Unity Bancorp, Inc.

64 Old Highway 22

Clinton, NJ 08809

800 618-BANK

            www.unitybank.com

NewsNewsNewsNewsNews

For Immediate Release:

April 23, 2008

News Media & Financial Analyst Contact:

Alan J. Bedner, EVP

Chief Financial Officer

(908) 713-4308

Unity Bancorp Reports First Quarter Results

Clinton, NJ - Unity Bancorp, Inc. (NASDAQ: UNTY), parent company of Unity Bank, reported net income of $1.2 million, or $0.18 per diluted share, for the quarter ended March 31, 2008, compared to net income of $680 thousand, or $0.10 per diluted share, for the quarter ended December 31, 2007 and $1.5 million, or $0.20 per diluted share, for the quarter ended March 31, 2007.  Return on average assets and average common equity for the first quarter of 2008 were 0.65% and 10.50%, respectively, compared to 0.38% and 5.77%, respectively for the fourth quarter of 2007, and 0.87% and 12.74%, respectively, for the first quarter of 2007.  Results for December 31, 2007 include a $404 thousand after tax expense, or $0.06 per share, for the impairment of Federal Home Loan Mortgage Corporation perpetual preferred securities.

Total assets at March 31, 2008, were $807.9 million, an 18.6% increase from March 31, 2007.  The increase in assets from the prior year was due to growth in the Company’s earning assets.  Total loans at March 31, 2008, were $602.9 million, a 16.9% increase from March 31, 2007.  The growth in the loan portfolio occurred in all product lines.  The SBA portfolio grew $17.8 million, or 23.0% from a year ago, in part due to the Company’s previously announced strategy to hold more loans for long term investment.

“I am very pleased with our robust growth this quarter, as we continue to increase our market share in a challenging environment,” said Unity President and Chief Executive Officer, James A. Hughes.  “With the Federal Reserve’s recent reduction in interest rates I am extremely optimistic that our net interest margin will expand throughout the remainder of the year.”

At March 31, 2008, the allowance for loan losses was $8.7 million, or 1.43% of total loans, compared to 1.50% of total loans at March 31, 2007.  Nonperforming assets at March 31, 2008, were $4.4 million, or 0.73% of total loans and other real estate owned (OREO), a decline of $2.4 million, compared to nonperforming assets of $6.8 million or 1.31% of total loans and OREO at March 31, 2007.  The Company has reviewed its portfolio and determined that is does not have significant exposure to subprime loans.

“We continue to be pleased with the performance of our loan portfolio in the current economic environment”, said Mr. Hughes.  “We have had a substantial decline in nonaccrual assets from the prior year and continue to aggressively manage the collections process.”

Total deposits at March 31, 2008, were $642.3 million, an 18.6% increase from March 31, 2007.  This increase was primarily the result of growth in time deposit and demand deposit accounts, partially offset by the decline in savings and interest-bearing checking deposits.  Demand deposits grew $5.0 million, or 6.6% from March 31, 2007.  Time deposits increased $134.9 million, or 83.5% from March 31, 2007.

Total shareholders’ equity was $47.9 million at March 31, 2008, consistent with March 31, 2007, due to an increase in retained profits of the Company offset by the purchase of 380 thousand shares of common stock.  The Company does not anticipate additional purchases of shares for the foreseeable future, as retained profits will be used for future growth.

Net interest income was $6.6 million for the first quarter of 2008, an increase of 10.2% compared to the same period a year ago.  Net interest income was primarily benefited by an increase in interest-earning assets offset by a decline in net interest margin.  Net interest margin was 3.64% for the first quarter of 2008, compared to 3.75% for the first quarter of 2007.  Due to the recent decline in short-term interest rates, the Company expects that the net interest margin will expand in 2008.

The provision for loan losses for the first quarter of 2008 was $450 thousand, compared to $200 thousand for the first quarter of 2007.  Net loan charge-offs for the quarter ended March 31, 2008 were $183 thousand, compared to net loan charge-offs of $67 thousand for the quarter ended March 31, 2007.

