Exhibit 99.1
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| Unity Bancorp, Inc. |
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| 64 Old Highway 22 |
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| Clinton, NJ 08809 |
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| 800 618-BANK |
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| www.unitybank.com |
NewsNewsNewsNewsNews
For Immediate Release:
April 20, 2006
News Media & Financial Analyst Contact:
Alan Bedner, EVP
Chief Financial Officer
(908) 713-4308
Unity Bancorp Reports 26.5% increase in First Quarter Earnings
Clinton, NJ - Unity Bancorp, Inc. (NASDAQ: UNTY), parent company of Unity Bank, reported net income of $1.7 million, or $0.25 per diluted share, for the quarter ended March 31, 2006; a 26.5% increase compared to net income of $1.3 million, or $0.20 per diluted share, for the quarter ended March 31, 2005. Return on average assets and average common equity for the first quarter of 2006 were 1.08% and 16.26%, respectively, as compared to 1.03% and 14.63%, respectively, for the first quarter of 2005.
“We are extremely pleased with operating results for the first quarter of 2006 and continue to remain optimistic about earnings for 2006,” said Unity President and Chief Executive Officer, James A. Hughes. “Earnings for the quarter were driven by strong loan and deposit growth.”
Net interest income was $6.1 million for the first quarter of 2006; a 15.0% increase compared to a year ago. The increase in net interest income was due primarily to an increase in interest-earning assets, partially offset by a decrease in net interest margin. Net interest margin was 4.12% for the first quarter of 2006, compared to 4.30% for the first quarter of 2005. The Federal Reserve Bank has raised rates 15 times or 375 basis points since 2004. These increases have resulted in a flat yield curve and a challenging interest-rate environment. Despite this environment, the Company was able to grow net interest income, due to strong growth in interest earning assets, partially offset by a slight decrease in net interest margin. The effect of the flat yield curve may cause the net interest margin to further contract in 2006.
The provision for loan losses for the first quarter of 2006 was $300 thousand, compared to $300 thousand for the quarter ended March 31, 2005. Net loan charge-offs for the quarter ended March 31, 2006 were $72 thousand, compared to net-charge offs of $214 thousand for the quarter ended March 31, 2005.
Total non-interest income for the first quarter of 2006 was $2.0 million, up 11.8% from the same period a year ago. Service charges on deposits for the first quarter of 2006 were flat compared to the first quarter of 2005. Service and loan fees for the first quarter of 2006 decreased 26.3% from a year ago, due to a decrease in prepayment fees on commercial loans and loan processing fees. Gains on sales of SBA loans amounted to $782 thousand for the first quarter of 2006, compared to $460 thousand for the quarter ended March 31, 2005. Other income for the first quarter of 2006 increased 63.6%, due primarily to an increase in loan referral fees.
Total non-interest expenses for the first quarter of 2006 were $5.3 million, an increase of 13.1% from the prior year’s comparable quarter. The increase from the prior year’s comparable quarter was primarily due to increases in compensation and benefits, processing and communications, furniture and equipment, occupancy expense, professional fees and other expenses. Compensation and benefits increased 13.7%, due to increased head count, merit increases and rising health insurance costs. Processing and communications increased 13.1%, due to increased transactional volume. Furniture and equipment and occupancy costs increased 19.5% and 9.3% respectively, due to the addition of a new branch in the fourth quarter of 2005 and the refurbishment of the existing branch network. Loan servicing costs decreased 42.9%, due to the collection of expenses on delinquent loans.
Total assets at March 31, 2006 were $628.1 million, a 19.4% increase from a year ago. The increase in assets from the prior year was primarily due to growth in the Company’s loan portfolio. Total loans at March 31, 2006 were $468.0 million, a 22.8% increase from March 31, 2005. The growth in the loan portfolio occurred primarily in Commercial and SBA lending. Commercial loans increased $64.6 million, or 30.1%; SBA loans increased $19.4 million, or 30.9%; residential mortgage loans were flat from the prior year; and consumer loans increased $2.3 million, or 5.3%. During the quarter, the Company sold approximately $5.0 million of commercial Motel/Hotel loans with a gain of approximately $82 thousand.
At March 31, 2006, the allowance for loan losses was $7.1 million, or 1.52% of total loans, compared to 1.56% a year ago. Non-performing assets at March 31, 2006 were $3.8 million, or 0.81% of total loans and OREO, as compared to 0.83% of total loans and OREO from a year ago. There were $326 thousand of loans past due greater than 90 days and still accruing as of March 31, 2006, compared to $313 thousand at March 31, 2005.
Total deposits at March 31, 2006, were $534.4 million; a 19.3% increase from March 31, 2005. This increase was primarily the result of growth in savings accounts, demand and time deposits, partially offset by the decline in interest bearing checking accounts. Demand deposit accounts increased $3.4 million, or 4.4% from March 31, 2005. Savings accounts increased $66.0 million, or 58.5% from March 31, 2005, due to a high-yield savings product. Time deposits increased $57.9 million, or 56.1%, from March 31, 2005.
