and improved credit quality. Both commercial and consumer lending were up; with over ten percent growth in residential mortgages year-to-date.
“Our growth is a reflection of our investment in our communities and employees” reported James A. Hughes, President and CEO. “Our customers tell us what they need, and we deliver. When our communities grow, we grow. It’s a win-win.”
Net income was $2.4 million, or $0.28 per diluted share, for the three months ended June 30, 2015, a 58.9% increase compared to net income of $1.5 million, or $0.20 per diluted share, for the same period a year ago. Return on average assets and average common equity for the quarter were 1.01% and 13.35%, respectively, compared to 0.68% and 10.31% for the same period a year ago.
Highlights include:
| · | | 7.9% loan growth since year-end 2014 - 18.3% growth in consumer loans, 10.1% growth in residential mortgage loans, and 6.6% growth in commercial loans. |
| · | | 14.7% increase in noninterest-bearing demand deposits since year-end 2014. |
| · | | 14.6% increase in net interest income compared to the prior year’s quarter due to strong loan growth. |
| · | | Net interest margin of 3.70% this quarter compared to 3.49% in the prior year’s quarter. |
| · | | Improved credit quality metrics and reduced loan loss provision – net recoveries posted compared to net charge-offs in the prior year’s quarter and a 25.9% decrease in nonperforming loans. |
“I am extremely pleased with the operating results of the Bank,” said James A. Hughes, President and CEO. “The record earnings are the direct result of an organization that focuses on sales and service. With a vast array of products that are tailored to our customers’ needs, we are experiencing very strong loan and deposit growth. I am proud to see the continued improvement in the bank’s progress, as it is a direct reflection of a great team of employees that are providing the highest level of service to our valued customers.”
For the six months ended June 30, 2015, net income totaled $4.4 million, or $0.51 per diluted share, compared to $2.8 million or $0.37 per diluted share in the prior year’s period. Return on average assets and average common equity for the six month periods were 0.92% and 12.23%, respectively, compared to 0.64% and 9.70% for the same period a year ago.
Net Interest Income
Our core source of earnings, net interest income, increased $1.1 million to $8.4 million for the quarter ended June 30, 2015 compared to the prior year’s period. This increase was the result of the strong loan growth in residential mortgage, commercial and consumer loans. Quarterly average residential mortgage loans have increased $58.8 million, average commercial loans increased $52.0 million and consumer loans increased $19.6 million compared to the comparable quarter in 2014. Partially offsetting this increase was the lower level of interest income due to our smaller investment portfolio and the slight increase in deposit interest expense.
The net interest margin increased 21 basis points to 3.70% for the quarter ended June 30, 2015 compared to 3.49% for the prior year’s quarter. The expansion in the net interest margin was due to strong loan growth, lower security balances and the repayment of $10 million in high rate borrowings.
Provision for Loan Losses
There was no provision for loan losses posted in the quarter ended June 30, 2015, compared to $550 thousand for the prior year period. For the six months ended June 30, 2015, the provision for loan losses was $200 thousand compared to $1.2 million for the same period last year. The decrease was the result of lower levels of net charge-offs facilitated by recoveries and reduced nonperforming assets.
Noninterest Income
Noninterest income increased $253 thousand to $1.9 million for the three months ended June 30, 2015, compared to the same period last year. For the six months ended June 30, 2015, noninterest income increased $368 thousand to $3.5 million, compared to the same period a year ago. Quarterly and year-to-date noninterest income increased due to higher gains on the sale of mortgage loans and increased service and loan fee income.
During the quarter, $49.8 million in residential mortgage loans were originated, of which $24.0 million were sold at a gain of $687 thousand, compared to $36.3 million originated and $11.1 million sold at a gain of $188 thousand during the prior year’s quarter. For the six month period, $86.9 million in residential mortgage loans were originated, of which $42.2 million were sold at a gain of $1.0 million, compared to $58.5 million originated and $28.6 million sold at a gain of $553 thousand in the first half of 2014. All residential mortgage loans originated in 2015 that are held in portfolio for investment are adjustable rate mortgages or 15 year or less fixed rate mortgages.
