EX-99.1 2 unty-20130425ex9915cc6e2.htm EX-99.1 UNTY - 8K Q1 Exhibit 99.1

 

unty-20130131x8kg1.jpg

Unity Bancorp, Inc.

64 Old Highway 22

Clinton, NJ 08809

800-618-BANK

www.unitybank.com

 

NewsNewsNewsNewsNews

 

For Immediate Release:

 

April 25, 2013                                     

 

News Media & Financial Analyst Contact:

Alan J. Bedner, EVP

Chief Financial Officer

(908) 713-4308

 

 

Unity Bancorp Reports 56.6% Increase in Earnings

 

 

Clinton, NJ - Unity Bancorp, Inc. (NASDAQ: UNTY), parent company of Unity Bank, reported net income available to common shareholders of $797 thousand, or $0.10 per diluted share, for the three months ended March 31, 2013, a 56.6% increase compared to $509 thousand, or $0.07 per diluted share, for the same period a year ago.  Return on average assets and average common equity for the quarter were 0.59% and 5.65%, respectively, compared to 0.45% and 3.81% for the same period a year ago. 

 

×

A 9.1% increase in commercial loans from a year ago.

×

A 33.1% decrease in nonperforming assets from a year ago.

×

A 45.8 % decrease in the loan loss provision compared to prior period’s quarter.

×

Noninterest-bearing deposits reached record high of $118.2 million.

×

Negotiated the purchase contract for three of our currently leased branch locations, which closed April 17, 2013, that will result in estimated future cost savings in excess of $200 thousand.

×

Entered into a marketing agreement with Venture VR LLC, a real estate agency in Elmwood Park, New Jersey to increase loan referrals.

 

“This was our strongest quarter in over five years and we are headed in the right direction,” reported James A. Hughes, President and CEO.  “Loan demand is gaining momentum, core deposits are growing and there was significant improvement in asset quality.  We are no longer looking in the rear view mirror; we are looking forward to further earnings increases and balance sheet growth.”

 

 

Net Interest Income

 

Net interest income decreased $119 thousand to $6.7 million for the three months ended March 31, 2013, compared to the prior year’s quarter and the net interest margin narrowed 4 basis points to 3.52%.  This decrease was the result of lower yields on our securities and loan portfolios.  Our net interest income continues to be influenced by the sustained low interest rate environment, which the Federal Open Market Committee (“FOMC”) of the Federal Reserve Board believes is appropriate based on its unemployment and inflationary targets.  This rate environment has resulted in a tighter net interest margin as our earning assets re-price at lower rates.  The yield on earning assets fell 38 basis points to 4.33% for the quarter ending March 31, 2013 when compared to the same period in 2012.   Partially offsetting these declines are lower funding costs from reduced deposit rates, a significantly lower volume of time deposits and the expiration of a higher rate interest rate swap agreement. The cost of interest-bearing liabilities decreased 37 basis points to 1.04% for the three month period.

 

 

Noninterest Income

 

Noninterest income increased $110 thousand to $1.8 million for the three months ended March 31, 2013, compared to the same period last year. The increase was driven by higher gains on the sale of residential mortgage and SBA loans, partially offset by lower levels of branch fee income.  Factors affecting noninterest income were:

 

×

Branch fee income, which consists of deposit service charges and overdraft fees, decreased $39 thousand for the quarterly period due to lower overdraft fees. 

×

Gains on sales of SBA loans increased $84 thousand for the quarter due to higher premiums on the sale of $2.3 million in loans during the period. 

×

Gains on sales of residential mortgage loans increased $66 thousand on a higher volume of loan sales.   For the three month period, $22.6 million in residential mortgage loans were sold compared to $21.2 million in the first quarter of 2012.

 

   

Noninterest Expense

 

Noninterest expense increased $167 thousand to $6.1 million for the three months ended March 31, 2013, compared to the first quarter of 2012.  Other noteworthy expenses include:

×

Occupancy expense increased $85 thousand due to higher seasonal snow removal expenses, increased building depreciation expenses related to the Washington branch opened in late March 2012, and additional rental expense due to the termination of a sublease during 2012.

×

Processing and communication expenses increased $27 thousand due to expenses related to our check cashing, merchant services and mortgage businesses.

×

Deposit insurance expense decreased $22 thousand for the quarter ended March 31, 2013 due to a lower assessment basis.

×

Advertising expenses decreased $26 thousand for the quarter ended March 31, 2013 due to a reduction in promotional gift expenses, the expiration of a third party marketing agreement and reduced promotional marketing.

×

Other expenses increased $106 thousand for the quarter due to higher employee recruiting, increased director fees and an increase to the reserve for unfunded loan commitments. 

 

Financial Condition

 

At March 31, 2013, total assets were $827.2 million, an increase of $7.5 million from the prior year end.

×

Total securities increased $8.3 million since December 31, 2012, due to $21.3 million in security purchases, partially offset by sales and prepayments. 

×

Total loans increased $9.5 million or 1.6%, to $596.6 million at March 31, 2013. The Company plans to continue shrinking its out of market SBA portfolio.  Future loan growth is expected in both the commercial and residential portfolios.  The net increase was the result of the following:

o

Commercial loans increased $9.1 million or 3.0%,

o

Residential mortgage loans increased $4.3 million or 3.2%,

o

SBA 504 loans decreased $1.7 million or 4.0%,

o

SBA 7(a) loans decreased $2.1 million or 3.2%, and

o

Consumer loans remained stable at $46.4 million.   

×

Core deposits, which exclude time deposits, increased $5.1 million during the quarter to $528.9 million, due to growth in retail deposits.  The net changes by product type include: 

o

A $3.7 million increase in noninterest-bearing demand deposits,

o

An $802 thousand increase in savings deposits, and

o

A $536 thousand increase in interest-bearing demand deposits.

×

Time deposits decreased $1.7 million from year-end.

×

Shareholders’ equity was $78.2 million at March 31, 2013, an increase of $647 thousand from year-end 2012, primarily due to the increase in net income.

×

Book value per common share was $7.67 as of March 31, 2013.

×

At March 31, 2013 the leverage, Tier I and Total Risk Based Capital ratios were 11.12%, 14.54% and 15.80% respectively, all in excess of the ratios required to be deemed “well-capitalized”.

