Exhibit 99.1
|
|
|
|
| Unity Bancorp, Inc. |
|
| 64 Old Highway 22 |
|
| Clinton, NJ 08809 |
|
| 800 618-BANK |
|
| www.unitybank.com |
NewsNewsNewsNewsNews
For Immediate Release:
April 22, 2004
News Media & Financial Analyst Contact:
Alan Bedner, EVP
Chief Financial Officer
(908) 713-4308
Unity Bancorp Reports Increase in First Quarter Earnings per Share
Clinton, NJ - Unity Bancorp, Inc (NASDAQ: UNTY), parent company of Unity Bank, reported net income of $1.2 million, or $0.21 per diluted share, for the quarter ended March 31, 2004, a 5.0% increase compared to $1.2 million, or $0.20 per diluted share, for the quarter ended March 31, 2003. Return on average assets and average common equity for the first quarter of 2004 were 1.04% and 15.32%, respectively, as compared to 1.09% and 17.23%, respectively, for the first quarter of 2003.
Net interest income was $4.6 million for the first quarter of 2004, compared to $4.3 million in the comparable quarter a year ago. Net interest margin was 4.25% for the first quarter of 2004 compared to 4.19% for the first quarter of 2003. The Company’s net interest margin improved from the same quarter in 2003 primarily due to the lower cost of funds.
“We remain optimistic that by keeping to our business plan and managing interest rate risk, our net interest income will improve in future periods. Our net interest income continued to show improvement, with a $367 thousand, or 8.6% increase over the first quarter of 2003. The continued low interest rate environment has challenged the industry yet our net interest margin remains stable,” said Unity President, James A. Hughes.
The provision for loan losses for the first quarter of 2004 was $250 thousand, compared to $375 thousand for the quarter ended December 31, 2003, and $450 thousand in the first quarter of 2003. The decline in the provision from the prior quarter is due to a lower level of non-performing
loans and the decline in outstanding loans. Net loan charge-offs for the quarter ended March 31, 2004 were $136 thousand, compared to $162 thousand for the quarter ended March 31, 2003.
Total non-interest income for the first quarter of 2004 was $1.9 million, down from $2.1 million in the same period a year ago. Gains on sales of SBA loans amounted to $738 thousand for the first quarter of 2004, compared to $819 thousand for the quarter ended March 31, 2003. The decline in SBA gains is primarily due to the cap that was placed on the SBA 7a program. Service charges on deposits for the first quarter of 2004 decreased $164 thousand compared to the first quarter of 2003 as a result of lower overdraft fees and the Company choosing to mitigate overdraft risk with certain customers. Service and loan fees for the first quarter of 2004 increased $50 thousand from the prior year’s comparable quarter due to increased levels of loan prepayment penalties.
A primary source of revenue for the Company is gains on the sale of SBA (“Small Business Administration”) 7a loans. As a result of funding limitations experienced by the Small Business Administration, the SBA imposed a $750 thousand loan cap for the first quarter of 2004, as compared to $2.0 million in 2003. Although the cap was lifted in April 2004, the impact of the cap reduced the amount of loan originations and resulting gains on SBA loans in the first quarter.
Total non-interest expenses for the first quarter of 2004 were $4.4 million, an increase of 8.6% from the prior year’s comparable quarter. The increase from the prior year’s comparable quarter was primarily due to the increased compensation and benefit costs primarily attributed to increased head count, merit increases and rising health care costs. Processing and communications expense in the first quarter of 2004 decreased $100 thousand from the first quarter of 2003, due to lower payroll processing costs and lower costs related to the ordering and shipment of coin and currency. Loan servicing costs in the first quarter of 2004 increased $60 thousand from the first quarter of 2003 due to increased legal and loan collection costs associated with non-performing loans.
Total assets at March 31, 2004 were $473.3 million, a 6.2% increase from a year ago. The increase in assets from the prior year was primarily due to growth in the Company’s loan and securities portfolios and federal funds sold. During the first quarter, the Company held a larger balance of federal funds sold to position for a rising rate environment. Total loans at March 31, 2004 were $331.5 million, a 4.0% increase from March 31, 2003. The growth in the loan portfolio occurred primarily in commercial and consumer loans, which totaled $188.7 million and $37.6 million at March 31, 2004, an increase of 9.0% and 28.6%, respectively, from a year ago. SBA loans held for investment were $48.7 million at March 31, 2004, down 2.6% from a year ago due to prepayments and lower originations due to the cap on SBA 7a loans. Due to continued prepayments, residential mortgage loans declined 6.6% from a year ago and totaled $48.9 million at March 31, 2004.
