Exhibit 99.1
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| Unity Bancorp, Inc. | |
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| Clinton, NJ 08809 |
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| 800 618-BANK |
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www.unitybank.com |
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NewsNewsNewsNewsNews
For Immediate Release:
July 22, 2004
News Media & Financial Analyst Contact:
Alan Bedner, EVP
Chief Financial Officer
(908) 713-4308
Unity Bancorp Reports 10.9% Increase in Second Quarter Earnings
Clinton, NJ - Unity Bancorp, Inc (NASDAQ: UNTY), parent company of Unity Bank, reported net income of $1.3 million, or $0.22 per diluted share, for the quarter ended June 30, 2004, a 10.9% increase compared to $1.2 million, or $0.21 per diluted share, for the quarter ended June 30, 2003. Return on average assets and average common equity for the second quarter of 2004 were 1.13% and 17.24%, respectively, as compared to 1.11% and 17.14%, respectively, for the second quarter of 2003. All share amounts have been restated to include the effect of the 5% stock dividend paid on June 30, 2004.
For the six months ended June 30, 2004, net income was $2.5 million, or $0.42 per diluted share, a 7.4% increase from the $2.4 million, or $0.40 per diluted share for the same period a year ago. Return on average assets and average common equity for the six months period ended June 30, 2004, were 1.08% and 16.19%, respectively, as compared to 1.10% and 17.19%, respectively, for the prior year period.
“We are pleased with the earnings for the second quarter and are working towards further improvements in 2004 earnings,” said Unity President, James A. Hughes. “We are hopeful to meet our objectives for the year and are looking forward to growing the value of the Unity franchise.”
Net interest income was $4.5 million for the second quarter of 2004, compared to $4.5 million in the comparable quarter a year ago. Net interest margin was 3.94% for the second quarter of 2004, compared to 4.39% for the second quarter of 2003. The Company’s net interest margin declined from the same quarter in 2003 primarily due to higher yielding assets re-pricing in a lower rate
environment and the Company holding higher levels of lower yielding Federal funds sold.
Total non-interest income for the second quarter of 2004 was $1.9 million, down from $2.0 million in the same period a year ago. Gains on sales of Small Business Administration (“SBA”) loans amounted to $669 thousand for the second quarter of 2004, compared to $687 thousand for the quarter ended June 30, 2003. The decline in gain on sales of SBA loans is primarily due to the cap that was placed on the SBA 7a program in January through April of 2004. Service charges on deposits for the second quarter of 2004 decreased $40 thousand, compared to the second 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 second quarter of 2004 increased $26 thousand from the prior year’s comparable quarter, as a result of increased levels of loan prepayment penalties.
A primary source of revenue for the Company is gains on the sale of SBA 7a loans. As a result of funding limitations experienced by the SBA, it 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 the Company’s loan originations and resulting gains on SBA loans in the first and second quarters of 2004.
Total non-interest expenses for the second quarter of 2004 were $4.0 million, a decrease of 4.3% from the prior year’s comparable quarter. Such decrease from the prior year’s comparable quarter was primarily due to the decrease in processing and communications costs related to the ordering and shipment of coin and currency, reduced professional services fees, and reduced advertising costs and other expenses, partially offset by increased compensation and benefit costs primarily attributed to increased head count, merit increases and rising health care costs.
Total assets at June 30, 2004 were $491.2 million, a 9.4% increase from a year ago. The increase in assets from the prior year is primarily due to growth in the Company’s loan and securities portfolios and federal funds sold.
Total loans at June 30, 2004 were $337.6 million, a 3.8% increase from June 30, 2003. The growth in the loan portfolio occurred primarily in commercial, residential and consumer loans, which totaled $190.5 million, $50.3 million and $38.4 million at June 30, 2004, an increase of 4.6%, 6.5% and 18.4%, respectively, from a year ago. SBA loans held-for-investment were $51.0 million at June 30, 2004, down 0.6% from a year ago due to prepayments and lower originations as a result of the cap on SBA 7a loans during the first quarter of 2004.
“Our loan production for the second quarter was moderate; however our loan portfolio was impacted by an unusually large number of payoffs,” said Mr. Hughes. “Our loan commitments outstanding continue to increase and we remain optimistic, that by keeping to our business plan, we will continue to grow the loan portfolio in the third and fourth quarters of 2004.”
Total deposits at June 30, 2004 were $429.4 million, an 8.1% increase from June 30, 2003. This increase was primarily the result of growth in non-interest bearing demand deposits, savings accounts and “Opportunity Checking,” Unity’s premier interest-bearing checking product. Non-interest bearing accounts totaled $93.2 million at June 30, 2004, up 2.9% from a year ago. Savings accounts totaled $44.5 million at June 30, 2004, an increase of 22.1% from a year ago. Interest bearing checking accounts amounted to $199.1 million at June 30, 2004, an increase of 8.7% from a year ago. Time deposits amounted to $92.6 million at June 30, 2004, an increase of 6.4% from a year
ago.
