EX-99.1 2 a2q18earningsexhibit991.htm EXHIBIT 99.1 Exhibit


For Immediate Release
News Media & Financial Analyst Contact:
Unity Bancorp, Inc. (NSDQ: UNTY)
Alan J. Bedner, EVP and CFO
July 19, 2018
(908) 713-4308

ulogo.jpg Unity Bancorp Reports ulogoa01.jpg
Quarterly Earnings up 56% over Prior Year

primagea05.jpg

Clinton, NJ, July 19, 2018 - Unity Bancorp, Inc. (NASDAQ: UNTY), parent company of Unity Bank, reported net income of $5.4 million, or $0.49 per diluted share, for the quarter ended June 30, 2018, compared to $3.4 million, or $0.32 per diluted share, for the prior year’s second quarter.  Approximately $794 thousand, or $0.07 per diluted share, of this increase is attributed to the lower effective tax rate due to the tax reform bill.




For the six months ended June 30, 2018, Unity reported net income of $10.6 million, or $0.98 per diluted share, compared to $6.6 million, or $0.62 per diluted share for the prior year’s period. Approximately $1.5 million, or $0.14 per diluted share, of this increase is attributed to the lower effective tax rate due to the tax reform bill.
Second Quarter Earnings Highlights

•
Net interest income, our primary driver of earnings, increased $2.0 million to $13.1 million for the quarter ended June 30, 2018, compared to the prior year’s quarter due to strong loan growth and an increased net interest margin.
•
Net interest margin expanded 16 basis points to 3.95%, compared to 3.79% for the prior year’s quarter. The net interest margin declined slightly from 3.99% in the prior sequential quarter ended March 31, 2018, due to the rising cost of deposits.
•
The provision for loan losses increased to $550 thousand during the quarter ended June 30, 2018, compared to $400 thousand in the prior year’s quarter due to the growth in the loan portfolio.
•
Noninterest expense increased $737 thousand compared to the prior year’s quarter but was consistent with the prior sequential quarter at $8.2 million. The year-over-year increase was the result of expansion costs from two additional branches and increased headcount which resulted in higher compensation, benefits, occupancy and equipment expenses.
•
The effective tax rate declined to 20.0% for the quarter compared to 35.6% in the prior year’s quarter, as a result of the “Tax Cuts and Jobs Act,” which was enacted December 22, 2017, and lowered the corporate tax rate. The effective tax rate in the quarter also benefited from the exercise of stock options. The effective tax rate increased slightly compared to the prior sequential quarter ended March 31, 2018, due to the recent NJ tax legislation and is expected to increase in the future as a result.

Balance Sheet Highlights

•
Total loans increased $75.8 million or 6.5%, from year-end 2017 to $1.2 billion at June 30, 2018. Commercial, residential mortgage and consumer loan portfolios increased $44.6 million, $33.2 million, and $8.6 million, respectively, partially offset by a decline of $10.6 million in SBA loans. Our pipeline in all categories remains strong.
•
Total deposits increased $103.3 million, or 9.9%, to $1.1 billion at June 30, 2018. Growth was the result of a combination of retail and broker generated time deposits.
•
Borrowed funds decreased $55.0 million to $220.0 million at June 30, 2018, due to decreased overnight borrowings, the maturity of a repo and an FHLB advance being called.
•
Shareholders’ equity was $128.1 million at June 30, 2018, an increase of $10.0 million from year-end 2017, due to retained net income.
•
Book value per common share was $11.94 as of June 30, 2018.
•
At June 30, 2018, the leverage, common equity Tier I, Tier I and Total Risk Based Capital ratios were 9.63%, 11.05%, 11.92% and 13.14% respectively, all in excess of the ratios required to be deemed “well-capitalized.”
•
Credit quality remains strong with nonperforming assets to total assets of 0.35% at June 30, 2018.

Other Highlights
•
Opened our 19th branch in Bethlehem, PA.
•
Unity Bank received 5-Star Rating from BauerFinancial.


Unity Bancorp, Inc. is a financial service organization headquartered in Clinton, New Jersey, with approximately $1.5 billion in assets and $1.1 billion in deposits. Unity Bank provides financial services to retail, corporate and small business customers through its 19 retail service centers located in Bergen, Hunterdon, Middlesex, Somerset, Union and Warren Counties in New Jersey and Northampton County in 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
June 30, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Jun 30, 2018 vs.
 
 
 
 
 
 
 
 
 
 
Mar 31, 2018
 
Jun 30, 2017
 
(In thousands, except percentages and per share amounts)
 
Jun 30, 2018
 
Mar 31, 2018
 
Jun 30, 2017
 
 
 %
 
 %
 
BALANCE SHEET DATA:
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
 
$
1,514,120

 
$
1,439,902

 
$
1,275,517

 
 
5.2
 %
 
18.7
 %
 
Total deposits
 
1,146,399

 
1,117,514

 
1,003,967

 
 
2.6

 
14.2

 
Total loans
 
1,246,511

 
1,195,110

 
1,046,804

 
 
4.3

 
19.1

 
Total securities
 
65,682

 
67,521

 
75,066

 
 
(2.7
)
 
(12.5
)
 
Total shareholders' equity
 
128,141

 
123,104

 
112,447

 
 
4.1

 
14.0

 
Allowance for loan losses
 
(14,634
)
 
(14,196
)
 
(12,800
)
 
 
3.1

 
14.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
FINANCIAL DATA - QUARTER TO DATE:
 
 
 
 
 
 
 
 
 
 
Income before provision for income taxes
 
$
6,748

 
$
6,464

 
$
5,350

 
 
4.4

 
26.1

 
Provision for income taxes
 
1,351

 
1,235

 
1,906

 
 
9.4

 
(29.1
)
 
Net income
 
$
5,397

 
$
5,229

 
$
3,444

 
 
3.2

 
56.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income per common share - Basic
 
$
0.50

 
$
0.49

 
$
0.33

 
 
2.0

 
51.5

 
Net income per common share - Diluted
 
$
0.49

 
$
0.48

 
$
0.32

 
 
2.1

 
53.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Performance ratios:
 
 
 
 
 
 
 
 
 
 
 
 
Return on average assets
 
1.53

%
1.53

%
1.11

%
 
—

 
37.8

 
Return on average equity
 
17.32

%
17.69

%
12.47

%
 
2.7

 
45.7

 
Efficiency ratio
 
52.80

%
54.00

%
56.41

%
 
(2.2
)
 