Total deposits at March 31, 2004 were $409.3 million, a 3.9% increase from March 31, 2003. This increase was primarily the result of growth in non-interest bearing demand deposits and “Opportunity Checking,” Unity’s premier interest-bearing checking product. Non-interest bearing accounts totaled $86.8 million at March 31, 2004, up 7.4% from a year ago.
At March 31, 2004, the allowance for loan losses was 1.65% of total loans, compared to 1.58 % and 1.38% for the quarters ended December 31, 2003 and March 31, 2003, respectively. Non-performing assets at March 31, 2004 were $5.1 million, compared to $5.7 million at December 31, 2003, and $3.8 at March 31, 2003. Included in non-performing assets are approximately $900 thousand of loans that are guaranteed by the Small Business Administration. There were no loans greater than 90 days and still accruing interest as of March 31, 2004 compared to $1.9 million and $2.1 million at December 31, 2003 and March 31, 2003, respectively.
“We will continue to actively manage our credit risk. During the quarter, as a result of increased collection efforts we saw a marked improvement in our asset quality,” said Mr. Hughes.
Total shareholders’ equity was $32.5 million at March 31, 2004, a 16.7% increase from the prior year. The increase in shareholders’ equity over the prior year was due to retained profits and the increase in other comprehensive income primarily offset by the payment of cash dividends.
As of March 31, 2004, the Company’s Tier I leverage ratio was 9.09%, Tier I risk-based capital ratio was 11.65%, and total risk-based capital ratio was 12.90%. All regulatory capital ratios exceed the well-capitalized federal capital adequacy requirements as of March 31, 2004.
Unity Bancorp, Inc. is a financial service organization headquartered in Clinton, New Jersey, with $473 million in assets and $409 million in deposits. Unity Bank provides financial services to retail, corporate & small business customers through its 13 retail service centers located in Hunterdon, Middlesex, Somerset and Union counties in New Jersey. 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)
|
| 3/31/2004 |
| 12/31/2003 |
| 3/31/2003 |
|
BALANCE SHEET DATA: |
|
|
|
|
|
|
|
Assets |
| 473,261 |
| 467,419 |
| 445,549 |
|
Deposits |
| 409,330 |
| 414,982 |
| 394,025 |
|
Loans |
| 331,507 |
| 339,755 |
| 318,612 |
|
Securities |
| 87,551 |
| 92,347 |
| 79,919 |
|
Shareholders’ equity |
| 32,470 |
| 30,762 |
| 27,824 |
|
Allowance for loan losses |
| 5,466 |
| 5,352 |
| 4,382 |
|
|
|
|
|
|
|
|
|
FINANCIAL DATA - QUARTER TO DATE: |
|
|
|
|
|
|
|
Net income before taxes |
| 1,846 |
| 1,461 |
| 1,853 |
|
Federal and state income tax provision |
| 652 |
| 547 |
| 701 |
|
Net income |
| 1,194 |
| 914 |
| 1,152 |
|
|
|
|
|
|
|
|
|
Per share-basic |
| 0.22 |
| 0.17 |
| 0.21 |
|
Per share-diluted |
| 0.21 |
| 0.16 |
| 0.20 |
|
|
|
|
|
|
|
|
|
Return on average assets |
| 1.04 |
| 0.81 |
| 1.09 |
|
Return on average common equity |
| 15.32 |
| 12.30 |
| 17.23 |
|
Efficiency ratio |
| 68.31 |
| 73.66 |
| 64.62 |
|
|
|
|
|
|
|
|
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SHARE INFORMATION: |
|
|
|
|
|
|
|
Closing price per share |
| 13.45 |
| 11.43 |
| 7.99 |
|
Book value per share |
| 5.93 |
| 5.68 |
| 5.16 |
|
Average diluted shares outstanding (QTD) |
| 5,748 |
| 5,661 |
| 5,671 |
|
|
|
|
|
|
|
|
|
CAPITAL RATIOS: |
|
|
|
|
|
|
|
Total equity to total assets |
| 6.86 |
| 6.59 |
| 6.25 |
|
Tier I capital to average assets (leverage) |
| 9.09 |
| 9.02 |
| 8.59 |
|
Tier I capital to risk-adjusted assets |
| 11.65 |
| 11.28 |
| 11.03 |
|
Total risk-based capital |
| 12.90 |
| 12.53 |
| 12.28 |
|
|
|
|
|
|
|
|
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CREDIT QUALITY AND RATIOS: |
|
|
|
|
|
|
|
Nonperforming assets |
| 5,061 |
| 5,722 |
| 3,803 |
|
Net charge offs (recoveries) to average loans (QTD) |
| 0.16 |
| (0.02 | ) | 0.21 |
|
Allowance for loan losses to total loans |
| 1.65 |
| 1.58 |
| 1.38 |
|
Nonperforming assets to total loans and OREO |
| 1.53 |
| 1.68 |
| 1.19 |
|
Unity Bancorp, Inc.