Total noninterest income for the first quarter of 2008 was $1.5 million, down 13.3%, from the same period a year ago.  Gains on sales of SBA loans amounted to $576 thousand for the first quarter of 2008, compared to $679 thousand for the quarter ended March 31, 2007, reflecting lower premiums on loans sold due to current market conditions.  Service charges on deposits for the first quarter of 2008 were $320 thousand, a decrease of 8.3% compared to the first quarter of 2007, primarily due to the acceleration of the electronic clearing of checks under “Check 21.”  Service and loan fees were $300 thousand for the first quarter of 2008, a decrease of $66 thousand from a year ago.

Total noninterest expenses for the fourth quarter of 2008 were $5.8 million, an increase of 6.5% from the prior year’s comparable quarter.  Compensation and benefits expense increased 9.0% due to the increased staffing associated with branch expansion, the rollout of the Bank’s National SBA program and annual cost of living increases.  Professional fees increased due to additional expenses associated with the implementation of Sarbanes Oxley.

As of March 31, 2008, the Company’s Tier I leverage capital ratio was 8.06%, Tier I risk-based capital ratio was 9.68%, and total risk-based capital ratio was 10.93%.  All regulatory capital ratios exceeded the well-capitalized, federal capital adequacy requirements as of March 31, 2008.

Unity Bancorp, Inc. is a financial service organization headquartered in Clinton, New Jersey, with approximately $808 million in assets and $642 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)
										Mar. 08 vs.
BALANCE SHEET DATA:		Mar. 31, 2008			Dec. 31, 2007			Mar. 31, 2007		Dec. 07		Mar. 07
Assets	$	807,874		$	752,196		$	681,302		7.4	%	18.6	%
Deposits		642,282			601,268			541,399		6.8		18.6
Loans		602,943			590,132			515,562		2.2		16.9
Securities		114,348			98,591			100,915		16.0		13.3
Shareholders' equity		47,896			47,260			47,825		1.3		0.1
Allowance for loan losses		8,650			8,383			7,757		3.2		11.5
FINANCIAL DATA - QUARTER TO DATE:
Net income before taxes	$	1,870		$	922		$	2,081		102.8	%	(10.1)	%
Federal and state income tax provision		626			242			630		158.7		(0.6)
Net income		1,244			680			1,451		82.9		(14.3)
Per share-basic		0.18			0.10			0.21		80.0		(14.3)
Per share-diluted		0.18			0.10			0.20		80.0		(10.0)
Return on average assets		0.65	%		0.38	%		0.87	%	71.1		(25.3)
Return on average common equity		10.50			5.77			12.74		82.0		(17.6)
Efficiency ratio		71.95			74.07			70.46		(2.9)		2.1
SHARE INFORMATION:
Closing price per share	$	7.85		$	8.50		$	11.30		(7.6)	%	(30.5)	%
Cash dividends declared		0.05			0.05			0.05		-		-
Book value per share		7.10			7.03			6.84		1.0		3.8
Average diluted shares outstanding (QTD)		6,925			6,979			7,301		(0.8)		(5.1)
CAPITAL RATIOS:
Total equity to total assets		5.93	%		6.28	%		7.02	%	(5.6)	%	(15.5)	%
Tier I capital to average assets (leverage)		8.06			8.25			9.24		(2.3)		(12.7)
Tier I capital to risk-adjusted assets		9.68			9.81			11.43		(1.3)		(15.3)
Total risk-based capital		10.93			11.06			14.21		(1.2)		(23.1)
CREDIT QUALITY AND RATIOS:
Nonperforming assets	$	4,408		$	5,567		$	6,771		(20.8)	%	(34.9)	%
Net charge offs to average loans (QTD)		0.12	%		0.24	%		0.05	%	(50.0)		140.0
Allowance for loan losses to total loans		1.43			1.42			1.50		0.7		(4.7)
Nonperforming assets to total loans and OREO		0.73			0.94			1.31		(22.3)		(44.3)

