EX-99.1 2 a2q19earningsexhibit991.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 18, 2019
(908) 713-4308

ulogoa10.jpg Unity Bancorp Reports ulogoa11.jpg
Quarterly Earnings up 8.1%

pressreleasea05.jpg

Clinton, NJ, July 18, 2019 - Unity Bancorp, Inc. (NASDAQ: UNTY), parent company of Unity Bank, reported net income of $5.8 million, or $0.53 per diluted share, an 8.2 percent increase, for the quarter ended June 30, 2019, compared to $5.4 million, or $0.49 per diluted share for the prior year’s second quarter.   For the six months ended June 30, 2019, Unity reported net income of $11.6 million, or $1.05 per diluted share, a 7.1 percent increase compared to $10.6 million or $0.98 per diluted share for the prior year’s period.





  Second Quarter Earnings Highlights
•
Net interest income, our primary driver of earnings, increased $1.1 million to $14.2 million for the quarter ended June 30, 2019, compared to the prior year’s quarter, due to loan growth and a stable net interest margin.
•
Net interest margin totaled 3.96% for the quarter ended June 30, 2019, compared to 3.95% for the prior year’s quarter, but decreased 10 basis points from 4.06% in the prior sequential quarter ended March 31, 2019. The net interest margin is expected to remain stable for the remainder of 2019.
•
The provision for loan losses was $350 thousand for the quarter ended June 30, 2019, a decline of $200 thousand from the prior year’s quarter due to a lower level of net charge-offs and slower loan growth.
•
Noninterest income increased $99 thousand to $2.4 million compared to the prior year’s quarter and increased $391 thousand compared to the prior sequential quarter. Quarterly noninterest income included increased mortgage gains, higher loan payoff charges, and gains from the appreciation of equity securities offset by reduced premiums received on lower SBA loan sales.
•
Noninterest expense increased $633 thousand to $8.8 million compared to the prior year’s quarter and increased $315 thousand compared to the prior sequential quarter. The increases were primarily due to higher compensation and benefits expense, mortgage commissions on a higher origination volume, and supplemental executive retirement (“SERP”) benefit expense. In addition, we continue to invest in software and equipment to remain efficient, secure and competitive.
•
The effective tax rate was 22.0% compared to 20.0% in the prior year’s quarter due to recent New Jersey tax legislation changes. The effective tax rate is expected to increase in the future as a result of this legislation.

Balance Sheet Highlights

•
Total loans increased $40.2 million, or 3.1%, from year-end 2018 to $1.3 billion at June 30, 2019. Loan originations for the quarter were on plan, however, overall growth was impacted by increased payoffs in both commercial and residential mortgage loans. Commercial, residential mortgage and consumer loan portfolios increased $19.8 million, $13.5 million and $10.6 million, respectively, partially offset by a decline of $3.8 million in SBA loans.
•
Total deposits increased $56.7 million, or 4.7%, from year-end 2018 to $1.3 billion at June 30, 2019. Growth resulted primarily from time deposit promotions while interest-bearing demand deposits declined due to seasonal outflows of municipal deposits.
•
Borrowed funds decreased $20.0 million to $190.0 million at June 30, 2019.
•
Shareholders’ equity was $149.4 million at June 30, 2019, an increase of $10.9 million from year-end 2018, due to retained net income. Shareholders’ equity continues to grow organically at a rate that exceeds balance sheet growth.
•
Book value per common share was $13.76 as of June 30, 2019.
•
At June 30, 2019, the leverage, common equity Tier I, Tier I and Total Risk Based Capital ratios were 10.36%, 11.99%, 12.81% and 14.06% respectively, all in excess of the ratios required to be deemed “well-capitalized.”
•
Credit quality improved. Nonperforming loans totaled $4.4 million and included $3.9 million of well secured residential mortgage loans. Nonperforming assets to total assets were 0.33% and the allowance to total loans ratio remained at 1.19% at June 30, 2019. Net charge-offs were $69 thousand for the quarter.

Other Highlights

•
American Banker magazine released its list of the top publicly traded community banks. There were 601 banks with total assets of less than $2 billion as of December 31, 2018, of which Unity Bank was ranked 13th nationally with a three-year return on average equity of 14.63 percent.
•
Unity Bank announced that its Board of Directors has approved a new Share Repurchase Program. Under this new program, the Company may repurchase up to 525,000 shares of its outstanding common stock, or approximately 5 percent of its common stock.
•
In the second quarter, the Board of Directors increased the quarterly cash dividend $0.01 or 14 percent, from $0.07 to $0.08 per share.

Unity Bancorp, Inc. is a financial service organization headquartered in Clinton, New Jersey, with approximately $1.6 billion in assets and $1.3 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, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Jun 30, 2019 vs.
 
 
 
 
 
 
 
 
 
 
Mar 31, 2019
 
Jun 30, 2018
 
(In thousands, except percentages and per share amounts)
 
Jun 30, 2019
 
Mar 31, 2019
 
Jun 30, 2018
 
 
 %
 
 %
 
BALANCE SHEET DATA:
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
 
$
1,626,737

 
$
1,590,046

 
$
1,514,120

 
 
2.3
 %
 
7.4
 %
 
Total deposits
 
1,264,353

 
1,226,586

 
1,146,399

 
 
3.1

 
10.3

 
Total loans
 
1,344,757

 
1,312,994

 
1,246,511

 
 
2.4

 
7.9

 
Total securities
 
62,122

 
62,962

 
65,682

 
 
(1.3
)
 
(5.4
)
 
Total shareholders' equity
 
149,383

 
143,717

 
128,141

 
 
3.9

 
16.6

 
Allowance for loan losses
 
(15,965
)
 
(15,684
)
 
(14,634
)
 
 
1.8

 
9.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
FINANCIAL DATA - QUARTER TO DATE:
 
 
 
 
 
 
 
 
 
 
Income before provision for income taxes
 
$
7,480

 
$
7,260

 
$
6,748

 
 
3.0

 
10.8

 
Provision for income taxes
 
1,646

 
1,520

 
1,351

 
 
8.3

 
21.8

 
Net income
 
$
5,834

 
$
5,740

 
$
5,397

 
 
1.6

 
8.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income per common share - Basic
 