Consolidated Balance Sheets
(In thousands)
|
| 3/31/2004 |
| 12/31/2003 |
| 3/31/2003 |
|
ASSETS |
|
|
|
|
|
|
|
Cash and due from banks |
| 9,950 |
| 11,915 |
| 12,188 |
|
Federal funds sold and interest bearing deposits |
| 35,306 |
| 14,500 |
| 25,000 |
|
Securities: |
|
|
|
|
|
|
|
Available for sale |
| 75,159 |
| 79,277 |
| 55,813 |
|
Held to maturity |
| 12,392 |
| 13,070 |
| 24,106 |
|
Total securities |
| 87,551 |
| 92,347 |
| 79,919 |
|
Loans: |
|
|
|
|
|
|
|
SBA - Held for sale |
| 7,637 |
| 14,014 |
| 13,846 |
|
SBA - Held to Maturity |
| 48,740 |
| 49,983 |
| 50,045 |
|
Commercial |
| 188,707 |
| 188,197 |
| 173,191 |
|
Residential mortgage |
| 48,862 |
| 51,176 |
| 52,321 |
|
Consumer |
| 37,561 |
| 36,385 |
| 29,209 |
|
Total loans |
| 331,507 |
| 339,755 |
| 318,612 |
|
Less: Allowance for loan losses |
| 5,466 |
| 5,352 |
| 4,382 |
|
Net loans |
| 326,041 |
| 334,403 |
| 314,230 |
|
Premises and equipment, net |
| 6,764 |
| 5,979 |
| 8,569 |
|
Accrued interest receivable |
| 2,340 |
| 2,389 |
| 2,455 |
|
Loan servicing asset |
| 1,320 |
| 1,063 |
| 304 |
|
Other assets |
| 3,989 |
| 4,823 |
| 2,884 |
|
Total Assets |
| 473,261 |
| 467,419 |
| 445,549 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
Noninterest-bearing demand deposits |
| 86,781 |
| 86,802 |
| 80,794 |
|
Interest-bearing deposits: |
|
|
|
|
|
|
|
Interest bearing checking |
| 190,247 |
| 199,510 |
| 181,599 |
|
Savings |
| 37,748 |
| 38,447 |
| 36,484 |
|
Time, under $100,000 |
| 64,813 |
| 66,595 |
| 67,850 |
|
Time, $100,000 and over |
| 29,741 |
| 23,628 |
| 27,298 |
|
Total deposits |
| 409,330 |
| 414,982 |
| 394,025 |
|
Borrowed funds and subordinated debentures |
| 29,279 |
| 19,279 |
| 22,024 |
|
Accrued interest payable |
| 178 |
| 185 |
| 236 |
|
Accrued expenses and other liabilities |
| 2,004 |
| 2,211 |
| 1,440 |
|
Total liabilities |
| 440,791 |
| 436,657 |
| 417,725 |
|
Commitments and Contingencies |
| — |
| — |
| — |
|
|
|
|
|
|
|
|
|
Shareholders’ equity: |
|
|
|
|
|
|
|
Common stock, no par value, 12,500 shares authorized |
| 32,237 |
| 31,989 |
| 31,827 |
|
Retained earnings (deficit) |
| 229 |
| (746 | ) | (3,854 | ) |
Accumulated other comprehensive income (loss), net of tax |
| 4 |
| (481 | ) | (149 | ) |
Total shareholders’ equity |
| 32,470 |
| 30,762 |
| 27,824 |
|
Total Liabilities and Shareholders’ Equity |
| 473,261 |
| 467,419 |
| 445,549 |
|
|
|
|
|
|
|
|
|
COMMON SHARES AT PERIOD END: |
|
|
|
|
|
|
|
Issued |
| 5,473 |
| 5,415 |
| 5,393 |
|
Outstanding |
| 5,473 |
| 5,415 |
| 5,393 |
|
Treasury |
| — |
| — |
| — |
|
Unity Bancorp Inc.