 

Credit Quality

 

“Nonperforming assets have declined $3.3 million or 17.3% to $16.0 million since year-end 2012 and they have declined $7.9 million or 33.1% since March 31, 2012.  We expect to have continued success in resolving problem credits in 2013,” said James A. Hughes.   “Many of our problem commercial and SBA relationships have been resolved and the majority of our larger problem relationships are behind us.  We anticipate declines in charge-offs and provisions for loan losses in future periods.”

 

×

Nonperforming assets totaled $16.0 million at March 31, 2013 or 2.67% of total loans and OREO, compared to $19.3 million or 3.28% of total loans and OREO at year-end 2012.

×

The allowance for loan losses totaled $14.3 million at March 31, 2013 or 2.40% of total loans. The provision for loan losses for the quarter ended March 31, 2013 was $650 thousand compared to $1.2 million for the prior year’s quarter. 

×

Net charge-offs were $1.1 million for the three months ended March 31, 2013, compared to $1.2 million for the same period a year ago.

×

Troubled debt restructurings (“TDRs”) increased $1.5 million from year-end to $16.2 million.  At March 31, 2013, 93.3% of our TDRs were performing. 

 

Unity Bancorp, Inc. is a financial service organization headquartered in Clinton, New Jersey, with approximately $827 million in assets and $652 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 may be identified by use of the words “believe”, “expect”, “intend”, “anticipate”, “estimate”, “project” or similar expressions.  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 those items included in our Annual Report on Form 10-K under the heading “Item IA-Risk Factors” as well as general economic conditions, trends in interest rates, the ability of our borrowers to repay their loans, our ability to manage and reduce the level of our nonperforming assets, and results of regulatory exams, among other factors.

 

 

 

 

 

UNITY BANCORP, INC.

SUMMARY FINANCIAL HIGHLIGHTS

March 31, 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2013 vs.

 

 

 

 

 

 

 

 

 

 

December 31, 2012

 

March 31, 2012

 

(In thousands, except percentages and per share amounts)

 

March 31, 2013

 

December 31, 2012

 

March 31, 2012

 

 

%

 

%

 

BALANCE SHEET DATA:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$
827,182 

 

$
819,730 

 

$
810,198 

 

 
0.9 

%
2.1 

%

Total deposits

 

 
652,117 

 

 
648,760 

 

 
643,101 

 

 
0.5 

 
1.4 

 

Total loans

 

 
596,571 

 

 
587,036 

 

 
582,752 

 

 
1.6 

 
2.4 

 

Total securities

 

 
119,334 

 

 
111,053 

 

 
128,061 

 

 
7.5 

 
(6.8)

 

Total shareholders' equity

 

 
78,157 

 

 
77,510 

 

 
74,002 

 

 
0.8 

 
5.6 

 

Allowance for loan losses

 

 
(14,345)

 

 
(14,758)

 

 
(16,339)

 

 
2.8 

 
12.2 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FINANCIAL DATA - QUARTER TO DATE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before provision for income taxes

 

$
1,738 

 

$
1,810 

 

$
1,364 

 

 
(4.0)

 
27.4 

 

Provision for income taxes

 

 
538 

 

 
643 

 

 
459 

 

 
(16.3)

 
17.2 

 

Net income

 

 
1,200 

 

 
1,167 

 

 
905 

 

 
2.8 

 
32.6 

 

Preferred stock dividends and discount accretion

 

 
403 

 

 
408 

 

 
396 

 

 
(1.2)

 
1.8 

 

Income available to common shareholders

 

$
797 

 

$
759 

 

$
509 

 

 
5.0 

 
56.6 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share - Basic (1)

 

$
0.11 

 

$
0.10 

 

$
0.07 

 

 
10.0 

 
57.1 

 

Net income per common share - Diluted (1)

 

$
0.10 

 

$
0.10 

 

$
0.07 

 

 

 -

 
42.9 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 
0.59 

%

 
0.57 

%

 
0.45 

%

 
3.5 

 
31.1 

 

Return on average equity (2)

 

 
5.65 

%

 
5.34 

%

 
3.81 

%

 
5.8 

 
48.3 

 

Efficiency ratio

 

 
73.91 

%

 
70.66 

%

 
71.80 

%

 
4.6 

 
2.9 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FINANCIAL DATA - YEAR TO DATE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before provision for income taxes

 

$
1,738 

 

 

 

 

$
1,364 

 

 

 

 
27.4 

 

Provision for income taxes

 

 
538 

 

 

 

 

 
459 

 

 

 

 
17.2 

 

Net income

 

 
1,200 

 

 

 

 

 
905 

 

 

 

 
32.6 

 

Preferred stock dividends and discount accretion

 

 
403 

 

 

 

 

 
396 

 

 

 

 
1.8 

 

Income available to common shareholders

 

$
797 

 

 

 

 

$
509 

 

 

 

 
56.6 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share - Basic (1)

 

$
0.11 

 

 

 

 

$
0.07 

 

 

 

 
57.1 

 

Net income per common share - Diluted (1)

 

$
0.10 

 

 

 

 

$
0.07 

 

 

 

 
42.9 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 
0.59 

%

 

 

 

 
0.45 

%

 

 

 
31.1 

 

Return on average equity (2)

 

 
5.65 

%

 

 

 

 
3.81 

%

 

 

 
48.3 

 

Efficiency ratio

 

 
73.91 

%

 

 

 

 
71.80 

%

 

 

 
2.9 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SHARE INFORMATION:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Market price per share

 

$
6.51 

 

$
6.24 

 

$
6.24 

 

 
4.3 

 
4.3 

 

Dividends paid

 

$

 -

 

$

 -

 

$

 -

 

 

 -

 

 -

 

Book value per common share

 

$
7.67 

 

$
7.62 

 

$
7.28 

 

 
0.7 

 
5.4 

 

Average diluted shares outstanding (QTD)

 

 
7,845 

 

 
7,818 

 

 
7,792 

 

 
0.3 

 
0.7 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CAPITAL RATIOS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total equity to total assets

 

 
9.45 

%

 
9.46 

%

 
9.13 

%

 
(0.1)

 
3.5 

 

Leverage ratio

 

 
11.12 

%

 
11.14 

%

 
10.67 

%

 
(0.2)

 
4.2 

 

Tier 1 risk-based capital ratio

 

 
14.54 

%

 
14.85 

%

 
14.44 

%

 
(2.1)

 
0.7 

 

Total risk-based capital ratio

 

 
15.80 

%

 
16.12 

%

 
15.71 

%

 
(2.0)

 
0.6 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CREDIT QUALITY AND RATIOS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonperforming assets

 

$
15,956 

 

$
19,294 

 

$
23,831 

 

 
(17.3)

 
(33.0)

 

QTD net chargeoffs (annualized) to QTD average loans

 

 
0.73 

%

 
0.90 

%

 
0.83 

%

 
(18.9)

 
(12.0)

 

Allowance for loan losses to total loans

 

 
2.40 

%

 
2.51 

%

 
2.80 

%

 
(4.4)

 
(14.3)

 

Nonperforming assets to total loans and OREO

 

 
2.67 

%

 
3.28 

%

 
4.08 

%

 
(18.6)

 
(34.6)

 

Nonperforming assets to total assets

 

 
1.93 

%

 
2.35 

%

 
2.94 

%

 
(17.9)

%
(34.4)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Defined as net income adjusted for dividends accrued and accretion of discount on perpetual preferred stock divided by weighted average shares outstanding.

