EX-99.1 2 a06-9179_2ex99d1.htm EX-99

Exhibit 99.1

 

 

Unity Bancorp, Inc.

 

 

64 Old Highway 22

 

 

Clinton, NJ 08809

 

 

800 618-BANK

 

 

www.unitybank.com

 

NewsNewsNewsNewsNews

 

For Immediate Release:

 

April 20, 2006

 

News Media & Financial Analyst Contact:

Alan Bedner, EVP

Chief Financial Officer

(908) 713-4308

 

Unity Bancorp Reports 26.5% increase in First Quarter Earnings

 

Clinton, NJ - Unity Bancorp, Inc. (NASDAQ: UNTY), parent company of Unity Bank, reported net income of $1.7 million, or $0.25 per diluted share, for the quarter ended March 31, 2006; a 26.5% increase compared to net income of $1.3 million, or $0.20 per diluted share, for the quarter ended March 31, 2005. Return on average assets and average common equity for the first quarter of 2006 were 1.08% and 16.26%, respectively, as compared to 1.03% and 14.63%, respectively, for the first quarter of 2005.

 

“We are extremely pleased with operating results for the first quarter of 2006 and continue to remain optimistic about earnings for 2006,” said Unity President and Chief Executive Officer, James A. Hughes. “Earnings for the quarter were driven by strong loan and deposit growth.”

 

Net interest income was $6.1 million for the first quarter of 2006; a 15.0% 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 decrease in net interest margin. Net interest margin was 4.12% for the first quarter of 2006, compared to 4.30% for the first quarter of 2005. The Federal Reserve Bank has raised rates 15 times or 375 basis points since 2004. These increases have resulted in a flat yield curve and a challenging interest-rate environment. Despite this environment, the Company was able to grow net interest income, due to strong growth in interest earning assets, partially offset by a slight decrease in net interest margin. The effect of the flat yield curve may cause the net interest margin to further contract in 2006.

 


 

The provision for loan losses for the first quarter of 2006 was $300 thousand, compared to $300 thousand for the quarter ended March 31, 2005. Net loan charge-offs for the quarter ended March 31, 2006 were $72 thousand, compared to net-charge offs of $214 thousand for the quarter ended March 31, 2005.

 

Total non-interest income for the first quarter of 2006 was $2.0 million, up 11.8% from the same period a year ago. Service charges on deposits for the first quarter of 2006 were flat compared to the first quarter of 2005. Service and loan fees for the first quarter of 2006 decreased 26.3% from a year ago, due to a decrease in prepayment fees on commercial loans and loan processing fees. Gains on sales of SBA loans amounted to $782 thousand for the first quarter of 2006, compared to $460 thousand for the quarter ended March 31, 2005. Other income for the first quarter of 2006 increased 63.6%, due primarily to an increase in loan referral fees.

 

Total non-interest expenses for the first quarter of 2006 were $5.3 million, an increase of 13.1% 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 13.7%, due to increased head count, merit increases and rising health insurance costs. Processing and communications increased 13.1%, due to increased transactional volume. Furniture and equipment and occupancy costs increased 19.5% and 9.3% respectively, due to the addition of a new branch in the fourth quarter of 2005 and the refurbishment of the existing branch network. Loan servicing costs decreased 42.9%, due to the collection of expenses on delinquent loans.

 

Total assets at March 31, 2006 were $628.1 million, a 19.4% increase from a year ago. The increase in assets from the prior year was primarily due to growth in the Company’s loan portfolio. Total loans at March 31, 2006 were $468.0 million, a 22.8% increase from March 31, 2005. The growth in the loan portfolio occurred primarily in Commercial and SBA lending. Commercial loans increased $64.6 million, or 30.1%; SBA loans increased $19.4 million, or 30.9%; residential mortgage loans were flat from the prior year; and consumer loans increased $2.3 million, or 5.3%. During the quarter, the Company sold approximately $5.0 million of commercial Motel/Hotel loans with a gain of approximately $82 thousand.

 

At March 31, 2006, the allowance for loan losses was $7.1 million, or 1.52% of total loans, compared to 1.56% a year ago. Non-performing assets at March 31, 2006 were $3.8 million, or 0.81% of total loans and OREO, as compared to 0.83% of total loans and OREO from a year ago. There were $326 thousand of loans past due greater than 90 days and still accruing as of March 31, 2006, compared to $313 thousand at March 31, 2005.