At June 30, 2004, the allowance for loan losses was 1.66% of total loans, compared to 1.43% at June 30, 2003. Non-performing assets at June 30, 2004 were $4.8 million, compared to $3.5 million at June 30, 2003. Included in non-performing assets are approximately $900 thousand of loans that are guaranteed by the Small Business Administration. There were $394 thousand in loans greater than 90 days and still accruing interest as of June 30, 2004, compared $759 thousand at June 30, 2003. The provision for loan losses for the second quarter of 2004 was $250 thousand, compared to $400 thousand for the quarter ended June 30, 2003. Net loan charge-offs for the quarter ended June 30, 2004 were $117 thousand, compared to $133 thousand for the quarter ended June 30, 2003.
Total shareholders’ equity was $31.8 million at June 30, 2004, an 8.8% increase from the prior year. The increase in shareholders’ equity over the prior year was due to retained profits primarily offset by the payment of cash dividends and the decrease in other comprehensive income.
As of June 30, 2004, the Company’s Tier I leverage ratio was 9.27%, Tier I risk-based capital ratio was 11.96%, and total risk-based capital ratio was 13.21%. All regulatory capital ratios exceed the well-capitalized federal capital adequacy requirements as of June 30, 2004.
Unity Bancorp, Inc. is a financial service organization headquartered in Clinton, New Jersey, with $491 million in assets and $429 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)
BALANCE SHEET DATA: |
| 6/30/2004 |
| 3/31/2004 |
| 6/30/2003 |
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Assets |
| 491,229 |
| 473,261 |
| 449,049 |
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Deposits |
| 429,368 |
| 409,330 |
| 397,098 |
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Loans |
| 337,557 |
| 331,507 |
| 325,221 |
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Securities |
| 110,532 |
| 87,551 |
| 79,784 |
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Shareholders’ equity |
| 31,822 |
| 32,470 |
| 29,238 |
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Allowance for loan losses |
| 5,599 |
| 5,466 |
| 4,649 |
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FINANCIAL DATA - QUARTER TO DATE: |
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Net income before taxes |
| 2,120 |
| 1,846 |
| 1,918 |
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Federal and state income tax provision |
| 773 |
| 652 |
| 703 |
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Net income |
| 1,347 |
| 1,194 |
| 1,215 |
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Per share-basic |
| 0.23 |
| 0.21 |
| 0.22 |
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Per share-diluted |
| 0.22 |
| 0.20 |
| 0.21 |
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Return on average assets |
| 1.13 |
| 1.04 |
| 1.11 |
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Return on average common equity |
| 17.24 |
| 15.32 |
| 17.14 |
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Efficiency ratio |
| 63.08 |
| 68.31 |
| 64.81 |
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FINANCIAL DATA - YEAR TO DATE: |
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Net income before taxes |
| 3,966 |
| — |
| 3,771 |
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Federal and state income tax provision |
| 1,425 |
| — |
| 1,404 |
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Net income |
| 2,541 |
| — |
| 2,367 |
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Per share-basic |
| 0.44 |
| — |
| 0.42 |
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Per share-diluted |
| 0.42 |
| — |
| 0.40 |
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Return on average assets |
| 1.08 |
| — |
| 1.10 |
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Return on average common equity |
| 16.19 |
| — |
| 17.19 |
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Efficiency ratio |
| 65.71 |
| — |
| 64.72 |
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SHARE INFORMATION: |
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Closing price per share |
| 13.40 |
| 12.81 |
| 9.71 |
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Book value per share |
| 5.53 |
| 5.65 |
| 5.16 |
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Average diluted shares outstanding (QTD) |
| 6,115 |
| 6,035 |
| 5,891 |
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CAPITAL RATIOS: |
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Total equity to total assets |
| 6.48 |
| 6.86 |
| 6.51 |
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Tier I capital to average assets (leverage) |
| 9.27 |
| 9.03 |
| 8.61 |
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Tier I capital to risk-adjusted assets |
| 11.91 |
| 11.54 |
| 10.88 |
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Total risk-based capital |
| 13.16 |
| 12.79 |
| 12.13 |
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CREDIT QUALITY AND RATIOS: |
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Nonperforming assets |
| 4,779 |
| 5,061 |
| 3,547 |
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Net charge offs (recoveries) to average loans (QTD) |
| 0.14 |
| 0.16 |
| 0.17 |
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Allowance for loan losses to total loans |
| 1.66 |
| 1.65 |
| 1.43 |
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Nonperforming assets to total loans and OREO |
| 1.42 |
| 1.53 |
| 1.09 |
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Unity Bancorp, Inc.