(2)

Defined as net income adjusted for dividends accrued and accretion of discount on perpetual preferred stock divided by average shareholders' equity (excluding preferred stock).

 

UNITY BANCORP, INC.

CONSOLIDATED BALANCE SHEETS

March 31, 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2013 vs.

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2012

 

March 31, 2012

 

(In thousands, except percentages)

 

March 31, 2013

 

December 31, 2012

 

March 31, 2012

 

 

%

 

%

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$
18,392 

 

$
23,705 

 

$
17,986 

 

 
(22.4)

%
2.3 

%

Federal funds sold and interest-bearing deposits

 

 
61,584 

 

 
70,487 

 

 
53,831 

 

 
(12.6)

 
14.4 

 

Cash and cash equivalents

 

 
79,976 

 

 
94,192 

 

 
71,817 

 

 
(15.1)

 
11.4 

 

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities available for sale

 

 
91,067 

 

 
89,538 

 

 
110,181 

 

 
1.7 

 
(17.3)

 

Securities held to maturity

 

 
28,267 

 

 
21,515 

 

 
17,880 

 

 
31.4 

 
58.1 

 

Total securities

 

 
119,334 

 

 
111,053 

 

 
128,061 

 

 
7.5 

 
(6.8)

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SBA loans held for sale

 

 
6,556 

 

 
6,937 

 

 
8,015 

 

 
(5.5)

 
(18.2)

 

SBA loans held to maturity

 

 
56,868 

 

 
58,593 

 

 
62,251 

 

 
(2.9)

 
(8.6)

 

SBA 504 loans

 

 
39,784 

 

 
41,438 

 

 
47,651 

 

 
(4.0)

 
(16.5)

 

Commercial loans

 

 
310,649 

 

 
301,564 

 

 
284,861 

 

 
3.0 

 
9.1 

 

Residential mortgage loans

 

 
136,345 

 

 
132,094 

 

 
132,192 

 

 
3.2 

 
3.1 

 

Consumer loans

 

 
46,369 

 

 
46,410 

 

 
47,782 

 

 
(0.1)

 
(3.0)

 

Total loans

 

 
596,571 

 

 
587,036 

 

 
582,752 

 

 
1.6 

 
2.4 

 

Allowance for loan losses

 

 
(14,345)

 

 
(14,758)

 

 
(16,339)

 

 
2.8 

 
12.2 

 

Net loans

 

 
582,226 

 

 
572,278 

 

 
566,413 

 

 
1.7 

 
2.8 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Premises and equipment, net

 

 
15,747 

 

 
12,062 

 

 
12,321 

 

 
30.6 

 
27.8 

 

Bank owned life insurance ("BOLI")

 

 
9,472 

 

 
9,402 

 

 
9,179 

 

 
0.7 

 
3.2 

 

Deferred tax assets

 

 
6,241 

 

 
5,954 

 

 
7,115 

 

 
4.8 

 
(12.3)

 

Federal Home Loan Bank stock

 

 
3,989 

 

 
3,989 

 

 
4,088 

 

 

 -

 
(2.4)

 

Accrued interest receivable

 

 
3,362 

 

 
3,298 

 

 
3,672 

 

 
1.9 

 
(8.4)

 

Other real estate owned ("OREO")

 

 
1,052 

 

 
1,826 

 

 
1,625 

 

 
(42.4)

 
(35.3)

 

Prepaid FDIC insurance

 

 
1,788 

 

 
1,929 

 

 
2,386 

 

 
(7.3)

 
(25.1)

 

Goodwill and other intangibles

 

 
1,516 

 

 
1,516 

 

 
1,526 

 

 

 -

 
(0.7)

 

Other assets

 

 
2,479 

 

 
2,231 

 

 
1,995 

 

 
11.1 

 
24.3 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$
827,182 

 

$
819,730 

 

$
810,198 

 

 
0.9 

%
2.1 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand deposits

 

$
118,166 

 

$
114,424 

 

$
108,618 

 

 
3.3 

%
8.8 

%

Interest-bearing demand deposits

 

 
115,374 

 

 
114,838 

 

 
103,018 

 

 
0.5 

 
12.0 

 

Savings deposits

 

 
295,335 

 

 
294,533 

 

 
281,535 

 

 
0.3 

 
4.9 

 

Time deposits, under $100,000

 

 
75,374 

 

 
76,994 

 

 
94,513 

 

 
(2.1)

 
(20.3)

 

Time deposits, $100,000 and over

 

 
47,868 

 

 
47,971 

 

 
55,417 

 

 
(0.2)

 
(13.6)

 

Total deposits

 

 
652,117 

 

 
648,760 

 

 
643,101 

 

 
0.5 

 
1.4 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowed funds

 

 
75,000 

 

 
75,000 

 

 
75,000 

 

 

 -

 

 -

 

Subordinated debentures

 

 
15,465 

 

 
15,465 

 

 
15,465 

 

 

 -

 

 -

 

Accrued interest payable

 

 
438 

 

 
434 

 

 
498 

 

 
0.9 

 
(12.0)

 

Accrued expenses and other liabilities

 

 
6,005 

 

 
2,561 

 

 
2,132 

 

 
134.5 

 
181.7 

 

Total liabilities

 

 
749,025 

 

 
742,220 

 

 
736,196 

 

 
0.9 

 
1.7 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cumulative perpetual preferred stock

 

 
20,263 

 

 
20,115 

 

 
19,683 

 

 
0.7 

 
2.9 

 

Common stock

 

 
54,357 

 

 
54,274 

 

 
53,846 

 

 
0.2 

 
0.9 

 

Retained earnings (deficit)

 

 
2,584 

 

 
1,788 

 

 
(345)

 

 
44.5 

 
849.0 

 

Accumulated other comprehensive income

 

 
953 

 

 
1,333 

 

 
818 

 

 
(28.5)

 
16.5 

 

Total shareholders' equity

 

 
78,157 

 

 
77,510 

 

 
74,002 

 

 
0.8 

 
5.6 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and shareholders' equity

 

$
827,182 

 

$
819,730 

 

$
810,198 

 

 
0.9 

%
2.1 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred shares

 

 
21 

 

 
21 

 

 
21 

 

 

 

 

 

 

Issued and outstanding common shares

 

 
7,548 

 

 
7,534 

 

 
7,463 

 

 

 

 

 

 

 

UNITY BANCORP, INC.