Consolidated Statements of Income
(In thousands, except per share data)
FOR THE THREE MONTHS ENDED: |
| 3/31/2004 |
| 12/31/2003 |
| 3/31/2003 |
|
INTEREST INCOME |
|
|
|
|
|
|
|
Fed funds sold and interest on deposits |
| 32 |
| 32 |
| 16 |
|
Securities: |
|
|
|
|
|
|
|
Available for sale |
| 757 |
| 726 |
| 545 |
|
Held to maturity |
| 177 |
| 183 |
| 307 |
|
Total securities |
| 934 |
| 909 |
| 852 |
|
Loans: |
|
|
|
|
|
|
|
SBA |
| 1,019 |
| 995 |
| 1,042 |
|
Commercial |
| 3,096 |
| 3,133 |
| 3,019 |
|
Residential mortgage |
| 703 |
| 745 |
| 877 |
|
Consumer |
| 442 |
| 462 |
| 384 |
|
Total loan interest income |
| 5,260 |
| 5,335 |
| 5,322 |
|
Total interest income |
| 6,226 |
| 6,276 |
| 6,190 |
|
INTEREST EXPENSE |
|
|
|
|
|
|
|
Interest bearing demand deposits |
| 630 |
| 625 |
| 788 |
|
Savings deposits |
| 107 |
| 107 |
| 106 |
|
Time deposits |
| 618 |
| 660 |
| 744 |
|
Borrowed funds and subordinated debentures |
| 253 |
| 265 |
| 301 |
|
Total interest expense |
| 1,608 |
| 1,657 |
| 1,939 |
|
Net interest income |
| 4,618 |
| 4,619 |
| 4,251 |
|
Provision for loan losses |
| 250 |
| 375 |
| 450 |
|
Net interest income after provision for loan losses |
| 4,368 |
| 4,244 |
| 3,801 |
|
NONINTEREST INCOME |
|
|
|
|
|
|
|
Service charges on deposit accounts |
| 406 |
| 448 |
| 570 |
|
Service and loan fee income |
| 471 |
| 477 |
| 421 |
|
Gain on SBA loan sales |
| 738 |
| 738 |
| 819 |
|
Net securities (loss) gains |
| 53 |
| 82 |
| 83 |
|
Other income |
| 213 |
| 378 |
| 214 |
|
Total noninterest income |
| 1,881 |
| 2,123 |
| 2,107 |
|
NONINTEREST EXPENSES |
|
|
|
|
|
|
|
Compensation and benefits |
| 2,239 |
| 2,304 |
| 1,910 |
|
Processing and communications |
| 474 |
| 462 |
| 574 |
|
Occupancy, net |
| 529 |
| 510 |
| 478 |
|
Furniture and equipment |
| 263 |
| 285 |
| 241 |
|
Professional services |
| 231 |
| 877 |
| 252 |
|
Loan servicing costs |
| 180 |
| 140 |
| 120 |
|
Advertising |
| 144 |
| 159 |
| 131 |
|
Deposit insurance |
| 15 |
| 15 |
| 16 |
|
Other |
| 328 |
| 154 |
| 333 |
|
Total noninterest expenses |
| 4,403 |
| 4,906 |
| 4,055 |
|
Income before taxes |
| 1,846 |
| 1,461 |
| 1,853 |
|
Federal and state income tax provision |
| 652 |
| 547 |
| 701 |
|
Net Income |
| 1,194 |
| 914 |
| 1,152 |
|
|
|
|
|
|
|
|
|
Net Income Per Common Share-Basic |
| 0.22 |
| 0.17 |
| 0.21 |
|
Net Income Per Common Share-Diluted |
| 0.21 |
| 0.16 |
| 0.20 |
|
|
|
|
|
|
|
|
|
AVERAGE COMMON SHARES OUTSTANDING: |
|
|
|
|
|
|
|
Basic |
| 5,462 |
| 5,398 |
| 5,393 |
|
Diluted |
| 5,748 |
| 5,661 |
| 5,671 |
|
Consolidated Average Balance Sheets
with Resultant Interest and Rates
(Tax-equivalent basis, dollars in thousands)
|
| Three Months Ended |
| Three Months Ended |