$
0.54

 
$
0.53

 
$
0.50

 
 
1.9

 
8.0

 
Net income per common share - Diluted
 
$
0.53

 
$
0.52

 
$
0.49

 
 
1.9

 
8.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Performance ratios:
 
 
 
 
 
 
 
 
 
 
 
 
Return on average assets
 
1.54

%
1.55

%
1.53

%
 
 
 
 
 
Return on average equity
 
16.01

%
16.52

%
17.32

%
 
 
 
 
 
Efficiency ratio
 
53.20

%
52.53

%
52.80

%
 
 
 
 
 
Net interest margin
 
3.96

%
4.06

%
3.95

%
 
 
 
 
 
Noninterest expense to average assets
 
2.32

%
2.29

%
2.32

%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FINANCIAL DATA - YEAR TO DATE:
 
 
 
 
 
 
 
 
 
 
 
 
Income before provision for income taxes
 
$
14,740

 
 
 
$
13,213

 
 
 
 
11.6

 
Provision for income taxes
 
3,166

 
 
 
2,586

 
 
 
 
22.4

 
Net income
 
$
11,574

 
 
 
$
10,627

 
 
 
 
8.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income per common share - Basic
 
$
1.07

 
 
 
$
0.99

 
 
 
 
8.1

 
Net income per common share - Diluted
 
$
1.05

 
 
 
$
0.98

 
 
 
 
7.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Performance ratios:
 
 
 
 
 
 
 
 
 
 
 
 
Return on average assets
 
1.55

%
 
 
1.53

%
 
 
 
1.3

 
Return on average equity
 
16.26

%
 
 
17.41

%
 
 
 
(6.6
)
 
Efficiency ratio
 
52.87

%
 
 
53.40

%
 
 
 
(1.0
)
 
Net interest margin
 
4.01

%
 
 
3.97

%
 
 
 
1.0

 
Noninterest expense to average assets
 
2.31

%
 
 
2.36

%
 
 
 
(2.1
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SHARE INFORMATION:
 
 
 
 
 
 
 
 
 
 
 
 
Market price per share
 
$
22.70

 
$
18.88

 
$
22.75

 
 
20.2

 
(0.2
)
 
Dividends paid
 
$
0.08

 
$
0.07

 
$
0.07

 
 
14.3

 
14.3

 
Book value per common share
 
$
13.76

 
$
13.28

 
$
11.94

 
 
3.6

 
15.2

 
Average diluted shares outstanding (QTD)
 
11,026

 
10,955

 
10,915

 
 
0.6

 
1.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
CAPITAL RATIOS:
 
 
 
 
 
 
 
 
 
 
 
 
Total equity to total assets
 
9.18

%
9.04

%
8.46

%
 
 
 
 
 
Leverage ratio
 
10.36

%
10.09

%
9.63

%
 
 
 
 
 
Common equity tier 1 risk-based capital ratio
 
11.99

%
11.78

%
11.05

%
 
 
 
 
 
Tier 1 risk-based capital ratio
 
12.81

%
12.62

%
11.92

%
 
 
 
 
 
Total risk-based capital ratio
 
14.06

%
13.87

%
13.14

%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 




CREDIT QUALITY AND RATIOS:
 
 
 
 
 
 
 
 
 
 
 
 
Nonperforming assets
 
$
5,336

 
$
7,547

 
$
5,265

 
 
(29.3
)
 
1.3

 
QTD net chargeoffs (annualized) to QTD average loans
 
0.02

%
0.09

%
0.04

%
 
 
 
 
 
Allowance for loan losses to total loans
 
1.19

%
1.19

%
1.17

%
 
 
 
 
 
Nonperforming assets to total loans
and OREO
 
0.40

%
0.57

%
0.42

%
 
 
 
 
 
Nonperforming assets to total assets
 
0.33

%
0.47

%
0.35

%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 





UNITY BANCORP, INC.
CONSOLIDATED BALANCE SHEETS
June 30, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Jun 30, 2019 vs.
 
 
 
 
 
 
 
 
 
 
Dec 31, 2018
 
Jun 30, 2018
 
(In thousands, except percentages)
 
Jun 30, 2019
 
Dec 31, 2018
 
Jun 30, 2018
 
 
 %
 
 %
 
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
Cash and due from banks
 
$
21,606

 
$
20,028

 
$
26,784

 
 
7.9
 %
 
(19.3
) %
 
Federal funds sold, interest-bearing deposits and repos
 
133,234

 
125,487

 
112,491

 
 
6.2

 
18.4

 
Cash and cash equivalents
 
154,840

 
145,515

 
139,275

 
 
6.4

 
11.2

 
Securities:
 
 
 
 
 
 
 
 
 
 
 
 
Securities available for sale
 
45,326

 
46,713

 
48,707

 
 
(3.0
)
 
(6.9
)
 
Securities held to maturity
 
14,450

 
14,875

 
15,777

 
 
(2.9
)
 
(8.4
)
 
Equity securities
 
2,346

 
2,144

 
1,198

 
 
9.4

 
95.8

 
Total securities
 
62,122

 
63,732

 
65,682

 
 
(2.5
)
 
(5.4
)
 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
SBA loans held for sale
 
9,118

 
11,171

 
14,889

 
 
(18.4
)
 
(38.8
)
 
SBA loans held for investment
 
37,608

 
39,333

 
41,351

 
 
(4.4
)
 
(9.1
)
 
Commercial loans
 
713,878

 
694,102

 
673,480

 
 
2.8

 
6.0

 
Residential mortgage loans
 
449,604

 
436,056

 
398,383

 
 
3.1

 
12.9

 
Consumer loans
 
134,549

 
123,904

 
118,408

 
 
8.6

 
13.6

 
Total loans
 
1,344,757

 
1,304,566

 
1,246,511

 
 
3.1

 
7.9

 
Allowance for loan losses
 
(15,965
)
 
(15,488
)
 
(14,634
)
 
 
3.1

 
9.1

 
Net loans
 
1,328,792

 
1,289,078

 
1,231,877

 
 
3.1

 
7.9

 
Premises and equipment, net
 
22,813

 
23,371

 
23,493

 
 
(2.4
)
 
(2.9
)
 
Bank owned life insurance ("BOLI")
 