Service and loan fee income increased $181 thousand and $182 thousand respectively for the three and six months ended June 30, 2015 due to increased loan processing and payoff charges.
In addition to the noninterest income increases noted above, other notable items included: 1) there were no SBA loan sales this quarter and 2) gains on the sale of securities were significantly less at $28 thousand this quarter compared to $268 thousand in the prior year’s quarter.
Noninterest Expense
Noninterest expense increased $508 thousand to $6.7 million for the quarter and increased $751 thousand to $13.2 million for the six months ended June 30, 2015, respectively. The majority of the increase in each period was due to higher compensation and benefits expenses. Compensation and benefits expenses have increased over the past twelve months due to increased head count in loan origination and support staff; as well as higher mortgage commission expense due to the larger volume of mortgages originated.
Other expense increases included: higher software maintenance expense, advertising, marketing agreements and seasonal events expense as well as director fees. OREO expenses for the quarterly and six month periods decreased due to lower property tax, maintenance, utility and legal costs to hold these properties.
Financial Condition
At June 30, 2015, total assets were $1.02 billion, an increase of $15.5 million from year-end 2014:
| · | | Total loans increased $59.9 million or 7.9%, from year-end 2014 to $821.7 million at June 30, 2015. The majority of the growth came in our commercial, residential mortgage and consumer loan portfolios which increased $26.4 million, $22.4 million and $10.8 million, respectively. |
| · | | Total deposits increased $21.1 million or 2.7%, to $815.4 million at June 30, 2015, due primarily to increased time deposits and noninterest-bearing demand deposits, partially offset by decreased savings deposits and interest-bearing demand deposits. |
| · | | Shareholders’ equity was $73.7 million at June 30, 2015, an increase of $3.6 million from year-end 2014, due to year-to-date net income less the dividends paid. |
| · | | Book value per common share was $8.75 as of June 30, 2015. |
| · | | At June 30, 2015, the leverage, common equity Tier I, Tier I and Total Risk Based Capital ratios were 9.09%, 9.39%, 11.33% and 12.59% respectively, all in excess of the ratios required to be deemed “well-capitalized”. |
Credit Quality
| · | | Nonperforming assets totaled $11.1 million at June 30, 2015, or 1.35% of total loans and OREO, compared to $12.5 million or 1.64% of total loans and OREO at year-end 2014. |
| · | | Nonperforming loans decreased 22.2% to $8.8 million at June 30, 2015 from year-end. |
| · | | OREO increased $1.1 million to $2.3 million at June 30, 2015 from year-end. |
| · | | The allowance for loan losses totaled $12.4 million at June 30, 2015, or 1.51% of total loans compared to $12.6 million and 1.65% at December 31, 2014. |
| · | | Net recoveries were $223 thousand for the three months ended June 30, 2015, compared to net charge-offs of $499 thousand for the same period a year ago. For the six months ended June 30, 2015, net charge-offs were $347 thousand, a decrease of $1.1 million compared to the prior year’s period. |
Unity Bancorp, Inc. is a financial service organization headquartered in Clinton, New Jersey, with approximately $1.0 billion in assets and $815 million in deposits. Unity Bank provides financial services to retail, corporate and small business customers through its 15 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 may be identified by use of the words “believe”, “expect”, “intend”, “anticipate”, “estimate”, “project” or similar expressions. 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 those items included in our Annual Report on Form 10-K under the heading “Item IA-Risk Factors” as well as general economic conditions, trends in interest rates, the ability of our borrowers to repay their loans, our ability to manage and reduce the level of our nonperforming assets, and results of regulatory exams, among other factors.
This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
UNITY BANCORP, INC.
