UNITY BANCORP, INC. ANNOUNCES SECOND QUARTER RESULTS
CLINTON, NEW JERSEY, JULY 23, 1999 . . . UNITY BANCORP, INC. (NASDAQ NM: UNTY)
announced record growth reaching $359 million in total assets at June 30, 1999.
During the first half of 1999, the Company opened 10 new retail financial
service centers, which brings its total franchise to 17. This expansion in the
vibrant Central Jersey markets of Union and Middlesex counties provides the
opportunity to diversify revenues and deposits through expansion of consumer
products through these outlets.
At June 30, 1999, the Company's total assets increased 41% or $104 million from
the December 31, 1998, total of $255 million; the Company's loan portfolio
increased by 36% or $59 million to $224 million; and total deposits increased
44% to $327 million representing an increase of $100 million over December 31,
1998.
In the first half of 1999, Unity Bank experienced several significant one-time
expenses including start-up and promotional expenses associated with expanding
the branch network, the bank name change, and costs associated with the
conversion of the mainframe operating system to the Autobank system which are
included in the second quarter results. For the quarter ending June 30, 1999,
the Company increased its loan loss provision to $600 thousand compared to $73
thousand for the same period in 1998. This provision reflects Management's
ongoing analysis of the risks inherent in the portfolio, loan growth, and the
maturity of the current economic conditions. The second quarter results indicate
a softening of market conditions for commercial and Small Business
Administration (SBA) lending. For the second quarter of 1999 the Company
reported a net loss of $375 thousand or $.10 per basic share.
In late 1998, Unity began a change of strategic direction to a consumer focus
taking advantage of favorable market and competitive opportunities. To
complement this strategy the Company instituted a reorganization program
designed to reduce non-interest expense. As a result, the Company will save
approximately $1.5 million in annual compensation and related expenses. This
saving represents a 14% reduction in compensation expense.
Finally, the Board of Directors announced that Mr. John F. Tremblay, President
of the Company and Unity Bank since November 1997, tendered his resignation to
pursue other business opportunities. Mr. Tremblay will remain with the
organization during a transition period and serve as a consultant to the Bank
and the Company on specific programs thereafter. Mr. Robert Van Volkenburgh,
Chairman of the Board and Chief Executive Officer of the Company since its
inception, will assume the duties of the Office of President of the Bank.
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(Dollars in thousands, except for per share data)
For the Six Months Ended For the Three Months Ended
------------------------- --------------------------
June 30, 1999 %Change June 30, 1999 % Change
-------------------- --------------------- ------------- ----------------------
Income Statement Data:
Net Interest Income ........... $ 5,007 $ 4,855 3.1% $ 2,410 $ 2,510 -4.0%
Provision for Loan Loss ....... 661 277 138.6% 600 73 721.9%
Noninterest Income ............ 4,530 2,027 123.5% 2,840 1,206 135.5%
Noninterest Expense ........... 8,766 5,031 74.2% 5,334 2,619 103.7%
Provision for Income Taxes .... (16) 615 -102.6% (309) 405 -176.3%
----------- ----------- ---------- -----------
Net Income .................... $ 126 $ 959 -86.8% $ (375) $ 619 -160.6%
----------- ----------- ---------- -----------
Per Share Data
Basic earnings per share ...... $ 0.03 $ 0.30 -88.9% $ (0.10) $ 0.21 -148.4%
Book Value .................... $ 7.03 $ 6.43 9.4% $ 7.03 $ 6.75 4.2%
Weighted Average Shares (basic) 3,738,398 3,144,821 18.9% 3,751,995 2,999,716 25.1%
Balance Sheet
Assets ........................ $ 359,250 $ 230,206 56.1% $ 359,250 $ 230,206 56.1%
Net Loans ..................... 224,478 138,116 62.5% 224,478 138,116 62.5%
Investment Securities ......... 87,109 55,274 57.6% 87,109 55,274 57.6%
Deposits ...................... 326,739 207,752 57.3% 326,739 207,752 57.3%
Shareholder's Equity .......... 26,149 20,744 26.1% 26,149 20,744 26.1%
Unity Bancorp. Inc. through its subsidiary Unity Bank is a full service
community financial services company headquartered in Clinton, New Jersey
providing a wide array of business and consumer financial services throughout
central New Jersey. Unity operates 17 retail financial service centers in
Hunterdon, Middlesex, Somerset and Union counties. Retail financial centers
opened in 1999 include Berkeley Heights, Cranford, East Brunswick, Edison,
Highland Park, Kenilworth, South Plainfield, Springfield at Milburn Avenue and
Whitehouse. Additional openings scheduled for 1999 include Flemington II and
Bound Brook. Additionally, the Bank operates a residential mortgage subsidiary,
Certified Mortgage Associates headquartered in Marlboro, New Jersey.
For additional information about Unity Bank, call 800.618.BANK, or visit
Unity's website at www.unitybank.com. E-mail may be addressed to the Bank at
info@unitybank.com.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act
of 1995: Certain of these statements contained in this release which are not
historical facts are forward-looking statements that are subject to risks and
uncertainties that could cause actual results to differ materially from those
set forth in the forward-looking statements, including the uncertainties
inherent in the process of auditing and making end-of-year adjustments to a
corporation's financial statements. By making these forward-looking statements,
the Company undertakes no obligation to update these statements for revisions or
changes after the date of this release.
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