 

Total deposits at March 31, 2006, were $534.4 million; a 19.3% increase from March 31, 2005. This increase was primarily the result of growth in savings accounts, demand and time deposits, partially offset by the decline in interest bearing checking accounts. Demand deposit accounts increased $3.4 million, or 4.4% from March 31, 2005. Savings accounts increased $66.0 million, or 58.5% from March 31, 2005, due to a high-yield savings product. Time deposits increased $57.9 million, or 56.1%, from March 31, 2005.

 


 

“Unity currently has 14 branches and two branches in development; Washington and Middlesex in New Jersey. We are committed to moving forward with our targeted branch expansion plans along the I-78 corridor and are actively looking for branch sites in the Lehigh Valley area in Pennsylvania,” said Mr. Hughes. “In addition we will be analyzing the profitability of our current branch network.”

 

Total shareholders’ equity was $42.5 million at March 31, 2006; a 16.7% 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 March 31, 2006, the Company’s Tier I leverage ratio was 8.26%, Tier I risk-based capital ratio was 9.93%, and total risk-based capital ratio was 11.18%. All regulatory capital ratios exceeded the well-capitalized, federal capital adequacy requirements as of March 31, 2006.

 

Unity Bancorp, Inc. is a financial service organization headquartered in Clinton, New Jersey, with approximately $628 million in assets and $534 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)

 

 

 

 

 

 

 

 

 

Mar. 06 vs.

 

 

 

Mar. 31, 2006

 

Dec. 31, 2005

 

Mar. 31, 2005

 

Dec. 05

 

Mar. 05

 

BALANCE SHEET DATA:

 

 

 

 

 

 

 

 

 

 

 

Assets

 

$

628,055

 

$

614,172

 

$

525,842

 

2.3

%

19.4

%

Deposits

 

534,437

 

521,860

 

447,790

 

2.4

 

19.3

 

Loans

 

467,963

 

448,567

 

381,172

 

4.3

 

22.8

 

Securities

 

101,641

 

106,331

 

98,164

 

(4.4

)

3.5

 

Shareholders’ equity

 

42,477

 

40,929

 

36,406

 

3.8

 

16.7

 

Allowance for loan losses

 

7,120

 

6,892

 

5,942

 

3.3

 

19.8

 

 

 

 

 

 

 

 

 

 

 

 

 

FINANCIAL DATA - QUARTER TO DATE:

 

 

 

 

 

 

 

 

 

 

 

Net income before taxes

 

$

2,499

 

$

2,710

 

$

2,108

 

(7.8

)%

18.5

%

Federal and state income tax provision

 

842

 

956

 

798

 

(11.9

)

5.5

 

Net income

 

1,657

 

1,754

 

1,310

 

(5.5

)

26.5

 

 

 

 

 

 

 

 

 

 

 

 

 

Per share-basic

 

0.27

 

0.28

 

0.22

 

(3.6

)

25.3

 

Per share-diluted

 

0.25

 

0.27

 

0.20

 

(7.4

)

22.6

 

Return on average assets

 

1.08

%

1.16

%

1.03

%

(6.9

)

4.9

 

Return on average common equity

 

16.26

 

17.62

 

14.63

 

(7.7

)

11.1

 

Efficiency ratio

 

65.25

 

59.76

 

66.37

 

9.2

 

(1.7

)

 

 

 

 

 

 

 

 

 

 

 

 

SHARE INFORMATION:

 

 

 

 

 

 

 

 

 

 

 

Closing price per share

 

$

16.05

 

$

14.00

 

$

11.43

 

14.6

%

40.4

%

Cash dividends declared

 

0.05

 

0.05

 

0.04

 

—

 

25.0

 

Book value per share

 

6.79

 

6.57

 

5.96

 

3.3

 

13.9

 

Average diluted shares outstanding (QTD)

 

6,568

 

6,483

 

6,422

 

1.3

 

2.3

 

 

 

 

 

 

 

 

 

 

 

 

 

CAPITAL RATIOS:

 

 

 

 

 

 

 

 

 

 

 

Total equity to total assets

 

6.76

%

6.66

%

6.92

%

1.5

%

(2.3

)%

Tier I capital to average assets (leverage)

 

8.26

 

8.48

 

8.99

 