Unity Bancorp, Inc.
Consolidated Balance Sheets
(In thousands)							Mar. 08 vs.
		Mar. 31, 2008		Dec. 31, 2007		Mar. 31, 2007	Dec. 07		Mar. 07
ASSETS
Cash and due from banks	$	19,698	$	14,336	$	15,697	37.4	%	25.5	%
Federal funds sold and interest bearing deposits		44,042		21,976		23,417	100.4		88.1
Securities:
Available for sale		79,726		64,855		62,794	22.9		27.0
Held to maturity		34,622		33,736		38,121	2.6		(9.2)
Total securities		114,348		98,591		100,915	16.0		13.3
Loans:
SBA - Held for sale		23,632		24,640		9,298	(4.1)		154.2
SBA - Held to Maturity		71,798		68,875		68,314	4.2		5.1
Commercial		372,695		365,786		318,905	1.9		16.9
Residential mortgage		76,734		73,697		63,615	4.1		20.6
Consumer		58,084		57,134		55,430	1.7		4.8
Total loans		602,943		590,132		515,562	2.2		16.9
Less: Allowance for loan losses		8,650		8,383		7,757	3.2		11.5
Net loans		594,293		581,749		507,805	2.2		17.0
Goodwill and other intangibles		1,585		1,588		1,599	(0.2)		(0.9)
Premises and equipment, net		12,067		12,102		11,525	(0.3)		4.7
Accrued interest receivable		4,131		3,994		3,594	3.4		14.9
Loan servicing asset		1,990		2,056		2,261	(3.2)		(12.0)
Bank Owned Life Insurance		5,622		5,570		5,421	0.9		3.7
FHLB/ACBB Stock		4,170		4,395		3,403	(5.1)		22.5
Other assets		5,928		5,839		5,665	1.5		4.6
Total Assets	$	807,874	$	752,196	$	681,302	7.4	%	18.6	%
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Noninterest-bearing demand deposits	$	80,960	$	70,601	$	75,928	14.7	%	6.6	%
Interest-bearing deposits:
Interest bearing checking		76,256		78,020		89,313	(2.3)		(14.6)
Savings		188,628		196,388		214,636	(4.0)		(12.1)
Time, under $100,000		211,739		168,244		105,724	25.9		100.3
Time, $100,000 and over		84,699		88,015		55,798	(3.8)		51.8
Total deposits		642,282		601,268		541,399	6.8		18.6
Borrowed funds and subordinated debentures		110,465		100,465		89,744	10.0		23.1
Accrued interest payable		794		635		523	25.0		51.8
Accrued expenses and other liabilities		6,437		2,568		1,811	150.7		255.4
Total liabilities		759,978		704,936		633,477	7.8		20.0
Commitments and Contingencies		-		-		-
Shareholders' equity:
Common stock, no par value, 12,500 shares authorized		49,600		49,447		44,677	0.3		11.0
Retained earnings		3,379		2,472		4,067	36.7		(16.9)
Treasury stock at cost		(4,169)		(4,169)		(242)	-		1,622.7
Accumulated other comprehensive loss, net of tax		(914)		(490)		(677)	86.5		35.0
Total shareholders' equity		47,896		47,260		47,825	1.3		0.1
Total Liabilities and Shareholders' Equity	$	807,874	$	752,196	$	681,302	7.4	%	18.6	%
COMMON SHARES AT PERIOD END:
Issued		7,151		7,131		7,019
Outstanding		6,747		6,727		6,995
Treasury		404		404		24
N/M= Not meaningful