“Unity currently has 14 branches and two branches in development; Washington and Middlesex in New Jersey. We are committed to moving forward with our targeted branch expansion plans along the I-78 corridor and are actively looking for branch sites in the Lehigh Valley area in Pennsylvania,” said Mr. Hughes. “In addition we will be analyzing the profitability of our current branch network.”
Total shareholders’ equity was $42.5 million at March 31, 2006; a 16.7% increase from the prior year. The increase in shareholders’ equity was primarily due to retained profits, partially offset by the payment of cash dividends and a decline in other comprehensive income.
As of March 31, 2006, the Company’s Tier I leverage ratio was 8.26%, Tier I risk-based capital ratio was 9.93%, and total risk-based capital ratio was 11.18%. All regulatory capital ratios exceeded the well-capitalized, federal capital adequacy requirements as of March 31, 2006.
Unity Bancorp, Inc. is a financial service organization headquartered in Clinton, New Jersey, with approximately $628 million in assets and $534 million in deposits. Unity Bank provides financial services to retail, corporate & small business customers through its 14 retail service centers located in Hunterdon, Middlesex, Somerset, Union and Warren 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)
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| Mar. 06 vs. |
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| Mar. 31, 2006 |
| Dec. 31, 2005 |
| Mar. 31, 2005 |
| Dec. 05 |
| Mar. 05 |
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BALANCE SHEET DATA: |
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Assets |
| $ | 628,055 |
| $ | 614,172 |
| $ | 525,842 |
| 2.3 | % | 19.4 | % |
Deposits |
| 534,437 |
| 521,860 |
| 447,790 |
| 2.4 |
| 19.3 |
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Loans |
| 467,963 |
| 448,567 |
| 381,172 |
| 4.3 |
| 22.8 |
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Securities |
| 101,641 |
| 106,331 |
| 98,164 |
| (4.4 | ) | 3.5 |
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Shareholders’ equity |
| 42,477 |
| 40,929 |
| 36,406 |
| 3.8 |
| 16.7 |
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Allowance for loan losses |
| 7,120 |
| 6,892 |
| 5,942 |
| 3.3 |
| 19.8 |
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FINANCIAL DATA - QUARTER TO DATE: |
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Net income before taxes |
| $ | 2,499 |
| $ | 2,710 |
| $ | 2,108 |
| (7.8 | )% | 18.5 | % |
Federal and state income tax provision |
| 842 |
| 956 |
| 798 |
| (11.9 | ) | 5.5 |
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Net income |
| 1,657 |
| 1,754 |
| 1,310 |
| (5.5 | ) | 26.5 |
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Per share-basic |
| 0.27 |
| 0.28 |
| 0.22 |
| (3.6 | ) | 25.3 |
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Per share-diluted |
| 0.25 |
| 0.27 |
| 0.20 |
| (7.4 | ) | 22.6 |
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Return on average assets |
| 1.08 | % | 1.16 | % | 1.03 | % | (6.9 | ) | 4.9 |
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Return on average common equity |
| 16.26 |
| 17.62 |
| 14.63 |
| (7.7 | ) | 11.1 |
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Efficiency ratio |
| 65.25 |
| 59.76 |
| 66.37 |
| 9.2 |
| (1.7 | ) | |||
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SHARE INFORMATION: |
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Closing price per share |
| $ | 16.05 |
| $ | 14.00 |
| $ | 11.43 |
| 14.6 | % | 40.4 | % |
Cash dividends declared |
| 0.05 |
| 0.05 |
| 0.04 |
| — |
| 25.0 |
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Book value per share |
| 6.79 |
| 6.57 |
| 5.96 |
| 3.3 |
| 13.9 |
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Average diluted shares outstanding (QTD) |
| 6,568 |
| 6,483 |
| 6,422 |
| 1.3 |
| 2.3 |
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CAPITAL RATIOS: |
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Total equity to total assets |
| 6.76 | % | 6.66 | % | 6.92 | % | 1.5 | % | (2.3 | )% | |||
Tier I capital to average assets (leverage) |
| 8.26 |
| 8.48 |
| 8.99 |
| (2.6 | ) | (8.1 | ) | |||
Tier I capital to risk-adjusted assets |
| 9.93 |
| 10.26 |
| 11.18 |
| (3.2 | ) | (11.2 | ) | |||
Total risk-based capital |
| 11.18 |
| 11.51 |
| 12.43 |
| (2.9 | ) | (10.1 | ) | |||
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CREDIT QUALITY AND RATIOS: |
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Nonperforming assets |
| $ | 3,781 |
| $ | 4,539 |
| $ | 3,172 |
| (16.7 | )% | 19.2 | % |
Net charge offs to average loans (QTD) |
| 0.06 | % | 0.17 | % | 0.23 | % | (64.7 | ) | (73.9 | ) | |||
Allowance for loan losses to total loans |
| 1.52 |
| 1.54 |
| 1.56 |
| (1.3 | ) | (2.6 | ) | |||
Nonperforming assets to total loans and OREO |
| 0.81 |
| 1.01 |
| 0.83 |
| (19.8 | ) | (2.4 | ) | |||
Unity Bancorp, Inc.
