NYTH117 CL-AA 14:07 Unity Bancorp Reports Second Quarter Earnings
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+ NJY ED1 FC1 IRW RWB TNW (UNITY BANCORP 905711 NY)
26 19 96 91 32 01 30 31 99 33
j...k/njprn r f bc-NJ-UnityBanc-2Q-Earn 07-19
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17:00 07/19
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[STK] UNTY
[IN] FIN
[SU] ERN
TO BUSINESS EDITOR:
Unity Bancorp Reports Second Quarter Earnings
CLINTON, N.J., July 19 /PRNewswire-FirstCall/ -- Unity Bancorp, Inc. (Nasdaq: UNTY), parent company of Unity Bank, reported net income of $1.5 million, or $0.21 per diluted share, for the quarter ended June 30, 2007, compared to net income of $1.6 million, or $0.23 per diluted share, for the quarter ended June 30, 2006. Return on average assets and average common equity for the second quarter of 2007 were 0.89% and 13.14%, respectively, as compared to 1.03% and 15.39%, respectively, for the second quarter of 2006.
For the six months ended June 30, 2007, net income was $3.0 million, or $0.41 per diluted share, compared to $3.3 million, or $0.45 per diluted share for the same period a year ago. Return on average assets and average common equity for the six months ended June 30, 2007, were 0.88% and 12.94%, respectively, as compared to 1.05% and 15.82%, respectively, for the prior year's comparable period.
"During the second quarter of 2007, we had significant growth in both our loan and deposit portfolios, in addition to an improvement in credit quality," said Unity President and Chief Executive Officer, James A. Hughes. "Although the rate environment continues to be a challenge, we will continue to grow our earning asset base, which will have a favorable effect on future earnings."
Net interest income was $6.1 million for the second quarter of 2007, consistent from the same period a year ago. Net interest income was benefited by an increase in interest-earning assets offset by a decrease in net interest margin. Net interest margin was 3.71% for the second quarter of 2007, compared to 3.99% for the second quarter of 2006.
Net interest income was $12.1 million for the six months ended June 30, 2007, consistent from the same period a year ago. Net interest income was benefited by an increase in interest-earning assets offset by a decrease in net interest margin. Net interest margin was 3.73% for the six months ended 2007, compared to 4.05% for the same period a year ago.
The provision for loan losses for the second quarter of 2007 was $350 thousand, compared to $250 thousand for the second quarter of 2006. Net loan charge-offs for the quarter ended June 30, 2007 were $110 thousand, compared to net charge-offs of $113 thousand for the quarter ended June 30, 2006. The provision for loan losses was $550 thousand for the six months ended June 30, 2007, flat from the same period a year ago. Net loan charge-offs for the six months ended June 30, 2007 were $177 thousand, compared to $185 thousand for the same period a year ago.
Total noninterest income for the second quarter of 2007 was $1.7 million, up 6.1%, from the same period a year ago. Service charges on deposits for the second quarter were $339 thousand, a decrease of $70 thousand, compared to the second quarter of 2006, primarily due to fee waivers and the acceleration of the electronic clearing of checks "Check 21". Service and loan fees were $380 thousand for the second quarter of 2007, down $26 thousand from a year ago. Gains on sales of SBA loans amounted to $824 thousand for the second quarter of 2007, compared to $558 thousand for the quarter ended June 30, 2006, primarily due to the higher volume of loans sold, offset by reduced premiums.
Total noninterest income for the six months ended June 30, 2007, was $3.4 million, down 6.1% from the same period a year ago. Service charges on deposits for the six months ended were $688 thousand, a decrease of $154 thousand, compared to the same period a year ago, primarily due to the waiving of fees and the acceleration of Check 21. Service and loan fees were $746 thousand for the second quarter of 2007, down $55 thousand from the same period a year ago. Gains on sales of SBA loans amounted to $1.5 million for the six months ended June 30, 2007, compared to $1.3 million for the same period a year ago, primarily due to the higher volume of loans sold offset by reduced premiums.
Total noninterest expenses for the second quarter of 2007 were $5.3 million, an increase of 5.3% from the prior year's comparable quarter. Compensation and benefits increased 2.2% due to annual cost of living increases and rising health insurance costs, partially offset by a planned reduction in the employee base. Loan servicing costs increased due to collection expenses associated with non-accrual loans.
Total noninterest expenses for the six months ended June 30, 2007, were $10.7 million, an increase of 4.2% from the same period a year ago. Compensation and benefits increased 5.4% due to cost of living increases and rising health insurance costs, partially offset by a planned reduction in the employee base. Processing and communications increased 3.1% due to increased transactional volume due to a larger customer base. Loan servicing costs increased $103 thousand due to collection expenses associated with past due loans.
Total assets at June 30, 2007, were $732.4 million, a 9.2% increase from June 30, 2006. The increase in assets from the prior year was primarily due to growth in the Company's loan portfolio. Total loans at June 30, 2007, were $541.4 million, an 11.7% increase from June 30, 2006. The growth in the loan portfolio occurred in commercial, consumer and residential lending.
At June 30, 2007, the allowance for loan losses was $8.0 million, or 1.48% of total loans, compared to 1.50% at December 31, 2006 and June 30, 2006. Non-performing assets at June 30, 2007, were $5.0 million, or 0.92% of total loans and other real estate owned, "OREO", a decline of $4.1 million in non performing assets as compared to $9.1 million or 1.80% of total loans and OREO at December 31, 2006, and an increase of $2.4 million in non performing, as compared to $2.6 million or 0.53% of total loans and OREO from June 30, 2006. Included in non-performing assets at June 30, 2007, are approximately $1.5 million of loans guaranteed by the SBA. Credit quality improved during the quarter due to the resolution of certain problem credits.
Total deposits at June 30, 2007, were $596.1 million, a 3.4% increase from June 30, 2006. This increase was primarily the result of growth in time deposits and savings accounts, partially offset by the decline in interest bearing checking accounts and demand deposit accounts. Savings accounts increased $30.4 million, or 16.2% from June 30, 2006, due to a high-yield savings product. Time deposits increased $28.7 million, or 15.1% from June 30, 2006, due to time deposit promotions.
"During the second quarter of 2007, the Company implemented remote deposit capture. We believe this will increase the number of transactional relationships inside and outside of our local market areas," said Mr. Hughes. "In addition, we will be opening our sixteenth branch in the third quarter 2007. This will be our second office in the Lehigh Valley Pennsylvania area."
Total shareholders' equity was $48.2 million at June 30, 2007, an 11.0% increase from June 30, 2006. The increase in shareholders' equity was primarily due to retained profits and an increase in other comprehensive income, partially offset by the payment of cash dividends and the purchase of treasury stock. During the quarter, the Company took advantage of the Company's reduced market valuation and purchased 78 thousand shares of treasury stock.