(6.4
)
 
Net interest margin
 
3.95

%
3.99

%
3.79

%
 
(1.0
)
 
4.2

 
Noninterest expense to average assets
 
2.32

%
2.40

%
2.39

%
 
(3.3
)
 
(2.9
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FINANCIAL DATA - YEAR TO DATE:
 
 
 
 
 
 
 
 
 
 
 
 
Income before provision for income taxes
 
$
13,213

 
 
 
$
10,254

 
 
 
 
28.9

 
Provision for income taxes
 
2,586

 
 
 
3,618

 
 
 
 
(28.5
)
 
Net income
 
$
10,627

 
 
 
$
6,636

 
 
 
 
60.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income per common share - Basic
 
$
0.99

 
 
 
$
0.63

 
 
 
 
57.1

 
Net income per common share - Diluted
 
$
0.98

 
 
 
$
0.62

 
 
 
 
58.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Performance ratios:
 
 
 
 
 
 
 
 
 
 
 
 
Return on average assets
 
1.53

%
 
 
1.09

%
 
 
 
40.4

 
Return on average equity
 
17.41

%
 
 
12.25

%
 
 
 
46.4

 
Efficiency ratio
 
53.40

%
 
 
57.71

%
 
 
 
(7.5
)
 
Net interest margin
 
3.97

%
 
 
3.75

%
 
 
 
5.9

 
Noninterest expense to average assets
 
2.36

%
 
 
2.44

%
 
 
 
(3.3
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SHARE INFORMATION:
 
 
 
 
 
 
 
 
 
 
 
 
Market price per share
 
$
22.75

 
$
22.00

 
$
17.20

 
 
3.4

 
32.3

 
Dividends paid
 
$
0.07

 
$
0.06

 
$
0.06

 
 
20.0

 
20.0

 
Book value per common share
 
$
11.94

 
$
11.50

 
$
10.64

 
 
3.8

 
12.2

 
Average diluted shares outstanding (QTD)
 
10,915

 
10,853

 
10,735

 
 
0.6

 
1.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
CAPITAL RATIOS:
 
 
 
 
 
 
 
 
 
 
 
 
Total equity to total assets
 
8.46

%
8.55

%
8.82

%
 
(1.1
)
 
(4.1
)
 
Leverage ratio
 
9.63

%
9.46

%
9.66

%
 
1.8

 
(0.3
)
 
Common equity tier 1 risk-based capital ratio
 
11.05

%
11.14

%
11.32

%
 
(0.8
)
 
(2.4
)
 
Tier 1 risk-based capital ratio
 
11.92

%
12.07

%
12.34

%
 
(1.2
)
 
(3.4
)
 
Total risk-based capital ratio
 
13.14

%
13.24

%
13.59

%
 
(0.8
)
 
(3.3
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 




CREDIT QUALITY AND RATIOS:
 
 
 
 
 
 
 
 
 
 
 
 
Nonperforming assets
 
$
5,265

 
$
4,333

 
$
6,262

 
 
21.5

 
(15.9
)
 
QTD net chargeoffs (annualized) to QTD average loans
 
0.04

%
(0.05
)
%
0.11

%
 
180.0

 
(63.6
)
 
Allowance for loan losses to total loans
 
1.17

%
1.19

%
1.22

%
 
(1.7
)
 
(4.1
)
 
Nonperforming assets to total loans
and OREO
 
0.42

%
0.36

%
0.60

%
 
(16.7
)
 
(30.0
)
 
Nonperforming assets to total assets
 
0.35

%
0.30

%
0.49

%
 
(16.7
) %
 
(28.6
) %
 
 
 
 
 
 
 
 
 
 
 
 
 
 





UNITY BANCORP, INC.
CONSOLIDATED BALANCE SHEETS
June 30, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Jun 30, 2018 vs.
 
 
 
 
 
 
 
 
 
 
Dec 31, 2017
 
Jun 30, 2017
 
(In thousands, except percentages)
 
Jun 30, 2018
 
Dec 31, 2017
 
Jun 30, 2017
 
 
 %
 
 %
 
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
Cash and due from banks
 
$
26,784

 
$
23,701

 
$
21,745

 
 
13.0
 %
%
23.2
 %
 
Federal funds sold, interest-bearing deposits and repos
 
112,491

 
126,553

 
83,070

 
 
(11.1
)
 
35.4

 
Cash and cash equivalents
 
139,275

 
150,254

 
104,815

 
 
(7.3
)
 
32.9

 
Securities:
 
 
 
 
 
 
 
 
 
 
 
 
Securities available for sale
 
48,707

 
52,287

 
53,726

 
 
(6.8
)
 
(9.3
)
 
Securities held to maturity
 
15,777

 
16,307

 
20,241

 
 
(3.3
)
 
(22.1
)
 
Equity securities
 
1,198

 
1,206

 
1,099

 
 
(0.7
)
 
9.0

 
Total securities
 
65,682

 
69,800

 
75,066

 
 
(5.9
)
 
(12.5
)
 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
SBA loans held for sale
 
14,889

 
22,810

 
13,950

 
 
(34.7
)
 
6.7

 
SBA loans held for investment
 
41,351

 
43,999

 
43,329

 
 
(6.0
)
 
(4.6
)
 
Commercial loans
 
673,480

 
628,865

 
568,461

 
 
7.1

 
18.5

 
Residential mortgage loans
 
398,383

 
365,145

 
315,396

 
 
9.1

 
26.3

 
Consumer loans
 
118,408

 
109,855

 
105,668

 
 
7.8

 
12.1

 
Total loans
 
1,246,511

 
1,170,674

 
1,046,804

 
 
6.5

 
19.1

 
Allowance for loan losses
 
(14,634
)
 
(13,556
)
 
(12,800
)
 
 
8.0

 
14.3

 
Net loans
 
1,231,877

 
1,157,118

 
1,034,004

 
 
6.5

 
19.1

 
Premises and equipment, net
 
23,493

 
23,470

 
23,134

 
 
0.1

 
1.6

 
Bank owned life insurance ("BOLI")
 
24,573

 
24,227

 
13,936

 
 
1.4

 
76.3

 
Deferred tax assets
 
4,438

 
4,017

 
5,617

 
 
10.5

 
(21.0
)
 
Federal Home Loan Bank ("FHLB") stock
 
11,245

 
12,863

 
7,101

 
 
(12.6
)
 
