EX-99.1 2 a06-3534_1ex99d1.htm EXHIBIT 99

Exhibit 99.1

 

 

 

 

 

 

 

 

Unity Bancorp, Inc.

 

 

64 Old Highway 22

 

 

Clinton, NJ 08809

 

 

800 618-BANK

 

 

www.unitybank.com

 

NewsNewsNewsNewsNews

 

For Immediate Release:

 

January 25, 2006

 

News Media & Financial Analyst Contact:

Alan Bedner, EVP

Chief Financial Officer

(908) 713-4308

 

Unity Bancorp Reports 29.2% increase in Fourth Quarter Earnings

 

Clinton, NJ - Unity Bancorp, Inc. (NASDAQ: UNTY), parent company of Unity Bank, reported net income of $1.8 million, or $0.27 per diluted share, for the quarter ended December 31, 2005, a 29.2% increase compared to net income of $1.4 million, or $0.21 per diluted share, for the quarter ended December 31, 2004.  Return on average assets and average common equity for the fourth quarter of 2005 were 1.16% and 17.62%, respectively, as compared to 1.08% and 15.53%, respectively, for the fourth quarter of 2004.

 

For the year ended December 31, 2005, net income was $6.2 million, or $0.96 per diluted share, a 16.5% increase from net income of $5.3 million, or $0.83 per diluted share for the same period a year ago.  Return on average assets and average common equity for the year ended December 31, 2005, were 1.10% and 16.29%, respectively, as compared to 1.10% and 16.32%, respectively, from the prior year period.

 

“The year was marked by strong loan and deposit growth and stable margins, which resulted in our fourth year of record earnings,” said Unity President and Chief Executive Officer, James A. Hughes.  “We are extremely pleased with operating results and continue to remain optimistic about future earnings growth.”

 

Net interest income was $6.0 million for the fourth quarter of 2005, a 17.8% increase compared to a year ago.  The increase in net interest income was due primarily to an increase in interest-earning assets partially offset by a slight decrease in net interest margin.  Net interest margin was 4.20% for the fourth quarter of 2005, compared to 4.26% for the fourth quarter of 2004.  Year over year,

 


 

net interest income increased $3.1 million or 16.1 percent to $22.2 million due to an increase in interest-earning assets and a relatively stable net interest margin at 4.17 percent compared to 4.18 percent the prior year.

 

The provision for loan losses for the fourth quarter of 2005 was $525 thousand, compared to $350 thousand for the quarter ended December 31, 2004.  The increase in the provision was primarily due to the increase in the loan portfolio.  Net loan charge-offs for the quarter ended December 31, 2005 were $191 thousand, compared to net-charge offs of $220 thousand for the quarter ended December 31, 2004.  For the year-ended December 31, 2005, the provision for loan losses increased $675 thousand to $1.9 million compared to $1.2 million in 2004.  This increase was due to higher levels of non-performing loans and higher net charge-offs compared to the prior year.

 

Total non-interest income for the fourth quarter of 2005 was $2.1 million, up 10.9% from the same period a year ago.  Service charges on deposits for the fourth quarter of 2005 increased 28.6% compared to the fourth quarter of 2004 due to an increase in the volume of overdraft charges.  Service and loan fees for the fourth quarter of 2005 increased 17.4% from a year ago due to an increase in loan servicing income and loan fees.  Gains on sales of SBA loans amounted to $878 thousand for the fourth quarter of 2005, compared to $862 thousand for the quarter ended December 31, 2004.  Other income for the fourth quarter of 2005 decreased due primarily to lower loan referral fees.  For the year-ended December 31, 2005, non-interest income increased $561 thousand or 7.4 percent to $8.2 million due primarily to increased service and loan fees, Mortgage loan gains and service charges on deposits, offset in part by lower gains on sales of SBA loans.

 

Total non-interest expenses for the fourth quarter of 2005 were $4.8 million, an increase of 7.9% from the prior year’s comparable quarter.  The increase from the prior year’s comparable quarter was primarily due to increases in compensation and benefits, processing and communications, furniture and equipment, occupancy expense, professional fees and other expenses.  Compensation and benefits increased 17.5%, due to increased head count, merit increases and rising health insurance costs.  Processing and communications increased 6.2% due to increased transactional volume.  Furniture and equipment and occupancy costs increased 13.2% and 18.6% respectively, due to the addition of a new branch and the refurbishment of the branch network.  Other expense increased 40.1% due to increased insurance and training and recruiting expenses.  Loan servicing costs declined 86.7% due to the collection of expenses on delinquent loans.  Advertising decreased 51.3%, compared to the fourth quarter of 2004 due to a large marketing campaign in the fourth quarter of 2004.  For the year-ended December 31, 2005, non-interest expense increased $1.4 million or 8.4 percent to $18.7 million due primarily to increased compensation and benefits, furniture and fixtures, occupancy and processing and communications, offset in part by lower loan servicing fees and professional fees.