SUMMARY FINANCIAL HIGHLIGHTS
June 30, 2015
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| | | | | | | | | | | | | | | |
| | | | | | | | | June 30, 2015 vs. | |
| | | | | | | | | March 31, 2015 | | June 30, 2014 | |
(In thousands, except percentages and per share amounts) | | June 30, 2015 | | March 31, 2015 | | June 30, 2014 | | | % | | % | |
BALANCE SHEET DATA: | | | | | | | | | | | | | | | |
Total assets | | $ | 1,024,303 | | $ | 1,035,404 | | $ | 932,414 | | | (1.1) | % | 9.9 | % |
Total deposits | | | 815,427 | | | 789,441 | | | 728,083 | | | 3.3 | | 12.0 | |
Total loans | | | 821,696 | | | 784,642 | | | 708,889 | | | 4.7 | | 15.9 | |
Total securities | | | 74,375 | | | 77,308 | | | 90,470 | | | (3.8) | | (17.8) | |
Total shareholders' equity | | | 73,690 | | | 71,987 | | | 60,477 | | | 2.4 | | 21.8 | |
Allowance for loan losses | | | (12,404) | | | (12,181) | | | (12,858) | | | 1.8 | | (3.5) | |
| | | | | | | | | | | | | | | |
FINANCIAL DATA - QUARTER TO DATE: | | | | | | | | | | | | | | | |
Income before provision for income taxes | | $ | 3,610 | | $ | 2,959 | | $ | 2,251 | | | 22.0 | | 60.4 | |
Provision for income taxes | | | 1,182 | | | 1,020 | | | 723 | | | 15.9 | | 63.5 | |
Net income | | $ | 2,428 | | $ | 1,939 | | $ | 1,528 | | | 25.2 | | 58.9 | |
| | | | | | | | | | | | | | | |
Net income per common share - Basic | | $ | 0.29 | | $ | 0.23 | | $ | 0.20 | | | 26.1 | | 45.0 | |
Net income per common share - Diluted | | $ | 0.28 | | $ | 0.23 | | $ | 0.20 | | | 21.7 | | 40.0 | |
| | | | | | | | | | | | | | | |
Return on average assets | | | 1.01 | % | | 0.82 | % | | 0.68 | % | | 23.2 | | 48.5 | |
Return on average equity | | | 13.35 | % | | 11.08 | % | | 10.31 | % | | 20.5 | | 29.5 | |
Efficiency ratio | | | 64.99 | % | | 67.30 | % | | 70.81 | % | | (3.4) | | (8.2) | |
Net interest margin | | | 3.70 | % | | 3.64 | % | | 3.49 | % | | 1.6 | | 6.0 | |
| | | | | | | | | | | | | | | |
FINANCIAL DATA - YEAR TO DATE: | | | | | | | | | | | | | | | |
Income before provision for income taxes | | $ | 6,569 | | | | | $ | 4,206 | | | | | 56.2 | |
Provision for income taxes | | | 2,202 | | | | | | 1,385 | | | | | 59.0 | |
Net income | | $ | 4,367 | | | | | $ | 2,821 | | | | | 54.8 | |
| | | | | | | | | | | | | | | |
Net income per common share - Basic | | $ | 0.52 | | | | | $ | 0.37 | | | | | 40.5 | |
Net income per common share - Diluted | | $ | 0.51 | | | | | $ | 0.37 | | | | | 37.8 | |
| | | | | | | | | | | | | | | |
Return on average assets | | | 0.92 | % | | | | | 0.64 | % | | | | 43.8 | |
Return on average equity | | | 12.23 | % | | | | | 9.70 | % | | | | 26.1 | |
Efficiency ratio | | | 66.12 | % | | | | | 71.36 | % | | | | (7.3) | |
Net interest margin | | | 3.67 | % | | | | | 3.53 | % | | | | 4.0 | |
| | | | | | | | | | | | | | | |
SHARE INFORMATION: | | | | | | | | | | | | | | | |
Market price per share | | $ | 9.79 | | $ | 9.08 | | $ | 9.28 | | | 7.8 | | 5.5 | |
Dividends paid | | $ | 0.03 | | $ | 0.03 | | $ | 0.02 | | | - | | 0.5 | |
