===============================================================================
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) January 6, 2000
UNITY BANCORP, INC.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
DELAWARE 1-12431 22-3282551
- ---------------------------- ------------ -------------------
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
64 OLD HIGHWAY 22, CLINTON, NEW JERSEY 08809
---------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (908) 730-7630
--------------
===============================================================================
Item 5. Other.
The Registrant entered into a Settlement Agreement with the
Landlord/Sub-Landlord under five (5) leases or subleases (the "Leases") entered
into by the Registrant's Unity Bank subsidiary (the "Bank") for potential branch
sites. The Registrant had terminated these Leases in November, 1999, and the
Landlord had disputed the validity of the termination and filed suit seeking
damages and other relief. Under the Settlement Agreement, the Bank is to pay the
Landlord the sum of $102,500. The Landlord will acknowledge the termination of
the Leases, and the parties are jointly releasing each other from any and all
claims they may have. In addition, the Landlord has agreed to indemnify and hold
the Bank harmless from and against any claims brought by third parties during
the term of the Leases. The Registrant will recognize the expense for the
settlement in the fourth quarter of 1999.
In addition, the Registrant's Board of Directors has adopted a Capital
Restoration Plan calling for the Registrant to raise capital and/or reduce
assets in order to bring the Registrant and the Bank into compliance with
minimum capital requirements set by the federal regulators. In light of the fact
that the Registrant's capital ratios do not currently meet minimum regulatory
capital requirements, and in light of the Registrant's capital needs, the Board
of Directors has determined to suspend the Registrant's regular quarterly cash
dividend on its Common Stock. Upon consummation of the Registrant's Capital
Restoration Plan, the Board will re-review the Registrant's dividend policy.
Page 2 of 3
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, Unity
Bancorp, Inc. has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
UNITY BANCORP, INC.
-------------------
(Registrant)
Dated: January 31, 2000 By: /s/ KEVIN KILLIAN
------------------------------------------
KEVIN KILLIAN, Chief Financial Officer
Page 3 of 3