Unity Bancorp, Inc.
Consolidated Statements of Income
(In thousands, except per share data)
							Mar. 08 vs.
FOR THE THREE MONTHS ENDED:		Mar. 31, 2008		Dec. 31, 2007		Mar. 31, 2007	Dec. 07		Mar. 07
INTEREST INCOME
Fed funds sold and interest on deposits	$	180	$	195	$	262	(7.7)	%	(31.3)	%
FHLB/ACBB Stock		100		78		58
Securities:
Available for sale		875		835		722	4.8		21.2
Held to maturity		437		443		540	(1.4)		(19.1)
Total securities		1,312		1,278		1,262	2.7		4.0
Loans:
SBA		2,328		2,307		2,340	0.9		(0.5)
Commercial		6,735		6,772		5,988	(0.5)		12.5
Residential mortgage		1,079		1,093		888	(1.3)		21.5
Consumer		901		934		904	(3.5)		(0.3)
Total loan interest income		11,043		11,106		10,120	(0.6)		9.1
Total interest income		12,635		12,657		11,702	(0.2)		8.0
INTEREST EXPENSE
Interest bearing demand deposits		366		448		552	(18.3)		(33.7)
Savings deposits		1,349		1,776		2,171	(24.0)		(37.9)
Time deposits		3,220		3,089		1,970	4.2		63.5
Borrowed funds and subordinated debentures		1,065		997		990	6.8		7.6
Total interest expense		6,000		6,310		5,683	(4.9)		5.6
Net interest income		6,635		6,347		6,019	4.5		10.2
Provision for loan losses		450		550		200	(18.2)		125.0
Net interest income after provision for loan losses		6,185		5,797		5,819	6.7		6.3
NONINTEREST INCOME
Service charges on deposit accounts		320		357		349	(10.4)		(8.3)
Service and loan fee income		300		433		366	(30.7)		(18.0)
Gain on SBA loan sales		576		580		679	(0.7)		(15.2)
Gain on sales of other loans		-		-		-	-		(100.0)
Bank owned life insurance		51		50		49	2.0		4.1
Net securities (loss) gains		70		(603)		10	100.0		100.0
Other income		138		236		226	(41.5)		(38.9)
Total noninterest income		1,455		1,053		1,679	38.2		(13.3)
NONINTEREST EXPENSES
Compensation and benefits		3,220		2,952		2,955	9.1		9.0
Processing and communications		570		675		550	(15.6)		3.6
Occupancy, net		701		761		673	(7.9)		4.2
Furniture and equipment		388		462		400	(16.0)		(3.0)
Professional fees		198		184		136	7.6		45.6
Loan servicing costs		102		161		90	(36.6)		13.3
Advertising		62		145		94	(57.2)		(34.0)
Other		529		588		519	(10.0)		1.9
Total noninterest expenses		5,770		5,928		5,417	(2.7)		6.5
Income before taxes		1,870		922		2,081	102.8		(10.1)
Federal and state income tax provision		626		242		630	158.7		(0.6)
Net Income	$	1,244	$	680	$	1,451	82.9	%	(14.3)	%
Net Income Per Common Share-Basic	$	0.18	$	0.10	$	0.21	80.0	%	(14.3)	%
Net Income Per Common Share-Diluted	$	0.18	$	0.10	$	0.20	80.0	%	(10.0)	%
AVERAGE COMMON SHARES OUTSTANDING:
Basic		6,739		6,769		6,976
Diluted		6,925		6,979		7,301

Unity Bancorp, Inc.
Consolidated Average Balance Sheets
with Resultant Interest and Rates
(Tax-equivalent basis, dollars in thousands)
		Three Months Ended
		March 31, 2008						December 31, 2007
		Balance		Interest	Rate			Balance		Interest	Rate
ASSETS
Interest-earning assets:
Federal funds sold and interest-bearing deposits with banks	$	22,925	$	180	3.16	%	$	17,961	$	195	4.31	%
FHLB/ACBB Stock		4,174		100	9.64			3,786		78	8.17
Securities:
Available for sale		70,757		908	5.13			67,765		875	5.16
Held to maturity		34,147		455	5.33			35,157		461	5.25
Total securities		104,904		1,363	5.20			102,922		1,336	5.19
Loans, net of unearned discount:
SBA		98,614		2,328	9.44			90,120		2,307	10.24
Commercial		372,343		6,735	7.28			362,512		6,772	7.41
Residential mortgage		74,341		1,079	5.81			74,057		1,093	5.90
Consumer		57,482		901	6.30			56,421		934	6.57
Total loans		602,780		11,043	7.36			583,110		11,106	7.57
Total interest-earning assets		734,783		12,686	6.93			707,779		12,715	7.10
Noninterest-earning assets:
Cash and due from banks		14,991						14,518
Allowance for loan losses		(8,690)						(8,499)
Other assets		30,304						29,130
Total noninterest-earning assets		36,605						35,149
Total Assets	$	771,388					$	742,928
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Interest-bearing demand deposits	$	78,999		366	1.86		$	81,759		448	2.17
Savings deposits		190,574		1,349	2.85			195,241		1,776	3.61
Time deposits		276,426		3,220	4.69			253,790		3,089	4.83
Total interest-bearing deposits		545,999		4,935	3.64			530,790		5,313	3.97
Borrowed funds and subordinated debentures		100,850		1,065	4.25			86,826		997	4.56
Total interest-bearing liabilities		646,849		6,000	3.73			617,616		6,310	4.05
Noninterest-bearing liabilities:
Demand deposits		74,709						76,406
Other liabilities		2,191						2,267
Total noninterest-bearing liabilities		76,900						78,673
Shareholders' equity		47,639						46,639
Total Liabilities and Shareholders' Equity	$	771,388					$	742,928
Net interest spread				6,686	3.20	%				6,405	3.05	%
Tax-equivalent basis adjustment				(51)						(58)
Net interest income			$	6,635					$	6,347
Net interest margin					3.64	%					3.62	%