25,008

 
24,710

 
24,573

 
 
1.2

 
1.8

 
Deferred tax assets
 
5,605

 
5,350

 
4,438

 
 
4.8

 
26.3

 
Federal Home Loan Bank ("FHLB") stock
 
9,999

 
10,795

 
11,245

 
 
(7.4
)
 
(11.1
)
 
Accrued interest receivable
 
7,109

 
6,399

 
6,027

 
 
11.1

 
18.0

 
Other real estate owned ("OREO")
 
921

 
56

 
56

 
 
1,544.6

 
1,544.6

 
Goodwill
 
1,516

 
1,516

 
1,516

 
 
—

 
—

 
Other assets
 
8,012

 
8,635

 
5,938

 
 
(7.2
)
 
34.9

 
Total assets
 
$
1,626,737

 
$
1,579,157

 
$
1,514,120

 
 
3.0
 %
 
7.4
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Deposits:
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-bearing demand
 
$
275,356

 
$
270,152

 
$
250,500

 
 
1.9
 %
 
9.9
 %
 
Interest-bearing demand
 
157,850

 
185,792

 
160,327

 
 
(15.0
)
 
(1.5
)
 
Savings
 
389,999

 
394,727

 
398,694

 
 
(1.2
)
 
(2.2
)
 
Time Deposits
 
441,148

 
357,016

 
336,878

 
 
23.6

 
31.0

 
Total deposits
 
1,264,353

 
1,207,687

 
1,146,399

 
 
4.7

 
10.3

 
Borrowed funds
 
190,000

 
210,000

 
220,000

 
 
(9.5
)
 
(13.6
)
 
Subordinated debentures
 
10,310

 
10,310

 
10,310

 
 
—

 
—

 
Accrued interest payable
 
414

 
406

 
509

 
 
2.0

 
(18.7
)
 
Accrued expenses and other liabilities
 
12,277

 
12,266

 
8,761

 
 
0.1

 
40.1

 
Total liabilities
 
1,477,354

 
1,440,669

 
1,385,979

 
 
2.5

 
6.6

 
Shareholders' equity:
 
 
 
 
 
 
 
 
 
 
 
 
Common stock
 
89,327

 
88,484

 
87,755

 
 
1.0

 
1.8

 
Retained earnings
 
60,109

 
50,161

 
40,386

 
 
19.8

 
48.8

 
Accumulated other comprehensive (loss) income
 
(53
)
 
(157
)
 
—

 
 
 NM
 
 NM
 
Total shareholders' equity
 
149,383

 
138,488

 
128,141

 
 
7.9

 
16.6

 
Total liabilities and shareholders' equity
 
$
1,626,737

 
$
1,579,157

 
$
1,514,120

 
 
3.0
 %
 
7.4
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Issued and outstanding common shares
 
10,856

 
10,780

 
10,731

 
 
 
 
 
 
NM=Not meaningful




UNITY BANCORP, INC.
QTD CONSOLIDATED STATEMENTS OF INCOME
June 30, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Jun 30, 2019 vs.
 
 
 
 For the three months ended
 
 
Mar 31, 2019
 
Jun 30, 2018
 
(In thousands, except percentages and per share amounts)
 
Jun 30, 2019
 
Mar 31, 2019
 
Jun 30, 2018
 
 
$
 
%
 
$
 
%
 
INTEREST INCOME
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Federal funds sold, interest-bearing deposits and repos
 
$
232

 
$
221

 
$
171

 
 
$
11

 
5.0
%
 
$
61

 
35.7
%
 
FHLB stock
 
77

 
116

 
123

 
 
(39
)
 
(33.6
)
 
(46
)
 
(37.4
)
 
Securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Taxable
 
461

 
475

 
484

 
 
(14
)
 
(2.9
)
 
(23
)
 
(4.8
)
 
Tax-exempt
 
27

 
29

 
30

 
 
(2
)
 
(6.9
)
 
(3
)
 
(10.0
)
 
Total securities
 
488

 
504

 
514

 
 
(16
)
 
(3.2
)
 
(26
)
 
(5.1
)
 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SBA loans
 
942

 
995

 
1,131

 
 
(53
)
 
(5.3
)
 
(189
)
 
(16.7
)
 
Commercial loans
 
9,357

 
9,069

 
8,209

 
 
288

 
3.2

 
1,148

 
14.0

 
Residential mortgage loans
 
5,535

 
5,560

 
4,522

 
 
(25
)
 
(0.4
)
 
1,013

 
22.4

 
Consumer loans
 
2,150

 
2,035

 
1,699

 
 
115

 
5.7

 
451

 
26.5

 
Total loans
 
17,984

 
17,659

 
15,561

 
 
325

 
1.8

 
2,423

 
15.6

 
Total interest income
 
18,781

 
18,500

 
16,369

 
 
281

 
1.5

 
2,412

 
14.7

 
INTEREST EXPENSE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing demand deposits
 
442

 
409

 
259

 
 
33

 
8.1

 
183

 
70.7

 
Savings deposits
 
1,188

 
1,119

 
943

 
 
69

 
6.2

 
245

 
26.0

 
Time deposits
 
2,437

 
2,007

 
1,303

 
 
430

 
21.4

 
1,134

 
87.0

 
Borrowed funds and subordinated debentures
 
504

 
749

 
720

 
 
(245
)
 
(32.7
)
 
(216
)
 
(30.0
)
 
Total interest expense
 
4,571

 
4,284

 
3,225

 
 
287

 
6.7

 
1,346

 
41.7

 
Net interest income
 
14,210

 
14,216

 
13,144

 
 
(6
)
 
—

 
1,066

 
8.1

 
Provision for loan losses
 
350

 
500

 
550

 
 
(150
)
 
(30.0
)
 
(200
)
 
(36.4
)
 
Net interest income after provision for loan losses
 
13,860

 
13,716

 
12,594

 
 
144

 
1.0

 
1,266

 
10.1

 
NONINTEREST INCOME
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Branch fee income
 
378

 
368

 
419

 
 
10

 
2.7

 
(41
)
 
(9.8
)
 
Service and loan fee income
 
569

 
442

 
411

 
 
127

 
28.7

 
158

 
38.4

 
Gain on sale of SBA loans held for sale, net
 
238

 
316

 
582

 
 