58.4

 
Accrued interest receivable
 
6,027

 
5,447

 
4,669

 
 
10.6

 
29.1

 
Other real estate owned ("OREO")
 
56

 
426

 
581

 
 
(86.9
)
 
(90.4
)
 
Goodwill
 
1,516

 
1,516

 
1,516

 
 
—

 
—

 
Other assets
 
5,938

 
6,358

 
5,078

 
 
(6.6
)
 
16.9

 
Total assets
 
$
1,514,120

 
$
1,455,496

 
$
1,275,517

 
 
4.0
 %
%
18.7
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Deposits:
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-bearing demand
 
$
250,500

 
$
256,119

 
$
232,545

 
 
(2.2
) %
 
7.7
 %
 
Interest-bearing demand
 
160,327

 
164,997

 
149,703

 
 
(2.8
)
 
7.1

 
Savings
 
398,694

 
396,557

 
403,722

 
 
0.5

 
(1.2
)
 
Time Deposits
 
336,878

 
225,464

 
217,997

 
 
49.4

 
54.5

 
Total deposits
 
1,146,399

 
1,043,137

 
1,003,967

 
 
9.9

 
14.2

 
Borrowed funds
 
220,000

 
275,000

 
142,000

 
 
(20.0
)
 
54.9

 
Subordinated debentures
 
10,310

 
10,310

 
10,310

 
 
—

 
—

 
Accrued interest payable
 
509

 
436

 
410

 
 
16.7

 
24.1

 
Accrued expenses and other liabilities
 
8,761

 
8,508

 
6,383

 
 
3.0

 
37.3

 
Total liabilities
 
1,385,979

 
1,337,391

 
1,163,070

 
 
3.6

 
19.2

 
Shareholders' equity:
 
 
 
 
 
 
 
 
 
 
 
 
Common stock
 
87,755

 
86,782

 
86,112

 
 
1.1

 
1.9

 
Retained earnings
 
40,386

 
31,117

 
26,137

 
 
29.8

 
54.5

 
Accumulated other comprehensive (loss)
 
—

 
206

 
198

 
 
  NM
 
    NM
 
Total shareholders' equity
 
128,141

 
118,105

 
112,447

 
 
8.5

 
14.0

 
Total liabilities and shareholders' equity
 
$
1,514,120

 
$
1,455,496

 
$
1,275,517

 
 
4.0
 %
%
18.7
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Issued and outstanding common shares
 
10,731

 
10,615

 
10,567

 
 
 
 
 
 
NM=Not meaningful




UNITY BANCORP, INC.
QTD CONSOLIDATED STATEMENTS OF INCOME
June 30, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Jun 30, 2018 vs.
 
 
 
 For the three months ended
 
 
Mar 31, 2018
 
Jun 30, 2017
 
(In thousands, except percentages and per share amounts)
 
Jun 30, 2018
 
Mar 31, 2018
 
Jun 30, 2017
 
 
$
 
%
 
$
 
%
 
INTEREST INCOME
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Federal funds sold, interest-bearing deposits and repos
 
$
171

 
$
205

 
$
203

 
 
$
(34
)
 
(16.6
)%
 
$
(32
)
 
(15.8
)%
 
FHLB stock
 
123

 
134

 
73

 
 
(11
)
 
(8.2
)
 
50

 
68.5

 
Securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Taxable
 
484

 
492

 
538

 
 
(8
)
 
(1.6
)
 
(54
)
 
(10.0
)
 
Tax-exempt
 
30

 
31

 
44

 
 
(1
)
 
(3.2
)
 
(14
)
 
(31.8
)
 
Total securities
 
514

 
523

 
582

 
 
(9
)
 
(1.7
)
 
(68
)
 
(11.7
)
 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SBA loans
 
1,131

 
1,183

 
886

 
 
(52
)
 
(4.4
)
 
245

 
27.7

 
Commercial loans
 
8,209

 
7,726

 
6,882

 
 
483

 
6.3

 
1,327

 
19.3

 
Residential mortgage loans
 
4,522

 
4,340

 
3,584

 
 
182

 
4.2

 
938

 
26.2

 
Consumer loans
 
1,699

 
1,529

 
1,267

 
 
170

 
11.1

 
432

 
34.1

 
Total loans
 
15,561

 
14,778

 
12,619

 
 
783

 
5.3

 
2,942

 
23.3

 
Total interest income
 
16,369

 
15,640

 
13,477

 
 
729

 
4.7

 
2,892

 
21.5

 
INTEREST EXPENSE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing demand deposits
 
259

 
224

 
161

 
 
35

 
15.6

 
98

 
60.9

 
Savings deposits
 
943

 
776

 
678

 
 
167

 
21.5

 
265

 
39.1

 
Time deposits
 
1,303

 
1,000

 
814

 
 
303

 
30.3

 
489

 
60.1

 
Borrowed funds and subordinated debentures
 
720

 
768

 
674

 
 
(48
)
 
(6.3
)
 
46

 
6.8

 
Total interest expense
 
3,225

 
2,768

 
2,327

 
 
457

 
16.5

 
898

 
38.6

 
Net interest income
 
13,144

 
12,872

 
11,150

 
 
272

 
2.1

 
1,994

 
17.9

 
Provision for loan losses
 
550

 
500

 
400

 
 
50

 
10.0

 
150

 
37.5

 
Net interest income after provision for loan losses
 
12,594

 
12,372

 
10,750

 
 
222

 
1.8

 
1,844

 
17.2

 
NONINTEREST INCOME
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Branch fee income
 
419

 
330

 
344

 
 
89

 
27.0

 
75

 
21.8

 
Service and loan fee income
 
411

 
564

 
512

 
 
(153
)
 
(27.1
)
 
(101
)
 
(19.7
)
 
Gain on sale of SBA loans held for sale, net
 
582

 
547

 
479

 
 
35

 
6.4

 
103

 
21.5

 
Gain on sale of mortgage loans, net
 
421

 
424

 
264

 
 
(3
)
 
(0.7
)
 
157

 
59.5

 
BOLI income
 
175

 
171

 
89

 
 
4

 
2.3

 
86

 
96.6

 
Net security gains (losses)
 
7

 
(15
)
 
16

 
 
22

 
146.7

 
(9
)
 
(56.3
)
 
Other income
 
297

 
265

 
317

 
 
32

 
12.1

 
(20
)
 
(6.3
)
 
Total noninterest income
 
2,312

 
2,286

 
2,021

 
 
