Unity Bancorp Reports Third Quarter and Nine Month Results
- Press Release
- Source: Unity Bancorp, Inc.
- On 2:00 pm EDT, Thursday October 22, 2009
CLINTON, N.J., Oct. 22 /PRNewswire-FirstCall/ -- Unity Bancorp, Inc. (Nasdaq: UNTY - News), parent company of Unity Bank, reported a net loss attributable to common shareholders of $1.1 million or ($0.16) per diluted share for the quarter ended September 30, 2009, compared to a net loss of $1.0 million or ($0.14) per diluted share, for the third quarter of 2008. For the nine months ended September 30, 2009, the Company reported a net loss attributable to common shareholders of $2.3 million, or ($0.33) per diluted share, compared to net income of $1.3 million, or $0.19 per diluted share, for the same period a year ago.
Related Quotes
| Symbol | Price | Change |
|---|---|---|
| UNTY | 4.10 | +0.05 |
James A. Hughes, Unity Bancorp's President and CEO, said, "As a result of continued stress in our Small Business ("SBA") portfolio, we substantially increased our loan loss provision this quarter. The increase was necessary to bolster our reserves so that we can aggressively deal with problem credits. We anticipate elevated provisions until economic conditions improve. Meanwhile, we are continuing to grow our customer relationships and invest in our future. This year we are having record core deposit growth, and we are extremely optimistic that our redefined strategic plan will enhance our franchise. Our capital levels continue to be strong and we expect 2010 to be a year of turnaround for our performance."
Net Interest Income
Since September 30, 2008, the Federal Open Market Committee has lowered interest rates 175 basis points in an attempt to stimulate economic activity. These decreases have resulted in lower yields on earning assets, in addition to lower funding costs. During the remainder of 2009, we expect net interest margin to expand as higher cost certificates of deposit reprice in the current lower rate environment. For the quarter ended September 30, 2009, net interest income was $6.9 million, flat from the quarter ended June 30, 2009, and a decrease of 3.2% from the quarter ended September 30, 2008.
Factors affecting third quarter net interest income include:
- The yield on interest-earning assets decreased 81 basis points to 5.64% from 6.45% for the same period last year.
- The cost of interest-bearing liabilities decreased 48 basis points to 2.80% from 3.28% for the same period last year.
- Average earning assets, consisting primarily of loans, rose 7.4%.
- Net interest margin was 3.17%, a 38 basis point decline from 3.55% in the third quarter of 2008.
Year-to-date, net interest income was $20.5 million, flat from prior year 2008. Factors affecting year-to-date net interest income include:
- Net interest margin for the nine months ended 2009 was 3.20%, a decline of 41 basis points from the same period last year.
- The yield on earning assets decreased from 6.64% for the first nine months of 2008, to 5.81% for the first nine months of 2009.
- The cost of interest-bearing liabilities decreased from 3.43% for the first nine months of 2008, to 2.98% for the first nine months of 2009.
Noninterest Income
Historically, Unity has generated noninterest income from gains on the sale of its SBA loans. In the fourth quarter of 2008, Unity exited the National SBA program as a line of business and closed all SBA loan production offices outside its primary trade area. Consequently, this decision has impacted noninterest income by substantially reducing gains on sales of SBA loans.
For the quarter ended September 30, 2009, noninterest income increased $1.5 million from the quarter ended September 30, 2008. Noninterest income was affected by the following factors:
- Service charges on deposit accounts remained relatively flat compared to the prior year period.
- Loan fee income amounted to $398 thousand, an increase of 19.2% due to increased loan prepayment fees.
- There were no other-than-temporary impairment charges on investment securities, compared to $946 thousand in the prior year period.
- Gains on the sale of residential mortgage loans amounted to $71 thousand.
- There were no sales of SBA loans, compared to gains of $215 thousand a year ago.
- Gains on the sales of investment securities amounted to $158 thousand compared to a loss of $512 thousand in the prior year period.
For the nine months ended September 30, 2009, noninterest income amounted to $1.6 million, a decline of $534 thousand from the nine months ended September 30, 2008. Noninterest income was affected by the following factors:
- Service charges on deposit accounts and loan fee income remained relatively flat compared to the prior year period.
- Other-than-temporary impairment charges on investment securities amounted to $1.7 million, compared to $1.2 million in the prior year period.
- Gains on sales of SBA loans amounted to $29 thousand, compared to $1.2 million a year ago.
- Gains on the sales of residential mortgage loans amounted to $184 thousand, compared to $21 thousand from the prior year period.
- Gains on the sale of investment securities amounted to $675 thousand, compared to a loss of $393 thousand from the prior year period.
Noninterest Expense
As a result of current market conditions, the Company effected head-count reductions, primarily related to the closing of SBA loan production offices and instituted a salary freeze. In addition, the Company undertook other expense saving measures. However, these expense reductions were offset by increases in FDIC insurance premiums.