(78
)
 
(24.7
)
 
(344
)
 
(59.1
)
 
Gain on sale of mortgage loans, net
 
630

 
350

 
421

 
 
280

 
80.0

 
209

 
49.6

 
BOLI income
 
147

 
151

 
175

 
 
(4
)
 
(2.6
)
 
(28
)
 
(16.0
)
 
Net security gains
 
98

 
100

 
7

 
 
(2
)
 
(2.0
)
 
91

 
1,300.0

 
Other income
 
351

 
293

 
297

 
 
58

 
19.8

 
54

 
18.2

 
Total noninterest income
 
2,411

 
2,020

 
2,312

 
 
391

 
19.4

 
99

 
4.3

 
NONINTEREST EXPENSE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Compensation and benefits
 
5,186

 
4,845

 
4,736

 
 
341

 
7.0

 
450

 
9.5

 
Occupancy
 
653

 
694

 
693

 
 
(41
)
 
(5.9
)
 
(40
)
 
(5.8
)
 
Processing and communications
 
748

 
716

 
674

 
 
32

 
4.5

 
74

 
11.0

 
Furniture and equipment
 
718

 
657

 
610

 
 
61

 
9.3

 
108

 
17.7

 
Professional services
 
277

 
288

 
161

 
 
(11
)
 
(3.8
)
 
116

 
72.0

 
Loan collection & OREO (recoveries) expenses
 
(10
)
 
66

 
6

 
 
(76
)
 
(115.2
)
 
(16
)
 
(266.7
)
 
Other loan expenses
 
67

 
46

 
53

 
 
21

 
45.7

 
14

 
26.4

 
Deposit insurance
 
134

 
167

 
216

 
 
(33
)
 
(19.8
)
 
(82
)
 
(38.0
)
 
Advertising
 
374

 
348

 
362

 
 
26

 
7.5

 
12

 
3.3

 
Director fees
 
164

 
163

 
165

 
 
1

 
0.6

 
(1
)
 
(0.6
)
 
Other expenses
 
480

 
486

 
482

 
 
(6
)
 
(1.2
)
 
(2
)
 
(0.4
)
 
Total noninterest expense
 
8,791

 
8,476

 
8,158

 
 
315

 
3.7

 
633

 
7.8

 
Income before provision for income taxes
 
7,480

 
7,260

 
6,748

 
 
220

 
3.0

 
732

 
10.8

 
Provision for income taxes
 
1,646

 
1,520

 
1,351

 
 
126

 
8.3

 
295

 
21.8

 
Net income
 
$
5,834

 
$
5,740

 
$
5,397

 
 
$
94

 
1.6
%
 
$
437

 
8.1
%
 




 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effective tax rate
 
22.0
%
 
20.9
%
 
20.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income per common share - Basic
 
$
0.54

 
$
0.53

 
$
0.50

 
 
 
 
 
 
 
 
 
 
Net income per common share - Diluted
 
$
0.53

 
$
0.52

 
$
0.49

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding - Basic
 
10,843

 
10,801

 
10,717

 
 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding - Diluted
 
11,026

 
10,955

 
10,915

 
 
 
 
 
 
 
 
 
 





UNITY BANCORP, INC.
YTD CONSOLIDATED STATEMENTS OF INCOME
June 30, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
For the six months ended June 30,
 
 
Current YTD vs Prior YTD
 
(In thousands, except percentages and per share amounts)
 
2019
 
2018
 
 
$
 
%
 
INTEREST INCOME
 
 
 
 
 
 
 
 
 
 
Federal funds sold, interest-bearing deposits and repos
 
$
453

 
$
376

 
 
$
77

 
20.5
%
 
FHLB stock
 
193

 
257

 
 
(64
)
 
(24.9
)
 
Securities:
 
 
 
 
 
 
 
 
 
 
Taxable
 
937

 
976

 
 
(39
)
 
(4.0
)
 
Tax-exempt
 
55

 
61

 
 
(6
)
 
(9.8
)
 
Total securities
 
992

 
1,037

 
 
(45
)
 
(4.3
)
 
Loans:
 
 
 
 
 
 
 
 
 
 
SBA loans
 
1,937

 
2,314

 
 
(377
)
 
(16.3
)
 
Commercial loans
 
18,426

 
15,934

 
 
2,492

 
15.6

 
Residential mortgage loans
 
11,095

 
8,863

 
 
2,232

 
25.2

 
Consumer loans
 
4,185

 
3,228

 
 
957

 
29.6

 
Total loans
 
35,643

 
30,339

 
 
5,304

 
17.5

 
Total interest income
 
37,281

 
32,009

 
 
5,272

 
16.5

 
INTEREST EXPENSE
 
 
 
 
 
 
 
 
 
 
Interest-bearing demand deposits
 
851

 
483

 
 
368

 
76.2

 
Savings deposits
 
2,306

 
1,719

 
 
587

 
34.1

 
Time deposits
 
4,445

 
2,302

 
 
2,143

 
93.1

 
Borrowed funds and subordinated debentures
 
1,253

 
1,489

 
 
(236
)
 
(15.8
)
 
Total interest expense
 
8,855

 
5,993

 
 
2,862

 
47.8

 
Net interest income
 
28,426

 
26,016

 
 
2,410

 
9.3

 
Provision for loan losses
 
850

 
1,050

 
 
(200
)
 
(19.0
)
 
Net interest income after provision for loan losses
 
27,576

 
24,966

 
 
2,610

 
10.5

 
NONINTEREST INCOME
 
 
 
 
 
 
 
 
 
 
Branch fee income
 
746

 
750

 
 
(4
)
 
(0.5
)
 
Service and loan fee income
 
1,011

 
976

 
 
35

 
3.6

 
Gain on sale of SBA loans held for sale, net
 
554

 
1,130

 
 
(576
)
 
(51.0
)
 
Gain on sale of mortgage loans, net
 
980

 
845

 
 
135

 
16.0

 
BOLI income
 
297

 
346

 
 
(49
)
 
(14.2
)
 
Net security gains (losses)
 
198

 
(9
)
 
 
207

 
2,300.0

 
Other income
 
645

 
560

 
 
85

 
15.2

 
Total noninterest income
 
4,431

 
4,598

 
 
