EX-99.1 2 unty-20141023ex9914aaa52.htm EX-99.1 UNTY - 8K Exhibit 991 - Q3 Earnings

 

unty-20130131x8kg1.jpg

Unity Bancorp, Inc.

64 Old Highway 22

Clinton, NJ 08809

800-618-BANK

www.unitybank.com

 

NewsNewsNewsNewsNews

 

For Immediate Release:

 

October 23, 2014

News Media & Financial Analyst Contact:

Alan J. Bedner, EVP

Chief Financial Officer

(908) 713-4308

 

Unity Bancorp Reports 59.4% Increase in Quarterly Earnings and

64.6% Increase in Year to Date Earnings

 

Clinton, NJ - Unity Bancorp, Inc. (NASDAQ: UNTY), parent company of Unity Bank, reported net income available to common shareholders of $1.9 million, or $0.24 per diluted share, for the three months ended September 30, 2014, a 59.4% increase compared to net income available to common shareholders of $1.2 million, or $0.15 per diluted share, for the same period a year ago.  Return on average assets and average common equity for the quarter were 0.82% and 11.89%, respectively, compared to 0.62% and 8.25% for the same period a year ago. 

 

Third quarter highlights include:

 

·

Completed common stock rights offering which was over subscribed and resulted in $6.2 million in additional capital to provide for continued growth. 

·

Robust loan growth of 12.7% since September 30, 2013 – 22.1% growth in residential mortgage loans, 21.1% growth consumer loans and  12.3% growth in commercial loans.

·

Strong deposit growth of 7.5% since September 30, 2013.

·

Core earnings growth – 11.1% increase in net interest income compared to the prior year’s quarter due to strong commercial, residential and consumer loan portfolio growth. 

·

Net interest margin of 3.56% this quarter compared to 3.53% in the prior year’s quarter.

·

Improved credit quality metrics due to a 32.7% decrease in nonperforming loans this quarter compared to the prior year’s quarter.  

·

Increased our quarterly dividend to common shareholders from $.02 per share to $.03 per share.

 

“This was a record quarter and I am very pleased with our results,” reported James A. Hughes, President and CEO.  “In addition to a successful capital raise of $6.2 million, which was oversubscribed by $10.0 million, we continued to have strong loan and deposit growth, which produced top line revenue growth.  I look forward to reporting a very successful 2014.”

 

For the nine months ended September 30, 2014, net income available to common shareholders totaled $4.7 million, or $0.61 per diluted share, compared to $2.9 million or $0.36 per diluted share in the prior period.  Return on average assets and average common equity for the nine month periods were 0.70% and 10.47%, respectively, compared to 0.63% and 6.67% for the same period a year ago. 

 

Net Interest Income

Net interest income increased $761 thousand to $7.6 million for the quarter and increased $1.9 million to $22.2 million for the nine months ended September 30, 2014 compared to the prior year’s periods.  The increases in each period were the result of

 

momentum from the strong growth in commercial and residential mortgage loan volume.  Average commercial loans increased $45.6 million and average residential mortgage loans increased $38.0 million in the third quarter 2014 compared to the comparable quarter in 2013. The volume driven loan interest income increase offset the impact of a smaller investment portfolio and the increase in interest paid on deposits due to the $71.1 million increase in average time deposits. 

The net interest margin increased 3 basis points to 3.56% for the quarter ended September 30, 2014 compared to 3.53% the prior year.  For the nine month period, the net interest margin declined 3 basis points to 3.54%.  We expect net interest income to continue to expand in future quarters due to strong loan growth as our net interest margin  remains stable.

Provision for Loan Losses

 

The provision for loan losses was $550 thousand in the current quarter and $1.7 million for the first nine months of 2014, compared to $600 thousand and $1.6 million for the comparable prior year periods.   

 

Noninterest Income

Noninterest income increased $203 thousand to $1.9 million for the three months ended September 30, 2014, compared to the same period last year.  The increase was primarily due to a $305 thousand or $0.04 per diluted share, death benefit received on BOLI.  Excluding the BOLI death benefit, noninterest income would have been $1.5 million for the quarter.  Quarterly noninterest income saw declines in service and loan fee income and gains on mortgage loan sales.  For the nine months ended September 30, 2014, noninterest income decreased $113 thousand to $5.0 million. 

During the quarter, $16.5 million in residential mortgage loans were sold at a gain of $263 thousand, compared to $14.1 million sold at a gain of $314 thousand during the prior year’s quarter.  Approximately $3.7 million of the sold loans were previously originated loans from our portfolio that were sold at par to reduce interest rate risk.  For the nine month period, $45.1 million in residential mortgage loans were sold at a gain of $816 thousand, compared to $62.6 million sold at a gain of $1.3 million during the prior year’s period. All residential mortgage loans that are held in  portfolio for long term investment are adjustable rate mortgages or 15 year fully amortizing mortgages. 

SBA loan sales totaled $3.2 million with net gains on sale of $295 thousand for the quarter, compared to $3.1 million sold and a gain of $280 thousand in the prior year’s quarter.  On a year-to-date basis, SBA loan sales totaled $6.4 million and $6.3 million with net gains on sale of $633 thousand and $607 thousand in 2014 and 2013, respectively.  We anticipate an increase in the volume of originations and sales in 2014 due to the addition of SBA business development officers.

Service and loan fee income decreased for the quarter and year to date periods due to lower SBA loan servicing income as the volume of serviced loans declines, reduced late charges, payoff and prepayment penalties were partially offset by increased processing fees. 

Noninterest Expense

Noninterest expense increased $306 thousand to $6.2 million for the quarter and $510 thousand to $18.6 million for the nine months ended September 30, 2014.  The primary drivers of the increases during both periods were compensation, processing and communications and advertising expenses.  Details of significant fluctuations are below.

·

Compensation and benefits expenses increased in both periods primarily due to higher salary expense as we expand our commercial lending staff and increased benefits costs such as medical insurance.  For the nine month period, bonus and equity related compensation expense increased while the mortgage commissions decreased as the volume of sold loans decreased. 

·

Processing and communications expenses continue to expand as we add products and services to remain competitive.   This category includes the rising costs of providing our customers with products and services such as electronic banking, online bill payment, ATM/debit cards, international wires and foreign currency.  In addition, it includes the associated rise in data processing costs of our core banking system and electronic access expenses such as communication line costs. 

·

Advertising expenses increased in both periods due to the use of television and radio media, core deposit promotional expenses as well as seasonal involvement in various community events. 

 

·

OREO expenses decreased this quarter but remain elevated for the nine month period as we work through the collection process and incur expenses such as property maintenance, insurance and legal costs, as well as delinquent taxes and losses on sale.

 

Financial Condition

At September 30, 2014, total assets were $969.6 million, an increase of $48.5 million from the prior year-end:

·

Total securities decreased $20.6 million or 19.2%, from year-end to $86.9 million at September 30, 2014.  During the second quarter, we strategically sold longer dated investments in order to reduce the portfolio’s average life and duration. 

·

Total loans increased $65.7 million or 9.7%, from year-end 2013 to $744.4 million at September 30, 2014. The majority of the growth came in our residential mortgage, commercial and consumer loan portfolios which increased $29.4 million, $28.0 million and $9.0 million, respectively.  Future loan growth is expected to be primarily in commercial, residential mortgage and consumer loans, while the Company plans to continue shrinking it’s out of market SBA portfolio.

·

Total deposits increased $43.2 million or 5.9%, to $781.9 million at September 30, 2014, due primarily to an increase in savings, time deposits and noninterest-bearing demand deposits partially offset by a decline in interest-bearing demand deposits. Savings deposits increased due to our promotion during the quarter while time deposits have increased in response to our 15 month and 5 year term promotions.  The noninterest-bearing demand deposit increase consists of commercial deposit customer relationships.  Partially offsetting these increases was a decline in municipal interest-bearing demand deposits. 