(2.6

)

(8.1

)

Tier I capital to risk-adjusted assets

 

9.93

 

10.26

 

11.18

 

(3.2

)

(11.2

)

Total risk-based capital

 

11.18

 

11.51

 

12.43

 

(2.9

)

(10.1

)

 

 

 

 

 

 

 

 

 

 

 

 

CREDIT QUALITY AND RATIOS:

 

 

 

 

 

 

 

 

 

 

 

Nonperforming assets

 

$

3,781

 

$

4,539

 

$

3,172

 

(16.7

)%

19.2

%

Net charge offs to average loans (QTD)

 

0.06

%

0.17

%

0.23

%

(64.7

)

(73.9

)

Allowance for loan losses to total loans

 

1.52

 

1.54

 

1.56

 

(1.3

)

(2.6

)

Nonperforming assets to total loans and OREO

 

0.81

 

1.01

 

0.83

 

(19.8

)

(2.4

)

 


 

Unity Bancorp, Inc.

Consolidated Balance Sheets

(In thousands)

 

 

 

 

 

 

 

 

 

Mar. 06 vs.

 

 

 

Mar. 31, 2006

 

Dec. 31, 2005

 

Mar. 31, 2005

 

Dec. 05

 

Mar. 05

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

12,171

 

$

11,945

 

$

11,286

 

1.9

%

7.8

 

Federal funds sold and interest bearing deposits

 

25,726

 

26,814

 

17,603

 

(4.1

)

46.1

 

Securities:

 

 

 

 

 

 

 

 

 

 

 

Available for sale

 

63,411

 

65,583

 

74,571

 

(3.3

)

(15.0

)

Held to maturity

 

38,230

 

40,748

 

23,593

 

(6.2

)

62.0

 

Total securities

 

101,641

 

106,331

 

98,164

 

(4.4

)

3.5

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

SBA - Held for sale

 

16,826

 

14,001

 

8,172

 

20.2

 

105.9

 

SBA - Held to Maturity

 

65,305

 

64,660

 

54,567

 

1.0

 

19.7

 

Commercial

 

279,369

 

260,581

 

214,730

 

7.2

 

30.1

 

Residential mortgage

 

60,194

 

62,039

 

59,769

 

(3.0

)

0.7

 

Consumer

 

46,269

 

47,286

 

43,934

 

(2.2

)

5.3

 

Total loans

 

467,963

 

448,567

 

381,172

 

4.3

 

22.8

 

Less: Allowance for loan losses

 

7,120

 

6,892

 

5,942

 

3.3

 

19.8

 

Net loans

 

460,843

 

441,675

 

375,230

 

4.3

 

22.8

 

Goodwill and other intangibles

 

1,614

 

1,618

 

—

 

(0.2

)

—

 

Premises and equipment, net

 

10,723

 

10,593

 

9,191

 

1.2

 

16.7

 

Accrued interest receivable

 

3,350

 

3,167

 

2,600

 

5.8

 

28.8

 

Loan servicing asset

 

2,476

 

2,438

 

2,065

 

1.6

 

19.9

 

Bank Owned Life Insurance

 

5,232

 

5,185

 

5,047

 

0.9

 

3.7

 

Other assets

 

4,279

 

4,406

 

4,656

 

(2.9

)

(8.1

)

Total Assets

 

$

628,055

 

$

614,172

 

$

525,842

 

2.3

%

19.4

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand deposits

 

$

81,210

 

$

79,547

 

$

77,800

 

2.1

%

4.4

 

Interest-bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

Interest bearing checking

 

113,441

 

139,076

 

154,074

 

(18.4

)

(26.4

)

Savings

 

178,848

 

141,935

 

112,847

 

26.0

 

58.5

 

Time, under $100,000

 

108,211

 

108,353

 

72,435

 

(0.1

)

49.4

 

Time, $100,000 and over

 

52,727

 

52,949

 

30,634

 

(0.4

)

72.1

 

Total deposits

 

534,437

 

521,860

 

447,790

 

2.4

 

19.3

 

Borrowed funds and subordinated debentures

 

49,279

 

49,279

 

39,279

 

—

 

25.5

 

Accrued interest payable

 

298

 

274

 

165

 

8.8

 

80.6

 

Accrued expenses and other liabilities

 

1,564

 

1,830

 

2,202

 