| ||||||||
|
| Balance |
| Interest |
| Rate |
| Balance |
| Interest |
| Rate |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold and Interest-bearing deposits with banks |
| 12,287 |
| 32 |
| 1.05 |
| 8,689 |
| 32 |
| 1.46 |
|
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Available for sale |
| 77,256 |
| 787 |
| 4.07 |
| 74,746 |
| 750 |
| 4.01 |
|
Held to maturity |
| 12,751 |
| 177 |
| 5.55 |
| 13,562 |
| 183 |
| 5.40 |
|
Total securities |
| 90,007 |
| 964 |
| 4.28 |
| 88,308 |
| 933 |
| 4.23 |
|
Loans, net of unearned discount: |
|
|
|
|
|
|
|
|
|
|
|
|
|
SBA |
| 62,115 |
| 1,019 |
| 6.56 |
| 63,332 |
| 995 |
| 6.28 |
|
Commercial |
| 186,562 |
| 3,096 |
| 6.67 |
| 180,519 |
| 3,133 |
| 6.89 |
|
Residential mortgage |
| 49,787 |
| 703 |
| 5.65 |
| 50,993 |
| 745 |
| 5.84 |
|
Consumer |
| 36,568 |
| 442 |
| 4.86 |
| 35,320 |
| 462 |
| 5.19 |
|
Total loans |
| 335,032 |
| 5,260 |
| 6.30 |
| 330,164 |
| 5,335 |
| 6.43 |
|
Total interest- earning assets |
| 437,326 |
| 6,256 |
| 5.74 |
| 427,161 |
| 6,300 |
| 5.87 |
|
Noninterest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
| 14,125 |
|
|
|
|
| 9,798 |
|
|
|
|
|
Allowance for loan losses |
| (5,510 | ) |
|
|
|
| (5,193 | ) |
|
|
|
|
Other assets |
| 14,163 |
|
|
|
|
| 14,660 |
|
|
|
|
|
Total noninterest- earning assets |
| 22,778 |
|
|
|
|
| 19,265 |
|
|
|
|
|
Total Assets |
| 460,104 |
|
|
|
|
| 446,426 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand deposits |
| 188,999 |
| 630 |
| 1.34 |
| 188,205 |
| 625 |
| 1.32 |
|
Savings deposits |
| 38,489 |
| 107 |
| 1.12 |
| 37,291 |
| 107 |
| 1.14 |
|
Time deposits |
| 96,213 |
| 618 |
| 2.58 |
| 88,383 |
| 660 |
| 2.96 |
|
Total interest- bearing deposits |
| 323,701 |
| 1,355 |
| 1.68 |
| 313,879 |
| 1,392 |
| 1.76 |
|
Borrowed funds and subordinated debentures |
| 23,112 |
| 253 |
| 4.40 |
| 20,873 |
| 265 |
| 5.04 |
|
Total interest- bearing liabilities |
| 346,813 |
| 1,608 |
| 1.86 |
| 334,752 |
| 1,657 |
| 1.96 |
|
Noninterest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
| 79,834 |
|
|
|
|
| 80,286 |
|
|
|
|
|
Other liabilities |
| 2,118 |
|
|
|
|
| 1,910 |
|
|
|
|
|
Total noninterest- bearing liabilities |
| 81,952 |
|
|
|
|
| 82,196 |
|
|
|
|
|
Shareholders’ equity |
| 31,339 |
|
|
|
|
| 29,478 |
|
|
|
|
|
Total Liabilities and Shareholders’ Equity |
| 460,104 |
|
|
|
|
| 446,426 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest spread |
|
|
| 4,648 |
| 3.88 |
|
|
| 4,643 |
| 3.91 |
|
Tax-equivalent basis adjustment |
|
|
| (30 | ) |
|
|
|
| (24 | ) |
|
|
Net interest income |
|
|
| 4,618 |
|
|
|
|
| 4,619 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin |
|
|
|
|
| 4.25 |
|
|
|
|
| 4.35 |
|
Unity Bancorp, Inc.