Book value per common share | | $ | 8.75 | | $ | 8.55 | | $ | 7.95 | | | 2.3 | | 10.1 | |
Average diluted shares outstanding (QTD) | | | 8,524 | | | 8,514 | | | 7,690 | | | 0.1 | | 10.8 | |
| | | | | | | | | | | | | | | |
CAPITAL RATIOS: | | | | | | | | | | | | | | | |
Total equity to total assets | | | 7.19 | % | | 6.95 | % | | 6.49 | % | | 3.5 | | 10.8 | |
Leverage ratio | | | 9.09 | % | | 8.94 | % | | 8.24 | % | | 1.7 | | 10.3 | |
Common equity tier 1 risk-based capital ratio | | | 9.39 | % | | 9.25 | | | n/a | | | n/a | | n/a | |
Tier 1 risk-based capital ratio | | | 11.33 | % | | 11.22 | % | | 10.86 | % | | 1.0 | | 4.3 | |
Total risk-based capital ratio | | | 12.59 | % | | 12.48 | % | | 12.12 | % | | 0.9 | | 3.9 | |
| | | | | | | | | | | | | | | |
CREDIT QUALITY AND RATIOS: | | | | | | | | | | | | | | | |
Nonperforming assets | | $ | 11,102 | | $ | 11,116 | | $ | 13,044 | | | (0.1) | | (14.9) | |
QTD net chargeoffs (annualized) to QTD average loans | | | (0.11) | % | | 0.30 | % | | 0.29 | % | | (136.7) | | (137.9) | |
Allowance for loan losses to total loans | | | 1.51 | % | | 1.55 | % | | 1.81 | % | | (2.6) | | (16.6) | |
Nonperforming assets to total loans
and OREO | | | 1.35 | % | | 1.41 | % | | 1.84 | % | | (4.3) | | (26.6) | |
Nonperforming assets to total assets | | | 1.08 | % | | 1.07 | % | | 1.40 | % | | 0.9 | % | (22.9) | % |
| | | | | | | | | | | | | | | |
| (1) | | Defined as net income adjusted for dividends accrued and accretion of discount on perpetual preferred stock divided by weighted average shares outstanding. |
| (2) | | Defined as net income adjusted for dividends accrued and accretion of discount on perpetual preferred stock divided by average shareholders' equity (excluding preferred stock). |
UNITY BANCORP, INC.
CONSOLIDATED BALANCE SHEETS
June 30, 2015
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| | | | | | | | | | | | | | | |
| | | | | | | | | | | | June 30, 2015 vs. | |
| | | | | | | | | | | | December 31, 2014 | | June 30, 2014 | |
(In thousands, except percentages) | | June 30, 2015 | | December 31, 2014 | | June 30, 2014 | | | % | | % | |
ASSETS | | | | | | | | | | | | | | | |
Cash and due from banks | | $ | 28,240 | | $ | 29,351 | | $ | 35,197 | | | (3.8) | % | (19.8) | % |
Federal funds sold and interest-bearing deposits | | | 62,202 | | | 100,470 | | | 60,141 | | | (38.1) | | 3.4 | |
Cash and cash equivalents | | | 90,442 | | | 129,821 | | | 95,338 | | | (30.3) | | (5.1) | |
Securities: | | | | | | | | | | | | | | | |
Securities available for sale | | | 55,766 | | | 60,073 | | | 68,734 | | | (7.2) | | (18.9) | |
Securities held to maturity | | | 18,609 | | | 20,009 | | | 21,736 | | | (7.0) | | (14.4) | |
Total securities | | | 74,375 | | | 80,082 | | | 90,470 | | | (7.1) | | (17.8) | |
Loans: | | | | | | | | | | | | | | | |
SBA loans held for sale | | | 11,368 | | | 5,179 | | | 6,444 | | | 119.5 | | 76.4 | |
SBA loans held for investment | | | 39,663 | | | 40,401 | | | 46,890 | | | (1.8) | | (15.4) | |
SBA 504 loans | | | 29,125 | | | 34,322 | | | 34,452 | | | (15.1) | | (15.5) | |