·

Shareholders’ equity was $68.4 million at September 30, 2014, an increase of $11.2 million from year-end 2013, due primarily to the $6.2 million net proceeds from the rights offering which was oversubscribed and completed during the third quarter, plus year-to-date net income less the dividends paid.

·

Book value per common share was $8.17 as of September 30, 2014.

·

At September 30, 2014, the leverage, Tier I and Total Risk Based Capital ratios were 8.96%, 11.58% and 12.84% respectively, all in excess of the ratios required to be deemed “well-capitalized”. 

 

Credit Quality

 

·

Nonperforming assets totaled $12.9 million at September 30, 2014, or 1.73% of total loans and OREO, compared to $15.9 million or 2.34% of total loans and OREO at year-end 2013.  During the quarter the Company transferred two loans into nonaccrual  totaling  $4.3 million.  Both of these loans are well secured and losses, if any, are not expected to be material.

·

OREO increased $1.0 million to $1.7 million at September 30, 2014, due to the addition of $4.3 million (12 properties) less sale proceeds of $2.8 million (9 properties).

·

The allowance for loan losses totaled $12.9 million at September 30, 2014, or 1.74% of total loans compared to $13.1 million and 1.94% at year end.

·

Net charge-offs were $490 thousand for the three months ended September 30, 2014, compared to $1.4 million for the same period a year ago.  For the nine months ended September 30, 2014, net charge-offs were $1.9 million and $2.8 million, respectively.

·

Troubled debt restructurings (“TDRs”) decreased $252 thousand from year-end to $7.7 million due to principal pay downs.  There have been no new TDRs recognized in 2014.  There was one TDR transferred to nonaccrual status during the quarter.   

Unity Bancorp, Inc. is a financial service organization headquartered in Clinton, New Jersey, with approximately $970 million in assets and $782 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.

 

This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

 

UNITY BANCORP, INC.

SUMMARY FINANCIAL HIGHLIGHTS

September 30, 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2014 vs.

 

 

 

 

 

 

 

 

 

 

June 30, 2014

 

September 30, 2013

 

(In thousands, except percentages and per share amounts)

 

September 30, 2014

 

June 30, 2014

 

September 30, 2013

 

 

%

 

%

 

BALANCE SHEET DATA:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$
969,593 

 

$
932,414 

 

$
876,101 

 

 
4.0 

%
10.7 

%

Total deposits

 

 
781,920 

 

 
728,083 

 

 
727,112 

 

 
7.4 

 
7.5 

 

Total loans

 

 
744,366 

 

 
708,889 

 

 
660,617 

 

 
5.0 

 
12.7 

 

Total securities

 

 
86,879 

 

 
90,470 

 

 
106,906 

 

 
(4.0)

 
(18.7)

 

Total shareholders' equity

 

 
68,384 

 

 
60,477 

 

 
55,939 

 

 
13.1 

 
22.2 

 

Allowance for loan losses

 

 
(12,918)

 

 
(12,858)

 

 
(13,550)

 

 
0.5 

 
(4.7)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FINANCIAL DATA - QUARTER TO DATE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before provision for income taxes

 

$
2,694 

 

$
2,251 

 

$
1,986 

 

 
19.7 

 
35.6 

 

Provision for income taxes

 

 
808 

 

 
723 

 

 
684 

 

 
11.8 

 
18.1 

 

Net income

 

 
1,886 

 

 
1,528 

 

 
1,302 

 

 
23.4 

 
44.9 

 

Preferred stock dividends and discount accretion

 

 

 -

 

 

 -

 

 
119 

 

 

 -

 
(100.0)

 

Income available to common shareholders

 

$
1,886 

 

$
1,528 

 

$
1,183 

 

 
23.4 

 
59.4 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share - Basic (1)

 

$
0.24 

 

$
0.20 

 

$
0.16 

 

 
20.0 

 
50.0 

 

Net income per common share - Diluted (1)

 

$
0.24 

 

$
0.20 

 

$
0.15 

 

 
20.0 

 
60.0 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 
0.82 

%

 
0.68 

%

 
0.62 

%

 
20.6 

 
32.3 

 

Return on average equity (2)

 

 
11.89 

%

 
10.31 

%

 
8.25 

%

 
15.3 

 
44.1 

 

Efficiency ratio

 

 
65.80 

%

 
70.81 

%

 
69.93 

%

 
(7.1)

 
(5.9)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FINANCIAL DATA - YEAR TO DATE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before provision for income taxes

 

$
6,900 

 

 

 

 

$
5,810 

 

 

 

 
18.8 

 

Provision for income taxes

 

 
2,193 

 

 

 

 

 
1,962 

 

 

 

 
11.8 

 

Net income

 

 
4,707 

 

 

 

 

 
3,848 

 

 

 

 
22.3 

 

Preferred stock dividends and discount accretion

 

 

 -

 

 

 

 

 
988 

 

 

 

 
(100.0)

 

Income available to common shareholders

 

$
4,707 

 

 

 

 

$
2,860 

 

 

 

 
64.6 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share - Basic (1)

 

$
0.61 

 

 

 

 

$
0.38 

 

 

 

 
60.5 

 

Net income per common share - Diluted (1)

 

$
0.61 

 

 

 

 

$
0.36 

 

 

 

 
69.4 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 
0.70 

%

 

 

 

 
0.63 

%

 

 

 
11.1 

 

Return on average equity (2)

 

 
10.47 

%

 

 

 

 
6.67 

%

 

 

 
57.0 

 

Efficiency ratio

 

 
69.40 

%

 

 

 

 
72.17 

%

 

 

 
(3.8)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SHARE INFORMATION:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Market price per share

 

$
9.63 

 

$
9.28 

 

$
7.46 

 

 
3.8 

 
29.1 

 

Dividends paid

 

$
0.03 

 

$
0.02 

 

$
0.01 

 

 
0.5 

 
2.0 

 

Book value per common share

 

$
8.17 

 

$
7.95 

 

$
7.41 

 

 
2.8 

 
10.3 

 

Average diluted shares outstanding (QTD)

 

 
7,946 

 

 
7,690 

 

 
7,822 

 

 
3.3 

 
1.6 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CAPITAL RATIOS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total equity to total assets

 

 
7.05 

%

 
6.49 

%

 
6.38 

%

 
8.6 

 
10.5 

 

Leverage ratio

 

 
8.96 

%

 
8.24 

%

 
8.33 

%

 
8.7 

 
7.6 

 

Tier 1 risk-based capital ratio

 

 
11.58 

%

 
10.86 

%

 
10.81 

%

 
6.6 

 
7.1 

 

Total risk-based capital ratio

 

 
12.84 

%

 
12.12 

%

 
12.07 

%

 
5.9 

 
6.4 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CREDIT QUALITY AND RATIOS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonperforming assets

 

$
12,870 

 

$
13,044 

 

$
17,903 

 

 
(1.3)

 
(28.1)

 

 

QTD net chargeoffs (annualized) to QTD average lons

 

 
0.27 

%

 
0.29 

%

 
0.84 

%

 
(6.9)

 
(67.9)

 

Allowance for loan losses to total loans

 

 
1.74 

%

 
1.81 

%

 
2.05 

%

 
(3.9)

 
(15.1)

 

Nonperforming assets to total loans and OREO

 

 
1.73 

%

 
1.84 

%

 
2.70 

%

 
(6.0)

 
(35.9)

 

Nonperforming assets to total assets

 

 
1.33 

%

 
1.40 

%

 
2.04 

%

 
(5.0)

%
(34.8)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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

September 30, 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2014 vs.