Consolidated Balance Sheets
(In thousands)
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| Mar. 06 vs. |
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| Mar. 31, 2006 |
| Dec. 31, 2005 |
| Mar. 31, 2005 |
| Dec. 05 |
| Mar. 05 |
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ASSETS |
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Cash and due from banks |
| $ | 12,171 |
| $ | 11,945 |
| $ | 11,286 |
| 1.9 | % | 7.8 |
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Federal funds sold and interest bearing deposits |
| 25,726 |
| 26,814 |
| 17,603 |
| (4.1 | ) | 46.1 |
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Securities: |
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Available for sale |
| 63,411 |
| 65,583 |
| 74,571 |
| (3.3 | ) | (15.0 | ) | |||
Held to maturity |
| 38,230 |
| 40,748 |
| 23,593 |
| (6.2 | ) | 62.0 |
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Total securities |
| 101,641 |
| 106,331 |
| 98,164 |
| (4.4 | ) | 3.5 |
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Loans: |
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SBA - Held for sale |
| 16,826 |
| 14,001 |
| 8,172 |
| 20.2 |
| 105.9 |
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SBA - Held to Maturity |
| 65,305 |
| 64,660 |
| 54,567 |
| 1.0 |
| 19.7 |
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Commercial |
| 279,369 |
| 260,581 |
| 214,730 |
| 7.2 |
| 30.1 |
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Residential mortgage |
| 60,194 |
| 62,039 |
| 59,769 |
| (3.0 | ) | 0.7 |
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Consumer |
| 46,269 |
| 47,286 |
| 43,934 |
| (2.2 | ) | 5.3 |
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Total loans |
| 467,963 |
| 448,567 |
| 381,172 |
| 4.3 |
| 22.8 |
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Less: Allowance for loan losses |
| 7,120 |
| 6,892 |
| 5,942 |
| 3.3 |
| 19.8 |
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Net loans |
| 460,843 |
| 441,675 |
| 375,230 |
| 4.3 |
| 22.8 |
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Goodwill and other intangibles |
| 1,614 |
| 1,618 |
| — |
| (0.2 | ) | — |
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Premises and equipment, net |
| 10,723 |
| 10,593 |
| 9,191 |
| 1.2 |
| 16.7 |
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Accrued interest receivable |
| 3,350 |
| 3,167 |
| 2,600 |
| 5.8 |
| 28.8 |
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Loan servicing asset |
| 2,476 |
| 2,438 |
| 2,065 |
| 1.6 |
| 19.9 |
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Bank Owned Life Insurance |
| 5,232 |
| 5,185 |
| 5,047 |
| 0.9 |
| 3.7 |
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Other assets |
| 4,279 |
| 4,406 |
| 4,656 |
| (2.9 | ) | (8.1 | ) | |||
Total Assets |
| $ | 628,055 |
| $ | 614,172 |
| $ | 525,842 |
| 2.3 | % | 19.4 |
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
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Deposits: |
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Noninterest-bearing demand deposits |
| $ | 81,210 |
| $ | 79,547 |
| $ | 77,800 |
| 2.1 | % | 4.4 |
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Interest-bearing deposits: |
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Interest bearing checking |
| 113,441 |
| 139,076 |
| 154,074 |
| (18.4 | ) | (26.4 | ) | |||
Savings |
| 178,848 |
| 141,935 |
| 112,847 |
| 26.0 |
| 58.5 |
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Time, under $100,000 |
| 108,211 |
| 108,353 |
| 72,435 |
| (0.1 | ) | 49.4 |
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Time, $100,000 and over |
| 52,727 |
| 52,949 |
| 30,634 |
| (0.4 | ) | 72.1 |
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Total deposits |
| 534,437 |
| 521,860 |
| 447,790 |
| 2.4 |
| 19.3 |
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Borrowed funds and subordinated debentures |
| 49,279 |
| 49,279 |
| 39,279 |
| — |
| 25.5 |
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Accrued interest payable |
| 298 |
| 274 |
| 165 |
| 8.8 |
| 80.6 |
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Accrued expenses and other liabilities |
| 1,564 |
| 1,830 |
| 2,202 |
| (14.5 | ) | (29.0 | ) | |||
Total liabilities |
| 585,578 |
| 573,243 |
| 489,436 |
| 2.2 |
| 19.6 |
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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 |
| 38,697 |
| 38,423 |
| 34,101 |
| 0.7 |
| 13.5 |
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Retained earnings |
| 5,241 |
| 3,897 |
| 3,403 |
| 34.5 |
| 54.0 |
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Treasury stock at cost |
| (242 | ) | (242 | ) | — |
| — |
| — |
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Accumulated other comprehensive loss, net of tax |
| (1,219 | ) | (1,149 | ) | (1,098 | ) | N/M |
| N/M |
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Total shareholders’ equity |
| 42,477 |
| 40,929 |
| 36,406 |
| 3.8 |
| 16.7 |
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Total Liabilities and Shareholders’ Equity |
| $ | 628,055 |
| $ | 614,172 |
| $ | 525,842 |
| 2.3 | % | 19.4 |
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COMMON SHARES AT PERIOD END: |
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Issued |
| 6,275 |
| 6,247 |
| 6,108 |
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Outstanding |
| 6,253 |
| 6,225 |
| 6,108 |
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Treasury |
| 22 |
| 22 |
| — |
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N/M= Not meaningful
Unity Bancorp, Inc.