Commercial loans | | | 428,371 | | | 401,949 | | | 375,976 | | | 6.6 | | 13.9 | |
Residential mortgage loans | | | 243,259 | | | 220,878 | | | 196,184 | | | 10.1 | | 24.0 | |
Consumer loans | | | 69,910 | | | 59,096 | | | 48,943 | | | 18.3 | | 42.8 | |
Total loans | | | 821,696 | | | 761,825 | | | 708,889 | | | 7.9 | | 15.9 | |
Allowance for loan losses | | | (12,404) | | | (12,551) | | | (12,858) | | | 1.2 | | 3.5 | |
Net loans | | | 809,292 | | | 749,274 | | | 696,031 | | | 8.0 | | 16.3 | |
Premises and equipment, net | | | 15,385 | | | 15,231 | | | 15,469 | | | 1.0 | | (0.5) | |
Bank owned life insurance ("BOLI") | | | 13,190 | | | 13,001 | | | 12,941 | | | 1.5 | | 1.9 | |
Deferred tax assets | | | 5,928 | | | 5,860 | | | 6,149 | | | 1.2 | | (3.6) | |
Federal Home Loan Bank ("FHLB") stock | | | 5,635 | | | 6,032 | | | 6,378 | | | (6.6) | | (11.6) | |
Accrued interest receivable | | | 3,690 | | | 3,518 | | | 3,283 | | | 4.9 | | 12.4 | |
Other real estate owned ("OREO") | | | 2,265 | | | 1,162 | | | 1,115 | | | 94.9 | | 103.1 | |
Goodwill and other intangibles | | | 1,516 | | | 1,516 | | | 1,516 | | | - | | - | |
Other assets | | | 2,585 | | | 3,291 | | | 3,724 | | | (21.5) | | (30.6) | |
Total assets | | $ | 1,024,303 | | $ | 1,008,788 | | $ | 932,414 | | | 1.5 | % | 9.9 | % |
| | | | | | | | | | | | | | | |
LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | | | | |
Deposits: | | | | | | | | | | | | | | | |
Noninterest-bearing demand | | $ | 175,287 | | $ | 152,785 | | $ | 144,848 | | | 14.7 | % | 21.0 | % |
Interest-bearing demand | | | 117,988 | | | 128,875 | | | 110,590 | | | (8.4) | | 6.7 | |
Savings | | | 284,369 | | | 300,348 | | | 256,991 | | | (5.3) | | 10.7 | |
Time, under $100,000 | | | 113,846 | | | 113,119 | | | 114,605 | | | 0.6 | | (0.7) | |
Time, $100,000 and over | | | 123,937 | | | 99,214 | | | 101,049 | | | 24.9 | | 22.7 | |
Total deposits | | | 815,427 | | | 794,341 | | | 728,083 | | | 2.7 | | 12.0 | |
Borrowed funds | | | 115,000 | | | 125,000 | | | 125,000 | | | (8.0) | | (8.0) | |
Subordinated debentures | | | 15,465 | | | 15,465 | | | 15,465 | | | - | | - | |
Accrued interest payable | | | 418 | | | 474 | | | 466 | | | (11.8) | | (10.3) | |
Accrued expenses and other liabilities | | | 4,303 | | | 3,385 | | | 2,923 | | | 27.1 | | 47.2 | |
Total liabilities | | | 950,613 | | | 938,665 | | | 871,937 | | | 1.3 | | 9.0 | |
Shareholders' equity: | | | | | | | | | | | | | | | |
Common stock | | | 59,067 | | | 58,785 | | | 52,356 | | | 0.5 | | 12.8 | |
Retained earnings | | | 15,055 | | | 11,195 | | | 8,114 | | | 34.5 | | 85.5 | |
Accumulated other comprehensive (loss) income | | | (432) | | | 143 | | | 7 | | | NM | | NM | |
Total shareholders' equity | | | 73,690 | | | 70,123 | | | 60,477 | | | 5.1 | | 21.8 | |
Total liabilities and shareholders' equity | | $ | 1,024,303 | | $ | 1,008,788 | | $ | 932,414 | | | 1.5 | % | 9.9 | % |
| | | | | | | | | | | | | | | |
Issued and outstanding common shares | | | 8,425 | | | 8,388 | | | 7,607 | | | | | | |
UNITY BANCORP, INC.