QTD CONSOLIDATED STATEMENTS OF INCOME

March 31, 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2013 vs.

 

 

 

For the three months ended

 

 

December 31, 2012

 

March 31, 2012

 

(In thousands, except percentages and per share amounts)

 

March 31, 2013

 

December 31, 2012

 

March 31, 2012

 

 

$

 

%

 

$

 

%

 

INTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal funds sold and interest-bearing deposits

 

$
14 

 

$
16 

 

$
32 

 

 

$
(2)

 

 
(12.5)

%

$
(18)

 

 
(56.3)

%

Federal Home Loan Bank stock

 

 
44 

 

 
44 

 

 
51 

 

 

 

 -

 

 

 -

 

 
(7)

 

 
(13.7)

 

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 
647 

 

 
644 

 

 
752 

 

 

 
3 

 

 
0.5 

 

 
(105)

 

 
(14.0)

 

Tax-exempt

 

 
120 

 

 
103 

 

 
142 

 

 

 
17 

 

 
16.5 

 

 
(22)

 

 
(15.5)

 

Total securities

 

 
767 

 

 
747 

 

 
894 

 

 

 
20 

 

 
2.7 

 

 
(127)

 

 
(14.2)

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SBA loans

 

 
777 

 

 
779 

 

 
924 

 

 

 
(2)

 

 
(0.3)

 

 
(147)

 

 
(15.9)

 

SBA 504 loans

 

 
651 

 

 
548 

 

 
759 

 

 

 
103 

 

 
18.8 

 

 
(108)

 

 
(14.2)

 

Commercial loans

 

 
4,001 

 

 
4,270 

 

 
4,183 

 

 

 
(269)

 

 
(6.3)

 

 
(182)

 

 
(4.4)

 

Residential mortgage loans

 

 
1,550 

 

 
1,577 

 

 
1,655 

 

 

 
(27)

 

 
(1.7)

 

 
(105)

 

 
(6.3)

 

Consumer loans

 

 
509 

 

 
521 

 

 
560 

 

 

 
(12)

 

 
(2.3)

 

 
(51)

 

 
(9.1)

 

Total loans

 

 
7,488 

 

 
7,695 

 

 
8,081 

 

 

 
(207)

 

 
(2.7)

 

 
(593)

 

 
(7.3)

 

Total interest income

 

 
8,313 

 

 
8,502 

 

 
9,058 

 

 

 
(189)

 

 
(2.2)

 

 
(745)

 

 
(8.2)

 

INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand deposits

 

 
101 

 

 
119 

 

 
136 

 

 

 
(18)

 

 
(15.1)

 

 
(35)

 

 
(25.7)

 

Savings deposits

 

 
177 

 

 
251 

 

 
354 

 

 

 
(74)

 

 
(29.5)

 

 
(177)

 

 
(50.0)

 

Time deposits

 

 
546 

 

 
575 

 

 
913 

 

 

 
(29)

 

 
(5.0)

 

 
(367)

 

 
(40.2)

 

Borrowed funds and subordinated debentures

 

 
800 

 

 
820 

 

 
847 

 

 

 
(20)

 

 
(2.4)

 

 
(47)

 

 
(5.5)

 

Total interest expense

 

 
1,624 

 

 
1,765 

 

 
2,250 

 

 

 
(141)

 

 
(8.0)

 

 
(626)

 

 
(27.8)

 

Net interest income

 

 
6,689 

 

 
6,737 

 

 
6,808 

 

 

 
(48)

 

 
(0.7)

 

 
(119)

 

 
(1.7)

 

Provision for loan losses

 

 
650 

 

 
800 

 

 
1,200 

 

 

 
(150)

 

 
(18.8)

 

 
(550)

 

 
(45.8)

 

Net interest income after provision for loan losses

 

 
6,039 

 

 
5,937 

 

 
5,608 

 

 

 
102 

 

 
1.7 

 

 
431 

 

 
7.7 

 

NONINTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Branch fee income

 

 
347 

 

 
397 

 

 
386 

 

 

 
(50)

 

 
(12.6)

 

 
(39)

 

 
(10.1)

 

Service and loan fee income

 

 
304 

 

 
297 

 

 
302 

 

 

 
7 

 

 
2.4 

 

 
2 

 

 
0.7 

 

Gain on sale of SBA loans held for sale, net

 

 
241 

 

 
262 

 

 
157 

 

 

 
(21)

 

 
(8.0)

 

 
84 

 

 
53.5 

 

Gain on sale of mortgage loans, net

 

 
477 

 

 
748 

 

 
411 

 

 

 
(271)

 

 
(36.2)

 

 
66 

 

 
16.1 

 

BOLI income

 

 
70 

 

 
76 

 

 
73 

 

 

 
(6)

 

 
(7.9)

 

 
(3)

 

 
(4.1)

 

Net security gains

 

 
226 

 

 
59 

 

 
224 

 

 

 
167 

 

 
283.1 

 

 
2 

 

 
0.9 

 

Other income

 

 
160 

 

 
169 

 

 
162 

 

 

 
(9)

 

 
(5.3)

 

 
(2)

 

 
(1.2)

 

Total noninterest income

 

 
1,825 

 

 
2,008 

 

 
1,715 

 

 

 
(183)

 

 
(9.1)

 

 
110 

 

 
6.4 

 

NONINTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

 
3,176 

 

 
3,054 

 

 
3,182 

 

 

 
122 

 

 
4.0 

 

 
(6)

 

 
(0.2)

 

Occupancy

 

 
694 

 

 
683 

 

 
609 

 

 

 
11 

 

 
1.6 

 

 
85 

 

 
14.0 

 

Processing and communications

 

 
561 

 

 
549 

 

 
534 

 

 

 
12 

 

 
2.2 

 

 
27 

 

 
5.1 

 