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2013

 

September 30, 2013

 

(In thousands, except percentages)

 

September 30, 2014

 

December 31, 2013

 

September 30, 2013

 

 

%

 

%

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$
29,384 

 

$
24,272 

 

$
27,602 

 

 
21.1 

%
6.5 

%

Federal funds sold and interest-bearing deposits

 

 
72,205 

 

 
75,132 

 

 
47,124 

 

 
(3.9)

 
53.2 

 

Cash and cash equivalents

 

 
101,589 

 

 
99,404 

 

 
74,726 

 

 
2.2 

 
35.9 

 

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities available for sale

 

 
66,054 

 

 
81,133 

 

 
80,926 

 

 
(18.6)

 
(18.4)

 

Securities held to maturity

 

 
20,825 

 

 
26,381 

 

 
25,980 

 

 
(21.1)

 
(19.8)

 

Total securities

 

 
86,879 

 

 
107,514 

 

 
106,906 

 

 
(19.2)

 
(18.7)

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SBA loans held for sale

 

 
7,835 

 

 
6,673 

 

 
5,893 

 

 
17.4 

 
33.0 

 

SBA loans held for investment

 

 
44,502 

 

 
48,918 

 

 
50,445 

 

 
(9.0)

 
(11.8)

 

SBA 504 loans

 

 
34,152 

 

 
31,564 

 

 
37,041 

 

 
8.2 

 
(7.8)

 

Commercial loans

 

 
391,338 

 

 
363,340 

 

 
348,625 

 

 
7.7 

 
12.3 

 

Residential mortgage loans

 

 
211,450 

 

 
182,067 

 

 
173,129 

 

 
16.1 

 
22.1 

 

Consumer loans  

 

 
55,089 

 

 
46,139 

 

 
45,484 

 

 
19.4 

 
21.1 

 

Total loans

 

 
744,366 

 

 
678,701 

 

 
660,617 

 

 
9.7 

 
12.7 

 

Allowance for loan losses

 

 
(12,918)

 

 
(13,141)

 

 
(13,550)

 

 
1.7 

 
4.7 

 

Net loans

 

 
731,448 

 

 
665,560 

 

 
647,067 

 

 
9.9 

 
13.0 

 

Premises and equipment, net

 

 
15,420 

 

 
15,672 

 

 
15,671 

 

 
(1.6)

 
(1.6)

 

Bank owned life insurance ("BOLI")

 

 
12,907 

 

 
12,749 

 

 
12,648 

 

 
1.2 

 
2.0 

 

Deferred tax assets

 

 
6,066 

 

 
6,752 

 

 
6,880 

 

 
(10.2)

 
(11.8)

 

Federal Home Loan Bank stock

 

 
4,907 

 

 
5,392 

 

 
3,952 

 

 
(9.0)

 
24.2 

 

Accrued interest receivable

 

 
3,422 

 

 
3,272 

 

 
3,131 

 

 
4.6 

 
9.3 

 

Other real estate owned ("OREO")

 

 
1,658 

 

 
633 

 

 
1,249 

 

 
161.9 

 
32.7 

 

Goodwill and other intangibles

 

 
1,516 

 

 
1,516 

 

 
1,516 

 

 

 -

 

 -

 

Other assets

 

 
3,781 

 

 
2,654 

 

 
2,355 

 

 
42.5 

 
60.6 

 

Total assets

 

$
969,593 

 

$
921,118 

 

$
876,101 

 

 
5.3 

%
10.7 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand deposits

 

$
149,272 

 

$
136,035 

 

$
163,617 

 

 
9.7 

%
(8.8)

%

Interest-bearing demand deposits

 

 
117,260 

 

 
130,806 

 

 
119,579 

 

 
(10.4)

 
(1.9)

 

Savings deposits

 

 
292,108 

 

 
266,503 

 

 
280,892 

 

 
9.6 

 
4.0 

 

Time deposits, under $100,000

 

 
115,143 

 

 
108,258 

 

 
95,990 

 

 
6.4 

 
20.0 

 

Time deposits, $100,000 and over

 

 
108,137 

 

 
97,096 

 

 
67,034 

 

 
11.4 

 
61.3 

 

Total deposits

 

 
781,920 

 

 
738,698 

 

 
727,112 

 

 
5.9 

 
7.5 

 

Borrowed funds

 

 
100,000 

 

 
107,000 

 

 
75,000 

 

 
(6.5)

 
33.3 

 

Subordinated debentures

 

 
15,465 

 

 
15,465 

 

 
15,465 

 

 

 -

 

 -

 

Accrued interest payable

 

 
476 

 

 
454 

 

 
430 

 

 
4.8 

 
10.7 

 

Accrued expenses and other liabilities

 

 
3,348 

 

 
2,328 

 

 
2,155 

 

 
43.8 

 
55.4 

 

Total liabilities

 

 
901,209 

 

 
863,945 

 

 
820,162 

 

 
4.3 

 
9.9 

 

Shareholders' equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 
58,638 

 

 
52,051 

 

 
51,944 

 

 
12.7 

 
12.9 

 

Retained earnings

 

 
9,751 

 

 
5,598 

 

 
4,408 

 

 
74.2 

 
121.2 

 

Accumulated other comprehensive loss

 

 
(5)

 

 
(476)

 

 
(413)

 

 
98.9 

 
98.8 

 

Total shareholders' equity

 

 
68,384 

 

 
57,173 

 

 
55,939 

 

 
19.6 

 
22.2 

 

Total liabilities and shareholders' equity

 

$
969,593 

 

$
921,118 

 

$
876,101 

 

 
5.3 

%
10.7 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issued and outstanding common shares

 

 
8,370 

 

 
7,577 

 

 
7,546 

 

 

 

 

 

 

 

UNITY BANCORP, INC.

QTD CONSOLIDATED STATEMENTS OF INCOME

September 30, 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2014 vs.

 

 

 

For the three months ended

 

 

June 30, 2014

 

September 30, 2013

 

(In thousands, except percentages and per share amounts)

 

September 30, 2014

 

June 30, 2014

 

September 30, 2013

 

 

$

 

%

 

$

 

%

 

INTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal funds sold and interest-bearing deposits

 

$
12 

 

$
10 

 

$
9 

 

 

$
2 

 

 
20.0 

%

$
3 

 

 
33.3 

%

Federal Home Loan Bank stock

 

 
40 

 

 
40 

 

 
40 

 

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 
461 

 

 
552 

 

 
591 

 

 

 
(91)

 

 
(16.5)

 

 
(130)

 

 
(22.0)

 

Tax-exempt

 

 
81 

 

 
90 

 

 
109 

 

 

 
(9)

 

 
(10.0)

 

 
(28)

 

 
(25.7)

 

Total securities

 

 
542 

 

 
642 

 

 
700 

 

 

 
(100)

 

 
(15.6)

 

 
(158)

 

 
(22.6)

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SBA loans

 

 
636 

 

 
643 

 

 
586 

 

 

 
(7)

 

 
(1.1)

 

 
50 

 

 
8.5 

 

SBA 504 loans

 

 
419 

 

 
433 

 

 
411 

 

 

 
(14)

 

 
(3.2)

 

 
8 

 

 
1.9 

 

Commercial loans

 

 
4,926 

 

 
4,738 

 

 
4,387 

 

 

 
188 

 

 
4.0 

 

 
539 

 

 
12.3 

 

Residential mortgage loans

 

 
2,327 

 

 
2,052 

 

 
1,861 

 

 

 
275 

 

 
13.4 

 

 
466 

 

 
25.0 

 

Consumer loans

 

 
589 

 

 
544 

 

 
480 

 

 

 
45 

 

 
8.3 

 

 
109 

 