 

Total assets at December 31, 2005 were $614.2 million, a 19.2% increase from a year ago.  The increase in assets from the prior year was primarily due to growth in the Company’s loan portfolio and federal funds sold.  Total loans at December 31, 2005 were $448.6 million, a 20.1% increase from December 31, 2004.  The growth in the loan portfolio occurred in all areas of lending.  Commercial loans increased $52.8 million, or 25.4%, SBA loans increased $15.5 million, or 24.6%, residential mortgage loans increased $1.8 million, or 3.0% and consumer loans increased $4.9 million, or 11.5%.  Included in loan balances are approximately $16.0 million in total loans acquired as part of the fourth quarter acquisition of the Phillipsburg branch.

 


 

“During the quarter we successfully integrated the acquisition of our Phillipsburg, New Jersey location, which was purchased from interState Net Bank. The acquisition added approximately $16 million in loans and $21 million in related deposits.” said Mr. Hughes.

 

At December 31, 2005, the allowance for loan losses was $6.9 million, or 1.54% of total loans, compared to 1.57% a year ago.  Non-performing assets at December 31, 2005 were $4.5 million, up $100 thousand from a year ago.  There were no loans past due greater than 90 days and still accruing as of December 31, 2005.

 

Total deposits at December 31, 2005 were $521.9 million, a 20.3% increase from December 31, 2004.  This increase was primarily the result of growth in savings accounts and time deposits, partially offset by the decline in interest bearing checking accounts and demand deposits.  Savings accounts increased $62.4 million, or 78.4% from December 31, 2004 due to a high yield savings product.  Time deposits increased $55.2 million, or 52.1%, from December 31, 2004. Included in the increase in deposits are approximately $21 million in deposits related to the fourth quarter acquisition of the Phillipsburg branch.

 

Total shareholders’ equity was $40.9 million at December 31, 2005, a 14.1% increase from the prior year.  The increase in shareholders’ equity was primarily due to retained profits partially offset by the payment of cash dividends and a decline in other comprehensive income.

 

As of December 31, 2005, the Company’s Tier I leverage ratio was 8.48%, Tier I risk-based capital ratio was 10.26%, and total risk-based capital ratio was 11.51%. All regulatory capital ratios exceed the well-capitalized federal capital adequacy requirements as of December 31, 2005.

 

Unity Bancorp, Inc. is a financial service organization headquartered in Clinton, New Jersey, with approximately $614 million in assets and $522 million in deposits.  Unity Bank provides financial services to retail, corporate & small business customers through its 14 retail service centers located in Hunterdon, Middlesex, Somerset, Union and Warren counties in New Jersey.  For additional information about Unity visit our website at www.unitybank.com or call 800 618-BANK.

 

This news release contains certain forward-looking statements, either expressed or implied, which are provided to assist the reader in understanding anticipated future financial performance.  These statements involve certain risks, uncertainties, estimates and assumptions made by management, which are subject to factors beyond the company’s control and could impede its ability to achieve these goals.  These factors include general economic conditions, trends in interest rates, the ability of our borrowers to repay their loans, and results of regulatory exams, among other factors.

 


 

Unity Bancorp, Inc.

Consolidated Financial Highlights

(Dollars in thousands, except per share data)

 

 

 

12/31/2005

 

9/30/2005

 

12/31/2004

 

BALANCE SHEET DATA:

 

 

 

 

 

 

 

Assets

 

$

614,172

 

$

609,916

 

$

515,417

 

Deposits

 

521,860

 

518,696

 

433,898

 

Loans

 

448,567

 

434,749

 

373,580

 

Securities

 

106,331

 

103,012

 

101,593

 

Shareholders’ equity

 

40,929

 

39,526

 

35,868

 

Allowance for loan losses

 

6,892

 

6,558

 

5,856

 

 

 

 

 

 

 

 

 

FINANCIAL DATA - QUARTER TO DATE:

 

 

 

 

 

 

 

Net income before taxes

 

$

2,710

 

$

2,612

 

$

2,133

 

Federal and state income tax provision

 

956

 

993

 

775

 

Net income

 

$

1,754

 

$

1,619

 

$

1,358

 

 

 

 

 

 

 

 

 

Per share-basic

 

$

0.28

 

$

0.26

 

$

0.22

 

Per share-diluted

 

$

0.27

 

$

0.25

 

$

0.21

 

 

 

 

 

 

 

 

 

Return on average assets

 

1.16

%

1.09

%

1.08

%

Return on average common equity

 

17.62

 

16.36

 

15.53

 

Efficiency ratio

 

59.76

 

58.17

 

64.24

 

 

 

 

 

 

 

 

 

FINANCIAL DATA - YEAR TO DATE:

 

 

 

 

 

 

 

Net income before taxes

 

$

9,898

 

—

 

$

8,382

 

Federal and state income tax provision

 

3,688

 

—

 

3,052

 

Net income

 

$

6,210

 

—

 

$

5,330

 

 

 

 

 

 

 

 

 

Per share-basic

 

$

1.01

 

—

 

$

0.88

 

Per share-diluted

 

$

0.96

 

—

 

$

0.83

 

 

 

 

 

 

 

 