(14.5

)

(29.0

)

Total liabilities

 

585,578

 

573,243

 

489,436

 

2.2

 

19.6

 

Commitments and Contingencies

 

—

 

—

 

—

 

 

 

 

 

Shareholders’ equity:

 

 

 

 

 

 

 

 

 

 

 

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

 

38,697

 

38,423

 

34,101

 

0.7

 

13.5

 

Retained earnings

 

5,241

 

3,897

 

3,403

 

34.5

 

54.0

 

Treasury stock at cost

 

(242

)

(242

)

—

 

—

 

—

 

Accumulated other comprehensive loss, net of tax

 

(1,219

)

(1,149

)

(1,098

)

N/M

 

N/M

 

Total shareholders’ equity

 

42,477

 

40,929

 

36,406

 

3.8

 

16.7

 

Total Liabilities and Shareholders’ Equity

 

$

628,055

 

$

614,172

 

$

525,842

 

2.3

%

19.4

 

 

 

 

 

 

 

 

 

 

 

 

 

COMMON SHARES AT PERIOD END:

 

 

 

 

 

 

 

 

 

 

 

Issued

 

6,275

 

6,247

 

6,108

 

 

 

 

 

Outstanding

 

6,253

 

6,225

 

6,108

 

 

 

 

 

Treasury

 

22

 

22

 

—

 

 

 

 

 

 

N/M= Not meaningful

 


 

Unity Bancorp, Inc.

Consolidated Statements of Income

(In thousands, except per share data)

 

 

 

 

 

 

 

 

 

Mar. 06

 

vs.

 

FOR THE THREE MONTHS ENDED:

 

Mar. 31, 2006

 

Dec. 31, 2005

 

Mar. 31, 2005

 

Dec. 05

 

Mar. 05

 

INTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

Fed funds sold and interest on deposits

 

$

207

 

$

285

 

$

62

 

(27.4

)%

233.9

%

Securities:

 

 

 

 

 

 

 

 

 

 

 

Available for sale

 

708

 

713

 

796

 

(0.7

)

(11.1

)

Held to maturity

 

476

 

444

 

274

 

7.2

 

73.7

 

Total securities

 

1,184

 

1,157

 

1,070

 

2.3

 

10.7

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

SBA

 

2,153

 

1,967

 

1,359

 

9.5

 

58.4

 

Commercial

 

4,892

 

4,547

 

3,638

 

7.6

 

34.5

 

Residential mortgage

 

820

 

816

 

802

 

0.5

 

2.2

 

Consumer

 

744

 

714

 

592

 

4.2

 

25.7

 

Total loan interest income

 

8,609

 

8,044

 

6,391

 

7.0

 

34.7

 

Total interest income

 

10,000

 

9,486

 

7,523

 

5.4

 

32.9

 

INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

Interest bearing demand deposits

 

694

 

704

 

611

 

(1.4

)

13.6

 

Savings deposits

 

1,192

 

952

 

460

 

25.2

 

159.1

 

Time deposits

 

1,499

 

1,311

 

763

 

14.3

 

96.5

 

Borrowed funds and subordinated debentures

 

562

 

552

 

424

 

1.8

 

32.5

 

Total interest expense

 

3,947

 

3,519

 

2,258

 

12.2

 

74.8

 

Net interest income

 

6,053

 

5,967

 

5,265

 

1.4

 

15.0

 

Provision for loan losses

 

300

 

525

 

300

 

(42.9

)

—

 

Net interest income after provision for loan losses

 

5,753

 

5,442

 

4,965

 

5.7

 

15.9

 

NONINTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

433

 

445

 

430

 

(2.7

)

0.7

 

Service and loan fee income

 

395

 

472

 

536

 

(16.3

)

(26.3

)

Gain on SBA loan sales

 

782

 

878

 

460

 

(10.9

)

70.0

 

Gain on Mortgage loan sales

 

62

 

103

 

92

 

(39.8

)

(32.6

)

Bank owned life insurance

 

47

 

45

 

47

 

4.4

 

—

 

Net securities gains

 

—

 

—

 

53

 

—

 

—

 

Other income

 

283

 

129

 

173

 

119.4

 

63.6

 

Total noninterest income

 

2,002

 

2,072

 

1,791

 

(3.4

)

11.8

 

NONINTEREST EXPENSES

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

2,725

 