 
22.7 

 

Total loans

 

 
8,897 

 

 
8,410 

 

 
7,725 

 

 

 
487 

 

 
5.8 

 

 
1,172 

 

 
15.2 

 

Total interest income

 

 
9,491 

 

 
9,102 

 

 
8,474 

 

 

 
389 

 

 
4.3 

 

 
1,017 

 

 
12.0 

 

INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand deposits

 

 
98 

 

 
109 

 

 
90 

 

 

 
(11)

 

 
(10.1)

 

 
8 

 

 
8.9 

 

Savings deposits

 

 
216 

 

 
188 

 

 
183 

 

 

 
28 

 

 
14.9 

 

 
33 

 

 
18.0 

 

Time deposits

 

 
725 

 

 
693 

 

 
510 

 

 

 
32 

 

 
4.6 

 

 
215 

 

 
42.2 

 

Borrowed funds and subordinated debentures

 

 
820 

 

 
807 

 

 
820 

 

 

 
13 

 

 
1.6 

 

 

 -

 

 

 -

 

Total interest expense

 

 
1,859 

 

 
1,797 

 

 
1,603 

 

 

 
62 

 

 
3.5 

 

 
256 

 

 
16.0 

 

Net interest income

 

 
7,632 

 

 
7,305 

 

 
6,871 

 

 

 
327 

 

 
4.5 

 

 
761 

 

 
11.1 

 

Provision for loan losses

 

 
550 

 

 
550 

 

 
600 

 

 

 

 -

 

 

 -

 

 
(50)

 

 
(8.3)

 

Net interest income after provision for loan losses

 

 
7,082 

 

 
6,755 

 

 
6,271 

 

 

 
327 

 

 
4.8 

 

 
811 

 

 
12.9 

 

NONINTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Branch fee income

 

 
388 

 

 
342 

 

 
398 

 

 

 
46 

 

 
13.5 

 

 
(10)

 

 
(2.5)

 

Service and loan fee income

 

 
292 

 

 
285 

 

 
351 

 

 

 
7 

 

 
2.5 

 

 
(59)

 

 
(16.8)

 

Gain on sale of SBA loans held for sale, net

 

 
295 

 

 
255 

 

 
280 

 

 

 
40 

 

 
15.7 

 

 
15 

 

 
5.4 

 

Gain on sale of mortgage loans, net

 

 
263 

 

 
188 

 

 
314 

 

 

 
75 

 

 
39.9 

 

 
(51)

 

 
(16.2)

 

BOLI income

 

 
400 

 

 
96 

 

 
100 

 

 

 
304 

 

 
316.7 

 

 
300 

 

 
300.0 

 

Net security gains

 

 

 -

 

 
268 

 

 
34 

 

 

 
(268)

 

 
(100.0)

 

 
(34)

 

 
(100.0)

 

Other income

 

 
215 

 

 
206 

 

 
173 

 

 

 
9 

 

 
4.4 

 

 
42 

 

 
24.3 

 

Total noninterest income

 

 
1,853 

 

 
1,640 

 

 
1,650 

 

 

 
213 

 

 
13.0 

 

 
203 

 

 
12.3 

 

NONINTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

 
3,214 

 

 
3,122 

 

 
2,984 

 

 

 
92 

 

 
2.9 

 

 
230 

 

 
7.7 

 

Occupancy

 

 
604 

 

 
619 

 

 
598 

 

 

 
(15)

 

 
(2.4)

 

 
6 

 

 
1.0 

 

Processing and communications

 

 
667 

 

 
597 

 

 
598 

 

 

 
70 

 

 
11.7 

 

 
69 

 

 
11.5 

 

Furniture and equipment

 

 
377 

 

 
379 

 

 
374 

 

 

 
(2)

 

 
(0.5)

 

 
3 

 

 
0.8 

 

Professional services

 

 
159 

 

 
247 

 

 
210 

 

 

 
(88)

 

 
(35.6)

 

 
(51)

 

 
(24.3)

 

Loan costs

 

 
225 

 

 
174 

 

 
188 

 

 

 
51 

 

 
29.3 

 

 
37 

 

 
19.7 

 

OREO expenses

 

 
71 

 

 
95 

 

 
174 

 

 

 
(24)

 

 
(25.3)

 

 
(103)

 

 
(59.2)

 

Deposit insurance

 

 
166 

 

 
171 

 

 
165 

 

 

 
(5)

 

 
(2.9)

 

 
1 

 

 
0.6 

 

Advertising

 

 
291 

 

 
287 

 

 
218 

 

 

 
4 

 

 
1.4 

 

 
73 

 

 
33.5 

 

Other expenses

 

 
467 

 

 
453 

 

 
426 

 

 

 
14 

 

 
3.1 

 

 
41 

 

 
9.6 

 

Total noninterest expense

 

 
6,241 

 

 
6,144 

 

 
5,935 

 

 

 
97 

 

 
1.6 

 

 
306 

 

 
5.2 

 

Income before provision for income taxes

 

 
2,694 

 

 
2,251 

 

 
1,986 

 

 

 
443 

 

 
19.7 

 

 
708 

 

 
35.6 

 

Provision for income taxes

 

 
808 

 

 
723 

 

 
684 

 

 

 
85 

 

 
11.8 

 

 
124 

 

 
18.1 

 

Net income

 

 
1,886 

 

 
1,528 

 

 
1,302 

 

 

 
358 

 

 
23.4 

 

 
584 

 

 
44.9 

 

Preferred stock dividends and discount accretion

 

 

 -

 

 

 -

 

 
119 

 

 

 

 -

 

 

 -

 

 
(119)

 

 
(100.0)

 

 

Income available to common shareholders

 

$
1,886 

 

$
1,528 

 

$
1,183 

 

 

$
358 

 

 
23.4 

%

$
703 

 

 
59.4 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effective tax rate

 

 
30.0 

%

 
32.1 

%

 
34.4 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share - Basic (1)

 

$
0.24 

 

$
0.20 

 

$
0.16 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share - Diluted (1)

 

$
0.24 

 

$
0.20 

 

$
0.15 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding - Basic

 

 
7,847 

 

 
7,605 

 

 
7,545 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding - Diluted

 

 
7,946 

 

 
7,690 

 

 
7,822 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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.

YTD CONSOLIDATED STATEMENTS OF INCOME

September 30, 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the nine months ended September 30,

 

 

Current YTD vs. Prior YTD

 

(In thousands, except percentages and per share amounts)

 

2014

 

2013

 

 

$

 

%

 

INTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal funds sold and interest-bearing deposits

 

$
31 

 

$
31 

 

 

$

 -

 

 

 -

%

Federal Home Loan Bank stock

 

 
127 

 

 
118 

 

 

 
9 

 

 
7.6 

 

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 
1,740 

 

 
1,858 

 

 

 
(118)

 

 
(6.4)

 

Tax-exempt

 

 
275 

 

 
354 

 

 

 
(79)

 

 
(22.3)

 

Total securities

 

 
2,015 

 

 
2,212 

 

 

 
(197)

 

 
(8.9)

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SBA loans

 

 
1,863 

 

 
2,141 

 

 

 
(278)

 

 
(13.0)

 

SBA 504 loans

 

 
1,251 

 

 
1,503 

 

 

 
(252)

 

 
(16.8)

 

Commercial loans

 

 
14,264 

 

 
12,638 

 

 

 
1,626 

 

 
12.9 

 

Residential mortgage loans

 

 
6,438 

 

 
5,060 

 

 

 
1,378 

 

 
27.2 

 

Consumer loans

 

 
1,628 

 

 
1,485 

 

 

 
143 

 

 
9.6 

 

Total loans

 

 
25,444 

 

 
22,827 

 

 

 
2,617 

 