 

Return on average assets

 

1.10

%

—

%

1.10

%

Return on average common equity

 

16.29

 

—

 

16.32

 

Efficiency ratio

 

61.53

 

—

 

64.51

 

 

 

 

 

 

 

 

 

SHARE INFORMATION:

 

 

 

 

 

 

 

Closing price per share

 

$

14.00

 

$

13.09

 

$

12.19

 

Cash dividends declared

 

0.05

 

0.05

 

0.04

 

Book value per share

 

6.57

 

6.46

 

5.91

 

Average diluted shares outstanding (QTD)

 

6,483

 

6,426

 

6,433

 

 

 

 

 

 

 

 

 

CAPITAL RATIOS:

 

 

 

 

 

 

 

Total equity to total assets

 

6.66

%

6.48

%

6.96

%

Tier I capital to average assets (leverage)

 

8.48

 

8.55

 

9.09

 

Tier I capital to risk-adjusted assets

 

10.26

 

10.40

 

11.14

 

Total risk-based capital

 

11.51

 

11.65

 

12.39

 

 

 

 

 

 

 

 

 

CREDIT QUALITY AND RATIOS:

 

 

 

 

 

 

 

Nonperforming assets

 

$

4,539

 

$

5,733

 

$

4,436

 

Net charge offs to average loans (QTD)

 

0.17

%

0.33

%

0.24

%

Allowance for loan losses to total loans

 

1.54

 

1.51

 

1.57

 

Nonperforming assets to total loans and OREO

 

1.01

 

1.32

 

1.19

 

 


 

Unity Bancorp, Inc.

Consolidated Balance Sheets

(In thousands)

 

 

 

12/31/2005

 

9/30/2005

 

12/31/2004

 

ASSETS

 

 

 

 

 

 

 

Cash and due from banks

 

$

11,945

 

$

11,675

 

$

12,439

 

Federal funds sold and interest bearing deposits

 

26,814

 

41,947

 

10,967

 

Securities:

 

 

 

 

 

 

 

Available for sale

 

65,583

 

69,248

 

78,014

 

Held to maturity

 

40,748

 

33,764

 

23,579

 

Total securities

 

106,331

 

103,012

 

101,593

 

Loans:

 

 

 

 

 

 

 

SBA - Held for sale

 

14,001

 

14,832

 

7,574

 

SBA - Held to Maturity

 

64,660

 

65,858

 

55,576

 

Commercial

 

260,581

 

242,728

 

207,771

 

Residential mortgage

 

62,039

 

63,474

 

60,240

 

Consumer

 

47,286

 

47,857

 

42,419

 

Total loans

 

448,567

 

434,749

 

373,580

 

Less: Allowance for loan losses

 

6,892

 

6,558

 

5,856

 

Net loans

 

441,675

 

428,191

 

367,724

 

Goodwill and other intangibles

 

1,618

 

—

 

—

 

Premises and equipment, net

 

10,593

 

10,555

 

7,439

 

Accrued interest receivable

 

3,167

 

2,932

 

2,493

 

Loan servicing asset

 

2,438

 

2,288

 

2,018

 

Bank Owned Life Insurance

 

5,185

 

5,140

 

5,000

 

Other assets

 

4,406

 

4,176

 

5,744

 

Total Assets

 

$

614,172

 

$

609,916

 

$

515,417

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

Noninterest-bearing demand deposits

 

$

79,547

 

$

81,114

 

$

83,839

 

Interest-bearing deposits:

 

 

 

 

 

 

 

Interest bearing checking

 

139,076

 

139,544

 

164,426

 

Savings

 

141,935

 

154,224

 

79,557

 

Time, under $100,000

 

108,353

 

93,565

 

73,399

 

Time, $100,000 and over

 

52,949

 

50,249

 

32,677

 

Total deposits

 

521,860

 

518,696

 

433,898

 

Borrowed funds and subordinated debentures

 

49,279

 

49,279

 

44,279

 

Accrued interest payable

 

274

 

249

 

176

 

Accrued expenses and other liabilities

 

1,830

 

2,166

 

1,196

 

Total liabilities

 

573,243

 

570,390

 

479,549

 

Commitments and Contingencies

 

—

 

—

 

—

 

 

 

 

 

 

 

 

 

Shareholders’ equity:

 

 

 

 

 

 

 

Common stock, no par value, 12,500 shares authorized

 

38,423

 

38,078

 

34,025

 

Retained earnings

 

3,897

 

2,454

 

2,327

 

Treasury stock at cost

 

(242

)

(242

)

—

 

Accumulated other comprehensive loss, net of tax

 

(1,149

)

(764

)

(484

)

Total shareholders’ equity

 

40,929

 

39,526

 

35,868

 

Total Liabilities and Shareholders’ Equity

 

$

614,172

 

$

609,916

 

$

515,417

 

 

 

 

 

 

 

 

 

COMMON SHARES AT PERIOD END:

 

 

 

 

 

 

 

Issued

 

6,247

 

6,136

 

6,067

 

Outstanding

 

6,225

 

6,114

 

6,067

 

Treasury

 

22

 

22

 

—

 

 


 

Unity Bancorp, Inc.