(167
)
 
(3.6
)
 
NONINTEREST EXPENSE
 
 
 
 
 
 
 
 
 
 
Compensation and benefits
 
10,030

 
9,570

 
 
460

 
4.8

 
Occupancy
 
1,346

 
1,383

 
 
(37
)
 
(2.7
)
 
Processing and communications
 
1,464

 
1,363

 
 
101

 
7.4

 
Furniture and equipment
 
1,375

 
1,146

 
 
229

 
20.0

 
Professional services
 
565

 
412

 
 
153

 
37.1

 
Loan collection & OREO expenses
 
57

 
11

 
 
46

 
418.2

 
Other loan expenses
 
113

 
86

 
 
27

 
31.4

 
Deposit insurance
 
301

 
402

 
 
(101
)
 
(25.1
)
 
Advertising
 
722

 
681

 
 
41

 
6.0

 
Director fees
 
328

 
327

 
 
1

 
0.3

 
Other expenses
 
966

 
970

 
 
(4
)
 
(0.4
)
 
Total noninterest expense
 
17,267

 
16,351

 
 
916

 
5.6

 
Income before provision for income taxes
 
14,740

 
13,213

 
 
1,527

 
11.6

 
Provision for income taxes
 
3,166

 
2,586

 
 
580

 
22.4

 
Net income
 
$
11,574

 
$
10,627

 
 
$
947

 
8.9
%
 
 
 
 
 
 
 
 
 
 
 
 
Effective tax rate
 
21.5
%
 
19.6
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 




Net income per common share - Basic
 
$
1.07

 
$
0.99

 
 
 
 
 
 
Net income per common share - Diluted
 
$
1.05

 
$
0.98

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding - Basic
 
10,822

 
10,698

 
 
 
 
 
 
Weighted average common shares outstanding - Diluted
 
11,011

 
10,897

 
 
 
 
 
 





UNITY BANCORP, INC.
QUARTER TO DATE NET INTEREST MARGIN
June 30, 2019
(Dollar amounts in thousands, interest amounts and interest rates/yields on a fully tax-equivalent basis)
 
 
For the three months ended
 
 
June 30, 2019
 
June 30, 2018
 
 
Average Balance
 
Interest
 
 Rate/Yield
 
Average Balance
 
Interest
 
 Rate/Yield
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
Interest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
 
Federal funds sold, interest-bearing deposits and repos
 
$
39,103

 
$
232

 
2.38
%
 
$
39,418

 
$
171

 
1.74
%
FHLB stock
 
5,236

 
77

 
5.90

 
7,811

 
123

 
6.32

Securities:
 
 
 
 
 
 
 
 
 
 
 
 
Taxable
 
57,939

 
461

 
3.19

 
61,342

 
484

 
3.16

Tax-exempt
 
4,470

 
33

 
2.96

 
5,202

 
37

 
2.85

Total securities (A)
 
62,409

 
494

 
3.17

 
66,544

 
521

 
3.14

Loans:
 
 
 
 
 
 
 
 
 
 
 
 
SBA loans
 
47,542

 
942

 
7.95

 
62,467

 
1,131

 
7.26

Commercial loans
 
707,022

 
9,357

 
5.31

 
657,031

 
8,209

 
5.01

Residential mortgage loans
 
445,315

 
5,535

 
4.99

 
387,086

 
4,522

 
4.69

Consumer loans
 
132,804

 
2,150

 
6.49

 
116,547

 
1,699

 
5.85

Total loans (B)
 
1,332,683

 
17,984

 
5.41

 
1,223,131

 
15,561

 
5.10

Total interest-earning assets
 
$
1,439,431

 
$
18,787

 
5.24
%
 
$
1,336,904

 
$
16,376

 
4.91
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
 
Cash and due from banks
 
24,625

 
 
 
 
 
24,145

 
 
 
 
Allowance for loan losses
 
(15,955
)
 
 
 
 
 
(14,419
)
 
 
 
 
Other assets
 
69,663

 
 
 
 
 
64,811

 
 
 
 
Total noninterest-earning assets
 
78,333

 
 
 
 
 
74,537

 
 
 
 
Total assets
 
$
1,517,764

 
 
 
 
 
$
1,411,441

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
 
 
 
 
 
Interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Total interest-bearing demand deposits
 
$
174,391

 
$
442

 
1.02
%
 
$
168,298

 
$
259

 
0.62
%
Total savings deposits
 
395,185

 
1,188

 
1.21

 
401,195

 
943

 
0.94

Total time deposits
 
422,458

 
2,437

 
2.31

 
296,078

 
1,303

 
1.77

Total interest-bearing deposits
 
992,034

 
4,067

 
1.64

 
865,571

 
2,505

 
1.16

Borrowed funds and subordinated debentures
 
94,568

 
504

 
2.14

 
154,250

 
720

 
1.87

Total interest-bearing liabilities
 
$
1,086,602

 
$
4,571

 
1.69
%
 
$
1,019,821

 
$
3,225

 
1.27
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-bearing demand deposits
 
271,359

 
 
 
 
 
257,238

 
 
 
 
Other liabilities
 
13,697

 
 
 
 
 
9,418

 
 
 
 
Total noninterest-bearing liabilities
 
285,056

 
 
 
 
 
266,656

 
 
 
 
Total shareholders' equity
 
146,106

 
 
 
 
 
124,964

 
 
 
 
Total liabilities and shareholders' equity
 
$
1,517,764

 
 
 
 
 
$
1,411,441

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest spread
 
 
 
$
14,216

 
3.55
%
 
 
 
$
13,151

 
3.64
%
Tax-equivalent basis adjustment
 
 
 
(6
)
 
 
 
 
 
(7
)
 
 
Net interest income
 
 
 
$
14,210

 
 
 
 
 
$
13,144

 
 
Net interest margin
 
 
 
 
 
3.96
%
 
 
 
 
 
3.95
%
(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 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, 2019
(Dollar amounts in thousands, interest amounts and interest rates/yields on a fully tax-equivalent basis)
 
 
For the three months ended
 
 
June 30, 2019
 
March 31, 2019
 
 
Average Balance
 
Interest
 
 Rate/Yield
 
Average Balance
 
Interest
 
 Rate/Yield
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
Interest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
 