2,561

 

2,397

 

6.4

 

13.7

 

Processing and communications

 

527

 

514

 

466

 

2.5

 

13.1

 

Occupancy, net

 

648

 

607

 

593

 

6.8

 

9.3

 

Furniture and equipment

 

393

 

359

 

329

 

9.5

 

19.5

 

Professional fees

 

132

 

106

 

109

 

24.5

 

21.1

 

Loan servicing costs

 

101

 

31

 

177

 

225.8

 

(42.9

)

Advertising

 

170

 

149

 

185

 

14.1

 

(8.1

)

Deposit insurance

 

17

 

16

 

15

 

6.3

 

13.3

 

Other

 

543

 

461

 

377

 

17.8

 

44.0

 

Total noninterest expenses

 

5,256

 

4,804

 

4,648

 

9.4

 

13.1

 

Income before taxes

 

2,499

 

2,710

 

2,108

 

(7.8

)

18.5

 

Federal and state income tax provision

 

842

 

956

 

798

 

(11.9

)

5.5

 

Net Income

 

$

1,657

 

$

1,754

 

$

1,310

 

(5.5

)%

26.5

%

 

 

 

 

 

 

 

 

 

 

 

 

Net Income Per Common Share-Basic

 

$

0.27

 

$

0.28

 

$

0.22

 

(3.6

)%

25.3

%

Net Income Per Common Share-Diluted

 

$

0.25

 

$

0.27

 

$

0.20

 

(7.4

)%

22.6

%

 

 

 

 

 

 

 

 

 

 

 

 

AVERAGE COMMON SHARES OUTSTANDING:

 

 

 

 

 

 

 

 

 

 

 

Basic

 

6,244

 

6,182

 

6,078

 

 

 

 

 

Diluted

 

6,568

 

6,483

 

6,422

 

 

 

 

 

 


 

Unity Bancorp, Inc.

Consolidated Average Balance Sheets

with Resultant Interest and Rates

(Tax-equivalent basis, dollars in thousands)

 

 

 

Three Months Ended

 

 

 

March 31, 2006

 

December 31, 2005

 

 

 

Balance

 

Interest

 

Rate

 

Balance

 

Interest

 

Rate

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal funds sold and interest-bearing deposits with banks

 

$

19,493

 

$

207

 

4.31

%

$

27,166

 

$

285

 

4.16

%

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Available for sale

 

64,812

 

721

 

4.45

 

67,193

 

726

 

4.32

 

Held to maturity

 

39,291

 

476

 

4.85

 

36,872

 

444

 

4.82

 

Total securities

 

104,103

 

1,197

 

4.60

 

104,065

 

1,170

 

4.50

 

Loans, net of unearned discount:

 

 

 

 

 

 

 

 

 

 

 

 

 

SBA

 

85,931

 

2,153

 

10.02

 

81,835

 

1,967

 

9.61

 

Commercial

 

271,323

 

4,892

 

7.31

 

248,012

 

4,547

 

7.27

 

Residential mortgage

 

61,126

 

820

 

5.37

 

62,320

 

816

 

5.24

 

Consumer

 

46,501

 

744

 

6.49

 

46,544

 

714

 

6.09

 

Total loans

 

464,881

 

8,609

 

7.47

 

438,711

 

8,044

 

7.29

 

Total interest-earning assets

 

588,477

 

10,013

 

6.86

 

569,942

 

9,499

 

6.63

 

Noninterest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

11,698

 

 

 

 

 

11,364

 

 

 

 

 

Allowance for loan losses

 

(7,154

)

 

 

 

 

(6,790

)

 

 

 

 

Other assets

 

26,847

 

 

 

 

 

25,483

 

 

 

 

 

Total noninterest-earning assets

 

31,391

 

 

 

 

 

30,057

 

 

 

 

 

Total Assets

 

$

619,868

 

 

 

 

 

$

599,999

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand deposits

 

$

128,150

 

694

 

2.20

 

$

141,589

 

704

 

1.97

 

Savings deposits

 

158,058

 

1,192

 

3.06

 

144,754

 

952

 

2.61

 

Time deposits

 

162,533

 

1,499

 

3.74

 

144,732

 

1,311

 

3.59

 

Total interest-bearing deposits

 

448,741

 

3,385

 

3.06

 

431,075

 