Consolidated Statements of Income

(In thousands, except per share data)

 

 

 

12/31/2005

 

9/30/2005

 

12/31/2004

 

FOR THE THREE MONTHS ENDED:

 

 

 

 

 

 

 

INTEREST INCOME

 

 

 

 

 

 

 

Fed funds sold and interest on deposits

 

$

285

 

$

108

 

$

46

 

Securities:

 

 

 

 

 

 

 

Available for sale

 

713

 

782

 

832

 

Held to maturity

 

444

 

411

 

269

 

Total securities

 

1,157

 

1,193

 

1,101

 

Loans:

 

 

 

 

 

 

 

SBA

 

1,967

 

1,784

 

1,209

 

Commercial

 

4,547

 

4,215

 

3,464

 

Residential mortgage

 

816

 

895

 

698

 

Consumer

 

714

 

690

 

512

 

Total loan interest income

 

8,044

 

7,584

 

5,883

 

Total interest income

 

9,486

 

8,885

 

7,030

 

INTEREST EXPENSE

 

 

 

 

 

 

 

Interest bearing demand deposits

 

704

 

655

 

660

 

Savings deposits

 

952

 

971

 

260

 

Time deposits

 

1,311

 

982

 

697

 

Borrowed funds and subordinated debentures

 

552

 

540

 

346

 

Total interest expense

 

3,519

 

3,148

 

1,963

 

Net interest income

 

5,967

 

5,737

 

5,067

 

Provision for loan losses

 

525

 

675

 

350

 

Net interest income after provision for loan losses

 

5,442

 

5,062

 

4,717

 

NONINTEREST INCOME

 

 

 

 

 

 

 

Service charges on deposit accounts

 

445

 

452

 

346

 

Service and loan fee income

 

472

 

473

 

402

 

Gain on SBA loan sales

 

878

 

877

 

862

 

Gain on Mortgage loan sales

 

103

 

133

 

44

 

Bank owned life insurance

 

45

 

47

 

—

 

Net securities gains

 

—

 

(8

)

5

 

Other income

 

129

 

158

 

209

 

Total noninterest income

 

2,072

 

2,132

 

1,868

 

NONINTEREST EXPENSES

 

 

 

 

 

 

 

Compensation and benefits

 

2,561

 

2,367

 

2,180

 

Processing and communications

 

514

 

541

 

484

 

Occupancy, net

 

607

 

555

 

512

 

Furniture and equipment

 

359

 

335

 

317

 

Professional fees

 

106

 

138

 

76

 

Loan servicing costs

 

31

 

105

 

233

 

Advertising

 

149

 

176

 

306

 

Deposit insurance

 

16

 

15

 

15

 

Other

 

461

 

350

 

329

 

Total noninterest expenses

 

4,804

 

4,582

 

4,452

 

Income before taxes

 

2,710

 

2,612

 

2,133

 

Federal and state income tax provision

 

956

 

993

 

775

 

Net Income

 

$

1,754

 

$

1,619

 

$

1,358

 

 

 

 

 

 

 

 

 

Net Income Per Common Share-Basic

 

$

0.28

 

$

0.26

 

$

0.22

 

Net Income Per Common Share-Diluted

 

$

0.27

 

$

0.25

 

$

0.21

 

 

 

 

 

 

 

 

 

AVERAGE COMMON SHARES OUTSTANDING:

 

 

 

 

 

 

 

Basic

 

6,182

 

6,112

 

6,063

 

Diluted

 

6,483

 

6,426

 

6,433

 

 


 

Unity Bancorp, Inc.

Consolidated Statements of Income

(Dollars in thousands, except per

share data)

 

 

 

12/31/2005

 

12/31/2004

 

YEAR TO DATE

 

 

 

 

 

INTEREST INCOME

 

 

 

 

 

Fed funds sold and interest on deposits

 

$

572

 

$

193

 

Securities:

 

 

 

 

 

Available for sale

 

3,100

 

3,304

 

Held to maturity

 

1,477

 

867

 

Total securities

 

4,577

 

4,171

 

Loans:

 

 

 

 

 

SBA

 

6,558

 

4,296

 

Commercial

 

16,164

 

12,934

 

Residential mortgage

 

3,318

 

2,712

 

Consumer

 

2,648

 

1,860

 

Total loan interest income

 

28,688

 

21,802

 

Total interest income

 

33,837

 

26,166

 

INTEREST EXPENSE

 

 

 

 

 

Interest bearing demand deposits

 

2,605

 

2,656

 

Savings deposits

 

3,164

 

620

 

Time deposits

 

3,820

 

2,507

 

Borrowed funds and subordinated debentures

 

2,014

 

1,225

 

Total interest expense

 

11,603

 

7,008

 

Net interest income

 

22,234

 

19,158

 

Provision for loan losses

 

1,850

 

1,175

 

Net interest income after provision for loan losses

 

20,384

 

17,983

 

NONINTEREST INCOME

 