 
11.5 

 

Total interest income

 

 
27,617 

 

 
25,188 

 

 

 
2,429 

 

 
9.6 

 

INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand deposits

 

 
318 

 

 
281 

 

 

 
37 

 

 
13.2 

 

Savings deposits

 

 
586 

 

 
524 

 

 

 
62 

 

 
11.8 

 

Time deposits

 

 
2,062 

 

 
1,593 

 

 

 
469 

 

 
29.4 

 

Borrowed funds and subordinated debentures

 

 
2,426 

 

 
2,428 

 

 

 
(2)

 

 
(0.1)

 

Total interest expense

 

 
5,392 

 

 
4,826 

 

 

 
566 

 

 
11.7 

 

Net interest income

 

 
22,225 

 

 
20,362 

 

 

 
1,863 

 

 
9.1 

 

Provision for loan losses

 

 
1,700 

 

 
1,550 

 

 

 
150 

 

 
9.7 

 

Net interest income after provision for loan losses

 

 
20,525 

 

 
18,812 

 

 

 
1,713 

 

 
9.1 

 

NONINTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Branch fee income

 

 
1,106 

 

 
1,093 

 

 

 
13 

 

 
1.2 

 

Service and loan fee income

 

 
872 

 

 
975 

 

 

 
(103)

 

 
(10.6)

 

Gain on sale of SBA loans held for sale, net

 

 
633 

 

 
607 

 

 

 
26 

 

 
4.3 

 

Gain on sale of mortgage loans, net

 

 
816 

 

 
1,339 

 

 

 
(523)

 

 
(39.1)

 

BOLI income

 

 
593 

 

 
246 

 

 

 
347 

 

 
141.1 

 

Net security gains

 

 
378 

 

 
367 

 

 

 
11 

 

 
3.0 

 

Other income

 

 
621 

 

 
505 

 

 

 
116 

 

 
23.0 

 

Total noninterest income

 

 
5,019 

 

 
5,132 

 

 

 
(113)

 

 
(2.2)

 

NONINTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

 
9,553 

 

 
9,325 

 

 

 
228 

 

 
2.4 

 

Occupancy

 

 
1,882 

 

 
1,918 

 

 

 
(36)

 

 
(1.9)

 

Processing and communications

 

 
1,847 

 

 
1,720 

 

 

 
127 

 

 
7.4 

 

Furniture and equipment

 

 
1,112 

 

 
1,110 

 

 

 
2 

 

 
0.2 

 

Professional services

 

 
617 

 

 
634 

 

 

 
(17)

 

 
(2.7)

 

Loan costs

 

 
569 

 

 
594 

 

 

 
(25)

 

 
(4.2)

 

OREO expenses

 

 
414 

 

 
364 

 

 

 
50 

 

 
13.7 

 

Deposit insurance

 

 
515 

 

 
493 

 

 

 
22 

 

 
4.5 

 

Advertising

 

 
729 

 

 
519 

 

 

 
210 

 

 
40.5 

 

Other expenses

 

 
1,406 

 

 
1,457 

 

 

 
(51)

 

 
(3.5)

 

Total noninterest expense

 

 
18,644 

 

 
18,134 

 

 

 
510 

 

 
2.8 

 

Income before provision for income taxes

 

 
6,900 

 

 
5,810 

 

 

 
1,090 

 

 
18.8 

 

Provision for income taxes

 

 
2,193 

 

 
1,962 

 

 

 
231 

 

 
11.8 

 

Net income

 

 
4,707 

 

 
3,848 

 

 

 
859 

 

 
22.3 

 

Preferred stock dividends and discount accretion

 

 

 -

 

 
988 

 

 

 
(988)

 

 
(100.0)

 

Income available to common shareholders

 

$
4,707 

 

$
2,860 

 

 

$
1,847 

 

 
64.6 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effective tax rate

 

 
31.8 

%

 
33.8 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share - Basic (1)

 

$
0.61 

 

$
0.38 

 

 

 

 

 

 

 

 

Net income per common share - Diluted (1)

 

$
0.61 

 

$
0.36 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding - Basic

 

 
7,680 

 

 
7,542 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding - Diluted

 

 
7,765 

 

 
7,867 

 

 

 

 

 

 

 

 

(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

September 30, 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended

 

 

 

September 30, 2014

 

June 30, 2014

 

 

 

Average Balance

 

Interest

 

Rate/Yield

 

Average Balance

 

Interest

 

Rate/Yield

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal funds sold and interest-bearing deposits

 

$
38,754 

 

$
12 

 

 
0.12 

%

$
47,859 

 

$
10 

 

 
0.08 

%

Federal Home Loan Bank stock

 

 
3,948 

 

 
40 

 

 
4.02 

 

 
4,149 

 

 
40 

 

 
3.87 

 

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 
75,685 

 

 
461 

 

 
2.44 

 

 
85,598 

 

 
552 

 

 
2.58 

 

Tax-exempt

 

 
13,348 

 

 
119 

 

 
3.57 

 

 
14,608 

 

 
133 

 

 
3.64 

 

Total securities (A)

 

 
89,033 

 

 
580 

 

 
2.61 

 

 
100,206 

 

 
685 

 

 
2.73 

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SBA loans

 

 
53,400 

 

 
636 

 

 
4.76 

 

 
53,965 

 

 
643 

 

 
4.77 

 

SBA 504 loans

 

 
34,310 

 

 
419 

 

 
4.85 

 

 
34,415 

 

 
433 

 

 
5.05 

 

Commercial loans

 

 
380,983 

 

 
4,926 

 

 
5.13 

 

 
370,345 

 

 
4,738 

 

 
5.13 

 

Residential mortgage loans

 

 
201,793 

 

 
2,327 

 

 
4.61 

 

 
185,016 

 

 
2,052 

 

 
4.44 

 

Consumer loans  

 

 
53,000 

 

 
589 

 

 
4.41 

 

 
47,737 

 

 
544 

 

 
4.57 

 

Total loans (B)

 

 
723,486 

 

 
8,897 

 

 
4.89 

 

 
691,478 

 

 
8,410 

 

 
4.87 

 

Total interest-earning assets

 

$
855,221 

 

$
9,529 

 

 
4.43 

%

$
843,692 

 

$
9,145 

 

 
4.34 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

 
29,873 

 

 

 

 

 

 

 

 
24,368 

 

 

 

 

 

 

 

Allowance for loan losses

 

 
(12,980)

 

 

 

 

 

 

 

 
(13,037)

 

 

 

 

 

 

 

Other assets

 

 
44,656 

 

 

 

 

 

 

 

 
45,410 

 

 

 

 

 

 

 

Total noninterest-earning assets

 

 
61,549 

 

 

 

 

 

 

 

 
56,741 

 

 

 

 

 

 

 

Total assets

 

$
916,770 

 

 

 

 

 

 

 

$
900,433 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand deposits

 

$
116,646 

 

$
98 

 

 
0.33 

%

$
128,351 

 

$
109 

 

 
0.34 

%

Savings deposits

 

 
271,356 

 

 
216 

 

 
0.32 

 

 
261,419 

 

 
188 

 

 
0.29 

 

Time deposits

 

 
221,584 

 

 
725 

 

 
1.30 

 

 
213,122 

 

 
693 

 

 
1.30 

 

Total interest-bearing deposits

 

 
609,586 

 

 
1,039 

 

 
0.68 

 

 
602,892 

 

 
990 

 

 
0.66 

 

Borrowed funds and subordinated debentures

 

 
91,574 

 

 
820 

 

 
3.50 

 

 
91,069 

 

 
807 

 

 
3.51 

 

Total interest-bearing liabilities

 

$
701,160 

 

$
1,859 

 

