| | | Unity Bancorp, Inc. 64 Old Highway 22 Clinton, NJ 08809 800 618-BANK www.unitybank.com |
NewsNewsNewsNewsNews
For Immediate Release:
October 18, 2007
News Media & Financial Analyst Contact:
Alan J. Bedner, EVP
Chief Financial Officer
(908) 713-4308
Unity Bancorp Reports Third Quarter Earnings
Clinton, NJ - Unity Bancorp, Inc. (NASDAQ: UNTY), parent company of Unity Bank, reported net income of $1.1 million, or $0.15 per diluted share, for the quarter ended September 30, 2007, compared to net income of $1.6 million, or $0.22 per diluted share, for the quarter ended September 30, 2006. Return on average assets and average common equity for the third quarter of 2007 were 0.57% and 8.89%, respectively, as compared to 1.00% and 15.26%, respectively, for the third quarter of 2006.
For the nine months ended September 30, 2007, net income was $4.0 million, or $0.56 per diluted share, compared to $4.9 million, or $0.68 per diluted share for the same period a year ago. Return on average assets and average common equity for the nine months ended September 30, 2007, were 0.77% and 11.57%, respectively, as compared to 1.02% and 15.54%, respectively, for the prior year’s comparable period.
“Earnings for the quarter were impacted by the Company’s previously announced strategic decision to retain a significant portion of the Company’s currently originated SBA 7(a) loans in the portfolio, rather than selling them to the secondary market. While this change in strategy has resulted in reduced short term earnings, we are confident that this strategy will increase long term earnings and enhance shareholder value through increased interest income,” said Unity President and Chief Executive Officer, James A. Hughes. “During the third quarter of 2007, we had significant growth in both our loan and deposit portfolios, in addition to a reduction in non-performing assets.”
Total assets at September 30, 2007, were $746.8 million, an 11.2% increase from September 30, 2006. The increase in assets from the prior year was primarily due to growth in the Company’s loan portfolio. Total loans at September 30, 2007, were $567.6 million, a 13.8% increase from September 30, 2006. The growth in the loan portfolio occurred in SBA, commercial, consumer and residential lending.
At September 30, 2007, the allowance for loan losses was $8.2 million, or 1.44% of total loans, compared to 1.50% of total loans at September 30, 2006. Non-performing assets at September 30, 2007, were $4.3 million, or 0.76% of total loans and other real estate owned, “OREO”, a decline of $2.2 million in non-performing assets, compared to $6.5 million or 1.30% of total loans and OREO at September 30, 2006. Included in non-performing assets at September 30, 2007, are approximately $781 thousand of loans guaranteed by the SBA. Credit quality improved during the quarter due to the resolution of certain problem credits.
Total deposits at September 30, 2007, were $612.2 million, a 9.8% increase from September 30, 2006. This increase was primarily the result of growth in time deposits accounts, partially offset by the decline in interest bearing checking, non-interest bearing checking and savings accounts. Time deposits increased $89.9 million, or 51.8% from September 30, 2006, due to time deposit promotions.
“During the third quarter of 2007, the Company implemented remote deposit capture, permitting customers to deposit checks electronically from their offices. We believe this will increase the number of transactional relationships inside and outside of our local market areas,” said Mr. Hughes. “In addition, we opened our sixteenth branch in the third quarter 2007. This is our second office in the Lehigh Valley, Pennsylvania area.”
Total shareholders’ equity was $47.3 million at September 30, 2007, a 3.5% increase from September 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 repurchased 207 thousand shares of treasury stock at an average cost of $10.43 per share.
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Net interest income was $6.0 million for the third quarter of 2007, consistent with 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 3.44% for the third quarter of 2007, compared to 3.79% for the third quarter of 2006. The decline in net interest margin was the result of higher interest expense from deposits that were used to fund loan growth.
Net interest income was $18.1 million for the nine months ended September 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 3.63% for the nine months ended 2007, compared to 3.96% for the same period a year ago.
The provision for loan losses for the third quarter of 2007 was $450 thousand, compared to $400 thousand for the third quarter of 2006. Net loan charge-offs for the quarter ended September 30, 2007 were $264 thousand, compared to net charge-offs of $177 thousand for the quarter ended September 30, 2006. The provision for loan losses was $1.0 million for the nine months ended September 30, 2007, compared to $950 thousand from the same period a year ago. Net loan charge-offs for the nine months ended September 30, 2007 were $441 thousand, compared to $362 thousand for the same period a year ago.
Total noninterest income for the third quarter of 2007 was $1.5 million, down 34.9%, from the same period a year ago. Gains on sales of SBA loans amounted to $316 thousand for the third quarter of 2007, compared to $927 thousand for the quarter ended September 30, 2006, reflecting the change in strategy discussed above. Service charges on deposits for the third quarter were $338 thousand, a decrease of $48 thousand, compared to the third quarter of 2006, primarily due to the acceleration of the electronic clearing of checks under “Check 21”. Service and loan fees were $428 thousand for the third quarter of 2007, down $63 thousand from a year ago.
Total noninterest income for the nine months ended September 30, 2007, was $4.9 million, down 17.1% from the same period a year ago. Gains on sales of SBA loans amounted to $1.8 million for the nine months ended September 30, 2007, compared to $2.2 million for the same period a year ago, primarily due to the lower volume of loans sold. Service charges on deposits for the nine months ended were $1.0 million, a decrease of $202 thousand, compared to the same period a year ago, primarily due to the acceleration of “Check 21”. Service and loan fees were $1.2 million for the nine months ended September 30, 2007, down $118 thousand from the same period a year ago.
Total noninterest expenses for the third quarter of 2007 were $5.5 million, an increase of 3.5% from the prior year’s comparable quarter. Compensation and benefits were flat as annual cost of living increases and rising health insurance costs were partially offset by a planned reduction in the employee base. Occupancy and furniture and equipment expenses increased 10.8% and 12.6% for the third quarter of 2007, compared to the same period a year ago due to the addition of two branches.
Total noninterest expenses for the nine months ended September 30, 2007, were $16.2 million, an increase of 3.9% from the same period a year ago. Compensation and benefits increased 3.6% due to cost of living increases and rising health insurance costs. Processing and communications increased 7.5% due to increased transactional volume due to a larger customer base. Occupancy and furniture and equipment expenses increased 4.7% and 5.8% for the third quarter of 2007, compared to the same period a year ago due to branch expansion. Loan servicing costs increased $112 thousand due to collection expenses associated with past due loans.
As of September 30, 2007, the Company’s Tier I leverage capital ratio was 8.17%, Tier I risk-based capital ratio was 10.26%, and total risk-based capital ratio was 11.52%. During the third quarter of 2007 the Company redeemed $9.3 million of Trust Preferred Debt at a rate of 3.40% over 3-month LIBOR. The Company issued $15.5 million in Trust Preferred Securities at a rate of 1.63% over 3-month LIBOR late in 2006 to pre-fund the redemption. All regulatory capital ratios exceeded the well-capitalized, federal capital adequacy requirements as of September 30, 2007.