Federal funds sold, interest-bearing deposits and repos
 
$
39,103

 
$
232

 
2.38
%
 
$
38,066

 
$
221

 
2.35
%
FHLB stock
 
5,236

 
77

 
5.90

 
6,951

 
116

 
6.77

Securities:
 
 
 
 
 
 
 
 
 
 
 
 
Taxable
 
57,939

 
461

 
3.19

 
58,735

 
475

 
3.28

Tax-exempt
 
4,470

 
33

 
2.96

 
4,588

 
36

 
3.18

Total securities (A)
 
62,409

 
494

 
3.17

 
63,323

 
511

 
3.27

Loans:
 
 
 
 
 
 
 
 
 
 
 
 
SBA loans
 
47,542

 
942

 
7.95

 
50,015

 
995

 
8.07

Commercial loans
 
707,022

 
9,357

 
5.31

 
697,856

 
9,069

 
5.27

Residential mortgage loans
 
445,315

 
5,535

 
4.99

 
439,904

 
5,560

 
5.13

Consumer loans
 
132,804

 
2,150

 
6.49

 
125,987

 
2,035

 
6.55

Total loans (B)
 
1,332,683

 
17,984

 
5.41

 
1,313,762

 
17,659

 
5.45

Total interest-earning assets
 
$
1,439,431

 
$
18,787

 
5.24
%
 
$
1,422,102

 
$
18,507

 
5.28
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
 
Cash and due from banks
 
24,625

 
 
 
 
 
26,105

 
 
 
 
Allowance for loan losses
 
(15,955
)
 
 
 
 
 
(15,753
)
 
 
 
 
Other assets
 
69,663

 
 
 
 
 
70,586

 
 
 
 
Total noninterest-earning assets
 
78,333

 
 
 
 
 
80,938

 
 
 
 
Total assets
 
$
1,517,764

 
 
 
 
 
$
1,503,040

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
 
 
 
 
 
Interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Total interest-bearing demand deposits
 
$
174,391

 
$
442

 
1.02
%
 
$
182,080

 
$
409

 
0.91
%
Total savings deposits
 
395,185

 
1,188

 
1.21

 
397,209

 
1,119

 
1.14

Total time deposits
 
422,458

 
2,437

 
2.31

 
370,990

 
2,007

 
2.19

Total interest-bearing deposits
 
992,034

 
4,067

 
1.64

 
950,279

 
3,535

 
1.51

Borrowed funds and subordinated debentures
 
94,568

 
504

 
2.14

 
134,877

 
749

 
2.25

Total interest-bearing liabilities
 
$
1,086,602

 
$
4,571

 
1.69
%
 
$
1,085,156

 
$
4,284

 
1.60
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-bearing demand deposits
 
271,359

 
 
 
 
 
262,664

 
 
 
 
Other liabilities
 
13,697

 
 
 
 
 
14,327

 
 
 
 
Total noninterest-bearing liabilities
 
285,056

 
 
 
 
 
276,991

 
 
 
 
Total shareholders' equity
 
146,106

 
 
 
 
 
140,893

 
 
 
 
Total liabilities and shareholders' equity
 
$
1,517,764

 
 
 
 
 
$
1,503,040

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest spread
 
 
 
$
14,216

 
3.55
%
 
 
 
$
14,223

 
3.68
%
Tax-equivalent basis adjustment
 
 
 
(6
)
 
 
 
 
 
(7
)
 
 
Net interest income
 
 
 
$
14,210

 
 
 
 
 
$
14,216

 
 
Net interest margin
 
 
 
 
 
3.96
%
 
 
 
 
 
4.06
%
(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 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, 2019
(Dollar amounts in thousands, interest amounts and interest rates/yields on a fully tax-equivalent basis)
 
 
For the six months ended
 
 
June 30, 2019
 
June 30, 2018
 
 
Average Balance
 
Interest
 
 Rate/Yield
 
Average Balance
 
Interest
 
 Rate/Yield
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
Interest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
 
Federal funds sold, interest-bearing deposits and repos
 
$
38,588

 
$
453

 
2.37
%
 
$
44,151

 
$
376

 
1.72
%
FHLB stock
 
6,089

 
193

 
6.39

 
7,805

 
257

 
6.64

Securities:
 
 
 
 
 
 
 
 
 
 
 
 
Taxable
 
58,334

 
937

 
3.24

 
62,361

 
976

 
3.16

Tax-exempt
 
4,529

 
68

 
3.03

 
5,276

 
76

 
2.90

Total securities (A)
 
62,863

 
1,005

 
3.22

 
67,637

 
1,052

 
3.14

Loans:
 
 
 
 
 
 
 
 
 
 
 
 
SBA loans
 
48,772

 
1,937

 
8.01

 
65,405

 
2,314

 
7.13

Commercial loans
 
702,465

 
18,426

 
5.29

 
644,788

 
15,934

 
4.98

Residential mortgage loans
 
442,628

 
11,095

 
5.05

 
379,118

 
8,863

 
4.71

Consumer loans
 
129,414

 
4,185

 
6.52

 
113,762

 
3,228

 
5.72

Total loans (B)
 
1,323,279

 
35,643

 
5.43

 
1,203,073

 
30,339

 
5.09

Total interest-earning assets
 
$
1,430,819

 
$
37,294

 
5.26
%
 
$
1,322,666

 
$
32,024

 
4.88
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
 
Cash and due from banks
 
25,361

 
 
 
 
 
23,697

 
 
 
 
Allowance for loan losses
 
(15,855
)
 
 
 
 
 
(14,185
)
 
 
 
 
Other assets
 
70,118

 
 
 
 
 
65,246

 
 
 
 
Total noninterest-earning assets
 
79,624

 
 
 
 
 
74,758

 
 
 
 
Total assets
 
$
1,510,443

 
 
 
 
 
$
1,397,424

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
 
 
 
 
 
Interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Total interest-bearing demand deposits
 