 
1.05 

%

$
693,961 

 

$
1,797 

 

 
1.03 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand deposits

 

 
148,724 

 

 

 

 

 

 

 

 
143,720 

 

 

 

 

 

 

 

Other liabilities

 

 
3,921 

 

 

 

 

 

 

 

 
3,332 

 

 

 

 

 

 

 

Total noninterest-bearing liabilities

 

 
152,645 

 

 

 

 

 

 

 

 
147,052 

 

 

 

 

 

 

 

Total shareholders' equity

 

 
62,965 

 

 

 

 

 

 

 

 
59,420 

 

 

 

 

 

 

 

Total liabilities and shareholders' equity

 

$
916,770 

 

 

 

 

 

 

 

$
900,433 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest spread

 

 

 

 

$
7,670 

 

 
3.38 

%

 

 

 

$
7,348 

 

 
3.31 

%

Tax-equivalent basis adjustment

 

 

 

 

 
(38)

 

 

 

 

 

 

 

 
(43)

 

 

 

 

Net interest income

 

 

 

 

$
7,632 

 

 

 

 

 

 

 

$
7,305 

 

 

 

 

Net interest margin

 

 

 

 

 

 

 

 
3.56 

%

 

 

 

 

 

 

 
3.49 

%

(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

September 30, 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended

 

 

 

September 30, 2014

 

September 30, 2013

 

 

 

Average Balance

 

Interest

 

Rate/Yield

 

Average Balance

 

Interest

 

Rate/Yield

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal funds sold and interest-bearing deposits

 

$
38,754 

 

$
12 

 

 
0.12 

%

$
25,841 

 

$
9 

 

 
0.14 

%

Federal Home Loan Bank stock

 

 
3,948 

 

 
40 

 

 
4.02 

 

 
4,022 

 

 
40 

 

 
3.95 

 

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 
75,685 

 

 
461 

 

 
2.44 

 

 
87,694 

 

 
591 

 

 
2.70 

 

Tax-exempt

 

 
13,348 

 

 
119 

 

 
3.57 

 

 
18,474 

 

 
162 

 

 
3.51 

 

Total securities (A)

 

 
89,033 

 

 
580 

 

 
2.61 

 

 
106,168 

 

 
753 

 

 
2.84 

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SBA loans

 

 
53,400 

 

 
636 

 

 
4.76 

 

 
59,755 

 

 
586 

 

 
3.92 

 

SBA 504 loans

 

 
34,310 

 

 
419 

 

 
4.85 

 

 
37,971 

 

 
411 

 

 
4.29 

 

Commercial loans

 

 
380,983 

 

 
4,926 

 

 
5.13 

 

 
335,404 

 

 
4,387 

 

 
5.19 

 

Residential mortgage loans

 

 
201,793 

 

 
2,327 

 

 
4.61 

 

 
163,805 

 

 
1,861 

 

 
4.54 

 

Consumer loans  

 

 
53,000 

 

 
589 

 

 
4.41 

 

 
45,709 

 

 
480 

 

 
4.17 

 

Total loans (B)

 

 
723,486 

 

 
8,897 

 

 
4.89 

 

 
642,644 

 

 
7,725 

 

 
4.78 

 

Total interest-earning assets

 

$
855,221 

 

$
9,529 

 

 
4.43 

%

$
778,675 

 

$
8,527 

 

 
4.36 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

 
29,873 

 

 

 

 

 

 

 

 
24,367 

 

 

 

 

 

 

 

Allowance for loan losses

 

 
(12,980)

 

 

 

 

 

 

 

 
(14,310)

 

 

 

 

 

 

 

Other assets

 

 
44,656 

 

 

 

 

 

 

 

 
44,184 

 

 

 

 

 

 

 

Total noninterest-earning assets

 

 
61,549 

 

 

 

 

 

 

 

 
54,241 

 

 

 

 

 

 

 

Total assets

 

$
916,770 

 

 

 

 

 

 

 

$
832,916 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand deposits

 

$
116,646 

 

$
98 

 

 
0.33 

%

$
115,085 

 

$
90 

 

 
0.31 

%

Savings deposits

 

 
271,356 

 

 
216 

 

 
0.32 

 

 
277,501 

 

 
183 

 

 
0.26 

 

Time deposits

 

 
221,584 

 

 
725 

 

 
1.30 

 

 
150,533 

 

 
510 

 

 
1.34 

 

Total interest-bearing deposits

 

 
609,586 

 

 
1,039 

 

 
0.68 

 

 
543,119 

 

 
783 

 

 
0.57 

 

Borrowed funds and subordinated debentures

 

 
91,574 

 

 
820 

 

 
3.50 

 

 
92,025 

 

 
820 

 

 
3.49 

 

Total interest-bearing liabilities

 

$
701,160 

 

$
1,859 

 

 
1.05 

%

$
635,144 

 

$
1,603 

 

 
0.99 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand deposits

 

 
148,724 

 

 

 

 

 

 

 

 
137,711 

 

 

 

 

 

 

 

Other liabilities

 

 
3,921 

 

 

 

 

 

 

 

 
2,918 

 

 

 

 

 

 

 

Total noninterest-bearing liabilities

 

 
152,645 

 

 

 

 

 

 

 

 
140,629 

 

 

 

 

 

 

 

Total shareholders' equity

 

 
62,965 

 

 

 

 

 

 

 

 
57,143 

 

 

 

 

 

 

 

Total liabilities and shareholders' equity

 

$
916,770 

 

 

 

 

 

 

 

$
832,916 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest spread

 

 

 

 

$
7,670 

 

 
3.38 

%

 

 

 

$
6,924 

 

 
3.37 

%

Tax-equivalent basis adjustment

 

 

 

 

 
(38)

 

 

 

 

 

 

 

 
(53)

 

 

 

 

Net interest income

 

 

 

 

$
7,632 

 

 

 

 

 

 

 

$
6,871 

 

 

 

 

Net interest margin

 

 

 

 

 

 

 

 
3.56 

%

 

 

 

 

 

 

 
3.53 

%

(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.

YEAR TO DATE NET INTEREST MARGIN

September 30, 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the nine months ended

 

 

 

September 30, 2014

 

September 30, 2013

 

 

 

Average Balance

 

Interest

 

Rate/Yield

 

Average Balance

 

Interest

 

Rate/Yield

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal funds sold and interest-bearing deposits

 

$
42,869 

 

$
31 

 

 
0.10 

%

$
37,760 

 

$
31 

 

 
0.11 

%

Federal Home Loan Bank stock

 

 
4,028 

 

 
127 

 

 
4.22 

 

 
4,006 

 

 
118 

 

 
3.94 

 

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 
84,634 

 

 
1,740 

 

 
2.74 

 

 
94,431 

 

 
1,858 

 

 
2.62 

 

Tax-exempt

 

 
14,920 

 

 
407 

 

 
3.64 

 

 
19,130 

 

 
525 

 

 
3.66 

 

Total securities (A)

 

 
99,554 

 

 
2,147 

 

 
2.87 

 

 
113,561 

 

 
2,383 

 

 
2.80 

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SBA loans

 

 
54,047 

 

 
1,863 

 

 
4.60 

 

 
62,695 

 

 
2,141 

 

 
4.55 

 

SBA 504 loans

 

 
33,491 

 

 
1,251 

 

 
4.99 

 

 
39,493 

 

 
1,503 

 

 
5.09 

 

Commercial loans

 

 
371,951 

 

 
14,264 

 

 
5.13 

 

 
318,554 

 

 
12,638 

 

 
5.30 

 

Residential mortgage loans

 

 
189,365 

 

 
6,438 

 

 
4.53 

 

 
147,944 

 

 
5,060 

 

 
4.56 

 