As of June 30, 2007, the Company's Tier I leverage capital ratio was 9.28%, Tier I risk-based capital ratio was 11.12%, and total risk-based capital ratio was 13.78%. All regulatory capital ratios exceeded the well-capitalized, federal capital adequacy requirements as of June 30, 2007.
Unity Bancorp, Inc. is a financial service organization headquartered in Clinton, New Jersey, with approximately $732 million in assets and $596 million in deposits. Unity Bank provides financial services to retail, corporate and small business customers through its 15 retail service centers located in Hunterdon, Middlesex, Somerset, Union and Warren Counties in New Jersey and Northampton County, Pennsylvania. For additional information about Unity, visit our website at www.unitybank.com, or call 800- 618-BANK.
This news release contains certain forward-looking statements, either expressed or implied, which are provided to assist the reader in understanding anticipated future financial performance. These statements 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)
| | | | | | | | | | | | |
| | | Jun. 30, | | Mar. 31, | | Jun. 30, | | Jun. 07 | | vs. | |
| | | 2007 | | 2007 | | 2006 | | Mar. 07 | | Jun. 06 | |
| BALANCE SHEET DATA: | | | | | | | | | | | |
| Assets | | $ | 732,403 | | $ | 681,302 | | $ | 670,870 | | | 7.5 | % | | 9.2 | % |
| Deposits | | | 596,093 | | | 541,399 | | | 576,376 | | | 10.1 | | | 3.4 | |
| Loans | | | 541,385 | | | 515,562 | | | 484,622 | | | 5.0 | | | 11.7 | |
| Securities | | | 102,730 | | | 104,318 | | | 108,979 | | | (1.5 | ) | | (5.7 | ) |
| Shareholders' equity | | | 48,242 | | | 47,825 | | | 43,446 | | | 0.9 | | | 11.0 | |
Allowance for loan losses | | | 7,997 | | | 7,757 | | | 7,257 | | | 3.1 | | | 10.2 | |
| | | | | | | | | | | | | | | | | |
FINANCIAL DATA - QUARTER TO DATE: | | | | | | | | | | | | | | | | |
| | $ | 2,218 | | $ | 2,081 | | $ | 2,429 | | | 6.6 | % | | (8.7 | )% |
Federal and state income tax provision | | | 676 | | | 630 | | | 792 | | | 7.3 | | | (14.6 | ) |
| Net income | | | 1,542 | | | 1,451 | | | 1,637 | | | 6.3 | | | (5.8 | ) |
| Per share-basic | | | 0.22 | | | 0.21 | | | 0.24 | | | 4.8 | | | (8.3 | ) |
| Per share-diluted | | | 0.21 | | | 0.20 | | | 0.23 | | | 5.0 | | | (8.7 | ) |
| | | 0.89 | % | | 0.87 | % | | 1.03 | % | | 2.3 | | | (13.6 | ) |
Return on average common equity | | | 13.14 | | | 12.74 | | | 15.39 | | | 3.1 | | | (14.6 | ) |
| Efficiency ratio | | | 67.22 | | | 70.46 | | | 65.12 | | | (4.6 | ) | | 3.2 | |
| | | | | | | | | | | | | | | | | |
FINANCIAL DATA - YEAR TO DATE: | | | | | | | | | | | | | | | | |
| | $ | 4,299 | | | - | | $ | 4,928 | | | - | | | (12.8 | )% |
| Federal and state income tax provision | | | 1,306 | | | - | | | 1,634 | | | - | | | (20.1 | ) |
| Net income | | | 2,993 | | | - | | | 3,294 | | | - | | | (9.1 | ) |
| Per share-basic | | | 0.43 | | | - | | | 0.48 | | | - | | | (10.4 | ) |
| Per share-diluted | | | 0.41 | | | - | | | 0.45 | | | - | | | (8.9 | ) |
| | | 0.88 | % | | - | | | 1.05 | % | | - | | | (16.2 | ) |
Return on average common equity | | | 12.94 | | | - | | | 15.82 | | | - | | | (18.2 | ) |
| Efficiency ratio | | | 68.83 | | | - | | | 65.19 | | | - | | | 5.6 | |
| | | | | | | | | | | | | | | | | |
| SHARE INFORMATION: | | | | | | | | | | | | | | | | |
| | $ | 11.45 | | $ | 11.30 | | $ | 14.75 | | | 1.4 | % | | (22.4 | )% |
| | | 0.05 | | | 0.05 | | | 0.05 | | | - | | | - | |
| Book value per share | | | 6.87 | | | 6.84 | | | 6.29 | | | 0.4 | | | 9.2 | |
Average diluted shares outstanding (QTD) | | | 7,295 | | | 7,301 | | | 7,250 | | | (0.1 | ) | | 0.6 | |
| | | | | | | | | | | | | | | | | |
| CAPITAL RATIOS: | | | | | | | | | | | | | | | | |
Total equity to total assets | | | 6.59 | % | | 7.02 | % | | 6.48 | % | | (6.1 | )% | | 1.7 | % |
Tier I capital to average assets (leverage) | | | 9.28 | | | 9.24 | | | 8.22 | | | 0.4 | | | 12.9 | |
Tier I capital to risk-adjusted assets | | | 11.12 | | | 11.43 | | | 9.85 | | | (2.7 | ) | | 12.9 | |
| | | 13.78 | | | 14.21 | | | 11.10 | | | (3.0 | ) | | 24.1 | |
| | | | | | | | | | | | | | | | | |
CREDIT QUALITY AND RATIOS: | | | | | | | | | | | | | | | | |
| Nonperforming assets | | $ | 4,977 | | $ | 6,771 | | $ | 2,552 | | | (26.5 | )% | | 95.0 | % |
Net charge offs to average loans (QTD) | | | 0.08 | % | | 0.05 | % | | 0.10 | % | | 60.0 | | | (20.0 | ) |
Allowance for loan losses to total loans | | | 1.48 | | | 1.50 | | | 1.50 | | | (1.3 | ) | | (1.3 | ) |
Nonperforming assets to total loans and OREO | | | 0.92 | | | 1.31 | | | 0.53 | | | (29.8 | ) | | 73.6 | |
Unity Bancorp, Inc.