Unity Bancorp, Inc. is a financial service organization headquartered in Clinton, New Jersey, with approximately $747 million in assets and $612 million in deposits. Unity Bank provides financial services to retail, corporate and small business customers through its 16 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) |
| |
| | | | | | | | | Sep. 07 vs. | |
BALANCE SHEET DATA: | | Sep. 30, 2007 | | Jun. 30, 2007 | | Sep. 30, 2006 | | Jun. 07 | | Sep. 06 | |
| | | | | | | | | | | | |
| Assets | | $ | 746,821 | | $ | 732,403 | | $ | 671,811 | | | 2.0 | % | | 11.2 | % |
| Deposits | | | 612,215 | | | 596,093 | | | 557,451 | | | 2.7 | | | 9.8 | |
| Loans | | | 567,597 | | | 541,385 | | | 498,842 | | | 4.8 | | | 13.8 | |
| Securities | | | 112,196 | | | 102,730 | | | 112,817 | | | 9.2 | | | (0.6 | ) |
| Shareholders' equity | | | 47,261 | | | 48,242 | | | 45,643 | | | (2.0 | ) | | 3.5 | |
| Allowance for loan losses | | | 8,183 | | | 7,997 | | | 7,480 | | | 2.3 | | | 9.4 | |
| | | | | | | | | | | | | | | | | |
FINANCIAL DATA - QUARTER TO DATE: | | | | | | | | | | | | | | | | |
| Net income before taxes | | $ | 1,482 | | $ | 2,218 | | $ | 2,471 | | | (33.2 | )% | | (40.0 | )% |
| Federal and state income tax provision | | | 430 | | | 676 | | | 844 | | | (36.4 | ) | | (49.1 | ) |
| Net income | | | 1,052 | | | 1,542 | | | 1,627 | | | (31.8 | ) | | (35.3 | ) |
| Per share-basic | | | 0.15 | | | 0.22 | | | 0.24 | | | (31.8 | ) | | (37.5 | ) |
| Per share-diluted | | | 0.15 | | | 0.21 | | | 0.22 | | | (28.6 | ) | | (31.8 | ) |
| Return on average assets | | | 0.57 | % | | 0.89 | % | | 1.00 | % | | (36.0 | ) | | (43.0 | ) |
| Return on average common equity | | | 8.89 | | | 13.14 | | | 15.26 | | | (32.3 | ) | | (41.7 | ) |
| Efficiency ratio | | | 74.23 | | | 67.22 | | | 65.48 | | | 10.4 | | | 13.4 | |
| | | | | | | | | | | | | | | | | |
FINANCIAL DATA - YEAR TO DATE: | | | | | | | | | | | | | | | | |
| Net income before taxes | | $ | 5,781 | | | - | | $ | 7,399 | | | - | | | (21.9 | )% |
| Federal and state income tax provision | | | 1,736 | | | - | | | 2,478 | | | - | | | (29.9 | ) |
| Net income | | | 4,045 | | | - | | | 4,921 | | | - | | | (17.8 | ) |
| Per share-basic | | | 0.58 | | | - | | | 0.71 | | | - | | | (18.3 | ) |
| Per share-diluted | | | 0.56 | | | - | | | 0.68 | | | - | | | (17.6 | ) |
| Return on average assets | | | 0.77 | % | | - | | | 1.02 | % | | - | | | (24.5 | ) |
| Return on average common equity | | | 11.57 | | | - | | | 15.54 | | | - | | | (25.5 | ) |
| Efficiency ratio | | | 70.57 | | | - | | | 65.29 | | | - | | | 8.1 | |
| | | | | | | | | | | | | | | | | |
SHARE INFORMATION: | | | | | | | | | | | | | | | | |
| Closing price per share | | $ | 11.08 | | $ | 11.45 | | $ | 14.55 | | | (3.2 | )% | | (23.9 | )% |
| Cash dividends declared | | | 0.05 | | | 0.05 | | | 0.05 | | | - | | | - | |
| Book value per share | | | 6.94 | | | 6.87 | | | 6.59 | | | 1.0 | | | 5.3 | |
| Average diluted shares outstanding (QTD) | | | 7,107 | | | 7,295 | | | 7,271 | | | (2.6 | ) | | (2.3 | ) |
| | | | | | | | | | | | | | | | | |
CAPITAL RATIOS: | | | | | | | | | | | | | | | | |
| Total equity to total assets | | | 6.33 | % | | 6.59 | % | | 6.79 | % | | (3.9 | )% | | (6.8 | )% |
| Tier I capital to average assets (leverage) | | | 8.17 | | | 9.21 | | | 9.12 | | | (11.3 | ) | | (10.4 | ) |
| Tier I capital to risk-adjusted assets | | | 10.26 | | | 11.07 | | | 10.92 | | | (7.3 | ) | | (6.0 | ) |
| Total risk-based capital | | | 11.52 | | | 13.72 | | | 12.91 | | | (16.0 | ) | | (10.8 | ) |
| | | | | | | | | | | | | | | | | |
CREDIT QUALITY AND RATIOS: | | | | | | | | | | | | | | | | |
| Nonperforming assets | | $ | 4,319 | | $ | 4,977 | | $ | 6,473 | | | (13.2 | )% | | (33.3 | )% |
| Net charge offs to average loans (QTD) | | | 0.19 | % | | 0.08 | % | | 0.14 | % | | 137.5 | | | 35.7 | |
| Allowance for loan losses to total loans | | | 1.44 | | | 1.48 | | | 1.50 | | | (2.7 | ) | | (4.0 | ) |
| Nonperforming assets to total loans and OREO | | | 0.76 | | | 0.92 | | | 1.30 | | | (17.4 | ) | | (41.5 | ) |
Unity Bancorp, Inc. |
Consolidated Balance Sheets |
| | | | | | | | | | | | | Sep. 07 vs. | |
| | Sep. 30, 2007 | | | | Jun. 30, 2007 | | | | Sep. 30, 2006 | | Jun. 07 | | Sep. 06 | |
ASSETS | | | | | | | | | | | | | | | |
| Cash and due from banks | | $ | 12,826 | | | | | $ | 14,696 | | | | | $ | 16,399 | | | (12.7 | )% | | (21.8 | )% |
| Federal funds sold and interest bearing deposits | | | 32,495 | | | | | | 51,063 | | | | | | 22,383 | | | (36.4 | ) | | 45.2 | |
| Securities: | | | | | | | | | | | | | | | | | | | | | | |
| Available for sale | | | 76,700 | | | | | | 66,199 | | | | | | 68,907 | | | 15.9 | | | 11.3 | |
| Held to maturity | | | 35,496 | | | | | | 36,531 | | | | | | 43,910 | | | (2.8 | ) | | (19.2 | ) |
| Total securities | | | 112,196 | | | | | | 102,730 | | | | | | 112,817 | | | 9.2 | | | (0.6 | ) |
| Loans: | | | | | | | | | | | | | | | | | | | | | | |
| SBA - Held for sale | | | 17,014 | | | | | | 8,914 | | | | | | 18,474 | | | 90.9 | | | (7.9 | ) |