Consolidated Average Balance Sheets
with Resultant Interest and Rates
(Tax-equivalent basis, dollars in thousands)
|
| Three Months Ended |
| Three Months Ended |
| ||||||||
|
| Balance |
| Interest |
| Rate |
| Balance |
| Interest |
| Rate |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold and |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits with banks |
| 12,287 |
| 32 |
| 1.05 |
| 6,300 |
| 16 |
| 1.03 |
|
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Available for sale |
| 77,256 |
| 787 |
| 4.07 |
| 53,709 |
| 545 |
| 4.06 |
|
Held to maturity |
| 12,751 |
| 177 |
| 5.55 |
| 25,813 |
| 307 |
| 4.76 |
|
Total securities |
| 90,007 |
| 964 |
| 4.28 |
| 79,522 |
| 852 |
| 4.29 |
|
Loans, net of unearned discount: |
|
|
|
|
|
|
|
|
|
|
|
|
|
SBA |
| 62,115 |
| 1,019 |
| 6.56 |
| 68,645 |
| 1,042 |
| 6.07 |
|
Commercial |
| 186,562 |
| 3,096 |
| 6.67 |
| 167,536 |
| 3,019 |
| 7.31 |
|
Residential mortgage |
| 49,787 |
| 703 |
| 5.65 |
| 55,522 |
| 877 |
| 6.32 |
|
Consumer |
| 36,568 |
| 442 |
| 4.86 |
| 28,533 |
| 384 |
| 5.46 |
|
Total loans |
| 335,032 |
| 5,260 |
| 6.30 |
| 320,236 |
| 5,322 |
| 6.71 |
|
Total interest-earning assets |
| 437,326 |
| 6,256 |
| 5.74 |
| 406,058 |
| 6,190 |
| 6.15 |
|
Noninterest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
| 14,125 |
|
|
|
|
| 15,026 |
|
|
|
|
|
Allowance for loan losses |
| (5,510 | ) |
|
|
|
| (4,338 | ) |
|
|
|
|
Other assets |
| 14,163 |
|
|
|
|
| 13,050 |
|
|
|
|
|
Total noninterest- earning assets |
| 22,778 |
|
|
|
|
| 23,738 |
|
|
|
|
|
Total Assets |
| 460,104 |
|
|
|
|
| 429,796 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand deposits |
| 188,999 |
| 630 |
| 1.34 |
| 178,649 |
| 788 |
| 1.79 |
|
Savings deposits |
| 38,489 |
| 107 |
| 1.12 |
| 34,726 |
| 106 |
| 1.24 |
|
Time deposits |
| 96,213 |
| 618 |
| 2.58 |
| 93,580 |
| 744 |
| 3.22 |
|
Total interest-bearing deposits |
| 323,701 |
| 1,355 |
| 1.68 |
| 306,955 |
| 1,638 |
| 2.16 |
|
Borrowed funds and subordinated debentures |
| 23,112 |
| 253 |
| 4.40 |
| 21,908 |
| 301 |
| 5.57 |
|
Total interest-bearing liabilities |
| 346,813 |
| 1,608 |
| 1.86 |
| 328,863 |
| 1,939 |
| 2.39 |
|
Noninterest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
| 79,834 |
|
|
|
|
| 72,892 |
|
|
|
|
|
Other liabilities |
| 2,118 |
|
|
|
|
| 925 |
|
|
|
|
|
Total noninterest- bearing liabilities |
| 81,952 |
|
|
|
|
| 73,817 |
|
|
|
|
|
Shareholders’ equity |
| 31,339 |
|
|
|
|
| 27,116 |
|
|
|
|
|
Total Liabilities and Shareholders’ Equity |
| 460,104 |
|
|
|
|
| 429,796 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest spread |
|
|
| 4,648 |
| 3.88 |
|
|
| 4,251 |
| 3.76 |
|
Tax-equivalent basis adjustment |
|
|
| (30 | ) |
|
|
|
| — |
|
|
|
Net interest income |
|
|
| 4,618 |
|
|
|
|
| 4,251 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin |
|
|
|
|
| 4.25 |
|
|
|
|
| 4.19 |
|
Unity Bancorp, Inc.