Consolidated Balance Sheets
(In thousands)
| | | Jun. 30, | | Mar. 31, | | Jun. 30, | | Jun. 07 | | vs. | |
| | 2007 | | 2007 | | 2006 | | Mar. 07 | | Jun. 06 | |
| ASSETS | | | | | | | | | | | |
| Cash and due from banks | | $ | 14,696 | | $ | 15,697 | | $ | 13,709 | | | (6.4 | )% | | 7.2 | % |
| Federal funds sold and interest bearing deposits | | | 51,063 | | | 23,417 | | | 42,631 | | | 118.1 | | | 19.8 | |
| Securities: | | | | | | | | | | | | | | | | |
| Available for sale | | | 66,199 | | | 66,197 | | | 68,104 | | | - | | | (2.8 | ) |
| Held to maturity | | | 36,531 | | | 38,121 | | | 40,875 | | | (4.2 | ) | | (10.6 | ) |
| Total securities | | | 102,730 | | | 104,318 | | | 108,979 | | | (1.5 | ) | | (5.7 | ) |
| Loans: | | | | | | | | | | | | | | | | |
| SBA - Held for sale | | | 8,914 | | | 9,298 | | | 24,384 | | | (4.1 | ) | | (63.4 | ) |
| SBA - Held to Maturity | | | 66,634 | | | 68,314 | | | 59,111 | | | (2.5 | ) | | 12.7 | |
| Commercial | | | 342,328 | | | 318,905 | | | 297,826 | | | 7.3 | | | 14.9 | |
| Residential mortgage | | | 69,417 | | | 63,615 | | | 55,966 | | | 9.1 | | | 24.0 | |
| Consumer | | | 54,092 | | | 55,430 | | | 47,335 | | | (2.4 | ) | | 14.3 | |
| Total loans | | | 541,385 | | | 515,562 | | | 484,622 | | | 5.0 | | | 11.7 | |
| Less: Allowance for loan losses | | | 7,997 | | | 7,757 | | | 7,257 | | | 3.1 | | | 10.2 | |
| Net loans | | | 533,388 | | | 507,805 | | | 477,365 | | | 5.0 | | | 11.7 | |
Goodwill and other intangibles | | | 1,596 | | | 1,599 | | | 1,611 | | | (0.2 | ) | | (0.9 | ) |
Premises and equipment, net | | | 11,614 | | | 11,525 | | | 10,954 | | | 0.8 | | | 6.0 | |
Accrued interest receivable | | | 3,687 | | | 3,594 | | | 3,460 | | | 2.6 | | | 6.6 | |
| Loan servicing asset | | | 2,289 | | | 2,261 | | | 2,424 | | | 1.2 | | | (5.6 | ) |
| Bank Owned Life Insurance | | | 5,467 | | | 5,421 | | | 5,279 | | | 0.8 | | | 3.6 | |
| Other assets | | | 5,873 | | | 5,665 | | | 4,458 | | | 3.7 | | | 31.7 | |
| Total Assets | | $ | 732,403 | | $ | 681,302 | | $ | 670,870 | | | 7.5 | % | | 9.2 | % |
| | | | | | | | | | | | | | | | | |
LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | | | | | |
Noninterest-bearing demand deposits | | $ | 74,731 | | $ | 75,928 | | $ | 81,721 | | | (1.6 | )% | | (8.6 | )% |
Interest-bearing deposits: | | | | | | | | | | | | | | | | |
Interest bearing checking | | | 84,107 | | | 89,313 | | | 116,497 | | | (5.8 | ) | | (27.8 | ) |
| Savings | | | 218,273 | | | 214,636 | | | 187,841 | | | 1.7 | | | 16.2 | |
| Time, under $100,000 | | | 138,440 | | | 105,724 | | | 124,652 | | | 30.9 | | | 11.1 | |
| | | 80,542 | | | 55,798 | | | 65,665 | | | 44.3 | | | 22.7 | |
| Total deposits | | | 596,093 | | | 541,399 | | | 576,376 | | | 10.1 | | | 3.4 | |
Borrowed funds and subordinated debentures | | | 84,744 | | | 89,744 | | | 49,279 | | | (5.6 | ) | | 72.0 | |
| Accrued interest payable | | | 595 | | | 523 | | | 313 | | | 13.8 | | | 90.1 | |
Accrued expenses and other liabilities | | | 2,729 | | | 1,811 | | | 1,456 | | | 50.7 | | | 87.4 | |
| Total liabilities | | | 684,161 | | | 633,477 | | | 627,424 | | | 8.0 | | | 9.0 | |
Commitments and Contingencies | | | - | | | - | | | - | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Shareholders' equity: | | | | | | | | | | | | | | | | |
Common stock, no par value, 12,500 shares authorized | | | 49,087 | | | 44,677 | | | 43,866 | | | 9.9 | | | 11.9 | |
| Retained earnings | | | 1,435 | | | 4,067 | | | 1,555 | | | (64.7 | ) | | (7.7 | ) |
| Treasury stock at cost | | | (1,121 | ) | | (242 | ) | | (242 | ) | | 363.2 | | | 363.2 | |
Accumulated other comprehensive loss, net of tax | | | (1,159 | ) | | (677 | ) | | (1,733 | ) | | 71.2 | | | (33.1 | ) |
Total shareholders' equity | | | 48,242 | | | 47,825 | | | 43,446 | | | 0.9 | | | 11.0 | |
Total Liabilities and Shareholders' Equity | | $ | 732,403 | | $ | 681,302 | | $ | 670,870 | | | 7.5 | % | | 9.2 | % |
| | | | | | | | | | | | | | | | | |
COMMON SHARES AT PERIOD END: | | | | | | | | | | | | | | | | |
| Issued | | | 7,122 | | | 7,019 | | | 6,932 | | | | | | | |
| Outstanding | | | 7,020 | | | 6,995 | | | 6,908 | | | | | | | |
| Treasury | | | 102 | | | 24 | | | 24 | | | | | | | |
Unity Bancorp, Inc.