| SBA - Held to Maturity | | | 66,255 | | | | | | 66,634 | | | | | | 61,885 | | | (0.6 | ) | | 7.1 | |
| Commercial | | | 356,964 | | | | | | 342,328 | | | | | | 308,646 | | | 4.3 | | | 15.7 | |
| Residential mortgage | | | 72,177 | | | | | | 69,417 | | | | | | 61,787 | | | 4.0 | | | 16.8 | |
| Consumer | | | 55,187 | | | | | | 54,092 | | | | | | 48,050 | | | 2.0 | | | 14.9 | |
| Total loans | | | 567,597 | | | | | | 541,385 | | | | | | 498,842 | | | 4.8 | | | 13.8 | |
| Less: Allowance for loan losses | | | 8,183 | | | | | | 7,997 | | | | | | 7,480 | | | 2.3 | | | 9.4 | |
| Net loans | | | 559,414 | | | | | | 533,388 | | | | | | 491,362 | | | 4.9 | | | 13.8 | |
| Goodwill and other intangibles | | | 1,592 | | | | | | 1,596 | | | | | | 1,607 | | | (0.3 | ) | | (0.9 | ) |
| Premises and equipment, net | | | 11,729 | | | | | | 11,614 | | | | | | 11,123 | | | 1.0 | | | 5.4 | |
| Accrued interest receivable | | | 4,073 | | | # | | | #3,687 | | | # | | | #3,724 | | | 10.5 | | | 9.4 | |
| Loan servicing asset | | | 2,139 | | | # | | | #2,289 | | | # | | | #2,307 | | | (6.6 | ) | | (7.3 | ) |
| Bank Owned Life Insurance | | | 5,520 | | | | | | 5,467 | | | # | | | #5,325 | | | 1.0 | | | 3.7 | |
| Other assets | | | 4,837 | | | | | | 5,873 | | | | | | 4,764 | | | (17.6 | ) | | 1.5 | |
Total Assets | | $ | 746,821 | | | | | $ | 732,403 | | | | | $ | 671,811 | | | 2.0 | % | | 11.2 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | | | | | | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | | | | | | | | | | | |
| Noninterest-bearing demand deposits | | $ | 73,355 | | | | | $ | 74,731 | | | | | $ | 77,057 | | | (1.8 | )% | | (4.8 | )% |
| Interest-bearing deposits: | | | | | | | | | | | | | | | | | | | | | | |
| Interest bearing checking | | | 81,985 | | | | | | 84,107 | | | | | | 111,142 | | | (2.5 | ) | | (26.2 | ) |
| Savings | | | 193,387 | | | | | | 218,273 | | | | | | 195,626 | | | (11.4 | ) | | (1.1 | ) |
| Time, under $100,000 | | | 181,776 | | | | | | 138,440 | | | | | | 115,082 | | | 31.3 | | | 58.0 | |
| Time, $100,000 and over | | | 81,712 | | | | | | 80,542 | | | | | | 58,544 | | | 1.5 | | | 39.6 | |
| Total deposits | | | 612,215 | | | | | | 596,093 | | | | | | 557,451 | | | 2.7 | | | 9.8 | |
| Borrowed funds and subordinated debentures | | | 85,465 | | | | | | 84,744 | | | | | | 67,089 | | | 0.9 | | | 27.4 | |
| Accrued interest payable | | | 757 | | | | | | 595 | | | | | | 360 | | | 27.2 | | | 110.3 | |
| Accrued expenses and other liabilities | | | 1,123 | | | | | | 2,729 | | | | | | 1,268 | | | (58.8 | ) | | (11.4 | ) |
| Total liabilities | | | 699,560 | | | | | | 684,161 | | | | | | 626,168 | | | 2.3 | | | 11.7 | |
| Commitments and Contingencies | | | - | | | | | | - | | | | | | - | | | | | | | |
| Shareholders' equity: | | | | | | | | | | | | | | | | | | | | | | |
| Common stock, no par value, 12,500 shares authorized | | | 49,282 | | | | | | 49,087 | | | | | | 44,118 | | | 0.4 | | | 11.7 | |
| Retained earnings | | | 2,128 | | | | | | 1,435 | | | | | | 2,851 | | | 48.3 | | | (25.4 | ) |
| Treasury stock at cost | | | (3,218 | ) | | | | | (1,121 | ) | | | | | (242 | ) | | 187.1 | | | 1,229.8 | |
| Accumulated other comprehensive loss, net of tax | | | (931 | ) | | | | | (1,159 | ) | | | | | (1,084 | ) | | (19.7 | ) | | (14.1 | ) |
| Total shareholders' equity | | | 47,261 | | | | | | 48,242 | | | | | | 45,643 | | | (2.0 | ) | | 3.5 | |
Total Liabilities and Shareholders' Equity | | $ | 746,821 | | | | | $ | 732,403 | | | | | $ | 671,811 | | | 2.0 | % | | 11.2 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
COMMON SHARES AT PERIOD END: | | | | | | | | | | | | | | | | | | | | | | |
| Issued | | | 7,122 | | | | | | 7,104 | | | | | | 6,954 | | | | | | | |
| Outstanding | | | 6,813 | | | | | | 7,002 | | | | | | 6,930 | | | | | | | |
| Treasury | | | 309 | | | | | | 102 | | | | | | 24 | | | | | | | |
| N/M= Not meaningful | | | | | | | | | | | | | | | | | | | | | | |
Unity Bancorp, Inc. | | | | | | | | | | | |
Consolidated Statements of Income | | | | | | | | | | | |
(In thousands, except per share data) | | | | | | | | | | | |
| | | | | | | | | Sep. 07 vs. | |
FOR THE THREE MONTHS ENDED: | | Sep. 30, 2007 | | Jun. 30, 2007 | | Sep. 30, 2006 | | Jun. 07 | | Sep. 06 | |
INTEREST INCOME | | | | | | | | | | | |
| Fed funds sold and interest on deposits | | $ | 390 | | $ | 221 | | $ | 270 | | | 76.5 | % | | 44.4 | % |
| Securities: | | | | | | | | | | | | | | | | |
| Available for sale | | | 954 | | | 778 | | | 846 | | | 22.6 | | | 12.8 | |
| Held to maturity | | | 452 | | | 478 | | | 548 | | | (5.4 | ) | | (17.5 | ) |
| Total securities | | | 1,406 | | | 1,256 | | | 1,394 | | | 11.9 | | | 0.9 | |
| Loans: | | | | | | | | | | | | | | | | |
| SBA | | | 2,190 | | | 2,202 | | | 2,175 | | | (0.5 | ) | | 0.7 | |
| Commercial | | | 6,600 | | | 6,378 | | | 5,779 | | | 3.5 | | | 14.2 | |
| Residential mortgage | | | 1,047 | | | 967 | | | 810 | | | 8.3 | | | 29.3 | |