Furniture and equipment

 

 
365 

 

 
395 

 

 
362 

 

 

 
(30)

 

 
(7.6)

 

 
3 

 

 
0.8 

 

Professional services

 

 
190 

 

 
192 

 

 
190 

 

 

 
(2)

 

 
(1.0)

 

 

 -

 

 

 -

 

Loan collection costs

 

 
177 

 

 
229 

 

 
180 

 

 

 
(52)

 

 
(22.7)

 

 
(3)

 

 
(1.7)

 

OREO expenses

 

 
127 

 

 
86 

 

 
124 

 

 

 
41 

 

 
47.7 

 

 
3 

 

 
2.4 

 

Deposit insurance

 

 
149 

 

 
163 

 

 
171 

 

 

 
(14)

 

 
(8.6)

 

 
(22)

 

 
(12.9)

 

Advertising

 

 
120 

 

 
210 

 

 
146 

 

 

 
(90)

 

 
(42.9)

 

 
(26)

 

 
(17.8)

 

Other expenses

 

 
567 

 

 
574 

 

 
461 

 

 

 
(7)

 

 
(1.2)

 

 
106 

 

 
23.0 

 

Total noninterest expense

 

 
6,126 

 

 
6,135 

 

 
5,959 

 

 

 
(9)

 

 
(0.1)

 

 
167 

 

 
2.8 

 

Income before provision for income taxes

 

 
1,738 

 

 
1,810 

 

 
1,364 

 

 

 
(72)

 

 
(4.0)

 

 
374 

 

 
27.4 

 

Provision for income taxes

 

 
538 

 

 
643 

 

 
459 

 

 

 
(105)

 

 
(16.3)

 

 
79 

 

 
17.2 

 

Net income

 

 
1,200 

 

 
1,167 

 

 
905 

 

 

 
33 

 

 
2.8 

 

 
295 

 

 
32.6 

 

Preferred stock dividends and discount accretion

 

 
403 

 

 
408 

 

 
396 

 

 

 
(5)

 

 
(1.2)

 

 
7 

 

 
1.8 

 

Income available to common shareholders

 

$
797 

 

$
759 

 

$
509 

 

 

$
38 

 

 
5.0 

%

$
288 

 

 
56.6 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effective tax rate

 

 
31.0 

%

 
35.5 

%

 
33.7 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share - Basic (1)

 

$
0.11 

 

$
0.10 

 

$
0.07 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share - Diluted (1)

 

$
0.10 

 

$
0.10 

 

$
0.07 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding - Basic

 

 
7,538 

 

 
7,514 

 

 
7,460 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstading - Diluted

 

 
7,845 

 

 
7,818 

 

 
7,792 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Defined as net income adjusted for dividends accrued and accretion of discount on perpetual preferred stock divided by weighted average shares outstanding.

 

UNITY BANCORP, INC.

QTD NET INTEREST MARGIN

March 31, 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended

 

 

 

March 31, 2013

 

December 31, 2012

 

 

 

Average Balance

 

Interest

 

Rate/Yield

 

Average Balance

 

Interest

 

Rate/Yield

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal funds sold and interest-bearing deposits

 

$
62,530 

 

$
14 

 

 
0.09 

%

$
61,710 

 

$
16 

 

 
0.10 

%

Federal Home Loan Bank stock

 

 
3,989 

 

 
44 

 

 
4.47 

 

 
3,990 

 

 
44 

 

 
4.39 

 

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 
100,062 

 

 
647 

 

 
2.59 

 

 
95,626 

 

 
644 

 

 
2.69 

 

Tax-exempt

 

 
18,475 

 

 
178 

 

 
3.85 

 

 
14,172 

 

 
153 

 

 
4.32 

 

Total securities (A)

 

 
118,537 

 

 
825 

 

 
2.79 

 

 
109,798 

 

 
797 

 

 
2.91 

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SBA loans

 

 
65,386 

 

 
777 

 

 
4.75 

 

 
66,669 

 

 
779 

 

 
4.67 

 

SBA 504 loans

 

 
41,135 

 

 
651 

 

 
6.42 

 

 
41,584 

 

 
548 

 

 
5.24 

 

Commercial loans

 

 
304,790 

 

 
4,001 

 

 
5.32 

 

 
304,413 

 

 
4,270 

 

 
5.58 

 

Residential mortgage loans

 

 
135,886 

 

 
1,550 

 

 
4.56 

 

 
133,799 

 

 
1,577 

 

 
4.71 

 

Consumer loans

 

 
46,111 

 

 
509 

 

 
4.48 

 

 
46,571 

 

 
521 

 

 
4.45 

 

Total loans (B)

 

 
593,308 

 

 
7,488 

 

 
5.09 

 

 
593,036 

 

 
7,695 

 

 
5.17 

 

Total interest-earning assets

 

$
778,364 

 

$
8,371 

 

 
4.33 

%

$
768,534 

 

$
8,552 

 

 
4.44 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

 
19,737 

 

 

 

 

 

 

 

 
18,386 

 

 

 

 

 

 

 

Allowance for loan losses

 

 
(14,998)

 

 

 

 

 

 

 

 
(15,566)

 

 

 

 

 

 

 

Other assets

 

 
37,905 

 

 

 

 

 

 

 

 
38,312 

 

 

 

 

 

 

 

Total noninterest-earning assets

 

 
42,644 

 

 

 

 

 

 

 

 
41,132 

 

 

 

 

 

 

 

Total assets

 

$
821,008 

 

 

 

 

 

 

 

$
809,666 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand deposits

 

$
118,668 

 

$
101 

 

 
0.35 

%

$
112,958 

 

$
119 

 

 
0.42 

%

Savings deposits

 

 
295,520 

 

 
177 

 

 
0.24 

 

 
287,047 

 

 
251 

 

 
0.35 

 

Time deposits

 

 
122,695 

 

 
546 

 

 
1.80 

 

 
126,233 

 

 
575 

 

 
1.81 

 

Total interest-bearing deposits

 

 
536,883 

 

 
824 

 

 
0.62 

 

 
526,238 

 

 
945 

 

 
0.72 

 

Borrowed funds and subordinated debentures

 

 
90,465 

 

 
800 

 

 
3.54 

 

 
90,498 

 

 
820 

 

 
3.55 

 

Total interest-bearing liabilities

 

$
627,348 

 

$
1,624 

 

 
1.04 

%

$
616,736 

 

$
1,765 

 

 
1.14 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand deposits

 