Unity Bancorp, Inc.
Consolidated Average Balance Sheets
with Resultant Interest and Rates
(Tax-equivalent basis, dollars in thousands)
		Three Months Ended
		March 31, 2008						March 31, 2007
		Balance		Interest	Rate			Balance		Interest	Rate
ASSETS
Interest-earning assets:
Federal funds sold and interest-bearing deposits with banks	$	22,925	$	180	3.16	%	$	20,650	$	262	5.15	%
FHLB/ACBB Stock		4,174		100	9.64			2,748		58	8.56
Securities:
Available for sale		70,757		908	5.13			62,157		734	4.72
Held to maturity		34,147		455	5.33			42,287		558	5.28
Total securities		104,904		1,363	5.20			104,444		1,292	4.95
Loans, net of unearned discount:
SBA		98,614		2,328	9.44			81,783		2,340	11.44
Commercial		372,343		6,735	7.28			318,638		5,988	7.62
Residential mortgage		74,341		1,079	5.81			62,903		888	5.65
Consumer		57,482		901	6.30			53,419		904	6.86
Total loans		602,780		11,043	7.36			516,743		10,120	7.91
Total interest-earning assets		734,783		12,686	6.93			644,585		11,732	7.34
Noninterest-earning assets:
Cash and due from banks		14,991						12,228
Allowance for loan losses		(8,690)						(7,877)
Other assets		30,304						29,495
Total noninterest-earning assets		36,605						33,846
Total Assets	$	771,388					$	678,431
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Interest-bearing demand deposits	$	78,999		366	1.86		$	97,570		552	2.29
Savings deposits		190,574		1,349	2.85			210,879		2,171	4.18
Time deposits		276,426		3,220	4.69			170,508		1,970	4.69
Total interest-bearing deposits		545,999		4,935	3.64			478,957		4,693	3.97
Borrowed funds and subordinated debentures		100,850		1,065	4.25			75,133		990	5.34
Total interest-bearing liabilities		646,849		6,000	3.73			554,090		5,683	4.16
Noninterest-bearing liabilities:
Demand deposits		74,709						75,222
Other liabilities		2,191						2,927
Total noninterest-bearing liabilities		76,900						78,149
Shareholders' equity		47,639						46,192
Total Liabilities and Shareholders' Equity	$	771,388					$	678,431
Net interest spread				6,686	3.20	%				6,049	3.18	%
Tax-equivalent basis adjustment				(51)						(30)
Net interest income			$	6,635					$	6,019
Net interest margin					3.64	%					3.75	%

Unity Bancorp, Inc.
Allowance for Loan Losses and Loan Quality Schedules
(Dollars in thousands)
		3/31/2008		12/31/2007		9/30/2007		6/30/2007		3/31/2007
ALLOWANCE FOR LOAN LOSSES:
Balance, beginning of quarter	$	8,383	$	8,183	$	7,997	$	7,757	$	7,624
Provision charged to expense		450		550		450		350		200
		8,833		8,733		8,447		8,107		7,824
Less:  Charge offs
SBA		264		260		270		124		116
Commercial		-		126		24		5		-
Residential mortgage		25		-		-		-		-
Consumer		6		20		28		-		2
Total Charge Offs		295		406		322		129		118
Add:   Recoveries
SBA		60		53		41		12		41
Commercial		2		3		7		2		6
Residential mortgage		-		-		-		-		-
Consumer		50		-		10		5		4
Total Recoveries		112		56		58		19		51
Net Charge Offs		183		350		264		110		67
Balance, end of quarter	$	8,650	$	8,383	$	8,183	$	7,997	$	7,757
LOAN QUALITY INFORMATION:
Nonperforming loans	$	4,142	$	5,461	$	4,185	$	4,611	$	6,515
Other real estate owned, net		266		106		134		366		256
Nonperforming assets	$	4,408	$	5,567	$	4,319	$	4,977	$	6,771
Loans 90 days past due and still accruing	$	546	$	155	$	340	$	167	$	145
Allowance for loan losses to:
Total loans at period end		1.43	%	1.42	%	1.44	%	1.48	%	1.50	%
Nonperforming loans		208.84		153.49		195.53		173.43		119.06
Nonperforming assets		196.23		150.57		189.47		160.68		114.56
Net charge offs to average loans (QTD)		0.12		0.24		0.19		0.08		0.05
Net charge offs to average loans (YTD)		0.12		0.14		0.11		0.07		0.05
Nonperforming loans to total loans		0.69		0.93		0.74		0.85		1.26
Nonperforming assets to total loans and OREO		0.73		0.94		0.76		0.92		1.31