Consolidated Statements of Income
(In thousands, except per share data)
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| Mar. 06 |
| vs. |
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FOR THE THREE MONTHS ENDED: |
| Mar. 31, 2006 |
| Dec. 31, 2005 |
| Mar. 31, 2005 |
| Dec. 05 |
| Mar. 05 |
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INTEREST INCOME |
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Fed funds sold and interest on deposits |
| $ | 207 |
| $ | 285 |
| $ | 62 |
| (27.4 | )% | 233.9 | % |
Securities: |
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Available for sale |
| 708 |
| 713 |
| 796 |
| (0.7 | ) | (11.1 | ) | |||
Held to maturity |
| 476 |
| 444 |
| 274 |
| 7.2 |
| 73.7 |
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Total securities |
| 1,184 |
| 1,157 |
| 1,070 |
| 2.3 |
| 10.7 |
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Loans: |
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SBA |
| 2,153 |
| 1,967 |
| 1,359 |
| 9.5 |
| 58.4 |
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Commercial |
| 4,892 |
| 4,547 |
| 3,638 |
| 7.6 |
| 34.5 |
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Residential mortgage |
| 820 |
| 816 |
| 802 |
| 0.5 |
| 2.2 |
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Consumer |
| 744 |
| 714 |
| 592 |
| 4.2 |
| 25.7 |
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Total loan interest income |
| 8,609 |
| 8,044 |
| 6,391 |
| 7.0 |
| 34.7 |
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Total interest income |
| 10,000 |
| 9,486 |
| 7,523 |
| 5.4 |
| 32.9 |
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INTEREST EXPENSE |
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Interest bearing demand deposits |
| 694 |
| 704 |
| 611 |
| (1.4 | ) | 13.6 |
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Savings deposits |
| 1,192 |
| 952 |
| 460 |
| 25.2 |
| 159.1 |
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Time deposits |
| 1,499 |
| 1,311 |
| 763 |
| 14.3 |
| 96.5 |
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Borrowed funds and subordinated debentures |
| 562 |
| 552 |
| 424 |
| 1.8 |
| 32.5 |
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Total interest expense |
| 3,947 |
| 3,519 |
| 2,258 |
| 12.2 |
| 74.8 |
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Net interest income |
| 6,053 |
| 5,967 |
| 5,265 |
| 1.4 |
| 15.0 |
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Provision for loan losses |
| 300 |
| 525 |
| 300 |
| (42.9 | ) | — |
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Net interest income after provision for loan losses |
| 5,753 |
| 5,442 |
| 4,965 |
| 5.7 |
| 15.9 |
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NONINTEREST INCOME |
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Service charges on deposit accounts |
| 433 |
| 445 |
| 430 |
| (2.7 | ) | 0.7 |
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Service and loan fee income |
| 395 |
| 472 |
| 536 |
| (16.3 | ) | (26.3 | ) | |||
Gain on SBA loan sales |
| 782 |
| 878 |
| 460 |
| (10.9 | ) | 70.0 |
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Gain on Mortgage loan sales |
| 62 |
| 103 |
| 92 |
| (39.8 | ) | (32.6 | ) | |||
Bank owned life insurance |
| 47 |
| 45 |
| 47 |
| 4.4 |
| — |
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Net securities gains |
| — |
| — |
| 53 |
| — |
| — |
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Other income |
| 283 |
| 129 |
| 173 |
| 119.4 |
| 63.6 |
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Total noninterest income |
| 2,002 |
| 2,072 |
| 1,791 |
| (3.4 | ) | 11.8 |
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NONINTEREST EXPENSES |
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Compensation and benefits |
| 2,725 |
| 2,561 |
| 2,397 |
| 6.4 |
| 13.7 |
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Processing and communications |
| 527 |
| 514 |
| 466 |
| 2.5 |
| 13.1 |
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Occupancy, net |
| 648 |
| 607 |
| 593 |
| 6.8 |
| 9.3 |
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Furniture and equipment |
| 393 |
| 359 |
| 329 |
| 9.5 |
| 19.5 |
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Professional fees |
| 132 |
| 106 |
| 109 |
| 24.5 |
| 21.1 |
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Loan servicing costs |
| 101 |
| 31 |
| 177 |
| 225.8 |
| (42.9 | ) | |||
Advertising |
| 170 |
| 149 |
| 185 |
| 14.1 |
| (8.1 | ) | |||
Deposit insurance |
| 17 |
| 16 |
| 15 |
| 6.3 |
| 13.3 |
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Other |
| 543 |
| 461 |
| 377 |
| 17.8 |
| 44.0 |
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Total noninterest expenses |
| 5,256 |
| 4,804 |
| 4,648 |
| 9.4 |
| 13.1 |
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Income before taxes |
| 2,499 |
| 2,710 |
| 2,108 |
| (7.8 | ) | 18.5 |
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Federal and state income tax provision |
| 842 |
| 956 |
| 798 |
| (11.9 | ) | 5.5 |
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Net Income |
| $ | 1,657 |
| $ | 1,754 |
| $ | 1,310 |
| (5.5 | )% | 26.5 | % |
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Net Income Per Common Share-Basic |
| $ | 0.27 |
| $ | 0.28 |
| $ | 0.22 |
| (3.6 | )% | 25.3 | % |
Net Income Per Common Share-Diluted |
| $ | 0.25 |
| $ | 0.27 |
| $ | 0.20 |
| (7.4 | )% | 22.6 | % |
|
|
|
|
|
|
|
|
|
|
|
| |||
AVERAGE COMMON SHARES OUTSTANDING: |
|
|
|
|
|
|
|
|
|
|
| |||
Basic |
| 6,244 |
| 6,182 |
| 6,078 |
|
|
|
|
| |||
Diluted |
| 6,568 |
| 6,483 |
| 6,422 |
|
|
|
|
| |||
Unity Bancorp, Inc.