 
113,000 

 

 

 

 

 

 

 

 
113,164 

 

 

 

 

 

 

 

Other liabilities

 

 
3,242 

 

 

 

 

 

 

 

 
3,181 

 

 

 

 

 

 

 

Total noninterest-bearing liabilities

 

 
116,242 

 

 

 

 

 

 

 

 
116,345 

 

 

 

 

 

 

 

Total shareholders' equity

 

 
77,418 

 

 

 

 

 

 

 

 
76,585 

 

 

 

 

 

 

 

Total liabilities and shareholders' equity

 

$
821,008 

 

 

 

 

 

 

 

$
809,666 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest spread

 

 

 

 

$
6,747 

 

 
3.29 

%

 

 

 

$
6,787 

 

 
3.30 

%

Tax-equivalent basis adjustment

 

 

 

 

 
(58)

 

 

 

 

 

 

 

 
(50)

 

 

 

 

Net interest income

 

 

 

 

$
6,689 

 

 

 

 

 

 

 

$
6,737 

 

 

 

 

Net interest margin

 

 

 

 

 

 

 

 
3.52 

%

 

 

 

 

 

 

 
3.51 

%

 

(A)

Yields related to securities exempt from federal and state income taxes are stated on a fully tax-equivalent basis.  They are reduced by the nondeductible portion of interest expense, assuming a federal tax rate of 34 percent and applicable state rates.

(B)

The loan averages are stated net of unearned income, and the averages include loans on which the accrual of interest has been discontinued. 

 

 

 

 

UNITY BANCORP, INC.

QTD NET INTEREST MARGIN

March 31, 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended

 

 

 

March 31, 2013

 

March 31, 2012

 

 

 

Average Balance

 

Interest

 

Rate/Yield

 

Average Balance

 

Interest

 

Rate/Yield

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal funds sold and interest-bearing deposits

 

$
62,530 

 

$
14 

 

 
0.09 

%

$
64,660 

 

$
32 

 

 
0.20 

%

Federal Home Loan Bank stock

 

 
3,989 

 

 
44 

 

 
4.47 

 

 
4,088 

 

 
51 

 

 
5.02 

 

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 
100,062 

 

 
647 

 

 
2.59 

 

 
102,624 

 

 
752 

 

 
2.93 

 

Tax-exempt

 

 
18,475 

 

 
178 

 

 
3.85 

 

 
17,851 

 

 
210 

 

 
4.71 

 

Total securities (A)

 

 
118,537 

 

 
825 

 

 
2.79 

 

 
120,475 

 

 
962 

 

 
3.19 

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SBA loans

 

 
65,386 

 

 
777 

 

 
4.75 

 

 
71,760 

 

 
924 

 

 
5.15 

 

SBA 504 loans

 

 
41,135 

 

 
651 

 

 
6.42 

 

 
51,710 

 

 
759 

 

 
5.90 

 

Commercial loans

 

 
304,790 

 

 
4,001 

 

 
5.32 

 

 
284,237 

 

 
4,183 

 

 
5.92 

 

Residential mortgage loans

 

 
135,886 

 

 
1,550 

 

 
4.56 

 

 
132,824 

 

 
1,655 

 

 
4.98 

 

Consumer loans

 

 
46,111 

 

 
509 

 

 
4.48 

 

 
47,608 

 

 
560 

 

 
4.73 

 

Total loans (B)

 

 
593,308 

 

 
7,488 

 

 
5.09 

 

 
588,139 

 

 
8,081 

 

 
5.52 

 

Total interest-earning assets

 

$
778,364 

 

$
8,371 

 

 
4.33 

%

$
777,362 

 

$
9,126 

 

 
4.71 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

 
19,737 

 

 

 

 

 

 

 

 
15,949 

 

 

 

 

 

 

 

Allowance for loan losses

 

 
(14,998)

 

 

 

 

 

 

 

 
(16,788)

 

 

 

 

 

 

 

Other assets

 

 
37,905 

 

 

 

 

 

 

 

 
40,287 

 

 

 

 

 

 

 

Total noninterest-earning assets

 

 
42,644 

 

 

 

 

 

 

 

 
39,448 

 

 

 

 

 

 

 

Total assets

 

$
821,008 

 

 

 

 

 

 

 

$
816,810 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand deposits

 

$
118,668 

 

$
101 

 

 
0.35 

%

$
108,988 

 

$
136 

 

 
0.50 

%

Savings deposits

 

 
295,520 

 

 
177 

 

 
0.24 

 

 
283,261 

 

 
354 

 

 
0.50 

 

Time deposits

 

 
122,695 

 

 
546 

 

 
1.80 

 

 
156,999 

 

 
913 

 

 
2.34 

 

Total interest-bearing deposits

 

 
536,883 

 

 
824 

 

 
0.62 

 

 
549,248 

 

 
1,403 

 

 
1.03 

 

Borrowed funds and subordinated debentures

 

 
90,465 

 

 
800 

 

 
3.54 

 

 
90,465 

 

 
847 

 

 
3.70 

 

Total interest-bearing liabilities

 

$
627,348 

 

$
1,624 

 

 
1.04 

%

$
639,713 

 

$
2,250 

 

 
1.41 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand deposits

 

 
113,000 

 

 

 

 

 

 

 

 
100,496 

 

 

 

 

 

 

 

Other liabilities

 

 
3,242 

 

 

 

 

 

 

 

 
3,249 

 

 

 

 

 

 

 

Total noninterest-bearing liabilities

 

 
116,242 

 

 

 

 

 

 

 

 
103,745 

 

 

 

 

 

 

 

Total shareholders' equity

 

 
77,418 

 

 

 

 

 

 

 

 
73,352 

 

 

 

 

 

 

 

Total liabilities and shareholders' equity

 

$
821,008 

 

 

 

 

 

 

 

$
816,810 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest spread

 

 

 

 

$
6,747 

 

 
3.29 

%

 

 

 

$
6,876 

 

 
3.30 

%

Tax-equivalent basis adjustment

 

 

 

 

 
(58)

 

 

 

 

 

 

 

 
(68)

 

 

 

 

Net interest income

 

 

 

 

$
6,689 

 

 

 

 

 

 

 

$
6,808 

 

 

 

 

Net interest margin

 

 

 

 

 

 

 

 
3.52 

%

 

 

 

 

 

 

 
3.56 

%

 

(A)

Yields related to securities exempt from federal and state income taxes are stated on a fully tax-equivalent basis.  They are reduced by the nondeductible portion of interest expense, assuming a federal tax rate of 34 percent and applicable state rates.