Consolidated Balance Sheets
(In thousands)
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| 6/30/2004 |
| 3/31/2004 |
| 6/30/2003 |
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ASSETS |
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Cash and due from banks |
| 11,161 |
| 9,950 |
| 14,907 |
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Federal funds sold and interest bearing deposits |
| 21,655 |
| 35,306 |
| 19,000 |
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Securities: |
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Available for sale |
| 87,558 |
| 75,159 |
| 58,731 |
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Held to maturity |
| 22,974 |
| 12,392 |
| 21,053 |
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Total securities |
| 110,532 |
| 87,551 |
| 79,784 |
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Loans: |
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SBA - Held for sale |
| 7,353 |
| 7,637 |
| 12,176 |
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SBA - Held to Maturity |
| 50,995 |
| 48,740 |
| 51,319 |
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Commercial |
| 190,542 |
| 188,707 |
| 182,113 |
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Residential mortgage |
| 50,276 |
| 48,862 |
| 47,198 |
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Consumer |
| 38,391 |
| 37,561 |
| 32,415 |
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Total loans |
| 337,557 |
| 331,507 |
| 325,221 |
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Less: Allowance for loan losses |
| 5,599 |
| 5,466 |
| 4,649 |
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Net loans |
| 331,958 |
| 326,041 |
| 320,572 |
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Premises and equipment, net |
| 6,888 |
| 6,764 |
| 8,475 |
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Accrued interest receivable |
| 2,420 |
| 2,340 |
| 2,397 |
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Loan servicing asset |
| 1,548 |
| 1,320 |
| 561 |
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Other assets |
| 5,067 |
| 3,989 |
| 3,353 |
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Total Assets |
| 491,229 |
| 473,261 |
| 449,049 |
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
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Deposits: |
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Noninterest-bearing demand deposits |
| 93,206 |
| 86,781 |
| 90,593 |
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Interest-bearing deposits: |
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Interest bearing checking |
| 199,075 |
| 190,247 |
| 183,068 |
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Savings |
| 44,525 |
| 37,748 |
| 36,452 |
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Time, under $100,000 |
| 67,279 |
| 64,813 |
| 66,389 |
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Time, $100,000 and over |
| 25,283 |
| 29,741 |
| 20,596 |
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Total deposits |
| 429,368 |
| 409,330 |
| 397,098 |
|
Borrowed funds and subordinated debentures |
| 29,279 |
| 29,279 |
| 21,996 |
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Accrued interest payable |
| 172 |
| 178 |
| 200 |
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Accrued expenses and other liabilities |
| 588 |
| 2,004 |
| 517 |
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Total liabilities |
| 459,407 |
| 440,791 |
| 419,811 |
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Commitments and Contingencies |
| — |
| — |
| — |
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Shareholders’ equity: |
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Common stock, no par value, 12,500 shares authorized |
| 33,659 |
| 32,237 |
| 31,827 |
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Retained earnings (deficit) |
| — |
| 229 |
| (2,639 | ) |
Accumulated other comprehensive (loss) gain, net of tax |
| (1,837 | ) | 4 |
| 50 |
|
Total shareholders’ equity |
| 31,822 |
| 32,470 |
| 29,238 |
|
Total Liabilities and Shareholders’ Equity |
| 491,229 |
| 473,261 |
| 449,049 |
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COMMON SHARES AT PERIOD END: |
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Issued |
| 5,754 |
| 5,747 |
| 5,663 |
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Outstanding |
| 5,754 |
| 5,747 |
| 5,663 |
|
Treasury |
| — |
| — |
| — |
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Unity Bancorp, Inc.
Consolidated Statements of Income
(In thousands, except per share data)
FOR THE THREE MONTHS ENDED: |
| 6/30/2004 |
| 3/31/2004 |
| 6/30/2003 |
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INTEREST INCOME |
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Fed funds sold and interest on deposits |
| 87 |
| 32 |
| 41 |
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Securities: |
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Available for sale |
| 833 |
| 757 |
| 559 |
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Held to maturity |
| 156 |
| 177 |
| 282 |
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Total securities |
| 989 |
| 934 |
| 841 |
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Loans: |
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SBA |
| 947 |
| 1,019 |
| 1,019 |
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Commercial |
| 3,080 |
| 3,096 |
| 3,263 |
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Residential mortgage |
| 643 |
| 703 |
| 763 |
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Consumer |
| 442 |
| 442 |
| 363 |
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Total loan interest income |
| 5,112 |
| 5,260 |
| 5,408 |
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Total interest income |
| 6,188 |
| 6,226 |
| 6,290 |
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INTEREST EXPENSE |
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Interest bearing demand deposits |
| 684 |
| 630 |
| 683 |
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Savings deposits |
| 118 |
| 107 |
| 102 |
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Time deposits |
| 590 |
| 618 |
| 667 |
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Borrowed funds and subordinated debentures |
| 302 |
| 253 |
| 307 |
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Total interest expense |
| 1,694 |
| 1,608 |
| 1,759 |
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Net interest income |
| 4,494 |
| 4,618 |
| 4,531 |
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Provision for loan losses |
| 250 |
| 250 |
| 400 |
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Net interest income after provision for loan losses |
| 4,244 |
| 4,368 |
| 4,131 |
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NONINTEREST INCOME |
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Service charges on deposit accounts |
| 483 |
| 406 |
| 523 |
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Service and loan fee income |
| 510 |
| 471 |
| 484 |
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Gain on SBA loan sales |
| 669 |
| 738 |
| 687 |
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Net securities gains |
| 18 |
| 53 |
| 45 |
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Other income |
| 215 |
| 213 |
| 249 |
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Total noninterest income |
| 1,895 |
| 1,881 |
| 1,988 |
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NONINTEREST EXPENSES |
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Compensation and benefits |
| 2,060 |
| 2,239 |
| 1,952 |
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Processing and communications |
| 475 |
| 474 |
| 548 |
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Occupancy, net |
| 511 |
| 529 |
| 460 |
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Furniture and equipment |
| 258 |
| 263 |
| 278 |
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Professional services |
| 161 |
| 231 |
| 195 |
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Loan servicing costs |
| 156 |
| 180 |
| 166 |
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Advertising |
| 111 |
| 144 |
| 144 |
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Deposit insurance |
| 16 |
| 15 |
| 15 |
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Other |
| 271 |
| 328 |
| 443 |
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Total noninterest expenses |
| 4,019 |
| 4,403 |
| 4,201 |
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Income before taxes |
| 2,120 |
| 1,846 |
| 1,918 |
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Federal and state income tax provision |
| 773 |
| 652 |
| 703 |
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Net Income |
| 1,347 |
| 1,194 |
| 1,215 |
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Net Income Per Common Share-Basic |
| 0.23 |
| 0.21 |
| 0.22 |
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Net Income Per Common Share-Diluted |
| 0.22 |
| 0.20 |
| 0.21 |
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AVERAGE COMMON SHARES OUTSTANDING: |
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Basic |
| 5,752 |
| 5,735 |
| 5,663 |
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Diluted |
| 6,115 |
| 6,035 |
| 5,891 |
|
Unity Bancorp, Inc.