| Consumer | | | 933 | | | 951 | | | 830 | | | (1.9 | ) | | 12.4 | |
| Total loan interest income | | | 10,770 | | | 10,498 | | | 9,594 | | | 2.6 | | | 12.3 | |
| Total interest income | | | 12,566 | | | 11,975 | | | 11,258 | | | 4.9 | | | 11.6 | |
INTEREST EXPENSE | | | | | | | | | | | | | | | | |
| Interest bearing demand deposits | | | 451 | | | 477 | | | 637 | | | (5.5 | ) | | (29.2 | ) |
| Savings deposits | | | 1,995 | | | 2,122 | | | 1,971 | | | (6.0 | ) | | 1.2 | |
| Time deposits | | | 2,994 | | | 2,153 | | | 1,968 | | | 39.1 | | | 52.1 | |
| Borrowed funds and subordinated debentures | | | 1,153 | | | 1,136 | | | 738 | | | 1.5 | | | 56.2 | |
| Total interest expense | | | 6,593 | | | 5,888 | | | 5,314 | | | 12.0 | | | 24.1 | |
| Net interest income | | | 5,973 | | | 6,087 | | | 5,944 | | | (1.9 | ) | | 0.5 | |
| Provision for loan losses | | | 450 | | | 350 | | | 400 | | | 28.6 | | | 12.5 | |
| Net interest income after provision for loan losses | | | 5,523 | | | 5,737 | | | 5,544 | | | (3.7 | ) | | (0.4 | ) |
NONINTEREST INCOME | | | | | | | | | | | | | | | | |
| Service charges on deposit accounts | | | 338 | | | 339 | | | 386 | | | (0.3 | ) | | (12.4 | ) |
| Service and loan fee income | | | 428 | | | 380 | | | 491 | | | 12.6 | | | (12.8 | ) |
| Gain on SBA loan sales | | | 316 | | | 824 | | | 927 | | | (61.7 | ) | | (65.9 | ) |
| Gain on Mortgage loan sales | | | 33 | | | 19 | | | 119 | | | 73.7 | | | (72.3 | ) |
| Gain on sales of other loans | | | - | | | - | | | - | | | - | | | (100.0 | ) |
| Bank owned life insurance | | | 53 | | | 46 | | | 47 | | | 15.2 | | | 12.8 | |
| Net securities gains | | | 22 | | | - | | | 69 | | | 100.0 | | | 100.0 | |
| Other income | | | 270 | | | 140 | | | 204 | | | 92.9 | | | 32.4 | |
| Total noninterest income | | | 1,460 | | | 1,748 | | | 2,243 | | | (16.5 | ) | | (34.9 | ) |
NONINTEREST EXPENSES | | | | | | | | | | | | | | | | |
| Compensation and benefits | | | 2,816 | | | 2,723 | | | 2,809 | | | 3.4 | | | 0.2 | |
| Processing and communications | | | 645 | | | 563 | | | 555 | | | 14.6 | | | 16.2 | |
| Occupancy, net | | | 699 | | | 644 | | | 631 | | | 8.5 | | | 10.8 | |
| Furniture and equipment | | | 419 | | | 394 | | | 372 | | | 6.3 | | | 12.6 | |
| Professional fees | | | 116 | | | 162 | | | 222 | | | (28.4 | ) | | (47.7 | ) |
| Loan servicing costs | | | 184 | | | 169 | | | 175 | | | 8.9 | | | 5.1 | |
| Advertising | | | 113 | | | 105 | | | 101 | | | 7.6 | | | 11.9 | |
| Other | | | 509 | | | 507 | | | 451 | | | 0.4 | | | 12.9 | |
| Total noninterest expenses | | | 5,501 | | | 5,267 | | | 5,316 | | | 4.4 | | | 3.5 | |
| Income before taxes | | | 1,482 | | | 2,218 | | | 2,471 | | | (33.2 | ) | | (40.0 | ) |
| Federal and state income tax provision | | | 430 | | | 676 | | | 844 | | | (36.4 | ) | | (49.1 | ) |
Net Income | | $ | 1,052 | | $ | 1,542 | | $ | 1,627 | | | (31.8 | )% | | (35.3 | )% |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Net Income Per Common Share-Basic | | $ | 0.15 | | $ | 0.22 | | $ | 0.24 | | | (31.8 | )% | | (37.5 | )% |
Net Income Per Common Share-Diluted | | $ | 0.15 | | $ | 0.21 | | $ | 0.22 | | | (28.6 | )% | | (31.8 | )% |
| | | | | | | | | | | | | | | | | |
AVERAGE COMMON SHARES OUTSTANDING: | | | | | | | | | | | | | | | | |
| Basic | | | 6,871 | | | 6,985 | | | 6,921 | | | | | | | |
| Diluted | | | 7,107 | | | 7,295 | | | 7,271 | | | | | | | |
Unity Bancorp, Inc. | | | | | | | |
Consolidated Statements of Income | | | | | | | |
(Dollars in thousands, except per share data) | | | | | | | |
| | | | | | | Sep. 07 vs. | |
YEAR TO DATE | | Sep. 30, 2007 | | Sep. 30, 2006 | | Sep. 06 | |
INTEREST INCOME | | | | | | | |
| Fed funds sold and interest on deposits | | $ | 873 | | $ | 831 | | | 5.1 | % |
| Securities: | | | | | | | | | | |
| Available for sale | | | 2,512 | | | 2,263 | | | 11.0 | |
| Held to maturity | | | 1,470 | | | 1,491 | | | (1.4 | ) |
| Total securities | | | 3,982 | | | 3,754 | | | 6.1 | |
| Loans: | | | | | | | | | | |
| SBA | | | 6,732 | | | 6,507 | | | 3.5 | |
| Commercial | | | 18,966 | | | 16,039 | | | 18.2 | |
| Residential mortgage | | | 2,902 | | | 2,418 | | | 20.0 | |
| Consumer | | | 2,788 | | | 2,353 | | | 18.5 | |
| Total loan interest income | | | 31,388 | | | 27,317 | | | 14.9 | |
| Total interest income | | | 36,243 | | | 31,902 | | | 13.6 | |
INTEREST EXPENSE | | | | | | | | | | |
| Interest bearing demand deposits | | | 1,480 | | | 1,984 | | | (25.4 | ) |
| Savings deposits | | | 6,288 | | | 4,867 | | | 29.2 | |
| Time deposits | | | 7,117 | | | 5,138 | | | 38.5 | |
| Borrowed funds and subordinated debentures | | | 3,279 | | | 1,883 | | | 74.1 | |
| Total interest expense | | | 18,164 | | | 13,872 | | | 30.9 | |
| Net interest income | | | 18,079 | | | 18,030 | | | 0.3 | |
| Provision for loan losses | | | 1,000 | | | 950 | | | 5.3 | |
| Net interest income after provision for loan losses | | | 17,079 | | | 17,080 | | | 0.0 | |
NONINTEREST INCOME | | | | | | | | | | |
| Service charges on deposit accounts | | | 1,026 | | | 1,228 | | | (16.4 | ) |