Unity Bancorp, Inc.
Quarterly Financial Data
		03/31/08		12/31/07		09/30/07		06/30/07		03/31/07
SUMMARY OF INCOME (in thousands) :
Interest income	$	12,635	$	12,657	$	12,566	$	11,975	$	11,702
Interest expense		6,000		6,310		6,593		5,888		5,683
Net interest income		6,635		6,347		5,973		6,087		6,019
Provision for loan losses		450		550		450		350		200
Net interest income after provision		6,185		5,797		5,523		5,737		5,819
Noninterest income		1,455		1,053		1,460		1,748		1,679
Noninterest expense		5,770		5,928		5,501		5,267		5,417
Income before income taxes		1,870		922		1,482		2,218		2,081
Federal and state income tax provision		626		242		430		676		630
Net Income		1,244		680		1,052		1,542		1,451
Net Income per Common Share:
Basic	$	0.18	$	0.10	$	0.15	$	0.22	$	0.21
Diluted		0.18		0.10		0.15		0.21		0.20
COMMON SHARE DATA:
Cash dividends declared	$	0.05	$	0.05	$	0.05	$	0.05	$	0.05
Book value at quarter end		7.10		7.03		6.94		6.87		6.84
Market value at quarter end		7.85		8.50		11.08		11.45		11.30
Average common shares outstanding: (000's)
Basic		6,739		6,769		6,871		6,985		6,976
Diluted		6,925		6,979		7,107		7,295		7,301
Common shares outstanding at period end (000's)		6,747		6,727		6,813		7,002		6,995
OPERATING RATIOS:
Return on average assets		0.65	%	0.38	%	0.57	%	0.89	%	0.87	%
Return on average common equity		10.50		5.77		8.89		13.14		12.74
Efficiency ratio		71.95		74.07		74.23		67.22		70.46
BALANCE SHEET DATA (in thousands):
Assets	$	807,874	$	752,196	$	746,821	$	732,403	$	681,302
Deposits		642,282		601,268		612,215		596,093		541,399
Loans		602,943		590,132		567,597		541,385		515,562
Shareholders' equity		47,896		47,260		47,261		48,242		47,825
Allowance for loan losses		8,650		8,383		8,183		7,997		7,757
TAX-EQUIVALENT YIELDS AND RATES:
Interest-earning assets		6.93	%	7.10	%	7.16	%	7.28	%	7.31	%
Interest-bearing liabilities		3.73		4.05		4.27		4.15		4.16
Net interest spread		3.20		3.05		2.89		3.13		3.15
Net interest margin		3.64		3.62		3.44		3.71		3.75
CREDIT QUALITY:
Nonperforming assets (in thousands)	$	4,408	$	5,567	$	4,319	$	4,977	$	6,771
Allowance for loan losses to period-end loans		1.43	%	1.42	%	1.44	%	1.48	%	1.50	%
Net charge offs to average loans		0.12		0.24		0.19		0.08		0.05
Nonperforming assets to loans and OREO		0.73		0.94		0.76		0.92		1.31
CAPITAL AND OTHER:
Total equity to assets		5.93	%	6.28	%	6.33	%	6.59	%	7.02	%
Tier I capital to average assets (leverage)		8.06		8.25		8.37		9.21		9.24
Tier I capital to risk-adjusted assets		9.68		9.81		10.51		11.07		11.43
Total capital to risk-adjusted assets		10.93		11.06		11.76		13.72		14.21
Number of banking offices		17		17		16		15		15
Number of ATMs		20		20		19		18		18
Number of employees		188		201		197		195		179