(B)

The loan averages are stated net of unearned income, and the averages include loans on which the accrual of interest has been discontinued.

 

 

UNITY BANCORP, INC.

QUARTERLY ALLOWANCE FOR LOAN LOSSES AND LOAN QUALITY SCHEDULES

March 31, 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts in thousands, except percentages

 

March 31, 2013

 

December 31, 2012

 

September 30, 2012

 

June 30, 2012

 

March 31, 2012

 

ALLOWANCE FOR LOAN LOSSES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, beginning of period

 

$
14,758 

 

$
15,294 

 

$
16,284 

 

$
16,339 

 

$
16,348 

 

Provision for loan losses charged to expense

 

 
650 

 

 
800 

 

 
1,000 

 

 
1,000 

 

 
1,200 

 

 

 

 
15,408 

 

 
16,094 

 

 
17,284 

 

 
17,339 

 

 
17,548 

 

Less: Chargeoffs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SBA loans

 

 
570 

 

 
251 

 

 
254 

 

 
213 

 

 
615 

 

SBA 504 loans

 

 
200 

 

 

 -

 

 
481 

 

 
100 

 

 
227 

 

Commercial loans

 

 
375 

 

 
1,190 

 

 
1,428 

 

 
540 

 

 
346 

 

Residential mortgage loans

 

 
125 

 

 
152 

 

 
65 

 

 
494 

 

 
113 

 

Consumer loans

 

 
59 

 

 

 -

 

 
31 

 

 
25 

 

 

 -

 

Total chargeoffs

 

 
1,329 

 

 
1,593 

 

 
2,259 

 

 
1,372 

 

 
1,301 

 

Add: Recoveries

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SBA loans

 

 
137 

 

 
22 

 

 
195 

 

 
249 

 

 
53 

 

SBA 504 loans

 

 
25 

 

 
50 

 

 
15 

 

 
15 

 

 
28 

 

Commercial loans

 

 
101 

 

 
184 

 

 
58 

 

 
53 

 

 
11 

 

Residential mortgage loans

 

 
2 

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

Consumer loans

 

 
1 

 

 
1 

 

 
1 

 

 

 -

 

 

 -

 

Total recoveries

 

 
266 

 

 
257 

 

 
269 

 

 
317 

 

 
92 

 

Net chargeoffs

 

 
1,063 

 

 
1,336 

 

 
1,990 

 

 
1,055 

 

 
1,209 

 

Balance, end of period

 

$
14,345 

 

$
14,758 

 

$
15,294 

 

$
16,284 

 

$
16,339 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LOAN QUALITY INFORMATION:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonperforming loans (1)

 

$
14,904 

 

$
17,468 

 

$
17,334 

 

$
19,831 

 

$
22,206 

 

Other real estate owned ("OREO")

 

 
1,052 

 

 
1,826 

 

 
1,456 

 

 
2,355 

 

 
1,625 

 

Nonperforming assets

 

 
15,956 

 

 
19,294 

 

 
18,790 

 

 
22,186 

 

 
23,831 

 

Less:  Amount guaranteed by SBA

 

 
1,863 

 

 
1,849 

 

 
566 

 

 
526 

 

 
555 

 

Net nonperforming assets

 

$
14,093 

 

$
17,445 

 

$
18,224 

 

$
21,660 

 

$
23,276 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans 90 days past due & still accruing

 

$
632 

 

$
109 

 

$
1,630 

 

$
2,443 

 

$
3,165 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing Troubled Debt Restructurings (TDRs)

 

$
15,068 

 

$
13,576 

 

$
17,250 

 

$
20,541 

 

$
20,985 

 

(1) Nonperforming TDRs included above

 

 
1,084 

 

 
1,087 

 

 
1,628 

 

 
871 

 

 
2,287 

 

Total TDRs

 

$
16,152 

 

$
14,663 

 

$
18,878 

 

$
21,412 

 

$
23,272 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses to:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans at quarter end

 

 
2.40 

%

 
2.51 

%

 
2.56 

%

 
2.69 

%

 
2.80 

%

Nonperforming loans (1)

 

 
96.25 

 

 
84.49 

 

 
88.23 

 

 
82.11 

 

 
73.58 

 

Nonperforming assets

 

 
89.90 

 

 
76.49 

 

 
81.39 

 

 
73.40 

 

 
68.56 

 

Net nonperforming assets

 

 
101.79 

 

 
84.60 

 

 
83.92 

 

 
75.18 

 

 
70.20 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

QTD net chargeoffs (annualized) to QTD average loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SBA loans

 

 
2.69 

%

 
1.37 

%

 
0.35 

%

 
(0.21)

%

 
3.15 

%

SBA 504 loans

 

 
1.73 

 

 
(0.48)

 

 
4.16 

 

 
0.73 

 

 
1.55 

 

Commercial loans

 

 
0.36 

 

 
1.31 

 

 
1.77 

 

 
0.65 

 

 
0.47 

 

Residential mortgage loans

 

 
0.37 

 

 
0.45 

 

 
0.19 

 

 
1.49 

 

 
0.34 

 

Consumer loans

 

 
0.51 

 

 
(0.01)

 

 
0.26 

 

 
0.22 

 

 

 -

 

Total loans

 

 
0.73 

%

 
0.90 

%

 
1.32 

%

 
0.71 

%

 
0.83 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonperforming loans to total loans

 

 
2.50 

%

 
2.98 

%

 
2.90 

%

 
3.28 

%

 
3.81 

%

Nonperforming loans and TDRs to total loans

 

 
5.02 

 

 
5.29 

 

 
5.79 

 

 
6.67 

 

 
7.41 

 

Nonperforming assets to total loans and OREO

 

 
2.67 

 

 
3.28 

 

 
3.14 

 

 
3.65 

 

 
4.08 

 

Nonperforming assets to total assets

 

 
1.93 

 

 
2.35 

 

 
2.34 

 

 
2.83 

 

 
2.94 

 

 

 

UNITY BANCORP, INC.