QTD CONSOLIDATED STATEMENTS OF INCOME
June 30, 2015
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| | | | | | |
| | | | | | | | | | | | June 30, 2015 vs. | |
| | For the three months ended | | | March 31, 2015 | | June 30, 2014 | |
(In thousands, except percentages and per share amounts) | | June 30, 2015 | | March 31, 2015 | | June 30, 2014 | | | $ | | % | | $ | | % | |
INTEREST INCOME | | | | | | | | | | | | | | | | | | | | | | | |
Federal funds sold and interest-bearing deposits | | $ | 6 | | $ | 9 | | $ | 10 | | | $ | (3) | | | (33.3) | % | $ | (4) | | | (40.0) | % |
FHLB stock | | | 38 | | | 44 | | | 40 | | | | (6) | | | (13.6) | | | (2) | | | (5.0) | |
Securities: | | | | | | | | | | | | | | | | | | | | | | | |
Taxable | | | 363 | | | 387 | | | 552 | | | | (24) | | | (6.2) | | | (189) | | | (34.2) | |
Tax-exempt | | | 71 | | | 72 | | | 90 | | | | (1) | | | (1.4) | | | (19) | | | (21.1) | |
Total securities | | | 434 | | | 459 | | | 642 | | | | (25) | | | (5.4) | | | (208) | | | (32.4) | |
Loans: | | | | | | | | | | | | | | | | | | | | | | | |
SBA loans | | | 605 | | | 679 | | | 643 | | | | (74) | | | (10.9) | | | (38) | | | (5.9) | |
SBA 504 loans | | | 369 | | | 346 | | | 433 | | | | 23 | | | 6.6 | | | (64) | | | (14.8) | |
Commercial loans | | | 5,276 | | | 5,066 | | | 4,738 | | | | 210 | | | 4.1 | | | 538 | | | 11.4 | |
Residential mortgage loans | | | 2,716 | | | 2,582 | | | 2,052 | | | | 134 | | | 5.2 | | | 664 | | | 32.4 | |
Consumer loans | | | 774 | | | 699 | | | 544 | | | | 75 | | | 10.7 | | | 230 | | | 42.3 | |
Total loans | | | 9,740 | | | 9,372 | | | 8,410 | | | | 368 | | | 3.9 | | | 1,330 | | | 15.8 | |
Total interest income | | | 10,218 | | | 9,884 | | | 9,102 | | | | 334 | | | 3.4 | | | 1,116 | | | 12.3 | |
INTEREST EXPENSE | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing demand deposits | | | 103 | | | 106 | | | 109 | | | | (3) | | | (2.8) | | | (6) | | | (5.5) | |
Savings deposits | | | 271 | | | 264 | | | 188 | | | | 7 | | | 2.7 | | | 83 | | | 44.1 | |
Time deposits | | | 725 | | | 686 | | | 693 | | | | 39 | | | 5.7 | | | 32 | | | 4.6 | |
Borrowed funds and subordinated debentures | | | 750 | | | 808 | | | 807 | | | | (58) | | | (7.2) | | | (57) | | | (7.1) | |
Total interest expense | | | 1,849 | | | 1,864 | | | 1,797 | | | | (15) | | | (0.8) | | | 52 | | | 2.9 | |
Net interest income | | | 8,369 | | | 8,020 | | | 7,305 | | | | 349 | | | 4.4 | | | 1,064 | | | 14.6 | |
Provision for loan losses | | | - | | | 200 | | | 550 | | | | (200) | | | (100.0) | | | (550) | | | (100.0) | |
Net interest income after provision for loan losses | | | 8,369 | | | 7,820 | | | 6,755 | | | | 549 | | | 7.0 | | | 1,614 | | | 23.9 | |
NONINTEREST INCOME | | | | | | | | | | | | | | | | | | | | | | | |
Branch fee income | | | 373 | | | 346 | | | 342 | | | | 27 | | | 7.8 | | | 31 | | | 9.1 | |