| Service and loan fee income | | | 1,174 | | | 1,292 | | | (9.1 | ) |
| Gain on SBA loan sales | | | 1,819 | | | 2,185 | | | (16.8 | ) |
| Gain on Mortgage loan sales | | | 61 | | | 291 | | | (79.0 | ) |
| Gains on sales of other loans | | | 0 | | | 82 | | | (100.0 | ) |
| Bank owned life insurance | | | 148 | | | 140 | | | 5.7 | |
| Net securities gains | | | 32 | | | 69 | | | 100.0 | |
| Other income | | | 627 | | | 605 | | | 3.6 | |
| Total noninterest income | | | 4,887 | | | 5,892 | | | (17.1 | ) |
NONINTEREST EXPENSES | | | | | | | | | | |
| Compensation and benefits | | | 8,494 | | | 8,198 | | | 3.6 | |
| Processing and communications | | | 1,758 | | | 1,635 | | | 7.5 | |
| Occupancy, net | | | 2,016 | | | 1,925 | | | 4.7 | |
| Furniture and equipment | | | 1,213 | | | 1,146 | | | 5.8 | |
| Professional fees | | | 414 | | | 505 | | | (18.0 | ) |
| Loan servicing costs | | | 443 | | | 331 | | | 33.8 | |
| Advertising | | | 312 | | | 419 | | | (25.5 | ) |
| Other | | | 1,535 | | | 1,414 | | | 8.6 | |
| Total noninterest expenses | | | 16,185 | | | 15,573 | | | 3.9 | |
| Income before taxes | | | 5,781 | | | 7,399 | | | (21.9 | ) |
| Federal and state income tax provision | | | 1,736 | | | 2,478 | | | (29.9 | ) |
Net Income | | $ | 4,045 | | $ | 4,921 | | | (17.8 | )% |
| | | | | | | | | | | |
| | | | | | | | | | | |
Net Income Per Common Share-Basic | | $ | 0.58 | | $ | 0.71 | | | (18.3 | )% |
Net Income Per Common Share-Diluted | | $ | 0.56 | | $ | 0.68 | | | (17.6 | )% |
| | | | | | | | |
| Average common shares outstanding: | | | | | | | |
| Basic | | | 6,944 | | | 6,902 | | | | |
| Diluted | | | 7,234 | | | 7,254 | | | | |
Unity Bancorp, Inc. |
Consolidated Average Balance Sheets |
with Resultant Interest and Rates |
(Tax-equivalent basis, dollars in thousands) |
| | | Three Months Ended | |
| | September 30, 2007 | | June 30, 2007 | |
| | Balance | | Interest | | Rate | | Balance | | Interest | | Rate | |
ASSETS | | | | | | | | | | | | | |
| Interest-earning assets: | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| Federal funds sold and interest-bearing deposits with banks | | $ | 31,449 | | $ | 390 | | | 4.92 | % | $ | 19,029 | | $ | 221 | | | 4.66 | % |
| Securities: | | | | | | | | | | | | | | | | | | | |
| Available for sale | | | 75,031 | | | 976 | | | 5.20 | | | 65,132 | | | 790 | | | 4.85 | |
| Held to maturity | | | 36,047 | | | 471 | | | 5.23 | | | 37,501 | | | 496 | | | 5.29 | |
| Total securities | | | 111,078 | | | 1,447 | | | 5.21 | | | 102,633 | | | 1,286 | | | 5.01 | |
| Loans, net of unearned discount: | | | | | | | | | | | | | | | | | | | |
| SBA | | | 81,693 | | | 2,190 | | | 10.72 | | | 83,080 | | | 2,202 | | | 10.60 | |
| Commercial | | | 350,555 | | | 6,600 | | | 7.47 | | | 335,081 | | | 6,378 | | | 7.63 | |
| Residential mortgage | | | 71,401 | | | 1,047 | | | 5.87 | | | 65,256 | | | 967 | | | 5.93 | |
| Consumer | | | 54,064 | | | 933 | | | 6.85 | | | 55,227 | | | 951 | | | 6.91 | |
| Total loans | | | 557,713 | | | 10,770 | | | 7.68 | | | 538,644 | | | 10,498 | | | 7.81 | |
| Total interest-earning assets | | | 700,240 | | | 12,607 | | | 7.16 | | | 660,306 | | | 12,005 | | | 7.28 | |
| Noninterest-earning assets: | | | | | | | | | | | | | | | | | | | |
| Cash and due from banks | | | 14,911 | | | | | | | | | 12,170 | | | | | | | |
| Allowance for loan losses | | | (8,330 | ) | | | | | | | | (8,022 | ) | | | | | | |
| Other assets | | | 29,503 | | | | | | | | | 29,092 | | | | | | | |
| Total noninterest-earning assets | | | 36,084 | | | | | | | | | 33,240 | | | | | | | |
| Total Assets | | $ | 736,324 | | | | | | | | $ | 693,546 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | | | | | | | | | | | | | | |
| Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | |
| Interest-bearing demand deposits | | $ | 79,188 | | | 451 | | | 2.26 | | $ | 84,729 | | | 477 | | | 2.26 | |
| Savings deposits | | | 199,483 | | | 1,995 | | | 3.97 | | | 211,478 | | | 2,122 | | | 4.02 | |
| Time deposits | | | 243,358 | | | 2,994 | | | 4.88 | | | 184,727 | | | 2,153 | | | 4.67 | |
| Total interest-bearing deposits | | | 522,029 | | | 5,440 | | | 4.13 | | | 480,934 | | | 4,752 | | | 3.96 | |
| Borrowed funds and subordinated debentures | | | 89,892 | | | 1,153 | | | 5.09 | | | 87,815 | | | 1,136 | | | 5.19 | |
| Total interest-bearing liabilities | | | 611,921 | | | 6,593 | | | 4.27 | | | 568,749 | | | 5,888 | | | 4.15 | |
| Noninterest-bearing liabilities: | | | | | | | | | | | | | | | | | | | |
| Demand deposits | | | 75,218 | | | | | | | | | 75,469 | | | | | | | |
| Other liabilities | | | 2,216 | | | | | | | | | 2,262 | | | | | | | |
| Total noninterest-bearing liabilities | | | 77,434 | | | | | | | | | 77,731 | | | | | | | |
| Shareholders' equity | | | 46,969 | | | | | | | | | 47,066 | | | | | | | |
| Total Liabilities and Shareholders' Equity | | $ | 736,324 | | | | | | | | $ | 693,546 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| Net interest spread | | | | | | 6,014 | | | 2.89 | % | | | | | 6,117 | | | 3.13 | % |