26

 
1.1

 
291

 
14.4

 
NONINTEREST EXPENSE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Compensation and benefits
 
4,736

 
4,834

 
4,299

 
 
(98
)
 
(2.0
)
 
437

 
10.2

 
Occupancy
 
693

 
690

 
590

 
 
3

 
0.4

 
103

 
17.5

 
Processing and communications
 
674

 
689

 
632

 
 
(15
)
 
(2.2
)
 
42

 
6.6

 
Furniture and equipment
 
610

 
536

 
513

 
 
74

 
13.8

 
97

 
18.9

 
Professional services
 
161

 
251

 
251

 
 
(90
)
 
(35.9
)
 
(90
)
 
(35.9
)
 
Loan collection & OREO expenses
 
6

 
6

 
38

 
 
—

 
—

 
(32
)
 
(84.2
)
 
Other loan expenses
 
53

 
33

 
18

 
 
20

 
60.6

 
35

 
194.4

 
Deposit insurance
 
216

 
186

 
144

 
 
30

 
16.1

 
72

 
50.0

 
Advertising
 
362

 
319

 
323

 
 
43

 
13.5

 
39

 
12.1

 
Director fees
 
165

 
162

 
149

 
 
3

 
1.9

 
16

 
10.7

 
Other expenses
 
482

 
488

 
464

 
 
(6
)
 
(1.2
)
 
18

 
3.9

 
Total noninterest expense
 
8,158

 
8,194

 
7,421

 
 
(36
)
 
(0.4
)
 
737

 
9.9

 
Income before provision for income taxes
 
6,748

 
6,464

 
5,350

 
 
284

 
4.4

 
1,398

 
26.1

 
Provision for income taxes
 
1,351

 
1,235

 
1,906

 
 
116

 
9.4

 
(555
)
 
(29.1
)
 
Net income
 
$
5,397

 
$
5,229

 
$
3,444

 
 
$
168

 
3.2
%
 
$
1,953

 
56.7
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 




Effective tax rate
 
20.0
%
 
19.1
%
 
35.6
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income per common share - Basic
 
$
0.50

 
$
0.49

 
$
0.33

 
 
 
 
 
 
 
 
 
 
Net income per common share - Diluted
 
$
0.49

 
$
0.48

 
$
0.32

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding - Basic
 
10,717

 
10,678

 
10,546

 
 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding - Diluted
 
10,915

 
10,853

 
10,735

 
 
 
 
 
 
 
 
 
 





UNITY BANCORP, INC.
YTD CONSOLIDATED STATEMENTS OF INCOME
June 30, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
For the six months ended June 30,
 
 
Current YTD vs. Prior YTD
 
(In thousands, except percentages and per share amounts)
 
2018
 
2017
 
 
$
 
%
 
INTEREST INCOME
 
 
 
 
 
 
 
 
 
 
Federal funds sold, interest-bearing deposits and repos
 
$
376

 
$
332

 
 
$
44

 
13.3
%
 
FHLB stock
 
257

 
166

 
 
91

 
54.8

 
Securities:
 
 
 
 
 
 
 
 
 
 
Taxable
 
976

 
1,030

 
 
(54
)
 
(5.2
)
 
Tax-exempt
 
61

 
88

 
 
(27
)
 
(30.7
)
 
Total securities
 
1,037

 
1,118

 
 
(81
)
 
(7.2
)
 
Loans:
 
 
 
 
 
 
 
 
 
 
SBA loans
 
2,314

 
1,739

 
 
575

 
33.1

 
Commercial loans
 
15,934

 
13,350

 
 
2,584

 
19.4

 
Residential mortgage loans
 
8,863

 
6,967

 
 
1,896

 
27.2

 
Consumer loans
 
3,228

 
2,400

 
 
828

 
34.5

 
Total loans
 
30,339

 
24,456

 
 
5,883

 
24.1

 
Total interest income
 
32,009

 
26,072

 
 
5,937

 
22.8

 
INTEREST EXPENSE
 
 
 
 
 
 
 
 
 
 
Interest-bearing demand deposits
 
483

 
314

 
 
169

 
53.8

 
Savings deposits
 
1,719

 
1,261

 
 
458

 
36.3

 
Time deposits
 
2,302

 
1,618

 
 
684

 
42.3

 
Borrowed funds and subordinated debentures
 
1,489

 
1,338

 
 
151

 
11.3

 
Total interest expense
 
5,993

 
4,531

 
 
1,462

 
32.3

 
Net interest income
 
26,016

 
21,541

 
 
4,475

 
20.8

 
Provision for loan losses
 
1,050

 
650

 
 
400

 
61.5

 
Net interest income after provision for loan losses
 
24,966

 
20,891

 
 
4,075

 
19.5

 
NONINTEREST INCOME
 
 
 
 
 
 
 
 
 
 
Branch fee income
 
750

 
675

 
 
75

 
11.1

 
Service and loan fee income
 
976

 
1,024

 
 
(48
)
 
(4.7
)
 
Gain on sale of SBA loans held for sale, net
 
1,130

 
963

 
 
167

 
17.3

 
Gain on sale of mortgage loans, net
 
845

 
796

 
 
49

 
6.2

 
BOLI income
 
346

 
178

 
 
168

 
94.4

 
Net security gains (losses)
 
(9
)
 
16

 
 
(25
)
 
(156.3
)
 
Other income
 
560

 
573

 
 
(13
)
 
(2.3
)
 
Total noninterest income
 
4,598

 
4,225

 
 
373

 
8.8

 
NONINTEREST EXPENSE
 
 
 
 
 
 
 
 
 
 
Compensation and benefits
 
9,570

 
8,394

 
 
1,176

 
14.0

 
Occupancy
 
1,383

 
1,190

 
 
193

 
16.2

 
Processing and communications
 
1,363

 
1,236

 
 
127

 
10.3

 
Furniture and equipment
 
1,146

 
1,024

 
 
122

 
11.9

 
Professional services
 
412

 
477

 
 
(65
)
 
(13.6
)
 
Loan collection & OREO expenses
 
11

 
379

 
 
(368
)
 
(97.1
)
 
Other loan expenses
 
86

 
102

 
 
(16
)
 
(15.7
)
 
Deposit insurance
 
402

 
220

 
 
182

 
82.7

 
Advertising
 
681

 
560

 
 
121

 
21.6

 
Director fees
 
327

 
346

 
 
(19
)
 