For the quarter ended September 30, 2009, noninterest expenses were $6.1 million, an increase of 5.7% from the quarter ended September 30, 2008. The following factors affected our noninterest expense:
- Compensation and benefits expense amounted to $2.9 million, a decrease of $39 thousand, or 1.3% due to reduced head count.
- Communications and delivery, and occupancy expense declined by 4.2% and 13.5%, respectively, due to reduced communications costs from renegotiated contracts, a decline in capital expenditures and a reduction in rental expense from a renegotiated lease.
- FF&E and professional services expense remained flat from the prior year period.
- Loan collection costs increased $109 thousand, due to increased collection costs on delinquent loans.
- FDIC insurance premiums increased $234 thousand, due to the increase in FDIC insurance rates.
For the nine months ended September 30, 2009, noninterest expenses were $17.9 million, an increase of 4.1% from the same period a year ago. The following factors affected our noninterest expense:
- Compensation and benefits expense amounted to $8.4 million, a decrease of $762 thousand, or 8.3% due to reduced head count.
- Communications and delivery, and occupancy expense declined by 6.8% and 8.2%, respectively, due to reduced communications costs from renegotiated contracts and a decline in capital expenditures and a reduction in rental expense from a renegotiated lease.
- FF&E expense increased $157 thousand, primarily due to depreciation expense on new equipment and software and increased software maintenance charges.
- Professional fees increased $154 thousand, due to increased consulting, legal and audit costs.
- Loan collection costs increased $248 thousand, due to increased collection costs on delinquent loans.
- FDIC insurance premiums increased $1.1 million, due primarily to the increase in FDIC insurance rates and a $408 thousand special assessment in the second quarter of 2009.
Financial Condition
At September 30, 2009, total assets were $922.7 million, a 6.8% increase from a year ago.
- Total loans decreased $28.5 million, or 4.2%, from $685.0 million at September 30, 2008. SBA 7(a), SBA 504, commercial and residential loans decreased 1.7%, 13.1%, 4.5%, and 3.0%, respectively, partially offset by an increase in consumer loans of 3.1%.
- Total securities increased $72.1 million as Unity took advantage of favorable credit spreads to invest excess liquidity.
- Total deposits increased 9.6% or $66.0 million to $750.7 million at September 30, 2009. This increase was due to a $115.7 million increase in savings deposits, a $4.8 million increase in interest- bearing checking accounts and a $1.4 million increase in demand deposits. These increases were partially offset by a $55.9 million decrease in time deposits. The increase in savings accounts and checking accounts is due to a high yield savings product that requires a related checking account. During the remainder of 2009, the Company expects continued migration of time deposits to lower rate accounts.
- Total borrowed funds decreased $30.0 million from a year ago.
- Shareholders' equity was $67.4 million at September 30, 2009, an increase of $20.8 million, primarily due to the issuance of $20.6 million of preferred stock under the U.S. Department of Treasury's Capital Purchase Program.
- Book value per common share was $6.88.
- At September 30, 2009 the leverage, Tier I and Total Risk Based Capital ratios were 9.08%, 11.83% and 13.09%, respectively, all in excess of the ratios required to be deemed "well capitalized".
Credit Quality
- Nonperforming assets totaled $27.5 million at September 30, 2009, or 4.17% of total loans and other real estate owned ("OREO") compared to $11.0 million, or 1.60% of total loans and OREO a year ago. The SBA 7(a), SBA 504, commercial and residential and consumer nonaccrual loans were $5.8, $6.0, $6.5 and $6.4 million, respectively. OREO amounted to $2.8 million. The increase in nonperforming assets was primarily related to an increase in SBA and residential mortgage accounts. The majority of nonperforming assets are secured by real estate.
- The allowance for loan losses totaled $12.4 million at September 30, 2009, or 1.90% of total loans. The provision for loan losses for the third quarter of 2009 amounted to $3.0 million, an increase of $900 thousand from the same period a year ago. The provision for loan losses for the nine months ended September 30, 2009, amounted to $6.0 million, an increase of $2.8 million from the same period a year ago.
- Net charge-offs were $1.2 million for the three months ended September 30, 2009, compared to $1.1 million for the same period a year ago. Net charge-offs were $3.9 million for the nine months ended September 30, 2009, compared to $1.7 million for the same period a year ago.
Unity Bancorp, Inc. is a financial service organization headquartered in Clinton, New Jersey, with approximately $923 million in assets and $751 million in deposits. Unity Bank provides financial services to retail, corporate and small business customers through its 16 retail service centers located in Hunterdon, Middlesex, Somerset, Union and Warren Counties in New Jersey and Northampton County, Pennsylvania. For additional information about Unity, visit our website at www.unitybank.com, or call 800- 618-BANK.
This news release contains certain forward-looking statements, either expressed or implied, which are provided to assist the reader in understanding anticipated future financial performance. These statements 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.