Allowance for Loan Losses and Loan Quality Schedules
(Dollars in thousands)
|
| 3/31/ |
| 12/31/ |
| 9/30/ |
| 6/30/ |
| 3/31/ |
|
ALLOWANCE FOR LOAN LOSSES: |
|
|
|
|
|
|
|
|
|
|
|
Balance, beginning |
| 5,352 |
| 4,960 |
| 4,649 |
| 4,382 |
| 4,094 |
|
Provision charged to expense |
| 250 |
| 375 |
| 375 |
| 400 |
| 450 |
|
|
| 5,602 |
| 5,335 |
| 5,024 |
| 4,782 |
| 4,544 |
|
Less: Charge offs |
|
|
|
|
|
|
|
|
|
|
|
SBA |
| 98 |
| 185 |
| 112 |
| 129 |
| 60 |
|
Commercial |
| 181 |
| 65 |
| 55 |
| 30 |
| 144 |
|
Residential mortgage |
| — |
| — |
| — |
| — |
| — |
|
Consumer |
| 3 |
| 12 |
| 42 |
| 8 |
| 31 |
|
Total Charge Offs |
| 282 |
| 262 |
| 209 |
| 167 |
| 235 |
|
Add: Recoveries |
|
|
|
|
|
|
|
|
|
|
|
SBA |
| 17 |
| 6 |
| 40 |
| 28 |
| 4 |
|
Commercial |
| 125 |
| 268 |
| 101 |
| — |
| 50 |
|
Residential mortgage |
| — |
| — |
| — |
| — |
| — |
|
Consumer |
| 4 |
| 5 |
| 4 |
| 6 |
| 19 |
|
Total Recoveries |
| 146 |
| 279 |
| 145 |
| 34 |
| 73 |
|
Net Charge Offs |
| 136 |
| (17 | ) | 64 |
| 133 |
| 162 |
|
Balance, ending |
| 5,466 |
| 5,352 |
| 4,960 |
| 4,649 |
| 4,382 |
|
|
|
|
|
|
|
|
|
|
|
|
|
LOAN QUALITY INFORMATION: |
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans |
| 4,723 |
| 5,395 |
| 3,854 |
| 3,310 |
| 3,545 |
|
Other real estate owned, net |
| 338 |
| 327 |
| 396 |
| 237 |
| 258 |
|
Nonperforming assets |
| 5,061 |
| 5,722 |
| 4,250 |
| 3,547 |
| 3,803 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans 90 days past due and still accruing |
| 0 |
| 1,876 |
| 165 |
| 759 |
| 2,130 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses to: |
|
|
|
|
|
|
|
|
|
|
|
Total loans at period end |
| 1.65 |
| 1.58 |
| 1.54 |
| 1.43 |
| 1.38 |
|
Nonperforming loans |
| 115.73 |
| 99.20 |
| 128.70 |
| 140.45 |
| 123.61 |
|
Nonperforming assets |
| 108.00 |
| 93.53 |
| 116.71 |
| 131.07 |
| 115.22 |
|
Net charge offs to average loans (QTD) |
| 0.16 |
| (0.02 | ) | 0.08 |
| 0.17 |
| 0.21 |
|
Net charge offs to average loans (YTD) |
| 0.16 |
| 0.11 |
| 0.15 |
| 0.18 |
| 0.21 |
|
Nonperforming loans to total loans |
| 1.42 |
| 1.59 |
| 1.20 |
| 1.02 |
| 1.11 |
|
Nonperforming assets to total loans and OREO |
| 1.53 |
| 1.68 |
| 1.32 |
| 1.09 |
| 1.19 |
|
Unity Bancorp, Inc.
Quarterly Financial Data
|
| 3/31/ |
| 12/31/ |
| 9/30/ |
| 6/30/ |
| 3/31/ |
|
SUMMARY OF INCOME (in thousands) : |
|
|
|
|
|
|
|
|
|
|
|
Interest income |
| 6,226 |
| 6,276 |
| 6,139 |
| 6,290 |
| 6,190 |
|
Interest expense |
| 1,608 |
| 1,657 |
| 1,673 |
| 1,759 |
| 1,939 |
|
Net interest income |
| 4,618 |
| 4,619 |
| 4,466 |
| 4,531 |
| 4,251 |
|
Provision for loan losses |
| 250 |
| 375 |
| 375 |
| 400 |
| 450 |
|
Net interest income after provision |
| 4,368 |
| 4,244 |
| 4,091 |
| 4,131 |
| 3,801 |
|
Noninterest income |
| 1,881 |
| 2,123 |
| 2,125 |
| 1,988 |
| 2,107 |
|
Noninterest expense |
| 4,403 |
| 4,906 |
| 4,167 |
| 4,201 |
| 4,055 |
|
Income before income taxes |
| 1,846 |
| 1,461 |
| 2,049 |
| 1,918 |