$
178,214

 
$
851

 
0.96
%
 
$
173,314

 
$
483

 
0.56
%
Total savings deposits
 
396,191

 
2,306

 
1.17

 
402,203

 
1,719

 
0.86

Total time deposits
 
396,868

 
4,445

 
2.26

 
274,160

 
2,302

 
1.69

Total interest-bearing deposits
 
971,273

 
7,602

 
1.58

 
849,677

 
4,504

 
1.07

Borrowed funds and subordinated debentures
 
114,611

 
1,253

 
2.20

 
160,817

 
1,489

 
1.87

Total interest-bearing liabilities
 
$
1,085,884

 
$
8,855

 
1.65
%
 
$
1,010,494

 
$
5,993

 
1.20
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-bearing demand deposits
 
267,035

 
 
 
 
 
254,697

 
 
 
 
Other liabilities
 
14,010

 
 
 
 
 
9,166

 
 
 
 
Total noninterest-bearing liabilities
 
281,045

 
 
 
 
 
263,863

 
 
 
 
Total shareholders' equity
 
143,514

 
 
 
 
 
123,067

 
 
 
 
Total liabilities and shareholders' equity
 
$
1,510,443

 
 
 
 
 
$
1,397,424

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest spread
 
 
 
$
28,439

 
3.61
%
 
 
 
$
26,031

 
3.68
%
Tax-equivalent basis adjustment
 
 
 
(13
)
 
 
 
 
 
(15
)
 
 
Net interest income
 
 
 
$
28,426

 
 
 
 
 
$
26,016

 
 
Net interest margin
 
 
 
 
 
4.01
%
 
 
 
 
 
3.97
%
(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 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, 2019
Amounts in thousands, except percentages
 
Jun 30, 2019
 
Mar 31, 2019
 
Dec 31, 2018
 
Sep 30, 2018
 
Jun 30, 2018
ALLOWANCE FOR LOAN LOSSES:
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period
 
$
15,684

 
$
15,488

 
$
14,988

 
$
14,634

 
$
14,196

Provision for loan losses charged to expense
 
350

 
500

 
500

 
500

 
550

 
 
16,034

 
15,988

 
15,488

 
15,134

 
14,746

Less: Chargeoffs
 
 
 
 
 
 
 
 
 
 
SBA loans
 
84

 
308

 
—

 
169

 
104

Commercial loans
 
—

 
1

 
10

 
—

 
—

Residential mortgage loans
 
—

 
—

 
—

 
—

 
—

Consumer loans
 
—

 
1

 
—

 
—

 
16

Total chargeoffs
 
84

 
310

 
10

 
169

 
120

Add: Recoveries
 
 
 
 
 
 
 
 
 
 
SBA loans
 
1

 
1

 
3

 
1

 
3

Commercial loans
 
4

 
5

 
5

 
5

 
4

Residential mortgage loans
 
—

 
—

 
—

 
—

 
—

Consumer loans
 
10

 
—

 
2

 
17

 
1

Total recoveries
 
15

 
6

 
10

 
23

 
8

Net chargeoffs (recoveries)
 
69

 
304

 
—

 
146

 
112

Balance, end of period
 
$
15,965

 
$
15,684

 
$
15,488

 
$
14,988

 
$
14,634

 
 
 
 
 
 
 
 
 
 
 
LOAN QUALITY INFORMATION:
 
 
 
 
 
 
 
 
 
 
Nonperforming loans:
 
 
 
 
 
 
 
 
 
 
SBA loans
 
$
437

 
$
814

 
$
1,560

 
$
1,297

 
$
1,420

Commercial loans
 
54

 
1,046

 
1,076

 
1,234

 
2,062

Residential mortgage loans
 
3,924

 
5,243

 
4,211

 
3,536

 
1,660

Consumer loans
 
—

 
171

 
26

 
128

 
67

Total nonperforming loans (1)
 
4,415

 
7,274

 
6,873

 
6,195

 
5,209

Other real estate owned ("OREO")
 
921

 
273

 
56

 
56

 
56

Nonperforming assets
 
5,336

 
7,547

 
6,929

 
6,251

 
5,265

Less: Amount guaranteed by SBA
 
68

 
68

 
89

 
104

 
129

Net nonperforming assets
 
$
5,268

 
$
7,479

 
$
6,840

 
$
6,147

 
$
5,136

 
 
 
 
 
 
 
 
 
 
 
 Loans 90 days past due & still accruing
 
 
 
$
39

 
$
98

 
$
546

 
$
286

 
 
 
 
 
 
 
 
 
 
 
Performing Troubled Debt Restructurings (TDRs)
 
$
728

 
$
738

 
$
745

 
$
755

 
$
767

(1) Nonperforming TDRs included in nonperforming loans
 
—

 
—

 
—

 
—

 
—

Total TDRs
 
$
728

 
$
738

 
$
745

 
$
755

 
$
767

 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses to:
 
 
 
 
 
 
 
 
 
 
Total loans at quarter end
 
1.19
%
 
1.19
%
 
1.19
%
 
1.17
%
 
1.17
%
Nonperforming loans (1)
 
361.61

 
215.62

 
225.35

 
241.94

 
280.94

Nonperforming assets
 
299.19

 
207.82

 
223.52

 
239.77

 
277.95

Net nonperforming assets
 
303.06

 
209.71

 
226.43

 
243.83

 
284.93

 
 
 
 
 
 
 
 
 
 
 
QTD net chargeoffs (annualized) to QTD average loans:
 
 
 
 
 
 
 
 
 
 
SBA loans
 
0.70
%
 
2.49
%
 
(0.02
)%
 
1.17
%
 
0.65
%
Commercial loans
 
—

 
—

 
—

 
—

 
—

Residential mortgage loans
 
—

 
—

 
—

 
—

 
—

Consumer loans
 
(0.03
)
 
—

 
(0.01
)
 
(0.06
)
 
0.05

Total loans
 
0.02
%
 
0.09
%
 
—
%
 
0.05
%
 
0.04
%
 
 
 
 
 
 
 
 
 
 
 
Nonperforming loans to total loans
 
0.33
%
 
0.55
%
 
0.53
%
 
0.48
%
 
0.42
%
Nonperforming loans and TDRs to total loans
 
0.38

 
0.61

 
0.58

 
0.54

 
0.48

Nonperforming assets to total loans and OREO
 
0.40

 
0.57

 
0.53

 
0.49

 
0.42

Nonperforming assets to total assets
 
0.33

 
0.47

 
0.44

 
0.40

 
0.35





UNITY BANCORP, INC.
QUARTERLY FINANCIAL DATA
June 30, 2019
(In thousands, except percentages and per share amounts)
 