 

 

 

 

Service charges on deposit accounts

 

1,766

 

1,618

 

Service and loan fee income

 

2,111

 

1,831

 

Gain on SBA loan sales

 

2,956

 

3,217

 

Gain on Mortgage loan sales

 

382

 

192

 

Bank owned life insurance

 

185

 

—

 

Net securities gains

 

69

 

76

 

Other income

 

721

 

695

 

Total noninterest income

 

8,190

 

7,629

 

NONINTEREST EXPENSES

 

 

 

 

 

Compensation and benefits

 

9,639

 

8,435

 

Processing and communications

 

2,010

 

1,919

 

Occupancy, net

 

2,256

 

2,085

 

Furniture and equipment

 

1,350

 

1,146

 

Professional fees

 

547

 

593

 

Loan servicing costs

 

482

 

738

 

Advertising

 

697

 

695

 

Deposit insurance

 

61

 

61

 

Other

 

1,634

 

1,558

 

Total noninterest expenses

 

18,676

 

17,230

 

Income before taxes

 

9,898

 

8,382

 

Federal and state income taxes

 

3,688

 

3,052

 

Net Income

 

$

6,210

 

$

5,330

 

 

 

 

 

 

 

Net Income Per Common Share-Basic

 

$

1.01

 

$

0.88

 

Net Income Per Common Share-Diluted

 

$

0.96

 

$

0.83

 

 

 

 

 

 

 

Average common shares outstanding:

 

 

 

 

 

Basic

 

6,121

 

6,044

 

Diluted

 

6,439

 

6,424

 

 


 

Unity Bancorp, Inc.

Consolidated Average Balance Sheets

with Resultant Interest and Rates

(Tax-equivalent basis, dollars in thousands)

 

 

 

Three Months Ended
December 31, 2005

 

Three Months Ended
September 30, 2005

 

 

 

Balance

 

Interest

 

Rate

 

Balance

 

Interest

 

Rate

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal funds sold and interest-bearing deposits with banks

 

$

27,166

 

$

285

 

4.16

%

$

14,465

 

$

108

 

2.96

%

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Available for sale

 

67,193

 

726

 

4.32

 

74,803

 

795

 

4.25

 

Held to maturity

 

36,872

 

444

 

4.82

 

35,274

 

411

 

4.66

 

Total securities

 

104,065

 

1,170

 

4.50

 

110,077

 

1,206

 

4.38

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, net of unearned discount:

 

 

 

 

 

 

 

 

 

 

 

 

 

SBA

 

81,835

 

1,967

 

9.61

 

79,540

 

1,784

 

8.97

 

Commercial

 

248,012

 

4,547

 

7.27

 

240,382

 

4,215

 

6.96

 

Residential mortgage

 

62,320

 

816

 

5.24

 

65,048

 

895

 

5.50

 

Consumer

 

46,544

 

714

 

6.09

 

48,305

 

690

 

5.67

 

Total loans

 

438,711

 

8,044

 

7.29

 

433,275

 

7,584

 

6.97

 

Total interest-earning assets

 

569,942

 

9,499

 

6.63

 

557,817

 

8,898

 

6.35

 

Noninterest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

11,364

 

 

 

 

 

13,623

 

 

 

 

 

Allowance for loan losses

 

(6,790

)

 

 

 

 

(6,575

)

 

 

 

 

Other assets

 

25,483

 

 

 

 

 

25,701

 

 

 

 

 

Total noninterest-earning assets

 

30,057

 

 

 

 

 

32,749

 

 

 

 

 

Total Assets

 

$

599,999

 

 

 

 

 

$

590,566

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand deposits

 

$

141,589

 

704

 

1.97

 

$

147,124

 

655

 

1.77

 

Savings deposits

 

144,754

 

952

 

2.61

 

153,640

 

971

 

2.51

 

Time deposits

 

144,732

 

1,311

 

3.59

 

117,185

 

982

 

3.32

 

Total interest-bearing deposits

 

431,075

 

2,967

 

2.73

 

417,949

 

2,608

 

2.48

 

Borrowed funds and subordinated debentures

 

48,741

 

552

 

4.49

 

50,862

 

540

 

4.21

 

Total interest-bearing liabilities

 

479,816

 

3,519

 

2.91

 

468,811

 

3,148

 

2.66

 

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

78,299

 

 

 

 

 

78,833

 

 

 

 

 

Other liabilities

 

2,400

 

 

 

 

 

3,663

 

 

 

 

 

Total noninterest bearing-liabilities

 

80,699

 

 

 

 

 

82,496

 

 

 

 

 

Shareholders’ equity

 

39,484

 

 

 

 

 

39,259

 

 

 

 

 

Total Liabilities and Shareholders’ Equity

 

$

599,999

 

 

 

 

 

$

590,566

 

 

 

 

 

Net interest spread

 

 

 

5,980

 

3.72

%

 

 

5,750

 

3.69

%

Tax-equivalent basis adjustment

 

 

 

(13

)

 

 

 

 

(13

)

 

 

Net interest income

 

 

 