| 1,853 |
|
Federal and state income tax provision |
| 652 |
| 547 |
| 747 |
| 703 |
| 701 |
|
Net Income |
| 1,194 |
| 914 |
| 1,302 |
| 1,215 |
| 1,152 |
|
Net Income per Common Share: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
| 0.22 |
| 0.17 |
| 0.24 |
| 0.23 |
| 0.21 |
|
Diluted |
| 0.21 |
| 0.16 |
| 0.23 |
| 0.22 |
| 0.20 |
|
COMMON SHARE DATA: |
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared |
| 0.04 |
| 0.03 |
| 0.03 |
| — |
| — |
|
Book value at quarter end |
| 5.93 |
| 5.68 |
| 5.48 |
| 5.42 |
| 5.16 |
|
Market value at quarter end |
| 13.45 |
| 11.43 |
| 11.20 |
| 10.20 |
| 7.99 |
|
Average common shares outstanding: (000’s) |
|
|
|
|
|
|
|
|
|
|
|
Basic |
| 5,462 |
| 5,398 |
| 5,398 |
| 5,393 |
| 5,393 |
|
Diluted |
| 5,748 |
| 5,661 |
| 5,661 |
| 5,610 |
| 5,671 |
|
Common shares outstanding at period end (000’s) |
| 5,473 |
| 5,415 |
| 5,399 |
| 5,393 |
| 5,393 |
|
OPERATING RATIOS: |
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
| 1.04 |
| 0.81 |
| 1.14 |
| 1.11 |
| 1.09 |
|
Return on average common equity |
| 15.32 |
| 12.30 |
| 17.70 |
| 17.14 |
| 17.23 |
|
Efficiency ratio |
| 68.31 |
| 73.66 |
| 62.98 |
| 64.81 |
| 64.62 |
|
BALANCE SHEET DATA (in thousands): |
|
|
|
|
|
|
|
|
|
|
|
Assets |
| 473,261 |
| 467,419 |
| 450,788 |
| 449,049 |
| 445,549 |
|
Deposits |
| 409,330 |
| 414,982 |
| 399,451 |
| 397,098 |
| 394,025 |
|
Loans |
| 331,507 |
| 339,755 |
| 321,629 |
| 325,221 |
| 318,612 |
|
Shareholders’ equity |
| 32,470 |
| 30,762 |
| 29,564 |
| 29,238 |
| 27,824 |
|
Allowance for loan losses |
| 5,466 |
| 5,352 |
| 4,960 |
| 4,649 |
| 4,382 |
|
TAX-EQUIVALENT YIELDS AND RATES: |
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets |
| 5.74 |
| 5.87 |
| 5.71 |
| 6.10 |
| 6.15 |
|
Interest-bearing liabilities |
| 1.86 |
| 1.96 |
| 1.96 |
| 2.12 |
| 2.39 |
|
Net interest spread |
| 3.88 |
| 3.91 |
| 3.75 |
| 3.98 |
| 3.76 |
|
Net interest margin |
| 4.25 |
| 4.35 |
| 4.18 |
| 4.39 |
| 4.19 |
|
CREDIT QUALITY: |
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets (in thousands) |
| 5,061 |
| 5,722 |
| 4,250 |
| 3,547 |
| 3,803 |
|
Allowance for loan losses to period-end loans |
| 1.65 |
| 1.58 |
| 1.54 |
| 1.43 |
| 1.38 |
|
Net charge offs (recoveries) to average loans |
| 0.16 |
| (0.02 | ) | 0.08 |
| 0.17 |
| 0.21 |
|
Nonperforming assets to loans and OREO |
| 1.53 |
| 1.68 |
| 1.32 |
| 1.09 |
| 1.19 |
|
CAPITAL AND OTHER: |
|
|
|
|
|
|
|
|
|
|
|
Total equity to assets |
| 6.86 |
| 6.58 |
| 6.56 |
| 6.51 |
| 6.24 |
|
Tier I capital to average assets (leverage) |
| 9.09 |
| 9.02 |
| 8.65 |
| 8.61 |
| 8.59 |
|
Tier I capital to risk-adjusted assets |
| 11.65 |
| 11.28 |
| 11.43 |
| 10.88 |
| 11.03 |
|
Total capital to risk-adjusted assets |
| 12.90 |
| 12.53 |
| 12.68 |
| 12.13 |
| 12.28 |
|
Number of banking offices |
| 13 |
| 13 |
| 12 |
| 12 |
| 12 |
|
Number of ATMs |
| 14 |
| 14 |
| 13 |
| 13 |
| 13 |
|
Number of employees |
| 166 |
| 173 |
| 168 |
| 171 |
| 160 |
|