| Tax-equivalent basis adjustment | | | | | | (41 | ) | | | | | | | | (30 | ) | | | |
| Net interest income | | | | | $ | 5,973 | | | | | | | | $ | 6,087 | | | | |
| | | | | | | | | | | | | | | | | | | | |
| Net interest margin | | | | | | | | | 3.44 | % | | | | | | | | 3.71 | % |
Unity Bancorp, Inc. |
Consolidated Average Balance Sheets |
with Resultant Interest and Rates |
(Tax-equivalent basis, dollars in thousands) |
| | | Three Months Ended | |
| | | September 30, 2007 | | September 30, 2006 | |
| | | Balance | | Interest | | Rate | | Balance | | Interest | | Rate | |
ASSETS | | | | | | | | | | | | | |
| Interest-earning assets: | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| Federal funds sold and interest-bearing deposits with banks | | $ | 31,449 | | $ | 390 | | | 4.92 | % | $ | 20,698 | | $ | 270 | | | 5.18 | % |
| Securities: | | | | | | | | | | | | | | | | | | | |
| Available for sale | | | 75,031 | | | 976 | | | 5.20 | | | 70,911 | | | 859 | | | 4.85 | |
| Held to maturity | | | 36,047 | | | 471 | | | 5.23 | | | 43,514 | | | 558 | | | 5.13 | |
| Total securities | | | 111,078 | | | 1,447 | | | 5.21 | | | 114,425 | | | 1,417 | | | 4.95 | |
| Loans, net of unearned discount: | | | | | | | | | | | | | | | | | | | |
| SBA | | | 81,693 | | | 2,190 | | | 10.72 | | | 83,021 | | | 2,175 | | | 10.48 | |
| Commercial | | | 350,555 | | | 6,600 | | | 7.47 | | | 305,862 | | | 5,779 | | | 7.50 | |
| Residential mortgage | | | 71,401 | | | 1,047 | | | 5.87 | | | 57,569 | | | 810 | | | 5.63 | |
| Consumer | | | 54,064 | | | 933 | | | 6.85 | | | 47,792 | | | 830 | | | 6.89 | |
| Total loans | | | 557,713 | | | 10,770 | | | 7.68 | | | 494,244 | | | 9,594 | | | 7.72 | |
| Total interest-earning assets | | | 700,240 | | | 12,607 | | | 7.16 | | | 629,367 | | | 11,281 | | | 7.13 | |
| Noninterest-earning assets: | | | | | | | | | | | | | | | | | | | |
| Cash and due from banks | | | 14,911 | | | | | | | | | 13,012 | | | | | | | |
| Allowance for loan losses | | | (8,330 | ) | | | | | | | | (7,569 | ) | | | | | | |
| Other assets | | | 29,503 | | | | | | | | | 33,163 | | | | | | | |
| Total noninterest-earning assets | | | 36,084 | | | | | | | | | 38,606 | | | | | | | |
| Total Assets | | $ | 736,324 | | | | | | | | $ | 667,973 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | | | | | | | | | | | | | | |
| Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | |
| Interest-bearing demand deposits | | $ | 79,188 | | | 451 | | | 2.26 | | $ | 116,043 | | | 637 | | | 2.18 | |
| Savings deposits | | | 199,483 | | | 1,995 | | | 3.97 | | | 192,835 | | | 1,971 | | | 4.06 | |
| Time deposits | | | 243,358 | | | 2,994 | | | 4.88 | | | 178,442 | | | 1,968 | | | 4.38 | |
| Total interest-bearing deposits | | | 522,029 | | | 5,440 | | | 4.13 | | | 487,320 | | | 4,576 | | | 3.73 | |
| Borrowed funds and subordinated debentures | | | 89,892 | | | 1,153 | | | 5.09 | | | 57,172 | | | 738 | | | 5.12 | |
| Total interest-bearing liabilities | | | 611,921 | | | 6,593 | | | 4.27 | | | 544,492 | | | 5,314 | | | 3.87 | |
| Noninterest-bearing liabilities: | | | | | | | | | | | | | | | | | | | |
| Demand deposits | | | 75,218 | | | | | | | | | 77,897 | | | | | | | |
| Other liabilities | | | 2,216 | | | | | | | | | 2,702 | | | | | | | |
| Total noninterest-bearing liabilities | | | 77,434 | | | | | | | | | 80,599 | | | | | | | |
| Shareholders' equity | | | 46,969 | | | | | | | | | 42,882 | | | | | | | |
| Total Liabilities and Shareholders' Equity | | $ | 736,324 | | | | | | | | $ | 667,973 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| Net interest spread | | | | | | 6,014 | | | 2.89 | % | | | | | 5,967 | | | 3.26 | % |
| Tax-equivalent basis adjustment | | | | | | (41 | ) | | | | | | | | (23 | ) | | | |
| Net interest income | | | | | $ | 5,973 | | | | | | | | $ | 5,944 | | | | |
| Net interest margin | | | | | | | | | 3.44 | % | | | | | | | | 3.79 | % |
Unity Bancorp, Inc. |
Consolidated Average Balance Sheets |
with Resultant Interest and Rates |
(Tax-equivalent basis, dollars in thousands) |
| | | Year to Date | |
| | September 30, 2007 | | September 30, 2006 | |
| | Balance | | Interest | | Rate | | Balance | | Interest | | Rate | |
ASSETS | | | | | | | | | | | | | |
| Interest-earning assets: | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| Federal funds sold and interest-bearing deposits with banks | | $ | 23,749 | | $ | 873 | | | 4.91 | % | $ | 23,403 | | $ | 831 | | | 4.75 | % |
| Securities: | | | | | | | | | | | | | | | | | | | |
| Available for sale | | | 68,393 | | | 2,558 | | | 4.99 | | | 66,207 | | | 2,302 | | | 4.64 | |
| Held to maturity | | | 38,589 | | | 1,525 | | | 5.27 | | | 40,378 | | | 1,501 | | | 4.96 | |
| Total securities | | | 106,982 | | | 4,083 | | | 5.09 | | | 106,585 | | | 3,803 | | | 4.76 | |
| Loans, net of unearned discount: | | | | | | | | | | | | | | | | | | | |
| SBA | | | 82,185 | | | 6,732 | | | 10.92 | | | 84,209 | | | 6,507 | | | 10.30 | |