$

5,967

 

 

 

 

 

$

5,737

 

 

 

Net interest margin

 

 

 

 

 

4.20

%

 

 

 

 

4.12

%

 


 

 

 

Three Months Ended
December 31, 2005

 

Three Months Ended
December 31, 2004

 

 

 

Balance

 

Interest

 

Rate

 

Balance

 

Interest

 

Rate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal funds sold and interest-bearing deposits with banks

 

$

27,166

 

$

285

 

4.16

%

$

9,857

 

$

46

 

1.86

%

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Available for sale

 

67,193

 

726

 

4.32

 

82,710

 

845

 

4.09

 

Held to maturity

 

36,872

 

444

 

4.82

 

22,300

 

269

 

4.83

 

Total securities

 

104,065

 

1,170

 

4.50

 

105,010

 

1,114

 

4.24

 

Loans, net of unearned discount:

 

 

 

 

 

 

 

 

 

 

 

 

 

SBA

 

81,835

 

1,967

 

9.61

 

65,620

 

1,209

 

7.37

 

Commercial

 

248,012

 

4,547

 

7.27

 

202,880

 

3,464

 

6.79

 

Residential mortgage

 

62,320

 

816

 

5.24

 

52,017

 

698

 

5.37

 

Consumer

 

46,544

 

714

 

6.09

 

41,919

 

512

 

4.86

 

Total loans

 

438,711

 

8,044

 

7.29

 

362,436

 

5,883

 

6.47

 

Total interest-earning assets

 

569,942

 

9,499

 

6.63

 

477,303

 

7,043

 

5.88

 

Noninterest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

11,364

 

 

 

 

 

11,681

 

 

 

 

 

Allowance for loan losses

 

(6,790

)

 

 

 

 

(5,930

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other assets

 

25,483

 

 

 

 

 

17,101

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total noninterest-earning assets

 

30,057

 

 

 

 

 

22,852

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

 

$

599,999

 

 

 

 

 

$

500,155

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand deposits

 

$

141,589

 

704

 

1.97

 

$

175,956

 

660

 

1.49

 

Savings deposits

 

144,754

 

952

 

2.61

 

68,102

 

260

 

1.52

 

Time deposits

 

144,732

 

1,311

 

3.59

 

102,333

 

697

 

2.71

 

Total interest-bearing deposits

 

431,075

 

2,967

 

2.73

 

346,391

 

1,617

 

1.86

 

Borrowed funds and subordinated debentures

 

48,741

 

552

 

4.49

 

32,883

 

346

 

4.19

 

Total interest-bearing liabilities

 

479,816

 

3,519

 

2.91

 

379,274

 

1,963

 

2.06

 

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

78,299

 

 

 

 

 

84,669

 

 

 

 

 

Other liabilities

 

2,400

 

 

 

 

 

1,428

 

 

 

 

 

Total noninterest-bearing liabilities

 

80,699

 

 

 

 

 

86,097

 

 

 

 

 

Shareholders’ equity

 

39,484

 

 

 

 

 

34,784

 

 

 

 

 

Total Liabilities and Shareholders’ Equity

 

$

599,999

 

 

 

 

 

$

500,155

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest spread

 

 

 

5,980

 

3.72

%

 

 

5,080

 

3.82

%

Tax-equivalent basis adjustment

 

 

 

(13

)

 

 

 

 

(13

)

 

 

Net interest income

 

 

 

$

5,967

 

 

 

 

 

$

5,067

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin

 

 

 

 

 

4.20

%

 

 

 

 

4.26

%

 


 

 

 

Year to Date
December 31, 2005

 

Year to Date
December 31, 2004

 

 

 

Balance

 

Interest

 

Rate

 

Balance

 

Interest

 

Rate

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal funds sold and interest-bearing deposits with banks

 

$

17,160

 

$

572

 

3.33

%

$

15,039

 

$

193

 

1.28

%

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Available for sale

 

74,208

 

3,152

 

4.25

 

83,291

 

3,374

 

4.05

 

Held to maturity

 

31,139

 

1,477

 

4.74

 

17,395

 

867

 

4.98

 

Total securities

 

105,347

 

4,629

 

4.39

 

100,686

 

4,241

 

4.21

 

Loans, net of unearned discount:

 

 

 

 

 

 

 

 

 

 

 

 

 

SBA

 

74,369

 

6,558

 

8.82

 

62,853

 

4,296

 

6.83

 

Commercial

 

230,039

 

16,164

 

7.03

 

192,435

 

12,934

 

6.72

 

Residential mortgage

 

62,103

 

3,318

 

5.34

 

50,242

 

2,712

 

5.40

 

Consumer

 

45,707

 

2,648

 

5.79

 

38,979

 

1,860

 

4.77

 

Total loans

 

412,218

 

28,688

 

6.96

 

344,509

 

21,802

 

6.33

 

Total interest-earning assets

 

534,725

 

33,889

 

6.34

 

460,234

 

26,236

 

5.70

 

Noninterest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

12,661

 

 

 

 

 

13,304

 

 

 

 