Consolidated Average Balance Sheets
with Resultant Interest and Rates
(Tax-equivalent basis, dollars in thousands)
|
| Three Months Ended |
| ||||||||||||||
|
| March 31, 2006 |
| December 31, 2005 |
| ||||||||||||
|
| Balance |
| Interest |
| Rate |
| Balance |
| Interest |
| Rate |
| ||||
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Federal funds sold and interest-bearing deposits with banks |
| $ | 19,493 |
| $ | 207 |
| 4.31 | % | $ | 27,166 |
| $ | 285 |
| 4.16 | % |
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Available for sale |
| 64,812 |
| 721 |
| 4.45 |
| 67,193 |
| 726 |
| 4.32 |
| ||||
Held to maturity |
| 39,291 |
| 476 |
| 4.85 |
| 36,872 |
| 444 |
| 4.82 |
| ||||
Total securities |
| 104,103 |
| 1,197 |
| 4.60 |
| 104,065 |
| 1,170 |
| 4.50 |
| ||||
Loans, net of unearned discount: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
SBA |
| 85,931 |
| 2,153 |
| 10.02 |
| 81,835 |
| 1,967 |
| 9.61 |
| ||||
Commercial |
| 271,323 |
| 4,892 |
| 7.31 |
| 248,012 |
| 4,547 |
| 7.27 |
| ||||
Residential mortgage |
| 61,126 |
| 820 |
| 5.37 |
| 62,320 |
| 816 |
| 5.24 |
| ||||
Consumer |
| 46,501 |
| 744 |
| 6.49 |
| 46,544 |
| 714 |
| 6.09 |
| ||||
Total loans |
| 464,881 |
| 8,609 |
| 7.47 |
| 438,711 |
| 8,044 |
| 7.29 |
| ||||
Total interest-earning assets |
| 588,477 |
| 10,013 |
| 6.86 |
| 569,942 |
| 9,499 |
| 6.63 |
| ||||
Noninterest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Cash and due from banks |
| 11,698 |
|
|
|
|
| 11,364 |
|
|
|
|
| ||||
Allowance for loan losses |
| (7,154 | ) |
|
|
|
| (6,790 | ) |
|
|
|
| ||||
Other assets |
| 26,847 |
|
|
|
|
| 25,483 |
|
|
|
|
| ||||
Total noninterest-earning assets |
| 31,391 |
|
|
|
|
| 30,057 |
|
|
|
|
| ||||
Total Assets |
| $ | 619,868 |
|
|
|
|
| $ | 599,999 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Interest-bearing demand deposits |
| $ | 128,150 |
| 694 |
| 2.20 |
| $ | 141,589 |
| 704 |
| 1.97 |
| ||
Savings deposits |
| 158,058 |
| 1,192 |
| 3.06 |
| 144,754 |
| 952 |
| 2.61 |
| ||||
Time deposits |
| 162,533 |
| 1,499 |
| 3.74 |
| 144,732 |
| 1,311 |
| 3.59 |
| ||||
Total interest-bearing deposits |
| 448,741 |
| 3,385 |
| 3.06 |
| 431,075 |
| 2,967 |
| 2.73 |
| ||||
Borrowed funds and subordinated debentures |
| 49,279 |
| 562 |
| 4.63 |
| 48,741 |
| 552 |
| 4.49 |
| ||||
Total interest-bearing liabilities |
| 498,020 |
| 3,947 |
| 3.21 |
| 479,816 |
| 3,519 |
| 2.91 |
| ||||
Noninterest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Demand deposits |
| 78,179 |
|
|
|
|
| 78,299 |
|
|
|
|
| ||||
Other liabilities |
| 2,339 |
|
|
|
|
| 2,400 |
|
|
|
|
| ||||
Total noninterest-bearing liabilities |
| 80,518 |
|
|
|
|
| 80,699 |
|
|
|
|
| ||||
Shareholders’ equity |
| 41,330 |
|
|
|
|
| 39,484 |
|
|
|
|
| ||||
Total Liabilities and Shareholders’ Equity |
| $ | 619,868 |
|
|
|
|
| $ | 599,999 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Net interest spread |
|
|
| 6,066 |
| 3.65 | % |
|
| 5,980 |
| 3.72 | % | ||||
Tax-equivalent basis adjustment |
|
|
| (13 | ) |
|
|
|
| (13 | ) |
| �� | ||||
Net interest income |
|
|
| $ | 6,053 |
|
|
|
|
| $ | 5,967 |
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Net interest margin |
|
|
|
|
| 4.12 | % |
|
|
|
| 4.20 | % | ||||
Unity Bancorp, Inc.