Consolidated Statements of Income
(Dollars in thousands, except per share data)
YEAR TO DATE |
| 6/30/2004 |
| 6/30/2003 |
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INTEREST INCOME |
|
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Fed funds sold and interest on deposits |
| 119 |
| 57 |
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Securities: |
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Available for sale |
| 1,590 |
| 1,104 |
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Held to maturity |
| 333 |
| 589 |
|
Total securities |
| 1,923 |
| 1,693 |
|
Loans: |
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SBA |
| 1,966 |
| 2,061 |
|
Commercial |
| 6,176 |
| 6,282 |
|
Residential mortgage |
| 1,346 |
| 1,640 |
|
Consumer |
| 884 |
| 747 |
|
Total loan interest income |
| 10,372 |
| 10,730 |
|
Total interest income |
| 12,414 |
| 12,480 |
|
INTEREST EXPENSE |
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Interest bearing demand deposits |
| 1,314 |
| 1,471 |
|
Savings deposits |
| 225 |
| 208 |
|
Time deposits |
| 1,208 |
| 1,411 |
|
Borrowed funds and subordinated debentures |
| 555 |
| 608 |
|
Total interest expense |
| 3,302 |
| 3,698 |
|
Net interest income |
| 9,112 |
| 8,782 |
|
Provision for loan losses |
| 500 |
| 850 |
|
Net interest income after provision for loan losses |
| 8,612 |
| 7,932 |
|
NONINTEREST INCOME |
|
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Service charges on deposit accounts |
| 889 |
| 1,093 |
|
Service and loan fee income |
| 981 |
| 905 |
|
Gain on SBA loan sales |
| 1,407 |
| 1,506 |
|
Net securities gains |
| 71 |
| 128 |
|
Other income |
| 428 |
| 463 |
|
Total noninterest income |
| 3,776 |
| 4,095 |
|
NONINTEREST EXPENSES |
|
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Compensation and benefits |
| 4,299 |
| 3,862 |
|
Processing and communications |
| 949 |
| 1,122 |
|
Occupancy, net |
| 1,040 |
| 938 |
|
Furniture and equipment |
| 521 |
| 519 |
|
Professional services |
| 392 |
| 447 |
|
Loan servicing costs |
| 336 |
| 286 |
|
Advertising |
| 255 |
| 275 |
|
Deposit insurance |
| 31 |
| 31 |
|
Other |
| 599 |
| 776 |
|
Total noninterest expenses |
| 8,422 |
| 8,256 |
|
Income before taxes |
| 3,966 |
| 3,771 |
|
Federal and state income taxes |
| 1,425 |
| 1,404 |
|
Net Income |
| 2,541 |
| 2,367 |
|
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Net Income Per Common Share-Basic |
| 0.44 |
| 0.42 |
|
Net Income Per Common Share-Diluted |
| 0.42 |
| 0.40 |
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Average common shares outstanding: |
|
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Basic |
| 5,744 |
| 5,663 |
|
Diluted |
| 6,109 |
| 5,922 |
|
Consolidated Average Balance Sheets
with Resultant Interest and Rates
(Tax-equivalent basis, dollars in thousands)
|
| Three Months Ended |
| Three Months Ended |
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|
| 6/30/2004 |
| 3/31/2004 |
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| Balance |
| Interest |
| Rate |
| Balance |
| Interest |
| Rate |
|
ASSETS |
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Interest-earning assets: |
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Federal funds sold and Interest-bearing deposits with banks |
| 27,978 |
| 87 |
| 1.25 |
| 12,287 |
| 32 |
| 1.05 |
|
Securities: |
|
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|
|
|
|
|
|
|
|
|
|
Available for sale |
| 84,798 |
| 848 |
| 4.00 |
| 77,256 |
| 787 |
| 4.07 |
|
Held to maturity |
| 10,397 |
| 156 |
| 6.00 |
| 12,751 |
| 177 |
| 5.55 |
|
Total securities |
| 95,195 |
| 1,004 |
| 4.22 |
| 90,007 |
| 964 |
| 4.28 |
|
Loans, net of unearned discount: |
|
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|
|
|
|
|
|
|
|
|
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SBA |
| 59,491 |
| 947 |
| 6.37 |
| 62,115 |
| 1,019 |
| 6.56 |
|
Commercial |
| 189,676 |
| 3,080 |
| 6.53 |
| 186,562 |