 

Allowance for loan losses

 

(6,398

)

 

 

 

 

(5,724

)

 

 

 

 

Other assets

 

24,399

 

 

 

 

 

15,603

 

 

 

 

 

Total noninterest-earning assets

 

30,662

 

 

 

 

 

23,183

 

 

 

 

 

Total Assets

 

$

565,387

 

 

 

 

 

$

483,417

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand deposits

 

$

150,420

 

2,605

 

1.73

 

$

188,840

 

2,656

 

1.41

 

Savings deposits

 

130,911

 

3,164

 

2.42

 

49,330

 

620

 

1.26

 

Time deposits

 

118,174

 

3,820

 

3.23

 

96,686

 

2,507

 

2.59

 

Total interest-bearing deposits

 

399,505

 

9,589

 

2.40

 

334,856

 

5,783

 

1.73

 

Borrowed funds and subordinated debentures

 

46,604

 

2,014

 

4.32

 

29,169

 

1,225

 

4.20

 

Total interest-bearing liabilities

 

446,109

 

11,603

 

2.60

 

364,025

 

7,008

 

1.93

 

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

78,519

 

 

 

 

 

85,283

 

 

 

 

 

Other liabilities

 

2,634

 

 

 

 

 

1,445

 

 

 

 

 

Total noninterest-bearing liabilities

 

81,153

 

 

 

 

 

86,728

 

 

 

 

 

Shareholders’ equity

 

38,125

 

 

 

 

 

32,664

 

 

 

 

 

Total Liabilities and Shareholders’ Equity

 

$

565,387

 

 

 

 

 

$

483,417

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest spread

 

 

 

22,286

 

3.74

%

 

 

19,228

 

3.77

%

Tax-equivalent basis adjustment

 

 

 

(52

)

 

 

 

 

(70

)

 

 

Net interest income

 

 

 

$

22,234

 

 

 

 

 

$

19,158

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin

 

 

 

 

 

4.17

%

 

 

 

 

4.18

%

 


 

Unity Bancorp, Inc.

Quarterly Financial Data

 

 

 

12/31/05

 

09/30/05

 

06/30/05

 

03/31/05

 

12/31/04

 

SUMMARY OF INCOME (in thousands):

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

9,486

 

$

8,885

 

$

7,943

 

$

7,523

 

$

7,030

 

Interest expense

 

3,519

 

3,148

 

2,678

 

2,258

 

1,963

 

Net interest income

 

5,967

 

5,737

 

5,265

 

5,265

 

5,067

 

Provision for loan losses

 

525

 

675

 

350

 

300

 

350

 

Net interest income after provision

 

5,442

 

5,062

 

4,915

 

4,965

 

4,717

 

Noninterest income

 

2,072

 

2,132

 

2,195

 

1,791

 

1,868

 

Noninterest expense

 

4,804

 

4,582

 

4,642

 

4,648

 

4,452

 

Income before income taxes

 

2,710

 

2,612

 

2,468

 

2,108

 

2,133

 

Federal and state income tax provision

 

956

 

993

 

941

 

798

 

775

 

Net Income

 

1,754

 

1,619

 

1,527

 

1,310

 

1,358

 

Net Income per Common Share:

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.28

 

$

0.26

 

$

0.25

 

$

0.22

 

$

0.22

 

Diluted

 

0.27

 

0.25

 

0.24

 

0.20

 

0.21

 

COMMON SHARE DATA:

 

 

 

 

 

 

 

 

 

 

 

Cash dividends declared

 

$

0.05

 

$

0.05

 

$

0.05

 

$

0.04

 

$

0.04

 

Book value at quarter end

 

6.57

 

6.46

 

6.29

 

5.96

 

5.91

 

Market value at quarter end

 

14.00

 

13.09

 

11.96

 

11.43

 

12.19

 

Average common shares outstanding: (000’s)

 

 

 

 

 

 

 

 

 

 

 

Basic

 

6,182

 

6,112

 

6,109

 

6,078

 

6,063

 

Diluted

 

6,483

 

6,426

 

6,423

 

6,422

 

6,433

 

Common shares outstanding at period end (000’s)

 

6,225

 

6,114

 

6,107

 

6,108

 

6,067

 

OPERATING RATIOS:

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

1.16

%

1.09

%

1.13

%

1.03

%

1.08

%

Return on average common equity

 

17.62

 

16.36

 

16.50

 

14.63

 

15.53

 

Efficiency ratio

 

59.76

 

58.17

 

62.43

 

66.37

 

64.24

 

BALANCE SHEET DATA (in thousands):

 

 

 

 

 

 

 

 

 

 

 

Assets

 

$

614,172

 

$

609,916

 

$

577,507

 

$

525,842

 

$

515,417

 

Deposits

 

521,860

 

518,696

 

477,274

 

447,790

 

433,898

 

Loans

 

448,567

 

434,749

 

410,926

 

381,172

 

373,580

 

Shareholders’ equity

 

40,929

 

39,526

 

38,411

 

36,406

 

35,868

 

Allowance for loan losses

 