Consolidated Statements of Income
(In thousands, except per share data)
| | | | | | | | | | | | |
| | | Jun. 30, | | Mar. 31, | | Jun. 30, | | Jun. 07 | | vs. | |
| FOR THE THREE MONTHS ENDED: | | 2007 | | 2007 | | 2006 | | Mar. 07 | | Jun. 06 | |
| INTEREST INCOME | | | | | | | | | | | |
| Fed funds sold and interest on deposits | | $ | 221 | | $ | 262 | | $ | 354 | | | (15.6 | )% | | (37.6 | )% |
| Securities: | | | | | | | | | | | | | | | | |
| Available for sale | | | 778 | | | 780 | | | 709 | | | (0.3 | ) | | 9.7 | |
| Held to maturity | | | 478 | | | 540 | | | 467 | | | (11.5 | ) | | 2.4 | |
| Total securities | | | 1,256 | | | 1,320 | | | 1,176 | | | (4.8 | ) | | 6.8 | |
| Loans: | | | | | | | | | | | | | | | | |
| SBA | | | 2,202 | | | 2,340 | | | 2,179 | | | (5.9 | ) | | 1.1 | |
| Commercial | | | 6,378 | | | 5,988 | | | 5,368 | | | 6.5 | | | 18.8 | |
| Residential mortgage | | | 967 | | | 888 | | | 788 | | | 8.9 | | | 22.7 | |
| Consumer | | | 951 | | | 904 | | | 779 | | | 5.2 | | | 22.1 | |
| Total loan interest income | | | 10,498 | | | 10,120 | | | | | | 3.7 | | | 15.2 | |
| Total interest income | | | 11,975 | | | 11,702 | | | 10,644 | | | 2.3 | | | 12.5 | |
| INTEREST EXPENSE | | | | | | | | | | | | | | | | |
| Interest bearing demand deposits | | | 477 | | | 552 | | | 653 | | | (13.6 | ) | | (27.0 | ) |
| Savings deposits | | | 2,122 | | | 2,171 | | | 1,704 | | | (2.3 | ) | | 24.5 | |
| Time deposits | | | 2,153 | | | 1,970 | | | 1,671 | | | 9.3 | | | 28.8 | |
Borrowed funds and subordinated debentures | | | 1,136 | | | 990 | | | 583 | | | 14.7 | | | 94.9 | |
| Total interest expense | | | 5,888 | | | 5,683 | | | 4,611 | | | 3.6 | | | 27.7 | |
| Net interest income | | | 6,087 | | | 6,019 | | | 6,033 | | | 1.1 | | | 0.9 | |
| Provision for loan losses | | | 350 | | | 200 | | | 250 | | | 75.0 | | | 40.0 | |
Net interest income after provision for loan losses | | | 5,737 | | | 5,819 | | | 5,783 | | | (1.4 | ) | | (0.8 | ) |
| NONINTEREST INCOME | | | | | | | | | | | | | | | | |
Service charges on deposit accounts | | | 339 | | | 349 | | | 409 | | | (2.9 | ) | | (17.1 | ) |
| Service and loan fee income | | | 380 | | | 366 | | | 406 | | | 3.8 | | | (6.4 | ) |
| Gain on SBA loan sales | | | 824 | | | 679 | | | 558 | | | 21.4 | | | 47.7 | |
| Gain on Mortgage loan sales | | | 19 | | | 9 | | | 110 | | | 111.1 | | | (82.7 | ) |
| Gain on sales of other loans | | | - | | | - | | | - | | | - | | | (100.0 | ) |
| Bank owned life insurance | | | 46 | | | 49 | | | 47 | | | (6.1 | ) | | (2.1 | ) |
| Net securities gains | | | - | | | 10 | | | - | | | 100.0 | | | 100.0 | |
| Other income | | | 140 | | | 217 | | | 117 | | | (35.5 | ) | | 19.7 | |
| Total noninterest income | | | 1,748 | | | 1,679 | | | 1,647 | | | 4.1 | | | 6.1 | |
| NONINTEREST EXPENSES | | | | | | | | | | | | | | | | |
| Compensation and benefits | | | 2,723 | | | 2,955 | | | 2,664 | | | (7.9 | ) | | 2.2 | |
| Processing and communications | | | 563 | | | 550 | | | 553 | | | 2.4 | | | 1.8 | |
| Occupancy, net | | | 644 | | | 673 | | | 646 | | | (4.3 | ) | | (0.3 | ) |
| Furniture and equipment | | | 394 | | | 400 | | | 381 | | | (1.5 | ) | | 3.4 | |
| Professional fees | | | 162 | | | 136 | | | 151 | | | 19.1 | | | 7.3 | |
| Loan servicing costs | | | 169 | | | 90 | | | 55 | | | 87.8 | | | 207.3 | |
| Advertising | | | 105 | | | 94 | | | 148 | | | 11.7 | | | (29.1 | ) |
| Other | | | 507 | | | 519 | | | 403 | | | (2.3 | ) | | 25.8 | |
| Total noninterest expenses | | | 5,267 | | | 5,417 | | | 5,001 | | | (2.8 | ) | | 5.3 | |
| Income before taxes | | | 2,218 | | | 2,081 | | | 2,429 | | | 6.6 | | | (8.7 | ) |
| Federal and state income tax provision | | | 676 | | | 630 | | | 792 | | | 7.3 | | | (14.6 | ) |
| Net Income | | $ | 1,542 | | $ | 1,451 | | $ | 1,637 | | | 6.3 | % | | (5.8 | )% |
| | | | | | | | | | | | | | | | | |
Net Income Per Common Share- Basic | | $ | 0.22 | | $ | 0.21 | | $ | 0.24 | | | 4.8 | % | | (8.3 | )% |
Net Income Per Common Share- Diluted | | $ | 0.21 | | $ | 0.20 | | $ | 0.23 | | | 5.0 | % | | (8.7 | )% |
| | | | | | | | | | | | | | | | | |
AVERAGE COMMON SHARES OUTSTANDING: | | | | | | | | | | | | | | | | |
| Basic | | | 6,985 | | | 6,976 | | | 6,903 | | | | | | | |
| Diluted | | | 7,295 | | | 7,301 | | | 7,250 | | | | | | | |
Federal and state income tax
Unity Bancorp, Inc.