2,967

 

2.73

 

Borrowed funds and subordinated debentures

 

49,279

 

562

 

4.63

 

48,741

 

552

 

4.49

 

Total interest-bearing liabilities

 

498,020

 

3,947

 

3.21

 

479,816

 

3,519

 

2.91

 

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

78,179

 

 

 

 

 

78,299

 

 

 

 

 

Other liabilities

 

2,339

 

 

 

 

 

2,400

 

 

 

 

 

Total noninterest-bearing liabilities

 

80,518

 

 

 

 

 

80,699

 

 

 

 

 

Shareholders’ equity

 

41,330

 

 

 

 

 

39,484

 

 

 

 

 

Total Liabilities and Shareholders’ Equity

 

$

619,868

 

 

 

 

 

$

599,999

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest spread

 

 

 

6,066

 

3.65

%

 

 

5,980

 

3.72

%

Tax-equivalent basis adjustment

 

 

 

(13

)

 

 

 

 

(13

)

 

 

Net interest income

 

 

 

$

6,053

 

 

 

 

 

$

5,967

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin

 

 

 

 

 

4.12

%

 

 

 

 

4.20

%

 


 

Unity Bancorp, Inc.

Consolidated Average Balance Sheets

with Resultant Interest and Rates

(Tax-equivalent basis, dollars in thousands)

 

 

 

Three Months Ended

 

 

 

March 31, 2006

 

March 31, 2005

 

 

 

Balance

 

Interest

 

Rate

 

Balance

 

Interest

 

Rate

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal funds sold and interest-bearing deposits with banks

 

$

19,493

 

$

207

 

4.31

%

$

10,331

 

$

62

 

2.43

%

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Available for sale

 

64,812

 

721

 

4.45

 

76,926

 

809

 

4.21

 

Held to maturity

 

39,291

 

476

 

4.85

 

23,088

 

274

 

4.75

 

Total securities

 

104,103

 

1,197

 

4.60

 

100,014

 

1,083

 

4.33

 

Loans, net of unearned discount:

 

 

 

 

 

 

 

 

 

 

 

 

 

SBA

 

85,931

 

2,153

 

10.02

 

64,966

 

1,359

 

8.37

 

Commercial

 

271,323

 

4,892

 

7.31

 

212,343

 

3,638

 

6.95

 

Residential mortgage

 

61,126

 

820

 

5.37

 

60,361

 

802

 

5.31

 

Consumer

 

46,501

 

744

 

6.49

 

42,482

 

592

 

5.65

 

Total loans

 

464,881

 

8,609

 

7.47

 

380,152

 

6,391

 

6.79

 

Total interest-earning assets

 

588,477

 

10,013

 

6.86

 

490,497

 

7,536

 

6.20

 

Noninterest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

11,698

 

 

 

 

 

10,748

 

 

 

 

 

Allowance for loan losses

 

(7,154

)

 

 

 

 

(6,047

)

 

 

 

 

Other assets

 

26,847

 

 

 

 

 

22,742

 

 

 

 

 

Total noninterest-earning assets

 

31,391

 

 

 

 

 

27,443

 

 

 

 

 

Total Assets

 

$

619,868

 

 

 

 

 

$

517,940

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand deposits

 

$

128,150

 

694

 

2.20

 

$

160,991

 

611

 

1.54

 

Savings deposits

 

158,058

 

1,192

 

3.06

 

91,294

 

460

 

2.04

 

Time deposits

 

162,533

 

1,499

 

3.74

 

108,374

 

763

 

2.86

 

Total interest-bearing deposits

 

448,741

 

3,385

 

3.06

 

360,659

 

1,834

 

2.06

 

Borrowed funds and subordinated debentures

 

49,279

 

562

 

4.63

 

40,139

 

424

 

4.28

 

Total interest-bearing liabilities

 

498,020

 

3,947

 

3.21

 

400,798

 

2,258

 

2.28

 

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

78,179

 

 

 

 

 

78,852

 

 

 

 

 

Other liabilities

 

2,339

 

 

 

 

 

1,976

 

 

 

 

 

Total noninterest-bearing liabilities

 

80,518

 

 

 

 

 

80,828

 

 

 

 

 

Shareholders’ equity

 

41,330

 

 

 

 

 

36,314

 

 

 

 

 

Total Liabilities and Shareholders’ Equity

 

$

619,868

 

 

 

 

 

$

517,940

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest spread

 

 

 

6,066

 

3.65

%

 

 

5,278

 

3.92

%

Tax-equivalent basis adjustment

 

 

 

(13

)

 

 

 

 

(13

)

 

 

Net interest income

 

 

 

$

6,053

 

 

 

 

 

$

5,265

 

 

 

Net interest margin

 

 

 

 

 

4.12

%

 

 

 

 

4.30

%

 


 

Unity Bancorp, Inc.