| 3,096 |
| 6.67 |
|
Residential mortgage |
| 47,478 |
| 643 |
| 5.42 |
| 49,787 |
| 703 |
| 5.65 |
|
Consumer |
| 37,730 |
| 442 |
| 4.71 |
| 36,568 |
| 442 |
| 4.86 |
|
Total loans |
| 334,375 |
| 5,112 |
| 6.14 |
| 335,032 |
| 5,260 |
| 6.30 |
|
Total interest-earning assets |
| 457,548 |
| 6,203 |
| 5.44 |
| 437,326 |
| 6,256 |
| 5.74 |
|
Noninterest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
| 12,143 |
|
|
|
|
| 14,125 |
|
|
|
|
|
Allowance for loan losses |
| (5,598 | ) |
|
|
|
| (5,510 | ) |
|
|
|
|
Other assets |
| 14,085 |
|
|
|
|
| 14,163 |
|
|
|
|
|
Total noninterest-earning assets |
| 20,630 |
|
|
|
|
| 22,778 |
|
|
|
|
|
Total Assets |
| 478,178 |
|
|
|
|
| 460,104 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand deposits |
| 195,432 |
| 684 |
| 1.41 |
| 188,999 |
| 630 |
| 1.34 |
|
Savings deposits |
| 41,364 |
| 118 |
| 1.15 |
| 38,489 |
| 107 |
| 1.12 |
|
Time deposits |
| 93,669 |
| 590 |
| 2.53 |
| 96,213 |
| 618 |
| 2.58 |
|
Total interest-bearing deposits |
| 330,465 |
| 1,392 |
| 1.69 |
| 323,701 |
| 1,355 |
| 1.68 |
|
Borrowed funds and subordinated debentures |
| 29,279 |
| 302 |
| 4.15 |
| 23,112 |
| 253 |
| 4.40 |
|
Total interest-bearing liabilities |
| 359,744 |
| 1,694 |
| 1.89 |
| 346,813 |
| 1,608 |
| 1.86 |
|
Noninterest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
| 85,559 |
|
|
|
|
| 79,834 |
|
|
|
|
|
Other liabilities |
| 1,446 |
|
|
|
|
| 2,118 |
|
|
|
|
|
Total noninterest- bearing liabilities |
| 87,005 |
|
|
|
|
| 81,952 |
|
|
|
|
|
Shareholders’ equity |
| 31,429 |
|
|
|
|
| 31,339 |
|
|
|
|
|
Total Liabilities and Shareholders’ Equity |
| 478,178 |
|
|
|
|
| 460,104 |
|
|
|
|
|
Net interest spread |
|
|
| 4,509 |
| 3.55 |
|
|
| 4,648 |
| 3.88 |
|
Tax-equivalent basis adjustment |
|
|
| (15 | ) |
|
|
|
| (30 | ) |
|
|
Net interest income |
|
|
| 4,494 |
|
|
|
|
| 4,618 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin |
|
|
|
|
| 3.94 |
|
|
|
|
| 4.25 |
|
Unity Bancorp, Inc.
Consolidated Average Balance Sheets
with Resultant Interest and Rates
(Tax-equivalent basis, dollars in thousands)
|
| Three Months Ended |
| Three Months Ended |
| ||||||||
|
| 6/30/2004 |
| 6/30/2003 |
| ||||||||
|
| Balance |
| Interest |
| Rate |
| Balance |
| Interest |
| Rate |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold and Interest-bearing deposits with banks |
| 27,978 |
| 87 |
| 1.25 |
| 11,058 |
| 41 |
| 1.49 |
|
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Available for sale |
| 84,798 |
| 848 |
| 4.00 |
| 56,557 |
| 567 |
| 4.01 |
|
Held to maturity |
| 10,397 |
| 156 |
| 6.00 |
| 22,865 |
| 282 |
| 4.93 |
|
Total securities |
| 95,195 |
| 1,004 |
| 4.22 |
| 79,422 |
| 849 |
| 4.28 |
|
Loans, net of unearned discount: |
|
|
|
|
|
|
|
|
|
|
|
|
|
SBA |
| 59,491 |
| 947 |
| 6.37 |
| 65,950 |
| 1,019 |
| 6.18 |
|
Commercial |
| 189,676 |
| 3,080 |
| 6.53 |
| 176,984 |
| 3,263 |
| 7.39 |
|
Residential mortgage |
| 47,478 |
| 643 |
| 5.42 |
| 50,050 |
| 763 |
| 6.10 |
|
Consumer |
| 37,730 |
| 442 |
| 4.71 |
| 30,198 |
| 363 |
| 4.82 |
|
Total loans |
| 334,375 |
| 5,112 |
| 6.14 |
| 323,182 |
| 5,408 |
| 6.70 |
|
Total interest-earning assets |
| 457,548 |
| 6,203 |
| 5.44 |
| 413,662 |
| 6,298 |
| 6.10 |
|
Noninterest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
| 12,143 |
|
|
|
|
| 14,964 |
|
|
|
|
|
Allowance for loan losses |
| (5,598 | ) |
|
|
|
| (4,591 | ) |
|
|
|
|
Other assets |
| 14,085 |
|
|
|
|
| 14,216 |
|
|
|
|
|
Total noninterest- earning assets |
| 20,630 |
|
|
|
|
| 24,589 |
|
|
|
|
|
Total Assets |
| 478,178 |
|
|
|
|
| 438,251 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand deposits |
| 195,432 |
| 684 |
| 1.41 |
| 184,592 |
| 683 |
| 1.48 |
|
Savings deposits |
| 41,364 |
| 118 |
| 1.15 |
| 36,001 |
| 102 |
| 1.14 |
|
Time deposits |
| 93,669 |
| 590 |
| 2.53 |
| 89,898 |
| 667 |
| 2.98 |
|
Total interest-bearing deposits |
| 330,465 |
| 1,392 |
| 1.69 |
| 310,491 |
| 1,452 |
| 1.88 |