Consolidated Statements of Income
(Dollars in thousands, except per share data)
| Jun. 30, | | Jun. 30, | | Jun. 30 | | | |
| YEAR TO DATE | | 2007 | | 2006 | | Jun. 06 | |
| INTEREST INCOME | | | | | | | |
| Fed funds sold and interest on deposits | | $ | 483 | | $ | 561 | | | (13.9 | )% |
| Securities: | | | | | | | | | | |
| Available for sale | | | 1,558 | | | 1,417 | | | 10.0 | |
| Held to maturity | | | 1,018 | | | 943 | | | 8.0 | |
| Total securities | | | 2,576 | | | 2,360 | | | 9.2 | |
| Loans: | | | | | | | | | | |
| SBA | | | 4,542 | | | 4,332 | | | 4.8 | |
| Commercial | | | 12,366 | | | 10,260 | | | 20.5 | |
| Residential mortgage | | | 1,855 | | | 1,608 | | | 15.4 | |
| Consumer | | | 1,855 | | | 1,523 | | | 21.8 | |
| Total loan interest income | | | 20,618 | | | 17,723 | | | 16.3 | |
| Total interest income | | | 23,677 | | | 20,644 | | | 14.7 | |
| INTEREST EXPENSE | | | | | | | | | | |
| Interest bearing demand deposits | | | 1,029 | | | 1,347 | | | (23.6 | ) |
| Savings deposits | | | 4,293 | | | 2,896 | | | 48.2 | |
| Time deposits | | | 4,123 | | | 3,170 | | | 30.1 | |
| Borrowed funds and subordinated debentures | | | 2,126 | | | 1,145 | | | 85.7 | |
| Total interest expense | | | 11,571 | | | 8,558 | | | 35.2 | |
| Net interest income | | | 12,106 | | | 12,086 | | | 0.2 | |
| Provision for loan losses | | | 550 | | | 550 | | | 0.0 | |
| Net interest income after | | | | | | | | | | |
| provision for loan losses | | | 11,556 | | | 11,536 | | | 0.2 | |
| NONINTEREST INCOME | | | | | | | | | | |
| Service charges on deposit accounts | | | 688 | | | 842 | | | (18.3 | ) |
| Service and loan fee income | | | 746 | | | 801 | | | (6.9 | ) |
| Gain on SBA loan sales | | | 1,503 | | | 1,258 | | | 19.5 | |
| Gain on Mortgage loan sales | | | 28 | | | 172 | | | (83.7 | ) |
| Gains on sales of other loans | | | 0 | | | 82 | | | (100.0 | ) |
| Bank owned life insurance | | | 95 | | | 94 | | | 1.1 | |
| Net securities gains | | | 10 | | | - | | | 100.0 | |
| Other income | | | 357 | | | 400 | | | (10.8 | ) |
| Total noninterest income | | | 3,427 | | | 3,649 | | | (6.1 | ) |
| NONINTEREST EXPENSES | | | | | | | | | | |
| Compensation and benefits | | | 5,678 | | | 5,389 | | | 5.4 | |
| Processing and communications | | | 1,113 | | | 1,080 | | | 3.1 | |
| Occupancy, net | | | 1,317 | | | 1,294 | | | 1.8 | |
| Furniture and equipment | | | 794 | | | 774 | | | 2.6 | |
| Professional fees | | | 298 | | | 283 | | | 5.3 | |
| Loan servicing costs | | | 259 | | | 156 | | | 66.0 | |
| Advertising | | | 199 | | | 318 | | | (37.4 | ) |
| Other | | | 1,026 | | | 963 | | | 6.5 | |
| Total noninterest expenses | | | 10,684 | | | 10,257 | | | 4.2 | |
| Income before taxes | | | 4,299 | | | 4,928 | | | (12.8 | ) |
| Federal and state income tax provision | | | 1,306 | | | 1,634 | | | (20.1 | ) |
| Net Income | | $ | 2,993 | | $ | 3,294 | | | (9.1 | )% |
| Net Income Per Common Share-Basic | | $ | 0.43 | | $ | 0.48 | | | (10.4 | )% |
| Net Income Per Common Share-Diluted | | $ | 0.41 | | $ | 0.45 | | | (8.9 | )% |
| | | | | | | | | | | |
| Average common shares outstanding: | | | | | | | | | | |
| Basic | | | 6,981 | | | 6,893 | | | | |
| Diluted | | | 7,298 | | | 7,246 | | | | |
Unity Bancorp, Inc.
Consolidated Average Balance Sheets
with Resultant Interest and Rates
(Tax-equivalent basis, dollars in thousands)
| | | Three Months Ended | |
| | June 30, 2007 | | March 31, 2007 | |
| | | Balance | | Interest | | Rate | | Balance | | Interest | | Rate | |
| ASSETS | | | | | | | | | | | | | |
| Interest-earning assets: | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Federal funds sold and interest-bearing deposits with banks | | $ | 19,029 | | $ | 221 | | | 4.66 | % | $ | 20,650 | | $ | 262 | | | 5.15 | % |
| Securities: | | | | | | | | | | | | | | | | | | | |
| Available for sale | | | 65,132 | | | | | | | | | | | | | | | 4.88 | |
| Held to maturity | | | 37,501 | | | 496 | | | 5.29 | | | 42,287 | | | 558 | | | 5.28 | |
| | | 102,633 | | | 1,286 | | | 5.01 | | | 107,192 | | | 1,350 | | | 5.04 | |
Loans, net of unearned discount: | | | | | | | | | | | | | | | | | | | |
| SBA | | | 83,080 | | | 2,202 | | | 10.60 | | | 81,783 | | | 2,340 | | | 11.44 | |
| Commercial | | | 335,081 | | | 6,378 | | | 7.63 | | | 318,638 | | | 5,988 | | | 7.62 | |
| | | 65,256 | | | 967 | | | 5.93 | | | 62,903 | | | 888 | | | 5.65 | |
| Consumer | | | 55,227 | | | 951 | | | 6.91 | | | 53,419 | | | 904 | | | 6.86 | |
| Total loans | | | 538,644 | | | 10,498 | | | 7.81 | | | 516,743 | | | 10,120 | | | 7.91 | |
Total interest-earning assets | | | 660,306 | | | 12,005 | | | 7.28 | | | 644,585 | | | 11,732 | | | 7.34 | |
Noninterest-earning assets: | | | | | | | | | | | | | | | | | | | |
| | | 12,170 | | | | | | | | | 12,228 | | | | | | | |
Allowance for loan losses | | | (8,022 | ) | | | | | | | | (7,877 | ) | | | | | | |
| Other assets | | | 29,092 | | | | | | | | | 29,495 | | | | | | | |
Total noninterest-earning assets | | | 33,240 | | | | | | | | | 33,846 | | | | | | | |
| Total Assets | | $ | 693,546 | | | | | | | | $ | 678,431 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | | | | | | | | | | |
Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | |
Interest-bearing demand deposits | | $ | 84,729 | | | 477 | | | 2.26 | | $ | 97,570 | | | 552 | | | 2.29 | |
| Savings deposits | | | 211,478 | | | 2,122 | | | 4.02 | | | 210,879 | | | 2,171 | | | 4.18 | |
| Time deposits | | | 184,727 | | | 2,153 | | | 4.67 | | | 170,508 | | | 1,970 | | | 4.69 | |
Total interest-bearing deposits | | | 480,934 | | | 4,752 | | | 3.96 | | | 478,957 | | | 4,693 | | | 3.97 | |
Borrowed funds and subordinated debentures | | | 87,815 | | | 1,136 | | | 5.19 | | | 75,133 | | | 990 | | | 5.34 | |
Total interest-bearing liabilities | | | 568,749 | | | 5,888 | | | 4.15 | | | 554,090 | | | 5,683 | | | 4.16 | |
Noninterest-bearing liabilities: | | | | | | | | | | | | | | | | | | | |
| Demand deposits | | | 75,469 | | | | | | | | | 75,222 | | | | | | | |
| Other liabilities | | | 2,262 | | | | | | | | | 2,927 | | | | | | | |
Total noninterest-bearing liabilities | | | 77,731 | | | | | | | | | 78,149 | | | | | | | |
| | | 47,066 | | | | | | | | | 46,192 | | | | | | | |
Total Liabilities and Shareholders' Equity | | $ | 693,546 | | | | | | | | $ | 678,431 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| Net interest spread | | | | | | | | | 3.13 | % | | | | | 6,049 | | | 3.18 | % |
Tax-equivalent basis adjustment | | | | | | (30 | ) | | | | | | | | (30 | ) | | | |
| Net interest income | | | | | $ | | | | | | | | | $ | 6,019 | | | | |
| | | | | | | | | | | | | | | | | | | | |
| Net interest margin | | | | | | | | | 3.71 | % | | | | | | | | 3.75 | % |
Unity Bancorp, Inc.