Quarterly Financial Data

 

 

 

03/31/06

 

12/31/05

 

09/30/05

 

06/30/05

 

03/31/05

 

SUMMARY OF INCOME (in thousands) :

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

10,000

 

$

9,486

 

$

8,885

 

$

7,943

 

$

7,523

 

Interest expense

 

3,947

 

3,519

 

3,148

 

2,678

 

2,258

 

Net interest income

 

6,053

 

5,967

 

5,737

 

5,265

 

5,265

 

Provision for loan losses

 

300

 

525

 

675

 

350

 

300

 

Net interest income after provision

 

5,753

 

5,442

 

5,062

 

4,915

 

4,965

 

Noninterest income

 

2,002

 

2,072

 

2,132

 

2,195

 

1,791

 

Noninterest expense

 

5,256

 

4,804

 

4,582

 

4,642

 

4,648

 

Income before income taxes

 

2,499

 

2,710

 

2,612

 

2,468

 

2,108

 

Federal and state income tax provision

 

842

 

956

 

993

 

941

 

798

 

Net Income

 

1,657

 

1,754

 

1,619

 

1,527

 

1,310

 

Net Income per Common Share:

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.27

 

$

0.28

 

$

0.26

 

$

0.25

 

$

0.22

 

Diluted

 

0.25

 

0.27

 

0.25

 

0.24

 

0.20

 

COMMON SHARE DATA:

 

 

 

 

 

 

 

 

 

 

 

Cash dividends declared

 

$

0.05

 

$

0.05

 

$

0.05

 

$

0.05

 

$

0.04

 

Book value at quarter end

 

6.79

 

6.57

 

6.46

 

6.29

 

5.96

 

Market value at quarter end

 

16.05

 

14.00

 

13.09

 

11.96

 

11.43

 

Average common shares outstanding: (000’s)

 

 

 

 

 

 

 

 

 

 

 

Basic

 

6,244

 

6,182

 

6,112

 

6,109

 

6,078

 

Diluted

 

6,568

 

6,483

 

6,426

 

6,423

 

6,422

 

Common shares outstanding at period end (000’s)

 

6,253

 

6,225

 

6,114

 

6,107

 

6,108

 

OPERATING RATIOS:

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

1.08

%

1.16

%

1.09

%

1.13

%

1.03

%

Return on average common equity

 

16.26

 

17.62

 

16.36

 

16.50

 

14.63

 

Efficiency ratio

 

65.25

 

59.76

 

58.17

 

62.43

 

66.37

 

BALANCE SHEET DATA (in thousands):

 

 

 

 

 

 

 

 

 

 

 

Assets

 

$

628,055

 

$

614,172

 

$

609,916

 

$

577,507

 

$

525,842

 

Deposits

 

534,437

 

521,860

 

518,696

 

477,274

 

447,790

 

Loans

 

467,963

 

448,567

 

434,749

 

410,926

 

381,172

 

Shareholders’ equity

 

42,477

 

40,929

 

39,526

 

38,411

 

36,406

 

Allowance for loan losses

 

7,120

 

6,892

 

6,558

 

6,239

 

5,942

 

TAX-EQUIVALENT YIELDS AND RATES:

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets

 

6.86

%

6.63

%

6.35

%

6.22

%

6.20

%

Interest-bearing liabilities

 

3.21

 

2.91

 

2.66

 

2.54

 

2.28

 

Net interest spread

 

3.65

 

3.72

 

3.69

 

3.68

 

3.92

 

Net interest margin

 

4.12

 

4.20

 

4.12

 

4.12

 

4.30

 

CREDIT QUALITY:

 

 

 

 

 

 

 

 

 

 

 

Nonperforming assets (in thousands)

 

$

3,781

 

$

4,539

 

$

5,733

 

$

4,777

 

$

3,172

 