|
Borrowed funds and subordinated debentures |
| 29,279 |
| 302 |
| 4.15 |
| 21,902 |
| 307 |
| 5.62 |
|
Total interest-bearing liabilities |
| 359,744 |
| 1,694 |
| 1.89 |
| 332,393 |
| 1,759 |
| 2.12 |
|
Noninterest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
| 85,559 |
|
|
|
|
| 76,168 |
|
|
|
|
|
Other liabilities |
| 1,446 |
|
|
|
|
| 1,265 |
|
|
|
|
|
Total noninterest- bearing liabilities |
| 87,005 |
|
|
|
|
| 77,433 |
|
|
|
|
|
Shareholders’ equity |
| 31,429 |
|
|
|
|
| 28,425 |
|
|
|
|
|
Total Liabilities and Shareholders’ Equity |
| 478,178 |
|
|
|
|
| 438,251 |
|
|
|
|
|
Net interest spread |
|
|
| 4,509 |
| 3.55 |
|
|
| 4,539 |
| 3.98 |
|
Tax-equivalent basis adjustment |
|
|
| (15 | ) |
|
|
|
| (8 | ) |
|
|
Net interest income |
|
|
| 4,494 |
|
|
|
|
| 4,531 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin |
|
|
|
|
| 3.94 |
|
|
|
|
| 4.39 |
|
Unity Bancorp, Inc.
Consolidated Average Balance Sheets
with Resultant Interest and Rates
(Tax-equivalent basis, dollars in thousands)
|
| Year to Date |
| Year to Date |
| |||||||||
|
| 6/30/2004 |
| 6/30/2003 |
| |||||||||
|
| Balance |
| Interest |
| Rate |
| Balance |
| Interest |
| Rate |
| |
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Federal funds sold Interest-bearing deposits with banks |
| 22,291 |
| 119 |
| 1.07 |
| 8,692 |
| 57 |
| 1.32 |
| |
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Available for sale |
| 81,700 |
| 1,635 |
| 4.00 |
| 55,141 |
| 1,112 |
| 4.03 |
| |
Held to maturity |
| 12,343 |
| 333 |
| 5.40 |
| 24,331 |
| 589 |
| 4.84 |
| |
Total securities |
| 94,043 |
| 1,968 |
| 4.19 |
| 79,472 |
| 1,701 |
| 4.28 |
| |
Loans, net of unearned discount: |
|
|
|
|
|
|
|
|
|
|
|
|
| |
SBA |
| 60,822 |
| 1,966 |
| 6.46 |
| 67,290 |
| 2,061 |
| 6.13 |
| |
Commercial |
| 186,225 |
| 6,176 |
| 6.67 |
| 172,286 |
| 6,282 |
| 7.35 |
| |
Residential mortgage |
| 49,132 |
| 1,346 |
| 5.48 |
| 52,771 |
| 1,640 |
| 6.22 |
| |
Consumer |
| 36,943 |
| 884 |
| 4.81 |
| 29,370 |
| 747 |
| 5.13 |
| |
Total loans |
| 333,122 |
| 10,372 |
| 6.25 |
| 321,717 |
| 10,730 |
| 6.71 |
| |
Total interest-earning assets |
| 449,456 |
| 12,459 |
| 5.56 |
| 409,881 |
| 12,488 |
| 6.12 |
| |
Noninterest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Cash and due from banks |
| 14,216 |
|
|
|
|
| 14,995 |
|
|
|
|
| |
Allowance for loan losses |
| (5,580 | ) |
|
|
|
| (4,465 | ) |
|
|
|
| |
Other assets |
| 14,561 |
|
|
|
|
| 13,636 |
|
|
|
|
| |
Total noninterest-earning assets |
| 23,197 |
|
|
|
|
| 24,166 |
|
|
|
|
| |
Total Assets |
| 472,653 |
|
|
|
|
| 434,047 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Interest-bearing demand deposits |
| 193,838 |
| 1,314 |
| 1.36 |
| 181,637 |
| 1,471 |
| 1.63 |
| |
Savings deposits |
| 40,630 |
| 225 |
| 1.11 |
| 35,367 |
| 208 |
| 1.19 |
| |
Time deposits |
| 95,576 |
| 1,208 |
| 2.54 |
| 91,729 |
| 1,411 |
| 3.10 |
| |
Total interest-bearing deposits |
| 330,044 |
| 2,747 |
| 1.67 |
| 308,733 |
| 3,090 |
| 2.02 |
| |
Borrowed funds and subordinated debentures |
| 26,195 |
| 555 |
| 4.26 |
| 21,905 |
| 608 |
| 5.60 |
| |
Total interest-bearing liabilities |
| 356,239 |
| 3,302 |
| 1.86 |
| 330,638 |
| 3,698 |
| 2.26 |
| |
Noninterest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Demand deposits |
| 83,251 |
|
|
|
|
| 74,539 |
|
|
|
|
| |
Other liabilities |
| 1,608 |
|
|
|
|
| 1,096 |
|
|
|
|
| |
Total noninterest-bearing liabilities |
| 84,859 |
|
|
|
|
| 75,635 |
|
|
|
|
| |
Shareholders’ equity |
| 31,555 |
|
|
|
|
| 27,774 |
|
|
|
|
| |
Total Liabilities and Shareholders’ Equity |
| 472,653 |
|
|
|
|
| 434,047 |
|
|
|
|
| |
Net interest spread |
|
|
| 9,157 |
| 3.70 |
|
|
| 8,790 |
| 3.86 |
| |
Tax-equivalent basis adjustment |
|
|
| (45 | ) |
|
|
|
| (8 | ) |
|
| |
Net interest income |
|
|
| 9,112 |
|
|
|
|
| 8,782 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net interest margin |
|
|
|
|
| 4.07 |
|
|
|
|
| 4.29 |
| |
Unity Bancorp, Inc.