Consolidated Average Balance Sheets
with Resultant Interest and Rates
(Tax-equivalent basis, dollars in thousands)
| | | Three Months Ended | |
| | | June 30, 2007 | | June 30, 2006 | |
| | | Balance | | Interest | | Rate | | Balance | | Interest | | Rate | |
| ASSETS | | | | | | | | | | | | | |
| Interest-earning assets: | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Federal funds sold and interest-bearing deposits with banks | | $ | 19,029 | | $ | 221 | | | 4.66 | % | $ | 30,005 | | $ | 354 | | | 4.73 | % |
| Securities: | | | | | | | | | | | | | | | | | | | |
| Available for sale | | | 65,132 | | | 790 | | | 4.85 | | | 62,831 | | | 722 | | | 4.60 | |
| Held to maturity | | | 37,501 | | | 496 | | | 5.29 | | | 38,283 | | | 467 | | | 4.88 | |
| | | 102,633 | | | 1,286 | | | 5.01 | | | 101,114 | | | 1,189 | | | 4.70 | |
Loans, net of unearned discount: | | | | | | | | | | | | | | | | | | | |
| SBA | | | 83,080 | | | 2,202 | | | 10.60 | | | 83,708 | | | 2,179 | | | 10.41 | |
| Commercial | | | 335,081 | | | 6,378 | | | 7.63 | | | 286,943 | | | 5,368 | | | 7.50 | |
| | | 65,256 | | | 967 | | | 5.93 | | | 58,135 | | | 788 | | | 5.42 | |
| Consumer | | | 55,227 | | | 951 | | | 6.91 | | | 46,690 | | | 779 | | | 6.69 | |
| Total loans | | | 538,644 | | | 10,498 | | | 7.81 | | | 475,476 | | | 9,114 | | | 7.68 | |
| Total interest-earning assets | | | 660,306 | | | 12,005 | | | 7.28 | | | 606,595 | | | 10,657 | | | 7.04 | |
| Noninterest-earning assets: | | | | | | | | | | | | | | | | | | | |
| | | 12,170 | | | | | | | | | | | | | | | | |
Allowance for loan losses | | | (8,022 | ) | | | | | | | | | | | | | | | |
| Other assets | | | 29,092 | | | | | | | | | | | | | | | | |
Total noninterest-earning assets | | | 33,240 | | | | | | | | | 33,412 | | | | | | | |
| Total Assets | | $ | 693,546 | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | | | | | | | | | |
Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | |
Interest-bearing demand deposits | | $ | 84,729 | | | 477 | | | 2.26 | | $ | 116,303 | | | 653 | | | 2.25 | |
| Savings deposits | | | 211,478 | | | 2,122 | | | 4.02 | | | 184,168 | | | 1,704 | | | 3.71 | |
| Time deposits | | | 184,727 | | | 2,153 | | | 4.67 | | | 167,245 | | | 1,671 | | | 4.01 | |
Total interest-bearing deposits | | | 480,934 | | | 4,752 | | | 3.96 | | | 467,716 | | | 4,028 | | | 3.45 | |
Borrowed funds and subordinated debentures | | | 87,815 | | | 1,136 | | | 5.19 | | | 49,279 | | | 583 | | | 4.75 | |
| Total interest-bearing liabilities | | | 568,749 | | | 5,888 | | | 4.15 | | | 516,995 | | | 4,611 | | | 3.58 | |
Noninterest-bearing liabilities: | | | | | | | | | | | | | | | | | | | |
| Demand deposits | | | 75,469 | | | | | | | | | | | | | | | | |
| Other liabilities | | | 2,262 | | | | | | | | | | | | | | | | |
| Total noninterest-bearing liabilities | | | 77,731 | | | | | | | | | | | | | | | | |
| | | 47,066 | | | | | | | | | | | | | | | | |
Total Liabilities and Shareholders' Equity | | $ | 693,546 | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| Net interest spread | | | | | | | | | | % | | | | | 6,046 | | | | |
Tax-equivalent basis adjustment | | | | | | | | | | | | | | | (13 | ) | | | |
| Net interest income | | | | | | | | | | | | | | $ | 6,033 | | | | |
| Net interest margin | | | | | | | | | 3.71 | % | | | | | | | | 3.99 | % |
Unity Bancorp, Inc.