(5.5
)
 
Other expenses
 
970

 
934

 
 
36

 
3.9

 
Total noninterest expense
 
16,351

 
14,862

 
 
1,489

 
10.0

 
Income before provision for income taxes
 
13,213

 
10,254

 
 
2,959

 
28.9

 
Provision for income taxes
 
2,586

 
3,618

 
 
(1,032
)
 
(28.5
)
 
Net income
 
$
10,627

 
$
6,636

 
 
$
3,991

 
60.1
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 




 
 
 
 
 
 
 
 
 
 
 
 
 
For the six months ended June 30,
 
 
 
 
 
 
(In thousands, except percentages and per share amounts)
 
2018
 
2017
 
 
 
 
 
 
Effective tax rate
 
19.6
%
 
35.3
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income per common share - Basic
 
0.99

 
0.63

 
 
 
 
 
 
Net income per common share - Diluted
 
0.98

 
0.62

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding - Basic
 
10,698

 
10,528

 
 
 
 
 
 
Weighted average common shares outstanding - Diluted
 
10,897

 
10,720

 
 
 
 
 
 





UNITY BANCORP, INC.
QUARTER TO DATE NET INTEREST MARGIN
June 30, 2018
(Dollar amounts in thousands, interest amounts and interest rates/yields on a fully tax-equivalent basis)
 
 
For the three months ended
 
 
June 30, 2018
 
March 31, 2018
 
 
Average Balance
 
Interest
 
 Rate/Yield
 
Average Balance
 
Interest
 
 Rate/Yield
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
Interest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
 
Federal funds sold, interest-bearing deposits and repos
 
$
39,418

 
$
171

 
1.74
%
 
$
48,936

 
$
205

 
1.70
%
FHLB stock
 
7,811

 
123

 
6.32

 
7,799

 
134

 
6.97

Securities:
 
 
 
 
 
 
 
 
 
 
 
 
Taxable
 
61,342

 
484

 
3.16

 
63,393

 
492

 
3.15

Tax-exempt
 
5,202

 
37

 
2.85

 
5,349

 
38

 
2.88

Total securities (A)
 
66,544

 
521

 
3.14

 
68,742

 
530

 
3.13

Loans:
 
 
 
 
 
 
 
 
 
 
 
 
SBA loans
 
62,467

 
1,131

 
7.26

 
68,376

 
1,183

 
7.02

Commercial loans
 
657,031

 
8,209

 
5.01

 
632,409

 
7,726

 
4.95

Residential mortgage loans
 
387,086

 
4,522

 
4.69

 
371,061

 
4,340

 
4.74

Consumer loans
 
116,547

 
1,699

 
5.85

 
110,947

 
1,529

 
5.59

Total loans (B)
 
1,223,131

 
15,561

 
5.10

 
1,182,793

 
14,778

 
5.07

Total interest-earning assets
 
$
1,336,904

 
$
16,376

 
4.91
%
 
$
1,308,270

 
$
15,647

 
4.85
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
 
Cash and due from banks
 
24,145

 
 
 
 
 
23,244

 
 
 
 
Allowance for loan losses
 
(14,419
)
 
 
 
 
 
(13,949
)
 
 
 
 
Other assets
 
64,811

 
 
 
 
 
65,686

 
 
 
 
Total noninterest-earning assets
 
74,537

 
 
 
 
 
74,981

 
 
 
 
Total assets
 
$
1,411,441

 
 
 
 
 
$
1,383,251

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
 
 
 
 
 
Interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Total interest-bearing demand deposits
 
$
168,298

 
$
259

 
0.62
%
 
$
178,385

 
$
224

 
0.51
%
Total savings deposits
 
401,195

 
943

 
0.94

 
403,222

 
776

 
0.78

Total time deposits
 
296,078

 
1,303

 
1.77

 
252,000

 
1,000

 
1.61

Total interest-bearing deposits
 
865,571

 
2,505

 
1.16

 
833,607

 
2,000

 
0.97

Borrowed funds and subordinated debentures
 
154,250

 
720

 
1.87

 
167,458

 
768

 
1.86

Total interest-bearing liabilities
 
$
1,019,821

 
$
3,225

 
1.27
%
 
$
1,001,065

 
$
2,768

 
1.12
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-bearing demand deposits
 
257,238

 
 
 
 
 
252,128

 
 
 
 
Other liabilities
 
9,418

 
 
 
 
 
10,165

 
 
 
 
Total noninterest-bearing liabilities
 
266,656

 
 
 
 
 
262,293

 
 
 
 
Total shareholders' equity
 
124,964

 
 
 
 
 
119,893

 
 
 
 
Total liabilities and shareholders' equity
 
$
1,411,441

 
 
 
 
 
$
1,383,251

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest spread
 
 
 
$
13,151

 
3.64
%
 
 
 
$
12,879

 
3.73
%
Tax-equivalent basis adjustment
 
 
 
(7
)
 
 
 
 
 
(7
)
 
 
Net interest income
 
 
 
$
13,144

 
 
 
 
 
$
12,872

 
 
Net interest margin
 
 
 
 
 
3.95
%
 
 
 
 
 
3.99
%
(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 nondeductable portion of interest expense, assuming a federal tax rate of 21 percent in 2018 and 35 percent in 2017 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.
QUARTER TO DATE NET INTEREST MARGIN
June 30, 2018
(Dollar amounts in thousands, interest amounts and interest rates/yields on a fully tax-equivalent basis)
 
 
For the three months ended
 
 
June 30, 2018
 
June 30, 2017
 
 
Average Balance
 
Interest
 
 Rate/Yield
 
Average Balance
 
Interest
 
 Rate/Yield
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
Interest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
 
Federal funds sold, interest-bearing deposits and repos
 
$
39,418

 
$
171

 
1.74
%
 
$
76,656

 
$
203

 
1.06
%
FHLB stock
 
7,811

 
123

 
6.32

 
5,912

 
73

 
4.95

Securities:
 
 
 
 
 
 
 
 
 
 
 
 
Taxable
 
61,342

 
484

 
3.16

 
67,102

 
538

 
3.22

Tax-exempt
 
5,202

 
37

 
2.85

 
6,764

 
67

 
3.97

Total securities (A)
 
66,544

 
521

 
3.14

 
73,866

 
605

 
3.29

Loans:
 
 
 
 
 
 
 
 
 
 
 