Allowance for Loan Losses and Loan Quality Schedules
(Dollars in thousands)
|
| 6/30/2004 |
| 3/31/2004 |
| 12/31/2003 |
| 9/30/2003 |
| 6/30/2003 |
|
|
|
|
|
|
|
|
|
|
|
|
|
ALLOWANCE FOR LOAN LOSSES: |
|
|
|
|
|
|
|
|
|
|
|
Balance, beginning |
| 5,466 |
| 5,352 |
| 4,960 |
| 4,649 |
| 4,382 |
|
Provision charged to expense |
| 250 |
| 250 |
| 375 |
| 375 |
| 400 |
|
|
| 5,716 |
| 5,602 |
| 5,335 |
| 5,024 |
| 4,782 |
|
Less: Charge offs |
|
|
|
|
|
|
|
|
|
|
|
SBA |
| 132 |
| 98 |
| 185 |
| 112 |
| 129 |
|
Commercial |
| 50 |
| 181 |
| 65 |
| 55 |
| 30 |
|
Residential mortgage |
| — |
| — |
| — |
| — |
| — |
|
Consumer |
| 4 |
| 3 |
| 12 |
| 42 |
| 8 |
|
Total Charge Offs |
| 186 |
| 282 |
| 262 |
| 209 |
| 167 |
|
Add: Recoveries |
|
|
|
|
|
|
|
|
|
|
|
SBA |
| 24 |
| 17 |
| 6 |
| 40 |
| 28 |
|
Commercial |
| 41 |
| 125 |
| 268 |
| 101 |
| — |
|
Residential mortgage |
| — |
| — |
| — |
| — |
| — |
|
Consumer |
| 4 |
| 4 |
| 5 |
| 4 |
| 6 |
|
Total Recoveries |
| 69 |
| 146 |
| 279 |
| 145 |
| 34 |
|
Net Charge Offs |
| 117 |
| 136 |
| (17 | ) | 64 |
| 133 |
|
Balance, ending |
| 5,599 |
| 5,466 |
| 5,352 |
| 4,960 |
| 4,649 |
|
|
|
|
|
|
|
|
|
|
|
|
|
LOAN QUALITY INFORMATION: |
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans |
| 4,641 |
| 4,723 |
| 5,395 |
| 3,854 |
| 3,310 |
|
Other real estate owned, net |
| 138 |
| 338 |
| 327 |
| 396 |
| 237 |
|
Nonperforming assets |
| 4,779 |
| 5,061 |
| 5,722 |
| 4,250 |
| 3,547 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans 90 days past due and still accruing |
| 394 |
| — |
| 1,876 |
| 165 |
| 759 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses to: |
|
|
|
|
|
|
|
|
|
|
|
Total loans at period end |
| 1.66 |
| 1.65 |
| 1.58 |
| 1.54 |
| 1.43 |
|
Nonperforming loans |
| 120.64 |
| 115.73 |
| 99.20 |
| 128.70 |
| 140.45 |
|
Nonperforming assets |
| 117.16 |
| 108.00 |
| 93.53 |
| 116.71 |
| 131.07 |
|
Net charge offs to average loans (QTD) |
| 0.14 |
| 0.16 |
| (0.02 | ) | 0.08 |
| 0.17 |
|
Net charge offs to average loans (YTD) |
| 0.07 |
| 0.16 |
| 0.11 |
| 0.15 |
| 0.18 |
|
Nonperforming loans to total loans |
| 1.37 |
| 1.42 |
| 1.59 |
| 1.20 |
| 1.02 |
|
Nonperforming assets to total loans and OREO |
| 1.42 |
| 1.53 |
| 1.68 |
| 1.32 |
| 1.09 |
|
Unity Bancorp, Inc.