| Commercial | | | 334,875 | | | 18,966 | | | 7.57 | | | 288,169 | | | 16,039 | | | 7.44 | |
| Residential mortgage | | | 66,551 | | | 2,902 | | | 5.81 | | | 58,930 | | | 2,418 | | | 5.47 | |
| Consumer | | | 54,239 | | | 2,788 | | | 6.87 | | | 46,999 | | | 2,353 | | | 6.69 | |
| Total loans | | | 537,850 | | | 31,388 | | | 7.79 | | | 478,307 | | | 27,317 | | | 7.63 | |
| Total interest-earning assets | | | 668,581 | | | 36,344 | | | 7.26 | | | 608,295 | | | 31,951 | | | 7.02 | |
| Noninterest-earning assets: | | | | | | | | | | | | | | | | | | | |
| Cash and due from banks | | | 13,113 | | | | | | | | | 12,420 | | | | | | | |
| Allowance for loan losses | | | (8,078 | ) | | | | | | | | (7,402 | ) | | | | | | |
| Other assets | | | 29,363 | | | | | | | | | 29,478 | | | | | | | |
| Total noninterest-earning assets | | | 34,398 | | | | | | | | | 34,496 | | | | | | | |
| Total Assets | | $ | 702,979 | | | | | | | | $ | 642,791 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | | | | | | | | | | | | | | |
| Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | |
| Interest-bearing demand deposits | | $ | 87,095 | | | 1,480 | | | 2.27 | | $ | 120,121 | | | 1,984 | | | 2.21 | |
| Savings deposits | | | 207,238 | | | 6,288 | | | 4.06 | | | 178,481 | | | 4,867 | | | 3.65 | |
| Time deposits | | | 199,798 | | | 7,117 | | | 4.76 | | | 169,465 | | | 5,138 | | | 4.05 | |
| Total interest-bearing deposits | | | 494,131 | | | 14,885 | | | 4.03 | | | 468,067 | | | 11,989 | | | 3.42 | |
| Borrowed funds and subordinated debentures | | | 84,334 | | | 3,279 | | | 5.20 | | | 51,939 | | | 1,883 | | | 4.85 | |
| Total interest-bearing liabilities | | | 578,465 | | | 18,164 | | | 4.20 | | | 520,006 | | | 13,872 | | | 3.57 | |
| Noninterest-bearing liabilities: | | | | | | | | | | | | | | | | | | | |
| Demand deposits | | | 75,303 | | | | | | | | | 78,279 | | | | | | | |
| Other liabilities | | | 2,466 | | | | | | | | | 2,210 | | | | | | | |
| Total noninterest-bearing liabilities | | | 77,769 | | | | | | | | | 80,489 | | | | | | | |
| Shareholders' equity | | | 46,745 | | | | | | | | | 42,296 | | | | | | | |
| Total Liabilities and Shareholders' Equity | | $ | 702,979 | | | | | | | | $ | 642,791 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| Net interest spread | | | | | | 18,180 | | | 3.06 | % | | | | | 18,079 | | | 3.45 | % |
| Tax-equivalent basis adjustment | | | | | | (101 | ) | | | | | | | | (49 | ) | | | |
| Net interest income | | | | | $ | 18,079 | | | | | | | | $ | 18,030 | | | | |
| Net interest margin | | | | | | | | | 3.63 | % | | | | | | | | 3.96 | % |
Unity Bancorp, Inc. |
Allowance for Loan Losses and Loan Quality Schedules |
(Dollars in thousands) |
| |
| | | 9/30/2007 | | 6/30/2007 | | 3/31/2007 | | 12/31/2006 | | 9/30/2006 | |
ALLOWANCE FOR LOAN LOSSES: | | | | | | | | | | | |
| Balance, beginning | | $ | 7,997 | | $ | 7,757 | | $ | 7,624 | | $ | 7,480 | | $ | 7,257 | |
| Provision charged to expense | | | 450 | | | 350 | | | 200 | | | 600 | | | 400 | |
| | | | 8,447 | | | 8,107 | | | 7,824 | | | 8,080 | | | 7,657 | |
| Less: Charge offs | | | | | | | | | | | | | | | | |
| SBA | | | 270 | | | 124 | | | 116 | | | 320 | | | 141 | |
| Commercial | | | 24 | | | 5 | | | - | | | 196 | | | 50 | |
| Residential mortgage | | | - | | | - | | | - | | | - | | | - | |
| Consumer | | | 28 | | | - | | | 2 | | | 10 | | | 3 | |
| Total Charge Offs | | | 322 | | | 129 | | | 118 | | | 526 | | | 194 | |
| Add: Recoveries | | | | | | | | | | | | | | | | |
| SBA | | | 41 | | | 12 | | | 41 | | | 20 | | | - | |
| Commercial | | | 7 | | | 2 | | | 6 | | | 50 | | | 12 | |
| Residential mortgage | | | - | | | - | | | - | | | - | | | - | |
| Consumer | | | 10 | | | 5 | | | 4 | | | - | | | 5 | |
| Total Recoveries | | | 58 | | | 19 | | | 51 | | | 70 | | | 17 | |
| Net Charge Offs | | | 264 | | | 110 | | | 67 | | | 456 | | | 177 | |
| Balance, ending | | $ | 8,183 | | $ | 7,997 | | $ | 7,757 | | $ | 7,624 | | $ | 7,480 | |
| - | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
LOAN QUALITY INFORMATION: | | | | | | | | | | | | | | | | |
| Nonperforming loans | | $ | 4,185 | | $ | 4,611 | | $ | 6,515 | | $ | 8,909 | | $ | 6,473 | |
| Other real estate owned, net | | | 134 | | | 366 | | | 256 | | | 211 | | | - | |
| Nonperforming assets | | $ | 4,319 | | $ | 4,977 | | $ | 6,771 | | $ | 9,120 | | $ | 6,473 | |
| | | | | | | | | | | | | | | | | |
| Loans 90 days past due and still accruing | | $ | 340 | | $ | 167 | | $ | 145 | | $ | 78 | | $ | 658 | |
| | | | | | | | | | | | | | | | | |
| Allowance for loan losses to: | | | | | | | | | | | | | | | | |
| Total loans at period end | | | 1.44 | % | | 1.48 | % | | 1.50 | % | | 1.50 | % | | 1.50 | |
| Nonperforming loans | | | 195.53 | | | 173.43 | | | 119.06 | | | 85.58 | | | 115.56 | |
| Nonperforming assets | | | 189.47 | | | 160.68 | | | 114.56 | | | 83.60 | | | 115.56 | |
| Net charge offs to average loans (QTD) | | | 0.19 | | | 0.08 | | | 0.05 | | | 0.35 | | | 0.14 | |
| Net charge offs to average loans (YTD) | | | 0.11 | | | 0.07 | | | 0.05 | | | 0.17 | | | 0.10 | |