Consolidated Average Balance Sheets
with Resultant Interest and Rates
(Tax-equivalent basis, dollars in thousands)
|
| Three Months Ended |
| ||||||||||||||
|
| March 31, 2006 |
| March 31, 2005 |
| ||||||||||||
|
| Balance |
| Interest |
| Rate |
| Balance |
| Interest |
| Rate |
| ||||
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Federal funds sold and interest-bearing deposits with banks |
| $ | 19,493 |
| $ | 207 |
| 4.31 | % | $ | 10,331 |
| $ | 62 |
| 2.43 | % |
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Available for sale |
| 64,812 |
| 721 |
| 4.45 |
| 76,926 |
| 809 |
| 4.21 |
| ||||
Held to maturity |
| 39,291 |
| 476 |
| 4.85 |
| 23,088 |
| 274 |
| 4.75 |
| ||||
Total securities |
| 104,103 |
| 1,197 |
| 4.60 |
| 100,014 |
| 1,083 |
| 4.33 |
| ||||
Loans, net of unearned discount: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
SBA |
| 85,931 |
| 2,153 |
| 10.02 |
| 64,966 |
| 1,359 |
| 8.37 |
| ||||
Commercial |
| 271,323 |
| 4,892 |
| 7.31 |
| 212,343 |
| 3,638 |
| 6.95 |
| ||||
Residential mortgage |
| 61,126 |
| 820 |
| 5.37 |
| 60,361 |
| 802 |
| 5.31 |
| ||||
Consumer |
| 46,501 |
| 744 |
| 6.49 |
| 42,482 |
| 592 |
| 5.65 |
| ||||
Total loans |
| 464,881 |
| 8,609 |
| 7.47 |
| 380,152 |
| 6,391 |
| 6.79 |
| ||||
Total interest-earning assets |
| 588,477 |
| 10,013 |
| 6.86 |
| 490,497 |
| 7,536 |
| 6.20 |
| ||||
Noninterest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Cash and due from banks |
| 11,698 |
|
|
|
|
| 10,748 |
|
|
|
|
| ||||
Allowance for loan losses |
| (7,154 | ) |
|
|
|
| (6,047 | ) |
|
|
|
| ||||
Other assets |
| 26,847 |
|
|
|
|
| 22,742 |
|
|
|
|
| ||||
Total noninterest-earning assets |
| 31,391 |
|
|
|
|
| 27,443 |
|
|
|
|
| ||||
Total Assets |
| $ | 619,868 |
|
|
|
|
| $ | 517,940 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Interest-bearing demand deposits |
| $ | 128,150 |
| 694 |
| 2.20 |
| $ | 160,991 |
| 611 |
| 1.54 |
| ||
Savings deposits |
| 158,058 |
| 1,192 |
| 3.06 |
| 91,294 |
| 460 |
| 2.04 |
| ||||
Time deposits |
| 162,533 |
| 1,499 |
| 3.74 |
| 108,374 |
| 763 |
| 2.86 |
| ||||
Total interest-bearing deposits |
| 448,741 |
| 3,385 |
| 3.06 |
| 360,659 |
| 1,834 |
| 2.06 |
| ||||
Borrowed funds and subordinated debentures |
| 49,279 |
| 562 |
| 4.63 |
| 40,139 |
| 424 |
| 4.28 |
| ||||
Total interest-bearing liabilities |
| 498,020 |
| 3,947 |
| 3.21 |
| 400,798 |
| 2,258 |
| 2.28 |
| ||||
Noninterest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Demand deposits |
| 78,179 |
|
|
|
|
| 78,852 |
|
|
|
|
| ||||
Other liabilities |
| 2,339 |
|
|
|
|
| 1,976 |
|
|
|
|
| ||||
Total noninterest-bearing liabilities |
| 80,518 |
|
|
|
|
| 80,828 |
|
|
|
|
| ||||
Shareholders’ equity |
| 41,330 |
|
|
|
|
| 36,314 |
|
|
|
|
| ||||
Total Liabilities and Shareholders’ Equity |
| $ | 619,868 |
|
|
|
|
| $ | 517,940 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Net interest spread |
|
|
| 6,066 |
| 3.65 | % |
|
| 5,278 |
| 3.92 | % | ||||
Tax-equivalent basis adjustment |
|
|
| (13 | ) |
|
|
|
| (13 | ) |
|
| ||||
Net interest income |
|
|
| $ | 6,053 |
|
|
|
|
| $ | 5,265 |
|
|
| ||
Net interest margin |
|
|
|
|
| 4.12 | % |
|
|
|
| 4.30 | % | ||||
Unity Bancorp, Inc.