Quarterly Financial Data
|
| 06/30/04 |
| 03/31/04 |
| 12/31/03 |
| 09/30/03 |
| 06/30/03 |
|
SUMMARY OF INCOME (in thousands): |
|
|
|
|
|
|
|
|
|
|
|
Interest income |
| 6,188 |
| 6,226 |
| 6,276 |
| 6,139 |
| 6,290 |
|
Interest expense |
| 1,694 |
| 1,608 |
| 1,657 |
| 1,673 |
| 1,759 |
|
Net interest income |
| 4,494 |
| 4,618 |
| 4,619 |
| 4,466 |
| 4,531 |
|
Provision for loan losses |
| 250 |
| 250 |
| 375 |
| 375 |
| 400 |
|
Net interest income after provision |
| 4,244 |
| 4,368 |
| 4,244 |
| 4,091 |
| 4,131 |
|
Noninterest income |
| 1,895 |
| 1,881 |
| 2,123 |
| 2,125 |
| 1,988 |
|
Noninterest expense |
| 4,019 |
| 4,403 |
| 4,906 |
| 4,167 |
| 4,201 |
|
Income before income taxes |
| 2,120 |
| 1,846 |
| 1,461 |
| 2,049 |
| 1,918 |
|
Federal and state income tax provision |
| 773 |
| 652 |
| 547 |
| 747 |
| 703 |
|
Net Income |
| 1,347 |
| 1,194 |
| 914 |
| 1,302 |
| 1,215 |
|
Net Income per Common Share: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
| 0.23 |
| 0.21 |
| 0.16 |
| 0.23 |
| 0.22 |
|
Diluted |
| 0.22 |
| 0.20 |
| 0.15 |
| 0.22 |
| 0.21 |
|
COMMON SHARE DATA: |
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared |
| 0.04 |
| 0.04 |
| 0.03 |
| — |
| — |
|
Book value at quarter end |
| 5.53 |
| 5.65 |
| 5.41 |
| 5.22 |
| 5.16 |
|
Market value at quarter end |
| 13.40 |
| 12.81 |
| 10.89 |
| 10.67 |
| 9.71 |
|
Average common shares outstanding: (000’s) |
|
|
|
|
|
|
|
|
|
|
|
Basic |
| 5,752 |
| 5,735 |
| 5,668 |
| 5,668 |
| 5,663 |
|
Diluted |
| 6,115 |
| 6,035 |
| 5,944 |
| 5,944 |
| 5,891 |
|
Common shares outstanding at period end (000’s) |
| 5,754 |
| 5,747 |
| 5,686 |
| 5,669 |
| 5,663 |
|
OPERATING RATIOS: |
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
| 1.13 |
| 1.04 |
| 0.81 |
| 1.14 |
| 1.11 |
|
Return on average common equity |
| 17.24 |
| 15.32 |
| 12.30 |
| 17.70 |
| 17.14 |
|
Efficiency ratio |
| 63.08 |
| 68.31 |
| 73.66 |
| 62.98 |
| 64.81 |
|
BALANCE SHEET DATA (in thousands): |
|
|
|
|
|
|
|
|
|
|
|
Assets |
| 491,229 |
| 473,261 |
| 467,419 |
| 450,788 |
| 449,049 |
|
Deposits |
| 429,368 |
| 409,330 |
| 414,982 |
| 399,451 |
| 397,098 |
|
Loans |
| 337,557 |
| 331,507 |
| 339,755 |
| 321,629 |
| 325,221 |
|
Shareholders’ equity |
| 31,822 |
| 32,470 |
| 30,762 |
| 29,564 |
| 29,238 |
|
Allowance for loan losses |
| 5,599 |
| 5,466 |
| 5,352 |
| 4,960 |
| 4,649 |
|
TAX-EQUIVALENT YIELDS AND RATES: |
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets |
| 5.44 |
| 5.74 |
| 5.87 |
| 5.71 |
| 6.10 |
|
Interest-bearing liabilities |
| 1.89 |
| 1.86 |
| 1.96 |
| 1.96 |
| 2.12 |
|
Net interest spread |
| 3.55 |
| 3.88 |
| 3.91 |
| 3.75 |
| 3.98 |
|
Net interest margin |
| 3.94 |
| 4.25 |
| 4.35 |
| 4.18 |
| 4.39 |
|
CREDIT QUALITY: |
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets (in thousands) |
| 4,779 |
| 5,061 |
| 5,722 |
| 4,250 |
| 3,547 |
|
Allowance for loan losses to period-end loans |
| 1.66 |
| 1.65 |
| 1.58 |
| 1.54 |
| 1.43 |
|
Net charge offs (recoveries) to average loans |
| 0.14 |
| 0.16 |
| (0.02 | ) | 0.08 |
| 0.17 |
|
Nonperforming assets to loans and OREO |
| 1.42 |
| 1.53 |
| 1.68 |
| 1.32 |
| 1.09 |
|
CAPITAL AND OTHER: |
|
|
|
|
|
|
|
|
|
|
|
Total equity to assets |
| 6.48 |
| 6.86 |
| 6.58 |
| 6.56 |
| 6.51 |
|
Tier I capital to average assets (leverage) |
| 9.27 |
| 9.03 |
| 9.02 |
| 8.65 |
| 8.61 |
|
Tier I capital to risk- adjusted assets |
| 11.91 |
| 11.54 |
| 11.28 |
| 11.43 |
| 10.88 |
|
Total capital to risk- adjusted assets |
| 13.16 |
| 12.79 |
| 12.53 |
| 12.68 |
| 12.13 |
|
Number of banking offices |
| 13 |
| 13 |
| 13 |
| 12 |
| 12 |
|
Number of ATMs |
| 15 |
| 14 |
| 14 |
| 13 |
| 13 |
|
Number of employees |
| 158 |
| 166 |
| 173 |
| 168 |
| 171 |
|