Service and loan fee income | | | 466 | | | 296 | | | 285 | | | | 170 | | | 57.4 | | | 181 | | | 63.5 | |
Gain on sale of SBA loans held for sale, net | | | - | | | 363 | | | 255 | | | | (363) | | | (100.0) | | | (255) | | | (100.0) | |
Gain on sale of mortgage loans, net | | | 687 | | | 344 | | | 188 | | | | 343 | | | 99.7 | | | 499 | | | 265.4 | |
Net security gains | | | 28 | | | - | | | 268 | | | | 28 | | | 100.0 | | | (240) | | | (89.6) | |
Other income | | | 339 | | | 292 | | | 302 | | | | 47 | | | 16.1 | | | 37 | | | 12.3 | |
Total noninterest income | | | 1,893 | | | 1,641 | | | 1,640 | | | | 252 | | | 15.4 | | | 253 | | | 15.4 | |
NONINTEREST EXPENSE | | | | | | | | | | | | | | | | | | | | | | | |
Compensation and benefits | | | 3,481 | | | 3,472 | | | 3,122 | | | | 9 | | | 0.3 | | | 359 | | | 11.5 | |
Occupancy | | | 601 | | | 672 | | | 619 | | | | (71) | | | (10.6) | | | (18) | | | (2.9) | |
Processing and communications | | | 614 | | | 596 | | | 597 | | | | 18 | | | 3.0 | | | 17 | | | 2.8 | |
Furniture and equipment | | | 422 | | | 373 | | | 379 | | | | 49 | | | 13.1 | | | 43 | | | 11.3 | |
Professional services | | | 242 | | | 236 | | | 247 | | | | 6 | | | 2.5 | | | (5) | | | (2.0) | |
Loan costs | | | 160 | | | 221 | | | 174 | | | | (61) | | | (27.6) | | | (14) | | | (8.0) | |
OREO expenses | | | 67 | | | 35 | | | 95 | | | | 32 | | | 91.4 | | | (28) | | | (29.5) | |
Deposit insurance | | | 150 | | | 183 | | | 171 | | | | (33) | | | (18.0) | | | (21) | | | (12.3) | |
Advertising | | | 343 | | | 182 | | | 287 | | | | 161 | | | 88.5 | | | 56 | | | 19.5 | |
Other expenses | | | 572 | | | 532 | | | 453 | | | | 40 | | | 7.5 | | | 119 | | | 26.3 | |
Total noninterest expense | | | 6,652 | | | 6,502 | | | 6,144 | | | | 150 | | | 2.3 | | | 508 | | | 8.3 | |
Income before provision for income taxes | | | 3,610 | | | 2,959 | | | 2,251 | | | | 651 | | | 22.0 | | | 1,359 | | | 60.4 | |
Provision for income taxes | | | 1,182 | | | 1,020 | | | 723 | | | | 162 | | | 15.9 | | | 459 | | | 63.5 | |
Net income | | $ | 2,428 | | $ | 1,939 | | $ | 1,528 | | | $ | 489 | | | 25.2 | % | $ | 900 | | | 58.9 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
Effective tax rate | | | 32.7 | % | | 34.5 | % | | 32.1 | % | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
Net income per common share - Basic | | $ | 0.29 | | $ | 0.23 | | $ | 0.20 | | | | | | | | | | | | | | |
Net income per common share - Diluted | | $ | 0.28 | | $ | 0.23 | | $ | 0.20 | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
Weighted average common shares outstanding - Basic | | | 8,425 | | | 8,417 | | | 7,605 | | | | | | | | | | | | | | |
Weighted average common shares outstanding - Diluted | | | 8,524 | | | 8,514 | | | 7,690 | | | | | | | | | | | | | | |