Quarterly Financial Data
|
| 03/31/06 |
| 12/31/05 |
| 09/30/05 |
| 06/30/05 |
| 03/31/05 |
| |||||
SUMMARY OF INCOME (in thousands) : |
|
|
|
|
|
|
|
|
|
|
| |||||
Interest income |
| $ | 10,000 |
| $ | 9,486 |
| $ | 8,885 |
| $ | 7,943 |
| $ | 7,523 |
|
Interest expense |
| 3,947 |
| 3,519 |
| 3,148 |
| 2,678 |
| 2,258 |
| |||||
Net interest income |
| 6,053 |
| 5,967 |
| 5,737 |
| 5,265 |
| 5,265 |
| |||||
Provision for loan losses |
| 300 |
| 525 |
| 675 |
| 350 |
| 300 |
| |||||
Net interest income after provision |
| 5,753 |
| 5,442 |
| 5,062 |
| 4,915 |
| 4,965 |
| |||||
Noninterest income |
| 2,002 |
| 2,072 |
| 2,132 |
| 2,195 |
| 1,791 |
| |||||
Noninterest expense |
| 5,256 |
| 4,804 |
| 4,582 |
| 4,642 |
| 4,648 |
| |||||
Income before income taxes |
| 2,499 |
| 2,710 |
| 2,612 |
| 2,468 |
| 2,108 |
| |||||
Federal and state income tax provision |
| 842 |
| 956 |
| 993 |
| 941 |
| 798 |
| |||||
Net Income |
| 1,657 |
| 1,754 |
| 1,619 |
| 1,527 |
| 1,310 |
| |||||
Net Income per Common Share: |
|
|
|
|
|
|
|
|
|
|
| |||||
Basic |
| $ | 0.27 |
| $ | 0.28 |
| $ | 0.26 |
| $ | 0.25 |
| $ | 0.22 |
|
Diluted |
| 0.25 |
| 0.27 |
| 0.25 |
| 0.24 |
| 0.20 |
| |||||
COMMON SHARE DATA: |
|
|
|
|
|
|
|
|
|
|
| |||||
Cash dividends declared |
| $ | 0.05 |
| $ | 0.05 |
| $ | 0.05 |
| $ | 0.05 |
| $ | 0.04 |
|
Book value at quarter end |
| 6.79 |
| 6.57 |
| 6.46 |
| 6.29 |
| 5.96 |
| |||||
Market value at quarter end |
| 16.05 |
| 14.00 |
| 13.09 |
| 11.96 |
| 11.43 |
| |||||
Average common shares outstanding: (000’s) |
|
|
|
|
|
|
|
|
|
|
| |||||
Basic |
| 6,244 |
| 6,182 |
| 6,112 |
| 6,109 |
| 6,078 |
| |||||
Diluted |
| 6,568 |
| 6,483 |
| 6,426 |
| 6,423 |
| 6,422 |
| |||||
Common shares outstanding at period end (000’s) |
| 6,253 |
| 6,225 |
| 6,114 |
| 6,107 |
| 6,108 |
| |||||
OPERATING RATIOS: |
|
|
|
|
|
|
|
|
|
|
| |||||
Return on average assets |
| 1.08 | % | 1.16 | % | 1.09 | % | 1.13 | % | 1.03 | % | |||||
Return on average common equity |
| 16.26 |
| 17.62 |
| 16.36 |
| 16.50 |
| 14.63 |
| |||||
Efficiency ratio |
| 65.25 |
| 59.76 |
| 58.17 |
| 62.43 |
| 66.37 |
| |||||
BALANCE SHEET DATA (in thousands): |
|
|
|
|
|
|
|
|
|
|
| |||||
Assets |
| $ | 628,055 |
| $ | 614,172 |
| $ | 609,916 |
| $ | 577,507 |
| $ | 525,842 |
|
Deposits |
| 534,437 |
| 521,860 |
| 518,696 |
| 477,274 |
| 447,790 |
| |||||
Loans |
| 467,963 |
| 448,567 |
| 434,749 |
| 410,926 |
| 381,172 |
| |||||
Shareholders’ equity |
| 42,477 |
| 40,929 |
| 39,526 |
| 38,411 |
| 36,406 |
| |||||
Allowance for loan losses |
| 7,120 |
| 6,892 |
| 6,558 |
| 6,239 |
| 5,942 |
| |||||
TAX-EQUIVALENT YIELDS AND RATES: |
|
|
|
|
|
|
|
|
|
|
| |||||
Interest-earning assets |
| 6.86 | % | 6.63 | % | 6.35 | % | 6.22 | % | 6.20 | % | |||||
Interest-bearing liabilities |
| 3.21 |
| 2.91 |
| 2.66 |
| 2.54 |
| 2.28 |
| |||||
Net interest spread |
| 3.65 |
| 3.72 |
| 3.69 |
| 3.68 |
| 3.92 |
| |||||
Net interest margin |
| 4.12 |
| 4.20 |
| 4.12 |
| 4.12 |
| 4.30 |
| |||||
CREDIT QUALITY: |
|
|
|
|
|
|
|
|
|
|
| |||||
Nonperforming assets (in thousands) |
| $ | 3,781 |
| $ | 4,539 |
| $ | 5,733 |
| $ | 4,777 |
| $ | 3,172 |
|
Allowance for loan losses to period-end loans |
| 1.52 | % | 1.54 | % | 1.51 | % | 1.52 | % | 1.56 | % | |||||
Net charge offs to average loans |
| 0.06 |
| 0.17 |
| 0.33 |
| 0.05 |
| 0.23 |
| |||||
Nonperforming assets to loans and OREO |
| 0.81 |
| 1.01 |
| 1.32 |
| 1.16 |
| 0.83 |
| |||||
CAPITAL AND OTHER: |
|
|
|
|
|
|
|
|
|
|
| |||||
Total equity to assets |
| 6.76 | % | 6.66 | % | 6.48 | % | 6.65 | % | 6.92 | % | |||||
Tier I capital to average assets (leverage) |
| 8.26 |
| 8.48 |
| 8.55 |
| 8.67 |
| 8.99 |
| |||||
Tier I capital to risk-adjusted assets |
| 9.93 |
| 10.26 |
| 10.40 |
| 10.65 |
| 11.18 |
| |||||
Total capital to risk-adjusted assets |
| 11.18 |
| 11.51 |
| 11.65 |
| 11.91 |
| 12.43 |
| |||||
Number of banking offices |
| 14 |
| 14 |
| 13 |
| 13 |
| 13 |
| |||||
Number of ATMs |
| 16 |
| 16 |
| 15 |
| 15 |
| 15 |
| |||||
Number of employees |
| 190 |
| 190 |
| 185 |
| 178 |
| 185 |
| |||||
Unity Bancorp, Inc.