Consumer loans  

 

 
48,918 

 

 
1,628 

 

 
4.45 

 

 
45,703 

 

 
1,485 

 

 
4.34 

 

Total loans (B)

 

 
697,772 

 

 
25,444 

 

 
4.87 

 

 
614,389 

 

 
22,827 

 

 
4.96 

 

Total interest-earning assets

 

$
844,223 

 

$
27,749 

 

 
4.39 

%

$
769,716 

 

$
25,359 

 

 
4.40 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

 
25,900 

 

 

 

 

 

 

 

 
22,340 

 

 

 

 

 

 

 

Allowance for loan losses

 

 
(13,141)

 

 

 

 

 

 

 

 
(14,682)

 

 

 

 

 

 

 

Other assets

 

 
44,559 

 

 

 

 

 

 

 

 
41,198 

 

 

 

 

 

 

 

Total noninterest-earning assets

 

 
57,318 

 

 

 

 

 

 

 

 
48,856 

 

 

 

 

 

 

 

Total assets

 

$
901,541 

 

 

 

 

 

 

 

$
818,572 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand deposits

 

$
125,341 

 

$
318 

 

 
0.34 

%

$
116,709 

 

$
281 

 

 
0.32 

%

Savings deposits

 

 
266,384 

 

 
586 

 

 
0.29 

 

 
280,973 

 

 
524 

 

 
0.25 

 

Time deposits

 

 
213,339 

 

 
2,062 

 

 
1.29 

 

 
132,607 

 

 
1,593 

 

 
1.61 

 

Total interest-bearing deposits

 

 
605,064 

 

 
2,966 

 

 
0.65 

 

 
530,289 

 

 
2,398 

 

 
0.61 

 

Borrowed funds and subordinated debentures

 

 
91,304 

 

 
2,426 

 

 
3.50 

 

 
91,387 

 

 
2,428 

 

 
3.50 

 

Total interest-bearing liabilities

 

$
696,368 

 

$
5,392 

 

 
1.02 

%

$
621,676 

 

$
4,826 

 

 
1.03 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand deposits

 

 
141,598 

 

 

 

 

 

 

 

 
124,539 

 

 

 

 

 

 

 

Other liabilities

 

 
3,477 

 

 

 

 

 

 

 

 
3,237 

 

 

 

 

 

 

 

Total noninterest-bearing liabilities

 

 
145,075 

 

 

 

 

 

 

 

 
127,776 

 

 

 

 

 

 

 

Total shareholders' equity

 

 
60,098 

 

 

 

 

 

 

 

 
69,120 

 

 

 

 

 

 

 

Total liabilities and shareholders' equity

 

$
901,541 

 

 

 

 

 

 

 

$
818,572 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest spread

 

 

 

 

$
22,357 

 

 
3.37 

%

 

 

 

$
20,533 

 

 
3.37 

%

Tax-equivalent basis adjustment

 

 

 

 

 
(132)

 

 

 

 

 

 

 

 
(171)

 

 

 

 

Net interest income

 

 

 

 

$
22,225 

 

 

 

 

 

 

 

$
20,362 

 

 

 

 

Net interest margin

 

 

 

 

 

 

 

 
3.54 

%

 

 

 

 

 

 

 
3.57 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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

September 30, 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts in thousands, except percentages

 

September 30, 2014

 

June 30, 2014

 

March 31, 2014

 

December 31, 2013

 

September 30, 2013

 

ALLOWANCE FOR LOAN LOSSES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, beginning of period

 

$
12,858 

 

$
12,807 

 

$
13,141 

 

$
13,550 

 

$
14,309 

 

Provision for loan losses charged to expense

 

 
550 

 

 
550 

 

 
600 

 

 
800 

 

 
600 

 

 

 

 
13,408 

 

 
13,357 

 

 
13,741 

 

 
14,350 

 

 
14,909 

 

Less: Chargeoffs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SBA loans

 

 
232 

 

 
199 

 

 
53 

 

 
128 

 

 
211 

 

SBA 504 loans

 

 

 -

 

 

 -

 

 
92 

 

 
203 

 

 
590 

 

Commercial loans

 

 
72 

 

 
134 

 

 
454 

 

 
564 

 

 
253 

 

Residential mortgage loans

 

 
201 

 

 
5 

 

 
172 

 

 
125 

 

 
125 

 

Consumer loans

 

 
211 

 

 
203 

 

 
179 

 

 
300 

 

 
229 

 

Total chargeoffs

 

 
716 

 

 
541 

 

 
950 

 

 
1,320 

 

 
1,408 

 

Add: Recoveries

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SBA loans

 

 
111 

 

 
10 

 

 
7 

 

 
93 

 

 
12 

 

SBA 504 loans

 

 

 -

 

 

 -

 

 

 -

 

 
3 

 

 

 -

 

Commercial loans

 

 
95 

 

 
31 

 

 
9 

 

 
14 

 

 
24 

 

Residential mortgage loans

 

 
20 

 

 

 -

 

 

 -

 

 

 -

 

 
13 

 

Consumer loans

 

 

 -

 

 
1 

 

 

 -

 

 
1 

 

 

 -

 

Total recoveries

 

 
226 

 

 
42 

 

 
16 

 

 
111 

 

 
49 

 

Net chargeoffs

 

 
490 

 

 
499 

 

 
934 

 

 
1,209 

 

 
1,359 

 

Balance, end of period

 

$
12,918 

 

$
12,858 

 

$
12,807 

 

$
13,141 

 

$
13,550 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LOAN QUALITY INFORMATION:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonperforming loans (1)

 

$
11,212 

 

$
11,929 

 

$
12,046 

 

$
15,283 

 

$
16,654 

 

Other real estate owned ("OREO")

 

 
1,658 

 

 
1,115 

 

 
2,467 

 

 
633 

 

 
1,249 

 

Nonperforming assets

 

 
12,870 

 

 
13,044 

 

 
14,513 

 

 
15,916 

 

 
17,903 

 

Less:  Amount guaranteed by SBA

 

 
200 

 

 
2,305 

 

 
1,320 

 

 
540 

 

 
592 

 

Net nonperforming assets

 

$
12,670 

 

$
10,739 

 

$
13,193 

 

$
15,376 

 

$
17,311 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans 90 days past due & still accruing 

 

$

 -

 

$

 -

 

$
5 

 

$
19 

 

$
861 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing Troubled Debt Restructurings (TDRs)

 

$
4,194 

 

$
6,965 

 

$
7,363 

 

$
7,452 

 

$
7,705 

 

(1) Nonperforming TDRs included in nonperforming loans

 

 
3,473 

 

 
741 

 

 
448 

 

 
467 

 

 
1,765 

 

Total TDRs

 

$
7,667 

 

$
7,706 

 

$
7,811 

 

$
7,919 

 

$
9,470 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses to:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans at quarter end

 

 
1.74 

%

 
1.81 

%

 
1.87 

%

 
1.94 

%

 
2.05 

%

Nonperforming loans (1)

 

 
115.22 

 

 
107.79 

 

 
106.32 

 

 
85.98 

 

 
81.36 

 

Nonperforming assets

 

 
100.37 

 

 
98.57 

 

 
88.25 

 

 
82.56 

 

 
75.69 

 

Net nonperforming assets

 

 
101.96 

 

 
119.73 

 

 
97.07 

 

 
85.46 

 

 
78.27 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

QTD net chargeoffs (annualized) to QTD average loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SBA loans

 

 
0.90 

%

 
1.40 

%

 
0.34 

%

 
0.25 

%

 
1.32 

%

SBA 504 loans

 

 

 -

 

 

 -

 

 
1.18 

 

 
2.39 

 

 
6.16 

 

Commercial loans

 

 
(0.02)

 

 
0.11 

 

 
0.50 

 

 
0.61 

 

 
0.27 

 

Residential mortgage loans

 

 
0.36 

 

 
0.01 

 

 
0.39 

 

 
0.28 

 

 
0.27 

 

Consumer loans

 

 
1.58 

 

 
1.70 

 

 
1.58 

 

 
2.60 

 

 
1.99 

 

Total loans

 

 
0.27 

%

 
0.29 

%

 
0.56 

%

 
0.72 

%

 
0.84 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonperforming loans to total loans

 

 
1.51 

%

 
1.68 

%

 
1.76 

%

 
2.25 

%

 
2.52 

%

Nonperforming loans and TDRs to total loans

 

 
2.07 

 

 
2.67 

 

 
2.84 

 

 
3.35 

 

 
3.69 

 

Nonperforming assets to total loans and OREO

 

 
1.73 

 

 
1.84 

 

 
2.11 

 

 
2.34 

 

 
2.70 

 

Nonperforming assets to total assets

 

 
1.33 

 

 
1.40 

 

 
1.51 

 

 
1.73 

 

 
2.04 

 

 

UNITY BANCORP, INC.