QUARTERLY FINANCIAL DATA

March 31, 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands, except percentages and per share amounts)

 

March 31, 2013

 

December 31, 2012

 

September 30, 2012

 

June 30, 2012

 

March 31, 2012

 

SUMMARY OF INCOME:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total interest income

 

$
8,313 

 

$
8,502 

 

$
8,871 

 

$
8,772 

 

$
9,058 

 

Total interest expense

 

 
1,624 

 

 
1,765 

 

 
1,844 

 

 
1,915 

 

 
2,250 

 

Net interest income

 

 
6,689 

 

 
6,737 

 

 
7,027 

 

 
6,857 

 

 
6,808 

 

Provision for loan losses

 

 
650 

 

 
800 

 

 
1,000 

 

 
1,000 

 

 
1,200 

 

Net interest income after provision for loan losses

 

 
6,039 

 

 
5,937 

 

 
6,027 

 

 
5,857 

 

 
5,608 

 

Total noninterest income

 

 
1,825 

 

 
2,008 

 

 
1,774 

 

 
1,841 

 

 
1,715 

 

Total noninterest expense

 

 
6,126 

 

 
6,135 

 

 
5,999 

 

 
6,204 

 

 
5,959 

 

Income before provision for income taxes

 

 
1,738 

 

 
1,810 

 

 
1,802 

 

 
1,494 

 

 
1,364 

 

Provision for income taxes

 

 
538 

 

 
643 

 

 
606 

 

 
518 

 

 
459 

 

Net income

 

 
1,200 

 

 
1,167 

 

 
1,196 

 

 
976 

 

 
905 

 

Preferred stock dividends and discount accretion

 

 
403 

 

 
408 

 

 
397 

 

 
401 

 

 
396 

 

Income available to common shareholders

 

$
797 

 

$
759 

 

$
799 

 

$
575 

 

$
509 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share - Basic (1)

 

$
0.11 

 

$
0.10 

 

$
0.11 

 

$
0.08 

 

$
0.07 

 

Net income per common share - Diluted (1)

 

$
0.10 

 

$
0.10 

 

$
0.10 

 

$
0.07 

 

$
0.07 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COMMON SHARE DATA:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Market price per share

 

$
6.51 

 

$
6.24 

 

$
6.13 

 

$
6.00 

 

$
6.24 

 

Dividends paid

 

$

 -

 

$

 -

 

$

 -

 

$

 -

 

$

 -

 

Book value per common share

 

$
7.67 

 

$
7.62 

 

$
7.52 

 

$
7.38 

 

$
7.28 

 

Weighted average common shares outstanding - Basic

 

 
7,538 

 

 
7,514 

 

 
7,473 

 

 
7,462 

 

 
7,460 

 

Weighted average common shares outstanding - Diluted

 

 
7,845 

 

 
7,818 

 

 
7,782 

 

 
7,784 

 

 
7,792 

 

Issued and outstanding common shares

 

 
7,548 

 

 
7,534 

 

 
7,503 

 

 
7,461 

 

 
7,463 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING RATIOS (Annualized):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 
0.59 

%

 
0.57 

%

 
0.60 

%

 
0.49 

%

 
0.45 

%

Return on average equity (2)

 

 
5.65 

 

 
5.34 

 

 
5.74 

 

 
4.25 

 

 
3.81 

 

Efficiency ratio

 

 
73.91 

 

 
70.66 

 

 
68.22 

 

 
73.72 

 

 
71.80 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BALANCE SHEET DATA:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$
827,182 

 

$
819,730 

 

$
802,675 

 

$
785,111 

 

$
810,198 

 

Total deposits

 

 
652,117 

 

 
648,760 

 

 
633,126 

 

 
616,443 

 

 
643,101 

 

Total loans

 

 
596,571 

 

 
587,036 

 

 
596,910 

 

 
604,901 

 

 
582,752 

 

Total securities

 

 
119,334 

 

 
111,053 

 

 
106,437 

 

 
114,846 

 

 
128,061 

 

Total shareholders' equity

 

 
78,157 

 

 
77,510 

 

 
76,387 

 

 
74,901 

 

 
74,002 

 

Allowance for loan losses

 

 
(14,345)

 

 
(14,758)

 

 
(15,294)

 

 
(16,284)

 

 
(16,339)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TAX EQUIVALENT YIELDS AND RATES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets

 

 
4.33 

%

 
4.44 

%

 
4.70 

%

 
4.70 

%

 
4.71 

%

Interest-bearing liabilities

 

 
1.04 

 

 
1.14 

 

 
1.19 

 

 
1.25 

 

 
1.41 

 

Net interest spread

 

 
3.29 

 

 
3.30 

 

 
3.51 

 

 
3.45 

 

 
3.30 

 

Net interest margin

 

 
3.52 

 

 
3.51 

 

 
3.72 

 

 
3.68 

 

 
3.56 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CREDIT QUALITY:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonperforming assets

 

 
15,956 

 

 
19,294 

 

 
18,790 

 

 
22,186 

 

 
23,831 

 

QTD net chargeoffs (annualized) to QTD average loans

 

 
0.73 

%

 
0.90 

%

 
1.32 

%

 
0.71 

%

 
0.83 

%

Allowance for loan losses to total loans

 

 
2.40 

 

 
2.51 

 

 
2.56 

 

 
2.69 

 

 
2.80 

 

Nonperforming assets to total loans and OREO

 

 
2.67 

 

 
3.28 

 

 
3.14 

 

 
3.65 

 

 
4.08 

 

Nonperforming assets to total assets

 

 
1.93 

 

 
2.35 

 

 
2.34 

 

 
2.83 

 

 
2.94 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CAPITAL RATIOS AND OTHER:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total equity to total assets

 

 
9.45 

%

 
9.46 

%

 
9.52 

%

 
9.54 

%

 
9.13 

%

Leverage ratio

 

 
11.12 

 

 
11.14 

 

 
11.20 

 

 
11.08 

 

 
10.67 

 

Tier 1 risk-based capital ratio

 

 
14.54 

 

 
14.85 

 

 
14.52 

 

 
14.22 

 

 
14.44 

 

Total risk-based capital ratio

 

 
15.80 

 

 
16.12 

 

 
15.78 

 

 
15.49 

 

 
15.71 

 

Number of banking offices

 

 
15 

 

 
15 

 

 
15 

 

 
15 

 

 
15 

 

Number of ATMs

 

 
16 

 

 
16 

 

 
16 

 

 
16 

 

 
16 

 

Number of employees

 

 
166 

 

 
165 

 

 
161 

 

 
169 

 

 
171 

 

1)

Defined as net income adjusted for dividends accrued and accretion of discount on perpetual preferred stock divided by weighted average shares outstanding.

2)

Defined as net income adjusted for dividends accrued and accretion of discount on perpetual preferred stock divided by average shareholders' equity (excluding preferred stock).