Jun 30, 2019
 
Mar 31, 2019
 
Dec 31, 2018
 
Sep 30, 2018
 
Jun 30, 2018
SUMMARY OF INCOME:
 
 
 
 
 
 
 
 
 
 
Total interest income
 
$
18,781

 
$
18,500

 
$
18,060

 
$
17,194

 
$
16,369

Total interest expense
 
4,571

 
4,284

 
3,896

 
3,627

 
3,225

Net interest income
 
14,210

 
14,216

 
14,164

 
13,567

 
13,144

Provision for loan losses
 
350

 
500

 
500

 
500

 
550

Net interest income after provision for loan losses
 
13,860

 
13,716

 
13,664

 
13,067

 
12,594

Total noninterest income
 
2,411

 
2,020

 
1,954

 
2,479

 
2,312

Total noninterest expense
 
8,791

 
8,476

 
8,268

 
8,801

 
8,158

Income before provision for income taxes
 
7,480

 
7,260

 
7,350

 
6,745

 
6,748

Provision for income taxes
 
1,646

 
1,520

 
1,547

 
1,255

 
1,351

Net income
 
$
5,834

 
$
5,740

 
$
5,803

 
$
5,490

 
$
5,397

 
 
 
 
 
 
 
 
 
 
 
Net income per common share - Basic
 
$
0.54

 
$
0.53

 
$
0.54

 
$
0.51

 
$
0.50

Net income per common share - Diluted
 
$
0.53

 
$
0.52

 
$
0.53

 
$
0.50

 
$
0.49

 
 
 
 
 
 
 
 
 
 
 
COMMON SHARE DATA:
 
 
 
 
 
 
 
 
 
 
Market price per share
 
$
22.70

 
$
18.88

 
$
20.76

 
$
22.90

 
$
22.75

Dividends paid
 
$
0.08

 
$
0.07

 
$
0.07

 
$
0.07

 
$
0.07

Book value per common share
 
$
13.76

 
$
13.28

 
$
12.85

 
$
12.37

 
$
11.94

 
 
 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding - Basic
 
10,843

 
10,801

 
10,765

 
10,743

 
10,717

Weighted average common shares outstanding - Diluted
 
11,026

 
10,955

 
10,935

 
10,936

 
10,915

Issued and outstanding common shares
 
10,856

 
10,822

 
10,780

 
10,756

 
10,731

 
 
 
 
 
 
 
 
 
 
 
PERFORMANCE RATIOS (Annualized):
 
 
 
 
 
 
 
 
 
 
Return on average assets
 
1.54
%
 
1.55
%
 
1.56
%
 
1.50
%
 
1.53
%
Return on average equity
 
16.01

 
16.52

 
17.00

 
16.64

 
17.32

Efficiency ratio
 
53.20

 
52.53

 
50.69

 
54.86

 
52.80

Noninterest expense to average assets
 
2.32

 
2.29

 
2.22

 
2.41

 
2.32

 
 
 
 
 
 
 
 
 
 
 
BALANCE SHEET DATA:
 
 
 
 
 
 
 
 
 
 
Total assets
 
1,626,737

 
1,590,046

 
1,579,157

 
1,553,152

 
1,514,120

Total deposits
 
1,264,353

 
1,226,586

 
1,207,687

 
1,219,473

 
1,146,399

Total loans
 
1,344,757

 
1,312,994

 
1,304,566

 
1,283,304

 
1,246,511

Total securities
 
62,122

 
62,962

 
63,732

 
63,399

 
65,682

Total shareholders' equity
 
149,383

 
143,717

 
138,488

 
133,067

 
128,141

Allowance for loan losses
 
(15,965
)
 
(15,684
)
 
(15,488
)
 
(14,988
)
 
(14,634
)
 
 
 
 
 
 
 
 
 
 
 
TAX EQUIVALENT YIELDS AND RATES:
 
 
 
 
 
 
 
 
 
 
Interest-earning assets
 
5.24
%
 
5.28
%
 
5.12
%
 
4.97
%
 
4.91
%
Interest-bearing liabilities
 
1.69

 
1.60

 
1.46

 
1.38

 
1.27

Net interest spread
 
3.55

 
3.68

 
3.66

 
3.59

 
3.64

Net interest margin
 
3.96

 
4.06

 
4.01

 
3.92

 
3.95

 
 
 
 
 
 
 
 
 
 
 
CREDIT QUALITY:
 
 
 
 
 
 
 
 
 
 
Nonperforming assets
 
5,336

 
7,547

 
6,929

 
6,251

 
5,265

QTD net chargeoffs (annualized) to QTD average loans
 
0.02
%
 
0.09
%
 
—
%
 
0.05
%
 
0.04
%
Allowance for loan losses to total loans
 
1.19

 
1.19

 
1.19

 
1.17

 
1.17

Nonperforming assets to total loans and OREO
 
0.40

 
0.57

 
0.53

 
0.49

 
0.42

Nonperforming assets to total assets
 
0.33

 
0.47

 
0.44

 
0.40

 
0.35

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 




(In thousands, except percentages and per share amounts)
 
Jun 30, 2019
 
Mar 31, 2019
 
Dec 31, 2018
 
Sep 30, 2018
 
Jun 30, 2018
CAPITAL RATIOS AND OTHER:
 
 
 
 
 
 
 
 
 
 
Total equity to total assets
 
9.18
%
 
9.04
%
 
8.77
%
 
8.57
%
 
8.46
%
Leverage ratio
 
10.36

 
10.09

 
9.90

 
9.74

 
9.63

Common equity tier 1 risk-based capital ratio
 
11.99

 
11.78

 
11.40

 
11.15

 
11.05

Tier 1 risk-based capital ratio
 
12.82

 
12.62

 
12.24

 
12.00

 
11.92

Total risk-based capital ratio
 
14.07

 
13.87

 
13.49

 
13.25

 
13.14

Number of banking offices
 
19

 
19

 
19

 
19

 
19

Number of ATMs
 
20

 
20

 
20

 
20

 
20

Number of employees
 
185

 
190

 
198

 
195

 
197