QUARTERLY FINANCIAL DATA

September 30, 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands, except percentages and per share amounts)

 

September 30, 2014

 

June 30, 2014

 

March 31, 2014

 

December 31, 2013

 

September 30, 2013

 

SUMMARY OF INCOME:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total interest income

 

$
9,491 

 

$
9,102 

 

$
9,023 

 

$
8,766 

 

$
8,474 

 

Total interest expense

 

 
1,859 

 

 
1,797 

 

 
1,736 

 

 
1,703 

 

 
1,603 

 

Net interest income

 

 
7,632 

 

 
7,305 

 

 
7,287 

 

 
7,063 

 

 
6,871 

 

Provision for loan losses

 

 
550 

 

 
550 

 

 
600 

 

 
800 

 

 
600 

 

Net interest income after provision for loan losses

 

 
7,082 

 

 
6,755 

 

 
6,687 

 

 
6,263 

 

 
6,271 

 

Total noninterest income

 

 
1,853 

 

 
1,640 

 

 
1,526 

 

 
1,471 

 

 
1,650 

 

Total noninterest expense

 

 
6,241 

 

 
6,144 

 

 
6,258 

 

 
5,862 

 

 
5,935 

 

Income before provision for income taxes

 

 
2,694 

 

 
2,251 

 

 
1,955 

 

 
1,872 

 

 
1,986 

 

Provision for income taxes

 

 
808 

 

 
723 

 

 
662 

 

 
606 

 

 
684 

 

Net income

 

 
1,886 

 

 
1,528 

 

 
1,293 

 

 
1,266 

 

 
1,302 

 

Preferred stock dividends and discount accretion

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 
119 

 

Income available to common shareholders

 

$
1,886 

 

$
1,528 

 

$
1,293 

 

$
1,266 

 

$
1,183 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share - Basic (1)

 

$
0.24 

 

$
0.20 

 

$
0.17 

 

$
0.17 

 

$
0.16 

 

Net income per common share - Diluted (1)

 

$
0.24 

 

$
0.20 

 

$
0.17 

 

$
0.17 

 

$
0.15 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COMMON SHARE DATA:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Market price per share

 

$
9.63 

 

$
9.28 

 

$
7.95 

 

$
7.66 

 

$
7.46 

 

Dividends paid

 

$
0.03 

 

$
0.02 

 

$
0.02 

 

$
0.01 

 

$
0.01 

 

Book value per common share

 

$
8.17 

 

$
7.95 

 

$
7.74 

 

$
7.55 

 

$
7.41 

 

Weighted average common shares outstanding - Basic

 

 
7,847 

 

 
7,605 

 

 
7,586 

 

 
7,560 

 

 
7,545 

 

Weighted average common shares outstanding - Diluted

 

 
7,946 

 

 
7,690 

 

 
7,654 

 

 
7,618 

 

 
7,822 

 

Issued and outstanding common shares

 

 
8,370 

 

 
7,607 

 

 
7,602 

 

 
7,577 

 

 
7,546 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING RATIOS (Annualized):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 
0.82 

%

 
0.68 

%

 
0.59 

%

 
0.57 

%

 
0.62 

%

Return on average equity (2)

 

 
11.89 

 

 
10.31 

 

 
9.06 

 

 
8.87 

 

 
8.25 

 

Efficiency ratio

 

 
65.80 

 

 
70.81 

 

 
71.91 

 

 
68.87 

 

 
69.93 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BALANCE SHEET DATA:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$
969,593 

 

$
932,414 

 

$
961,168 

 

$
921,118 

 

$
876,101 

 

Total deposits

 

 
781,920 

 

 
728,083 

 

 
767,624 

 

 
738,698 

 

 
727,112 

 

Total loans

 

 
744,366 

 

 
708,889 

 

 
683,951 

 

 
678,701 

 

 
660,617 

 

Total securities

 

 
86,879 

 

 
90,470 

 

 
109,459 

 

 
107,514 

 

 
106,906 

 

Total shareholders' equity

 

 
68,384 

 

 
60,477 

 

 
58,810 

 

 
57,173 

 

 
55,939 

 

Allowance for loan losses

 

 
(12,918)

 

 
(12,858)

 

 
(12,807)

 

 
(13,141)

 

 
(13,550)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TAX EQUIVALENT YIELDS AND RATES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets

 

 
4.43 

%

 
4.34 

%

 
4.39 

%

 
4.25 

%

 
4.36 

%

Interest-bearing liabilities

 

 
1.05 

 

 
1.03 

 

 
1.01 

 

 
0.99 

 

 
0.99 

 

Net interest spread

 

 
3.38 

 

 
3.31 

 

 
3.38 

 

 
3.26 

 

 
3.37 

 

Net interest margin

 

 
3.56 

 

 
3.49 

 

 
3.57 

 

 
3.42 

 

 
3.53 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CREDIT QUALITY:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonperforming assets

 

 
12,870 

 

 
13,044 

 

 
14,513 

 

 
15,916 

 

 
17,903 

 

QTD net chargeoffs (annualized) to QTD average loans

 

 
0.27 

%

 
0.29 

%

 
0.56 

%

 
0.72 

%

 
0.84 

%

Allowance for loan losses to total loans

 

 
1.74 

 

 
1.81 

 

 
1.87 

 

 
1.94 

 

 
2.05 

 

Nonperforming assets to total loans and OREO

 

 
1.73 

 

 
1.84 

 

 
2.11 

 

 
2.34 

 

 
2.70 

 

Nonperforming assets to total assets

 

 
1.33 

 

 
1.40 

 

 
1.51 

 

 
1.73 

 

 
2.04 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CAPITAL RATIOS AND OTHER:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total equity to total assets

 

 
7.05 

%

 
6.49 

%

 
6.12 

%

 
6.21 

%

 
6.38 

%

Leverage ratio

 

 
8.96 

 

 
8.24 

 

 
8.19 

 

 
8.08 

 

 
8.33 

 

Tier 1 risk-based capital ratio

 

 
11.58 

 

 
10.86 

 

 
10.77 

 

 
10.74 

 

 
10.81 

 

Total risk-based capital ratio

 

 
12.84 

 

 
12.12 

 

 
12.03 

 

 
11.99 

 

 
12.07 

 

Number of banking offices

 

 
15 

 

 
15 

 

 
15 

 

 
15 

 

 
15 

 

Number of ATMs

 

 
16 

 

 
16 

 

 
16 

 

 
16 

 

 
16 

 

Number of employees

 

 
163 

 

 
171 

 

 
162 

 

 
163 

 

 
160 

 

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).