Consolidated Average Balance Sheets
with Resultant Interest and Rates
(Tax-equivalent basis, dollars in thousands)
| | | Year to Date | |
| | | June 30, 2007 | | June 30, 2006 | |
| | | Balance | | Interest | | Rate | | Balance | | Interest | | Rate | |
| ASSETS | | | | | | | | | | | | | |
| Interest-earning assets: | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| Federal funds sold and interest-bearing deposits with banks | | $ | 19,835 | | $ | 483 | | | 4.91 | % | $ | 24,778 | | $ | 561 | | | 4.57 | % |
| Securities: | | �� | | | | | | | | | | | | | | | | | |
| Available for sale | | | 65,019 | | | 1,582 | | | 4.87 | | | 63,816 | | | 1,443 | | | 4.52 | |
| Held to maturity | | | 39,881 | | | 1,054 | | | 5.29 | | | 38,784 | | | 943 | | | 4.86 | |
| Total securities | | | 104,900 | | | 2,636 | | | 5.03 | | | 102,600 | | | 2,386 | | | 4.65 | |
| Loans, net of unearned discount: | | | | | | | | | | | | | | | | | | | |
| SBA | | | 82,435 | | | 4,542 | | | 11.02 | | | 84,813 | | | 4,332 | | | 10.22 | |
| Commercial | | | 326,905 | | | 12,366 | | | 7.63 | | | 279,176 | | | 10,260 | | | 7.41 | |
| Residential mortgage | | | 64,086 | | | 1,855 | | | 5.79 | | | 59,622 | | | 1,608 | | | 5.39 | |
| Consumer | | | 54,328 | | | 1,855 | | | 6.89 | | | 46,596 | | | 1,523 | | | 6.59 | |
| Total loans | | | 527,754 | | | 20,618 | | | 7.86 | | | 470,207 | | | 17,723 | | | 7.58 | |
| Total interest-earning assets | | | 652,489 | | | 23,737 | | | 7.32 | | | 597,585 | | | 20,670 | | | 6.95 | |
| Noninterest-earning assets: | | | | | | | | | | | | | | | | | | | |
| Cash and due from banks | | | 12,199 | | | | | | | | | 12,119 | | | | | | | |
| Allowance for loan losses | | | (7,950 | ) | | | | | | | | (7,317 | ) | | | | | | |
| Other assets | | | 29,292 | | | | | | | | | 27,605 | | | | | | | |
| Total noninterest-earning assets | | | 33,541 | | | | | | | | | 32,407 | | | | | | | |
| Total Assets | | $ | 686,030 | | | | | | | | $ | 629,992 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | | | | | | | | | |
| Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | |
| Interest-bearing demand deposits | | $ | 91,114 | | | 1,029 | | | 2.28 | | $ | 122,194 | | | 1,347 | | | 2.22 | |
| Savings deposits | | | 211,180 | | | 4,293 | | | 4.10 | | | 171,185 | | | 2,896 | | | 3.41 | |
| Time deposits | | | 177,657 | | | 4,123 | | | 4.68 | | | 164,902 | | | 3,170 | | | 3.88 | |
| Total interest-bearing deposits | | | 479,951 | | | 9,445 | | | 3.97 | | | 458,281 | | | 7,413 | | | 3.26 | |
| Borrowed funds and subordinated debentures | | | 81,509 | | | 2,126 | | | 5.26 | | | 49,279 | | | 1,145 | | | 4.69 | |
| Total interest-bearing liabilities | | | 561,460 | | | 11,571 | | | 4.16 | | | 507,560 | | | 8,558 | | | 3.40 | |
| Noninterest-bearing liabilities: | | | | | | | | | | | | | | | | | | | |
| Demand deposits | | | 75,346 | | | | | | | | | 78,473 | | | | | | | |
| Other liabilities | | | 2,593 | | | | | | | | | 1,961 | | | | | | | |
| Total noninterest-bearing liabilities | | | 77,939 | | | | | | | | | 80,434 | | | | | | | |
| Shareholders' equity | | | 46,631 | | | | | | | | | 41,998 | | | | | | | |
| Total Liabilities and Shareholders' Equity | | $ | 686,030 | | | | | | | | $ | 629,992 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| Net interest spread | | | | | | 12,166 | | | 3.16 | % | | | | | 12,112 | | | 3.55 | % |
| Tax-equivalent basis adjustment | | | | | | (60 | ) | | | | | | | | (26 | ) | | | |
| Net interest income | | | | | | | | | | | | | | $ | 12,086 | | | | |
| | | | | | | | | | | | | | | | | | | | |
| Net interest margin | | | | | | | | | 3.73 | % | | | | | | | | 4.05 | % |
Unity Bancorp, Inc.
Allowance for Loan Losses and Loan Quality Schedules
(Dollars in thousands)
| | | 06/30/2007 | | 03/31/2007 | | 12/31/2006 | | 09/30/2006 | | 06/30/2006 | |
| ALLOWANCE FOR LOAN LOSSES: | | | | | | | | | | | |
| Balance, beginning | | $ | 7,757 | | $ | 7,624 | | $ | 7,480 | | $ | 7,257 | | $ | 7,120 | |
| Provision charged to expense | | | 350 | | | 200 | | | 600 | | | 400 | | | 250 | |
| | | | 8,107 | | | 7,824 | | | 8,080 | | | 7,657 | | | 7,370 | |
| Less: Charge offs SBA | | | 124 | | | 116 | | | 320 | | | 141 | | | 66 | |
| Commercial | | | 5 | | | - | | | 196 | | | 50 | | | 48 | |
| Residential mortgage | | | - | | | - | | | - | | | - | | | - | |
| Consumer | | | - | | | 2 | | | 10 | | | 3 | | | 14 | |
| Total Charge Offs | | | 129 | | | 118 | | | 526 | | | 194 | | | 128 | |
| Add: Recoveries SBA | | | 12 | | | 41 | | | 20 | | | - | | | - | |
| Commercial | | | 2 | | | 6 | | | 50 | | | 12 | | | 2 | |
| Residential mortgage | | | - | | | - | | | - | | | - | | | - | |
| Consumer | | | 5 | | | 4 | | | - | | | 5 | | | 13 | |
| Total Recoveries | | | 19 | | | 51 | | | 70 | | | 17 | | | 15 | |
| Net Charge Offs | | | 110 | | | 67 | | | 456 | | | 177 | | | 113 | |
| Balance, ending | | $ | 7,997 | | $ | 7,757 | | $ | 7,624 | | $ | 7,480 | | $ | 7,257 | |
| | | | | | | | | | | | | | | | | |
| LOAN QUALITY INFORMATION: | | | | | | | | | | | | | | | | |
| Nonperforming loans | | $ | 4,611 | | $ | 6,515 | | $ | 8,909 | | $ | 6,473 | | $ | 2,552 | |
| Other real estate owned, net | | | 366 | | | 256 | | | 211 | | | - | | | - | |
| Nonperforming assets | | $ | 4,977 | | $ | 6,771 | | $ | 9,120 | | $ | 6,473 | | $ | 2,552 | |
| | | | | | | | | | | | | | | | | |
| Loans 90 days past due and still accruing | | $ | 167 | | $ | 145 | | $ | 78 | | $ | 658 | | $ | - | |
| | | | | | | | | | | | | | | | | |
| Allowance for loan losses to: | | | | | | | | | | | | | | | | |
| Total loans at period end | | | 1.48 | % | | 1.50 | % | | 1.50 | % | | 1.50 | % | | 1.50 | % |
| Nonperforming loans | | | 173.43 | | | 119.06 | | | 85.58 | | | 115.56 | | | 284.37 | |
| Nonperforming assets | | | 160.68 | | | 114.56 | | | 83.60 | | | 115.56 | | | 284.37 | |
| Net charge offs to average loans (QTD) | | | 0.08 | | | 0.05 | | | 0.35 | | | 0.14 | | | 0.10 | |
| Net charge offs to average loans (YTD) | | | 0.07 | | | 0.05 | | | 0.17 | | | 0.10 | | | 0.08 | |
| Nonperforming loans to total loans | | | 0.85 | | | 1.26 | | | 1.75 | | | 1.30 | | | 0.53 | |
| Nonperforming assets to total loans and OREO | | | 0.92 | | | 1.31 | | | 1.80 | | | 1.30 | | | 0.53 | |
Unity Bancorp, Inc.