 
SBA loans
 
62,467

 
1,131

 
7.26

 
55,650

 
886

 
6.39

Commercial loans
 
657,031

 
8,209

 
5.01

 
556,645

 
6,882

 
4.96

Residential mortgage loans
 
387,086

 
4,522

 
4.69

 
311,730

 
3,584

 
4.61

Consumer loans
 
116,547

 
1,699

 
5.85

 
100,889

 
1,267

 
5.04

Total loans (B)
 
1,223,131

 
15,561

 
5.10

 
1,024,914

 
12,619

 
4.94

Total interest-earning assets
 
$
1,336,904

 
$
16,376

 
4.91
%
 
$
1,181,348

 
$
13,500

 
4.58
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
 
Cash and due from banks
 
24,145

 
 
 
 
 
23,055

 
 
 
 
Allowance for loan losses
 
(14,419
)
 
 
 
 
 
(12,916
)
 
 
 
 
Other assets
 
64,811

 
 
 
 
 
55,367

 
 
 
 
Total noninterest-earning assets
 
74,537

 
 
 
 
 
65,506

 
 
 
 
Total assets
 
$
1,411,441

 
 
 
 
 
$
1,246,854

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
 
 
 
 
 
Interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Total interest-bearing demand deposits
 
$
168,298

 
$
259

 
0.62
%
 
$
157,896

 
$
161

 
0.41
%
Total savings deposits
 
401,195

 
943

 
0.94

 
397,813

 
678

 
0.68

Total time deposits
 
296,078

 
1,303

 
1.77

 
221,636

 
814

 
1.47

Total interest-bearing deposits
 
865,571

 
2,505

 
1.16

 
777,345

 
1,653

 
0.85

Borrowed funds and subordinated debentures
 
154,250

 
720

 
1.87

 
126,057

 
674

 
2.14

Total interest-bearing liabilities
 
$
1,019,821

 
$
3,225

 
1.27
%
 
$
903,402

 
$
2,327

 
1.03
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-bearing demand deposits
 
257,238

 
 
 
 
 
225,909

 
 
 
 
Other liabilities
 
9,418

 
 
 
 
 
6,752

 
 
 
 
Total noninterest-bearing liabilities
 
266,656

 
 
 
 
 
232,661

 
 
 
 
Total shareholders' equity
 
124,964

 
 
 
 
 
110,791

 
 
 
 
Total liabilities and shareholders' equity
 
$
1,411,441

 
 
 
 
 
$
1,246,854

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest spread
 
 
 
$
13,151

 
3.64
%
 
 
 
$
11,173

 
3.55
%
Tax-equivalent basis adjustment
 
 
 
(7
)
 
 
 
 
 
(23
)
 
 
Net interest income
 
 
 
$
13,144

 
 
 
 
 
$
11,150

 
 
Net interest margin
 
 
 
 
 
3.95
%
 
 
 
 
 
3.79
%
(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 nondeductable portion of interest expense, assuming a federal tax rate of 21 percent in 2018 and 35 percent in 2017 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
June 30, 2018
(Dollar amounts in thousands, interest amounts and interest rates/yields on a fully tax-equivalent basis)
 
 
 
 
For the six months ended
 
 
June 30, 2018
 
June 30, 2017
 
 
Average Balance
 
Interest
 
 Rate/Yield
 
Average Balance
 
Interest
 
 Rate/Yield
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
Interest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
 
Federal funds sold, interest-bearing deposits and repos
 
$
44,151

 
$
376

 
1.72
%
 
$
77,297

 
$
332

 
0.87
%
FHLB stock
 
7,805

 
257

 
6.64

 
5,844

 
166

 
5.73

Securities:
 
 
 
 
 
 
 
 
 
 
 
 
Taxable
 
62,361

 
976

 
3.16

 
65,635

 
1,030

 
3.16

Tax-exempt
 
5,276

 
76

 
2.90

 
6,603

 
132

 
4.03

Total securities (A)
 
67,637

 
1,052

 
3.14

 
72,238

 
1,162

 
3.24

Loans:
 
 
 
 
 
 
 
 
 
 
 
 
SBA loans
 
65,405

 
2,314

 
7.13

 
56,798

 
1,739

 
6.17

Commercial loans
 
644,788

 
15,934

 
4.98

 
547,670

 
13,350

 
4.92

Residential mortgage loans
 
379,118

 
8,863

 
4.71

 
304,507

 
6,967

 
4.61

Consumer loans
 
113,762

 
3,228

 
5.72

 
97,571

 
2,400

 
4.96

Total loans (B)
 
1,203,073

 
30,339

 
5.09

 
1,006,546

 
24,456

 
4.90

Total interest-earning assets
 
$
1,322,666

 
$
32,024

 
4.88
%
 
$
1,161,925

 
$
26,116

 
4.53
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
 
Cash and due from banks
 
23,697

 
 
 
 
 
23,315

 
 
 
 
Allowance for loan losses
 
(14,185
)
 
 
 
 
 
(12,851
)
 
 
 
 
Other assets
 
65,246

 
 
 
 
 
55,428

 
 
 
 
Total noninterest-earning assets
 
74,758

 
 
 
 
 
65,892

 
 
 
 
Total assets
 
$
1,397,424

 
 
 
 
 
$
1,227,817

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
 
 
 
 
 
Interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Total interest-bearing demand deposits
 
$
173,314

 
$
483

 
0.56
%
 
$
155,159

 
$
314

 
0.41
%
Total savings deposits
 
402,203

 
1,719

 
0.86

 
388,179

 
1,261

 
0.66

Total time deposits
 
274,160

 
2,302

 
1.69

 
221,970

 
1,618

 
1.47

Total interest-bearing deposits
 
849,677

 
4,504

 
1.07

 
765,308

 
3,193

 
0.84

Borrowed funds and subordinated debentures
 
160,817

 
1,489

 
1.87

 
125,780

 
1,338

 
2.15

Total interest-bearing liabilities
 
$
1,010,494

 
$
5,993

 
1.20
%
 
$
891,088

 
$
4,531

 
1.02
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-bearing demand deposits
 
254,697

 
 
 
 
 
220,686

 
 
 
 
Other liabilities
 
9,166

 
 
 
 
 
6,771

 
 
 
 
Total noninterest-bearing liabilities
 
263,863

 
 
 
 
 
227,457

 
 
 
 
Total shareholders' equity
 
123,067

 
 
 
 
 
109,272

 
 
 
 