Allowance for loan losses to period-end loans

 

1.52

%

1.54

%

1.51

%

1.52

%

1.56

%

Net charge offs to average loans

 

0.06

 

0.17

 

0.33

 

0.05

 

0.23

 

Nonperforming assets to loans and OREO

 

0.81

 

1.01

 

1.32

 

1.16

 

0.83

 

CAPITAL AND OTHER:

 

 

 

 

 

 

 

 

 

 

 

Total equity to assets

 

6.76

%

6.66

%

6.48

%

6.65

%

6.92

%

Tier I capital to average assets (leverage)

 

8.26

 

8.48

 

8.55

 

8.67

 

8.99

 

Tier I capital to risk-adjusted assets

 

9.93

 

10.26

 

10.40

 

10.65

 

11.18

 

Total capital to risk-adjusted assets

 

11.18

 

11.51

 

11.65

 

11.91

 

12.43

 

Number of banking offices

 

14

 

14

 

13

 

13

 

13

 

Number of ATMs

 

16

 

16

 

15

 

15

 

15

 

Number of employees

 

190

 

190

 

185

 

178

 

185

 

 


 

Unity Bancorp, Inc.

Allowance for Loan Losses and Loan Quality Schedules

(Dollars in thousands)

 

 

 

3/31/2006

 

12/31/2005

 

9/30/2005

 

6/30/2005

 

3/31/2005

 

ALLOWANCE FOR LOAN LOSSES:

 

 

 

 

 

 

 

 

 

 

 

Balance, beginning

 

$

6,892

 

$

6,558

 

$

6,239

 

$

5,942

 

$

5,856

 

Provision charged to expense

 

300

 

525

 

675

 

350

 

300

 

 

 

7,192

 

7,083

 

6,914

 

6,292

 

6,156

 

Less: Charge offs

 

 

 

 

 

 

 

 

 

 

 

SBA

 

46

 

91

 

(9

)

112

 

107

 

Commercial

 

4

 

18

 

87

 

30

 

165

 

Residential mortgage

 

—

 

—

 

25

 

—

 

24

 

Consumer

 

35

 

249

 

262

 

4

 

8

 

Total Charge Offs

 

85

 

358

 

365

 

146

 

304

 

Add: Recoveries

 

 

 

 

 

 

 

 

 

 

 

SBA

 

—

 

130

 

—

 

30

 

44

 

Commercial

 

11

 

24

 

8

 

7

 

45

 

Residential mortgage

 

—

 

—

 

—

 

—

 

—

 

Consumer

 

2

 

13

 

1

 

56

 

1

 

Total Recoveries

 

13

 

167

 

9

 

93

 

90

 

Net Charge Offs

 

72

 

191

 

356

 

53

 

214

 

Balance, ending

 

$

7,120

 

$

6,892

 

$

6,558

 

$

6,239

 

$

5,942

 

 

 

 

 

 

 

 

 

 

 

 

 

LOAN QUALITY INFORMATION:

 

 

 

 

 

 

 

 

 

 

 

Nonperforming loans

 

$

3,605

 

$

4,361

 

$

5,555

 

$

4,777

 

$

2,974

 

Other real estate owned, net

 

176

 

178

 

178

 

—

 

198

 

Nonperforming assets

 

$

3,781

 

$

4,539

 

$

5,733

 

$

4,777

 

$

3,172

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans 90 days past due and still accruing

 

$

326

 

$

—

 

$

—

 

$

—

 

$

313

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses to:

 

 

 

 

 

 

 

 

 

 

 

Total loans at period end

 

1.52

%

1.54

%

1.51

%

1.52

%

1.56

%

Nonperforming loans

 

197.50

 

158.04

 

118.06

 

130.60

 

199.80

 

Nonperforming assets

 

188.31

 

151.84

 

114.39

 

130.60

 

187.33

 

Net charge offs to average loans (QTD)

 

0.06

 

0.17

 

0.33

 

0.05

 

0.23

 

Net charge offs to average loans (YTD)

 

0.06

 

0.20

 

0.21

 

0.14

 

0.23

 

Nonperforming loans to total loans

 

0.77

 

0.97

 

1.28

 

1.16

 

0.78

 

Nonperforming assets to total loans and OREO

 

0.81

 

1.01

 

1.32

 

1.16

 

0.83