| Nonperforming loans to total loans | | | 0.74 | | | 0.85 | | | 1.26 | | | 1.75 | | | 1.30 | |
| Nonperforming assets to total loans and OREO | | | 0.76 | | | 0.92 | | | 1.31 | | | 1.80 | | | 1.30 | |
Unity Bancorp, Inc. | | |
Quarterly Financial Data | | |
| | | 09/30/07 | | 06/30/07 | | 03/31/07 | | 12/31/06 | | 09/30/06 | |
SUMMARY OF INCOME (in thousands) : | | | | | | | | | | | |
| Interest income | | $ | 12,566 | | $ | 11,975 | | $ | 11,702 | | $ | 11,275 | | $ | 11,258 | |
| Interest expense | | | 6,593 | | | 5,888 | | | 5,683 | | | 5,560 | | | 5,314 | |
| Net interest income | | | 5,973 | | | 6,087 | | | 6,019 | | | 5,715 | | | 5,944 | |
| Provision for loan losses | | | 450 | | | 350 | | | 200 | | | 600 | | | 400 | |
| Net interest income after provision | | | 5,523 | | | 5,737 | | | 5,819 | | | 5,115 | | | 5,544 | |
| Noninterest income | | | 1,460 | | | 1,748 | | | 1,679 | | | 1,746 | | | 2,243 | |
| Noninterest expense | | | 5,501 | | | 5,267 | | | 5,417 | | | 5,472 | | | 5,316 | |
| Income before income taxes | | | 1,482 | | | 2,218 | | | 2,081 | | | 1,389 | | | 2,471 | |
| Federal and state income tax provision | | | 430 | | | 676 | | | 630 | | | 465 | | | 844 | |
| Net Income | | | 1,052 | | | 1,542 | | | 1,451 | | | 924 | | | 1,627 | |
| Net Income per Common Share: | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.15 | | $ | 0.22 | | $ | 0.21 | | $ | 0.13 | | $ | 0.24 | |
| Diluted | | | 0.15 | | | 0.21 | | | 0.20 | | | 0.13 | | | 0.22 | |
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COMMON SHARE DATA: | | | | | | | | | | | | | | | | |
| Cash dividends declared | | $ | 0.05 | | $ | 0.05 | | $ | 0.05 | | $ | 0.05 | | $ | 0.05 | |
| Book value at quarter end | | | 6.94 | | | 6.87 | | | 6.84 | | | 6.65 | | | 6.59 | |
| Market value at quarter end | | | 11.08 | | | 11.45 | | | 11.30 | | | 14.01 | | | 14.55 | |
| Average common shares outstanding: (000's) | | | | | | | | | | | | | | | | |
| Basic | | | 6,871 | | | 6,985 | | | 6,976 | | | 6,941 | | | 6,921 | |
| Diluted | | | 7,107 | | | 7,295 | | | 7,301 | | | 7,263 | | | 7,271 | |
| Common shares outstanding at period end (000's) | | | 6,813 | | | 7,002 | | | 6,995 | | | 6,949 | | | 6,930 | |
| | | | | | | | | | | | | | | | | |
OPERATING RATIOS: | | | | | | | | | | | | | | | | |
| Return on average assets | | | 0.57 | % | | 0.89 | % | | 0.87 | % | | 0.55 | % | | 1.00 | |
| Return on average common equity | | | 8.89 | | | 13.14 | | | 12.74 | | | 8.05 | | | 15.26 | |
| Efficiency ratio | | | 74.23 | | | 67.22 | | | 70.46 | | | 73.34 | | | 65.48 | |
| | | | | | | | | | | | | | | | | |
BALANCE SHEET DATA (in thousands): | | | | | | | | | | | | | | | | |
| Assets | | $ | 746,821 | | $ | 732,403 | | $ | 681,302 | | $ | 694,106 | | $ | 671,811 | |
| Deposits | | | 612,215 | | | 596,093 | | | 541,399 | | | 566,465 | | | 557,451 | |
| Loans | | | 567,597 | | | 541,385 | | | 515,562 | | | 507,690 | | | 498,842 | |
| Shareholders' equity | | | 47,261 | | | 48,242 | | | 47,825 | | | 46,228 | | | 45,643 | |
| Allowance for loan losses | | | 8,183 | | | 7,997 | | | 7,757 | | | 7,624 | | | 7,480 | |
| | | | | | | | | | | | | | | | | |
TAX-EQUIVALENT YIELDS AND RATES: | | | | | | | | | | | | | | | | |
| Interest-earning assets | | | 7.16 | % | | 7.28 | % | | 7.34 | % | | 7.05 | % | | 7.13 | |
| Interest-bearing liabilities | | | 4.27 | | | 4.15 | | | 4.16 | | | 4.03 | | | 3.87 | |
| Net interest spread | | | 2.89 | | | 3.13 | | | 3.18 | | | 3.02 | | | 3.26 | |
| Net interest margin | | | 3.44 | | | 3.71 | | | 3.75 | | | 3.60 | | | 3.79 | |
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CREDIT QUALITY: | | | | | | | | | | | | | | | | |
| Nonperforming assets (in thousands) | | $ | 4,319 | | $ | 4,977 | | $ | 6,771 | | $ | 9,120 | | $ | 6,473 | |
| Allowance for loan losses to period-end loans | | | 1.44 | % | | 1.48 | % | | 1.50 | % | | 1.50 | % | | 1.50 | |
| Net charge offs to average loans | | | 0.19 | | | 0.08 | | | 0.05 | | | 0.35 | | | 0.14 | |
| Nonperforming assets to loans and OREO | | | 0.76 | | | 0.92 | | | 1.31 | | | 1.80 | | | 1.30 | |
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CAPITAL AND OTHER: | | | | | | | | | | | | | | | | |
| Total equity to assets | | | 6.33 | % | | 6.59 | % | | 7.02 | % | | 6.66 | % | | 6.79 | |
| Tier I capital to average assets (leverage) | | | 8.17 | | | 9.21 | | | 9.24 | | | 9.13 | | | 9.12 | |
| Tier I capital to risk-adjusted assets | | | 10.26 | | | 11.07 | | | 11.43 | | | 10.92 | | | 10.92 | |
| Total capital to risk-adjusted assets | | | 11.52 | | | 13.72 | | | 14.21 | | | 13.72 | | | 12.91 | |
| Number of banking offices | | | 16 | | | 15 | | | 15 | | | 15 | | | 14 | |
| Number of ATMs | | | 19 | | | 18 | | | 18 | | | 18 | | | 17 | |
| Number of employees | | | 197 | | | 195 | | | 179 | | | 185 | | | 205 | |
SOURCE Unity Bancorp, Inc.
-0- 10/18/2007
/CONTACT: Alan J. Bedner, EVP, Chief Financial Officer, Unity Bancorp, Inc., +1-908-713-4308 /
/Web site: http://www.unitybank.com /
(UNTY)