Total liabilities and shareholders' equity
 
$
1,397,424

 
 
 
 
 
$
1,227,817

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest spread
 
 
 
$
26,031

 
3.68
%
 
 
 
$
21,585

 
3.51
%
Tax-equivalent basis adjustment
 
 
 
(15
)
 
 
 
 
 
(44
)
 
 
Net interest income
 
 
 
$
26,016

 
 
 
 
 
$
21,541

 
 
Net interest margin
 
 
 
 
 
3.97
%
 
 
 
 
 
3.75
%
(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 nondeductable portion of interest expense, assuming a federal tax rate of 21 percent in 2018 and 35 percent in 2017 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
June 30, 2018
Amounts in thousands, except percentages
 
Jun 30, 2018
 
Mar 31, 2018
 
Dec 31, 2017
 
Sep 30, 2017
 
Jun 30, 2017
ALLOWANCE FOR LOAN LOSSES:
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period
 
$
14,196

 
$
13,556

 
$
13,113

 
$
12,800

 
$
12,681

Provision for loan losses charged to expense
 
550

 
500

 
500

 
500

 
400

 
 
14,746

 
14,056

 
13,613

 
13,300

 
13,081

Less: Chargeoffs
 
 
 
 
 
 
 
 
 
 
SBA loans
 
104

 
81

 
—

 
34

 
150

Commercial loans
 
—

 
—

 
—

 
31

 
120

Residential mortgage loans
 
—

 
—

 
50

 
5

 
—

Consumer loans
 
16

 
6

 
83

 
170

 
17

Total chargeoffs
 
120

 
87

 
133

 
240

 
287

Add: Recoveries
 
 
 
 
 
 
 
 
 
 
SBA loans
 
3

 
64

 
45

 
36

 
3

Commercial loans
 
4

 
16

 
31

 
15

 
3

Residential mortgage loans
 
—

 
13

 
—

 
—

 
—

Consumer loans
 
1

 
134

 
—

 
2

 
—

Total recoveries
 
8

 
227

 
76

 
53

 
6

Net chargeoffs (recoveries)
 
112

 
(140
)
 
57

 
187

 
281

Balance, end of period
 
$
14,634

 
$
14,196

 
$
13,556

 
$
13,113

 
$
12,800

 
 
 
 
 
 
 
 
 
 
 
LOAN QUALITY INFORMATION:
 
 
 
 
 
 
 
 
 
 
Nonperforming loans (1)
 
$
5,209

 
$
4,277

 
$
2,994

 
$
3,742

 
$
5,681

Other real estate owned ("OREO")
 
56

 
56

 
426

 
707

 
581

Nonperforming assets
 
5,265

 
4,333

 
3,420

 
4,449

 
6,262

Less: Amount guaranteed by SBA
 
129

 
27

 
27

 
27

 
41

Net nonperforming assets
 
$
5,136

 
$
4,306

 
$
3,393

 
$
4,422

 
$
6,221

 
 
 
 
 
 
 
 
 
 
 
 Loans 90 days past due & still accruing
 
$
286

 
$
—

 
$
60

 
$
2,216

 
$
230

 
 
 
 
 
 
 
 
 
 
 
Performing Troubled Debt Restructurings (TDRs)
 
$
767

 
$
774

 
$
786

 
$
—

 
$
—

(1) Nonperforming TDRs included in nonperforming loans
 
—

 
—

 
—

 
—

 
—

Total TDRs
 
$
767

 
$
774

 
$
786

 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses to:
 
 
 
 
 
 
 
 
 
 
Total loans at quarter end
 
1.17
%
 
1.19
%
 
1.16
%
 
1.20
%
 
1.22
%
Nonperforming loans (1)
 
280.94

 
331.91

 
452.77

 
350.43

 
225.31

Nonperforming assets
 
277.95

 
327.63

 
396.37

 
294.74

 
204.41

Net nonperforming assets
 
284.93

 
329.68

 
399.53

 
296.54

 
205.75

 
 
 
 
 
 
 
 
 
 
 
QTD net chargeoffs (annualized) to QTD average loans:
 
 
 
 
 
 
 
 
 
 
SBA loans
 
0.65
%
 
0.10
%
 
(0.28
)%
 
(0.01
)%
 
1.06
%
Commercial loans
 
—

 
(0.01
)
 
(0.02
)
 
0.01

 
0.09

Residential mortgage loans
 
—

 
(0.01
)
 
0.06

 
0.01

 
—

Consumer loans
 
0.05

 
(0.47
)
 
0.30

 
0.62

 
0.07

Total loans
 
0.04
%
 
(0.05
)%
 
0.02
%
 
0.07
%
 
0.11
%
 
 
 
 
 
 
 
 
 
 
 
Nonperforming loans to total loans
 
0.42
%
 
0.36
%
 
0.26
%
 
0.34
%
 
0.54
%
Nonperforming loans and TDRs to total loans
 
0.48

 
0.42

 
0.32

 
0.34

 
0.54

Nonperforming assets to total loans and OREO
 
0.42

 
0.36

 
0.29

 
0.41

 
0.60

Nonperforming assets to total assets
 
0.35

 
0.30

 
0.23

 
0.33

 
0.49





UNITY BANCORP, INC.
QUARTERLY FINANCIAL DATA
June 30, 2018
(In thousands, except percentages and per share amounts)
 
Jun 30, 2018
 
Mar 31, 2018
 
Dec 31, 2017
 
Sep 30, 2017
 
Jun 30, 2017
SUMMARY OF INCOME:
 
 
 
 
 
 
 
 
 
 
Total interest income
 
$
16,369

 
$
15,640

 
$
15,044

 
$
14,195

 
$
13,477

Total interest expense
 
3,225

 
2,768

 
2,544

 
2,378

 
2,327

Net interest income
 
13,144

 
12,872

 
12,500

 
11,817

 
11,150

Provision for loan losses
 
550

 
500

 
500

 
500

 
400

Net interest income after provision for loan losses
 
12,594

 
12,372

 
12,000

 
11,317

 
10,750

Total noninterest income
 
2,312

 
2,286

 
2,037

 
2,008

 
2,021

Total noninterest expense
 
8,158

 
8,194

 
7,629

 
7,554

 
7,421

Income before provision for income taxes
 
6,748

 
6,464

 
6,408

 
5,771

 
5,350

Provision for income taxes
 
1,351

 
1,235

 
2,175

 
2,014

 
1,906

Impact of Tax Reform Bill
 
—

 
—

 
1,733

 
—

 
—

Net income
 
$
5,397

 
$
5,229

 
$
2,500

 
$
3,757

 
$
3,444

 
 