Quarterly Financial Data
| | | 06/30/07 | | 03/31/07 | | 12/31/06 | | 09/30/06 | | 06/30/06 | |
| SUMMARY OF INCOME (in thousands) : | | | | | | | | | | | |
| Interest income | | $ | 11,975 | | $ | 11,702 | | $ | 11,275 | | $ | 11,258 | | $ | 10,644 | |
| Interest expense | | | 5,888 | | | 5,683 | | | 5,560 | | | 5,314 | | | 4,611 | |
| Net interest income | | | 6,087 | | | 6,019 | | | 5,715 | | | 5,944 | | | 6,033 | |
| Provision for loan losses | | | 350 | | | 200 | | | 600 | | | 400 | | | 250 | |
| Net interest income after provision | | | 5,737 | | | 5,819 | | | 5,115 | | | 5,544 | | | 5,783 | |
| Noninterest income | | | 1,748 | | | 1,679 | | | 1,746 | | | 2,243 | | | 1,647 | |
| Noninterest expense | | | 5,267 | | | 5,417 | | | 5,472 | | | 5,316 | | | 5,001 | |
| Income before income taxes | | | 2,218 | | | 2,081 | | | 1,389 | | | 2,471 | | | 2,429 | |
| Federal and state income tax provision | | | 676 | | | 630 | | | 465 | | | 844 | | | 792 | |
| Net Income | | | 1,542 | | | 1,451 | | | 924 | | | 1,627 | | | 1,637 | |
| Net Income per Common Share: | | | | | | | | | | | | | | | | |
| Before non-recurring items: | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.22 | | $ | 0.21 | | $ | 0.13 | | $ | 0.24 | | $ | 0.24 | |
| Diluted | | | 0.21 | | | 0.20 | | | 0.13 | | | 0.22 | | | 0.23 | |
| COMMON SHARE DATA: | | | | | | | | | | | | | | | | |
| Cash dividends declared | | $ | 0.05 | | $ | 0.05 | | $ | 0.05 | | $ | 0.05 | | $ | 0.05 | |
| Book value at quarter end | | | 6.87 | | | 6.84 | | | 6.65 | | | 6.59 | | | 6.29 | |
| Market value at quarter end | | | 11.45 | | | 11.30 | | | 14.01 | | | 14.55 | | | 14.75 | |
| Average common shares outstanding: (000's) | | | | | | | | | | | | | | | | |
| Basic | | | 6,985 | | | 6,976 | | | 6,941 | | | 6,921 | | | 6,903 | |
| Diluted | | | 7,295 | | | 7,301 | | | 7,263 | | | 7,271 | | | 7,250 | |
| Common shares outstanding at period end (000's) | | | 7,020 | | | 6,995 | | | 6,949 | | | 6,930 | | | 6,908 | |
| OPERATING RATIOS: | | | | | | | | | | | | | | | | |
| Return on average assets | | | 0.89 | % | | 0.87 | % | | 0.55 | % | | 1.00 | % | | 1.03 | % |
| Return on average common equity | | | 13.14 | | | 12.74 | | | 8.05 | | | 15.26 | | | 15.39 | |
| Efficiency ratio | | | 67.22 | | | 70.46 | | | 73.34 | | | 65.48 | | | 65.12 | |
| BALANCE SHEET DATA (in thousands): | | | | | | | | | | | | | | | | |
| Assets | | $ | 732,403 | | $ | 681,302 | | $ | 694,106 | | $ | 671,811 | | $ | 670,870 | |
| Deposits | | | 596,093 | | | 541,399 | | | 566,465 | | | 557,451 | | | 576,376 | |
| Loans | | | 541,385 | | | 515,562 | | | 507,690 | | | 498,842 | | | 484,622 | |
| Shareholders' equity | | | 48,242 | | | 47,825 | | | 46,228 | | | 45,643 | | | 43,446 | |
| Allowance for loan losses | | | 7,997 | | | 7,757 | | | 7,624 | | | 7,480 | | | 7,257 | |
| TAX-EQUIVALENT YIELDS AND RATES: | | | | | | | | | | | | | | | | |
| Interest-earning assets | | | 7.28 | % | | 7.34 | % | | 7.05 | % | | 7.13 | % | | 7.04 | % |
| Interest-bearing liabilities | | | 4.15 | | | 4.16 | | | 4.03 | | | 3.87 | | | 3.58 | |
| Net interest spread | | | 3.13 | | | 3.18 | | | 3.02 | | | 3.26 | | | 3.46 | |
| Net interest margin | | | 3.71 | | | 3.75 | | | 3.60 | | | 3.79 | | | 3.99 | |
| CREDIT QUALITY: | | | | | | | | | | | | | | | | |
| Nonperforming assets (in thousands) | | $ | 4,977 | | $ | 6,771 | | $ | 9,120 | | $ | 6,473 | | $ | 2,552 | |
| Allowance for loan losses to period-end loans | | | 1.48 | % | | 1.50 | % | | 1.50 | % | | 1.50 | % | | 1.50 | % |
| Net charge offs to average loans | | | 0.08 | | | 0.05 | | | 0.35 | | | 0.14 | | | 0.10 | |
| Nonperforming assets to loans and OREO | | | 0.92 | | | 1.31 | | | 1.80 | | | 1.30 | | | 0.53 | |
| CAPITAL AND OTHER: | | | | | | | | | | | | | | | | |
| Total equity to assets | | | 6.59 | % | | 7.02 | % | | 6.66 | % | | 6.79 | % | | 6.48 | % |
| Tier I capital to average assets (leverage) | | | 9.28 | | | 9.24 | | | 9.13 | | | 9.12 | | | 8.22 | |
| Tier I capital to risk-adjusted assets | | | 11.12 | | | 11.43 | | | 10.92 | | | 10.92 | | | 9.85 | |
| Total capital to risk-adjusted assets | | | 13.78 | | | 14.21 | | | 13.72 | | | 12.91 | | | 11.10 | |
| Number of banking offices | | | 15 | | | 15 | | | 15 | | | 14 | | | 14 | |
| Number of ATMs | | | 18 | | | 18 | | | 18 | | | 17 | | | 17 | |
| Number of employees | | | 195 | | | 179 | | | 185 | | | 205 | | | 191 | |
Unity Bancorp, Inc. is a financial service organization headquartered in Clinton, New Jersey, with $732 million in assets and $596 million in deposits. Unity Bank provides financial services to retail, corporate & small business customers through its 15 retail service centers located in Hunterdon, Middlesex, Somerset, Union and Warren counties in New Jersey and Northampton county in Pennsylvania. For additional information about Unity visit our website at www.unitybank.com or call (800) 618-BANK.
This letter 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.
SOURCE Unity Bancorp, Inc.
-0- 07/19/2007
/CONTACT: Alan J. Bedner, EVP, Chief Financial Officer of Unity Bancorp, Inc., +1-908-713-4308 /
/Web site: http://www.unitybank.com /
(UNTY)