6,892

 

6,558

 

6,239

 

5,942

 

5,856

 

TAX-EQUIVALENT YIELDS AND RATES:

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets

 

6.63

%

6.35

%

6.22

%

6.20

%

5.88

%

Interest-bearing liabilities

 

2.91

 

2.66

 

2.54

 

2.28

 

2.06

 

Net interest spread

 

3.72

 

3.69

 

3.68

 

3.92

 

3.82

 

Net interest margin

 

4.20

 

4.12

 

4.12

 

4.30

 

4.26

 

CREDIT QUALITY:

 

 

 

 

 

 

 

 

 

 

 

Nonperforming assets (in thousands)

 

$

4,539

 

$

5,733

 

$

4,777

 

$

3,172

 

$

4,436

 

Allowance for loan losses to period-end loans

 

1.54

%

1.51

%

1.52

%

1.56

%

1.57

%

Net charge offs to average loans

 

0.17

 

0.33

 

0.05

 

0.23

 

0.24

 

Nonperforming assets to loans and OREO

 

1.01

 

1.32

 

1.16

 

0.83

 

1.19

 

CAPITAL AND OTHER:

 

 

 

 

 

 

 

 

 

 

 

Total equity to assets

 

6.66

%

6.48

%

6.65

%

6.92

%

6.96

%

Tier I capital to average assets (leverage)

 

8.48

 

8.55

 

8.67

 

8.99

 

9.09

 

Tier I capital to risk-adjusted assets

 

10.26

 

10.40

 

10.65

 

11.18

 

11.14

 

Total capital to risk-adjusted assets

 

11.51

 

11.65

 

11.91

 

12.43

 

12.39

 

Number of banking offices

 

14

 

13

 

13

 

13

 

13

 

Number of ATMs

 

16

 

15

 

15

 

15

 

15

 

Number of employees

 

190

 

185

 

178

 

185

 

173

 

 


 

Unity Bancorp, Inc.

Allowance for Loan Losses and Loan Quality Schedules

(Dollars in thousands)

 

 

 

12/31/2005

 

9/30/2005

 

6/30/2005

 

3/31/2005

 

12/31/2004

 

ALLOWANCE FOR LOAN LOSSES:

 

 

 

 

 

 

 

 

 

 

 

Balance, beginning

 

$

6,558

 

$

6,239

 

$

5,942

 

$

5,856

 

$

5,726

 

Provision charged to expense

 

525

 

675

 

350

 

300

 

350

 

 

 

7,083

 

6,914

 

6,292

 

6,156

 

6,076

 

Less: Charge offs

 

 

 

 

 

 

 

 

 

 

 

SBA

 

91

 

(9

)

112

 

107

 

33

 

Commercial

 

18

 

87

 

30

 

165

 

220

 

Residential mortgage

 

—

 

25

 

—

 

24

 

—

 

Consumer

 

249

 

262

 

4

 

8

 

14

 

Total Charge Offs

 

358

 

365

 

146

 

304

 

267

 

Add: Recoveries

 

 

 

 

 

 

 

 

 

 

 

SBA

 

130

 

—

 

30

 

44

 

34

 

Commercial

 

24

 

8

 

7

 

45

 

10

 

Residential mortgage

 

—

 

—

 

—

 

—

 

—

 

Consumer

 

13

 

1

 

56

 

1

 

3

 

Total Recoveries

 

167

 

9

 

93

 

90

 

47

 

Net Charge Offs

 

191

 

356

 

53

 

214

 

220

 

Balance, ending

 

$

6,892

 

$

6,558

 

$

6,239

 

$

5,942

 

$

5,856

 

 

 

 

 

 

 

 

 

 

 

 

 

LOAN QUALITY INFORMATION:

 

 

 

 

 

 

 

 

 

 

 

Nonperforming loans

 

$

4,361

 

$

5,555

 

$

4,777

 

$

2,974

 

$

4,091

 

Other real estate owned, net

 

178

 

178

 

—

 

198

 

345

 

Nonperforming assets

 

$

4,539

 

$

5,733

 

$

4,777

 

$

3,172

 

$

4,436

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans 90 days past due and still accruing

 

$

—

 

$

—

 

$

—

 

$

313

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses to:

 

 

 

 

 

 

 

 

 

 

 

Total loans at period end

 

1.54

%

1.51

%

1.52

%

1.56

%

1.57

%

Nonperforming loans

 

158.04

 

118.06

 

130.60

 

199.80

 

143.14

 

Nonperforming assets

 

151.84

 

114.39

 

130.60

 

187.33

 

132.01

 

Net charge offs to average loans (QTD)

 

0.17

 

0.33

 

0.05

 

0.23

 

0.24

 

Net charge offs to average loans (YTD)

 

0.20

 

0.21

 

0.14

 

0.23

 

0.19

 

Nonperforming loans to total loans

 

0.97

 

1.28

 

1.16

 

0.78

 

1.10

 

Nonperforming assets to total loans and OREO

 

1.01

 

1.32

 

1.16

 

0.83

 

1.19