 
 
 
 
 
 
 
 
 
Net income per common share - Basic
 
$
0.50

 
$
0.49

 
$
0.24

 
$
0.36

 
$
0.33

Net income per common share - Diluted
 
$
0.49

 
$
0.48

 
$
0.23

 
$
0.35

 
$
0.32

 
 
 
 
 
 
 
 
 
 
 
COMMON SHARE DATA:
 
 
 
 
 
 
 
 
 
 
Market price per share
 
$
22.75

 
$
22.00

 
$
19.75

 
$
19.80

 
$
17.20

Dividends paid
 
$
0.07

 
$
0.06

 
$
0.06

 
$
0.06

 
$
0.06

Book value per common share
 
$
11.94

 
$
11.50

 
$
11.13

 
$
10.94

 
$
10.64

 
 
 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding - Basic
 
10,717

 
10,678

 
10,604

 
10,572

 
10,546

Weighted average common shares outstanding - Diluted
 
10,915

 
10,853

 
10,794

 
10,761

 
10,735

Issued and outstanding common shares
 
10,731

 
10,709

 
10,615

 
10,586

 
10,567

 
 
 
 
 
 
 
 
 
 
 
PERFORMANCE RATIOS (Annualized):
 
 
 
 
 
 
 
 
 
 
Return on average assets
 
1.53
%
 
1.53
%
 
0.74
%
 
1.17
%
 
1.11
%
Return on average equity
 
17.32

 
17.69

 
8.54

 
13.00

 
12.47

Efficiency ratio
 
52.80

 
54.00

 
52.45

 
54.86

 
56.41

Noninterest expense to average assets
 
2.32

 
2.40

 
2.25

 
2.35

 
2.39

 
 
 
 
 
 
 
 
 
 
 
BALANCE SHEET DATA:
 
 
 
 
 
 
 
 
 
 
Total assets
 
1,514,120

 
1,439,902

 
1,455,496

 
1,329,834

 
1,275,517

Total deposits
 
1,146,399

 
1,117,514

 
1,043,137

 
1,043,632

 
1,003,967

Total loans
 
1,246,511

 
1,195,110

 
1,170,674

 
1,092,873

 
1,046,804

Total securities
 
65,682

 
67,521

 
69,800

 
72,105

 
75,066

Total shareholders' equity
 
128,141

 
123,104

 
118,105

 
115,814

 
112,447

Allowance for loan losses
 
(14,634
)
 
(14,196
)
 
(13,556
)
 
(13,113
)
 
(12,800
)
 
 
 
 
 
 
 
 
 
 
 
TAX EQUIVALENT YIELDS AND RATES:
 
 
 
 
 
 
 
 
 
 
Interest-earning assets
 
4.91
%
 
4.85
%
 
4.71
%
 
4.66
%
 
4.58
%
Interest-bearing liabilities
 
1.27

 
1.12

 
1.05

 
1.04

 
1.03

Net interest spread
 
3.64

 
3.73

 
3.66

 
3.62

 
3.55

Net interest margin
 
3.95

 
3.99

 
3.91

 
3.88

 
3.79

 
 
 
 
 
 
 
 
 
 
 
CREDIT QUALITY:
 
 
 
 
 
 
 
 
 
 
Nonperforming assets
 
5,265

 
4,333

 
3,420

 
4,449

 
6,262

QTD net chargeoffs (annualized) to QTD average loans
 
0.04
%
 
(0.05
)%
 
0.02
%
 
0.07
%
 
0.11
%
Allowance for loan losses to total loans
 
1.17

 
1.19

 
1.16

 
1.20

 
1.22

Nonperforming assets to total loans and OREO
 
0.42

 
0.36

 
0.29

 
0.41

 
0.60

Nonperforming assets to total assets
 
0.35

 
0.30

 
0.23

 
0.33

 
0.49

 
 
 
 
 
 
 
 
 
 
 




(In thousands, except percentages and per share amounts)
 
Jun 30, 2018
 
Mar 31, 2018
 
Dec 31, 2017
 
Sep 30, 2017
 
Jun 30, 2017
CAPITAL RATIOS AND OTHER:
 
 
 
 
 
 
 
 
 
 
Total equity to total assets
 
8.46
%
 
8.55
%
 
8.11
%
 
8.71
%
 
8.82
%
Leverage ratio
 
9.63

 
9.46

 
9.37

 
9.70

 
9.66

Common equity tier 1 risk-based capital ratio
 
11.05

 
11.14

 
10.81

 
11.27

 
11.32

Tier 1 risk-based capital ratio
 
11.92

 
12.07

 
11.75

 
12.26

 
12.34

Total risk-based capital ratio
 
13.14

 
13.24

 
12.87

 
13.30

 
13.59

Number of banking offices
 
19

 
18

 
18

 
17

 
17

Number of ATMs
 
20

 
19

 
19

 
18

 
18

Number of employees
 
197

 
199

 
199

 
166

 
186






UNITY BANCORP, INC.
Reconciliation of GAAP vs. Non-GAAP Financials
June 30, 2018
 
 
QTD
(In thousands, except percentages and per share amounts)
 
Dec 31, 2017
 
 
 
GAAP
 
 
Income before provision for income taxes
 
6,408

     Provision for income taxes
 
3,908

Net income
 
2,500

 
 
 
Effective tax rate
 
61.0
%
 
 
 
Net income per:
 
 
   Common share - basic
 
$
0.24

   Common share - diluted
 
$
0.23

 
 
 
Performance ratios:
 
 
   Return on average assets
 
0.74
%
   Return on average equity
 
8.54
%
 
 
 
 
 
 
NON-GAAP
 
 
Income before provision for income taxes
 
$
6,408

     Provision for income taxes
 
3,908

Net income before nonrecurring adjustments (GAAP)
 
2,500

Nonrecurring adjustments:
 
 
     Impact of Tax Reform Bill
 
1,733

Core net income (Non-GAAP)
 
$
4,233

 
 
 
Core effective tax rate
 
33.9
%
 
 
 
Core net income per:
 
 
   Common share - basic
 
$
0.40

   Common share - diluted
 
$
0.39

 
 
 
Core performance ratios:
 
 
   Return on average assets
 
1.25
%
   Return on average equity
 
14.46
%