Allowance for Loan Losses and Loan Quality Schedules
(Dollars in thousands)
|
| 3/31/2006 |
| 12/31/2005 |
| 9/30/2005 |
| 6/30/2005 |
| 3/31/2005 |
| |||||
ALLOWANCE FOR LOAN LOSSES: |
|
|
|
|
|
|
|
|
|
|
| |||||
Balance, beginning |
| $ | 6,892 |
| $ | 6,558 |
| $ | 6,239 |
| $ | 5,942 |
| $ | 5,856 |
|
Provision charged to expense |
| 300 |
| 525 |
| 675 |
| 350 |
| 300 |
| |||||
|
| 7,192 |
| 7,083 |
| 6,914 |
| 6,292 |
| 6,156 |
| |||||
Less: Charge offs |
|
|
|
|
|
|
|
|
|
|
| |||||
SBA |
| 46 |
| 91 |
| (9 | ) | 112 |
| 107 |
| |||||
Commercial |
| 4 |
| 18 |
| 87 |
| 30 |
| 165 |
| |||||
Residential mortgage |
| — |
| — |
| 25 |
| — |
| 24 |
| |||||
Consumer |
| 35 |
| 249 |
| 262 |
| 4 |
| 8 |
| |||||
Total Charge Offs |
| 85 |
| 358 |
| 365 |
| 146 |
| 304 |
| |||||
Add: Recoveries |
|
|
|
|
|
|
|
|
|
|
| |||||
SBA |
| — |
| 130 |
| — |
| 30 |
| 44 |
| |||||
Commercial |
| 11 |
| 24 |
| 8 |
| 7 |
| 45 |
| |||||
Residential mortgage |
| — |
| — |
| — |
| — |
| — |
| |||||
Consumer |
| 2 |
| 13 |
| 1 |
| 56 |
| 1 |
| |||||
Total Recoveries |
| 13 |
| 167 |
| 9 |
| 93 |
| 90 |
| |||||
Net Charge Offs |
| 72 |
| 191 |
| 356 |
| 53 |
| 214 |
| |||||
Balance, ending |
| $ | 7,120 |
| $ | 6,892 |
| $ | 6,558 |
| $ | 6,239 |
| $ | 5,942 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
LOAN QUALITY INFORMATION: |
|
|
|
|
|
|
|
|
|
|
| |||||
Nonperforming loans |
| $ | 3,605 |
| $ | 4,361 |
| $ | 5,555 |
| $ | 4,777 |
| $ | 2,974 |
|
Other real estate owned, net |
| 176 |
| 178 |
| 178 |
| — |
| 198 |
| |||||
Nonperforming assets |
| $ | 3,781 |
| $ | 4,539 |
| $ | 5,733 |
| $ | 4,777 |
| $ | 3,172 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Loans 90 days past due and still accruing |
| $ | 326 |
| $ | — |
| $ | — |
| $ | — |
| $ | 313 |
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Allowance for loan losses to: |
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Total loans at period end |
| 1.52 | % | 1.54 | % | 1.51 | % | 1.52 | % | 1.56 | % | |||||
Nonperforming loans |
| 197.50 |
| 158.04 |
| 118.06 |
| 130.60 |
| 199.80 |
| |||||
Nonperforming assets |
| 188.31 |
| 151.84 |
| 114.39 |
| 130.60 |
| 187.33 |
| |||||
Net charge offs to average loans (QTD) |
| 0.06 |
| 0.17 |
| 0.33 |
| 0.05 |
| 0.23 |
| |||||
Net charge offs to average loans (YTD) |
| 0.06 |
| 0.20 |
| 0.21 |
| 0.14 |
| 0.23 |
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Nonperforming loans to total loans |
| 0.77 |
| 0.97 |
| 1.28 |
| 1.16 |
| 0.78 |
| |||||
Nonperforming assets to total loans and OREO |
| 0.81 |
| 1.01 |
| 1.32 |
| 1.16 |
| 0.83 |
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