SUMMARY FINANCIAL HIGHLIGHTS
September 30, 2009
-----------------
Amounts in thousands, except 2009.Q3 VS.
percentages and share amounts -----------
2009.Q2 2008.Q3
--------- --------- --------- ------- -------
9/30/2009 6/30/2009 9/30/2008 % %
--------- --------- --------- ------- -------
BALANCE SHEET DATA:
-------------------
Total Assets $922,689 $913,446 $864,083 1.0% 6.8%
Total Deposits 750,665 731,763 684,680 2.6% 9.6%
Total Loans 656,520 665,331 685,023 -1.3% -4.2%
Total Securities 171,501 164,794 99,410 4.1% 72.5%
Total Shareholders'
Equity 67,385 67,064 46,539 0.5% 44.8%
Allowance for loan
losses (12,445) (10,665) (9,913) 16.7% 25.5%
FINANCIAL DATA -
QUARTER TO DATE:
-----------------
Net Income (Loss)
Before Taxes (1,090) (1,752) (1,141) -37.8% -4.5%
Income taxes (benefit) (343) (552) (139) -37.9% 146.8%
---- ---- ---- ----- -----
Net (Loss) income (747) (1,200) (1,002) -37.8% -25.4%
Preferred Dividends
& Discount Accretion 371 372 - -0.3% 100.0%
--- --- --- ---- -----
Loss Attributable to
Common Shareholders (1,118) (1,572) (1,002) -28.9% 11.6%
====== ====== ====== ===== ====
Net (Loss) Income Per
Share -Basic (0.16) (0.22) (0.14) -28.9% 11.4%
Net (Loss) Income Per
Share -Diluted (0.16) (0.22) (0.14) -29.1% 12.7%
Return on Average
Assets -0.33% -0.54% -0.47% -39.2% -30.5%
Return on Average
Common Equity -9.14% -12.97% -8.45% -29.6% 8.1%
Efficiency Ratio 77.72% 80.58% 70.51% -3.6% 10.2%
FINANCIAL DATA -
YEAR TO DATE:
----------------
Net (Loss) Income
Before Taxes (1,774) (685) 2,328 159.0% -176.2%
Income taxes (benefit) (559) (216) 982 158.8% -156.9%
---- ---- --- ----- ------
Net (Loss) income (1,215) (469) 1,346 159.1% -190.3%
Preferred Dividends
& Discount Accretion 1,122 751 - 49.4% 100.0%
----- --- --- ---- -----
Loss Attributable to
Common Shareholders (2,337) (1,220) 1,346 91.6% -273.6%
====== ====== ===== ==== ======
Net (Loss) Income Per
Share -Basic (0.33) (0.17) 0.19 91.6% -272.9%
Net (Loss) Income Per
Share -Diluted (0.33) (0.17) 0.19 91.2% -276.0%
Return on Average
Assets (annualized) -0.18% -0.11% 0.22% 71.6% -180.4%
Return on Average
Common Equity
(annualized) -6.38% -5.02% 3.77% 26.9% -269.3%
Efficiency Ratio 77.12% 76.82% 70.68% 0.4% 9.1%
SHARE INFORMATION:
------------------
Market Price Per
Share 4.20 3.55 4.00 18.3% 5.0%
Dividends Paid Per
Share - - - 0.0% 0.0%
Book Value Per
Common Share 6.88 6.85 6.55 0.4% 5.1%
Average Diluted
Shares
Outstanding (QTD) 7,190 7,168 7,259 0.3% -1.0%
CAPITAL RATIOS:
---------------
Total Equity to
Total Assets 7.30% 7.34% 5.39% -0.5% 35.6%
Leverage Ratio 9.08% 9.30% 7.42% -2.3% 22.4%
Tier 1 Risk-Based
Capital Ratio 11.83% 11.88% 9.07% -0.4% 30.4%
Total Risk-Based
Capital Ratio 13.09% 13.13% 10.33% -0.3% 26.7%
CREDIT QUALITY AND
RATIOS:
------------------
Nonperforming Assets 27,461 23,240 10,954 18.2% 150.7%
QTD Net Chargeoffs
(annualized) to QTD
Average Loans 0.73% 0.69% 0.67% 6.6% 8.8%
Allowance for
Loan Losses to
Total Loans 1.90% 1.60% 1.45% 18.3% 31.0%
Nonperforming
Assets to Total
Loans and OREO 4.17% 3.49% 1.60% 19.3% 160.6%
Nonperforming
Assets to Total
Assets 2.98% 2.54% 1.27% 17.0% 134.8%
UNITY BANCORP, INC.
CONSOLIDATED BALANCE SHEETS
September 30, 2009
-----------------
Amounts in thousands, 2009.Q3 VS.
except percentages -----------
2009.Q2 2008.Q3
--------- --------- --------- ------- -------
9/30/2009 6/30/2009 9/30/2008 % %
--------- --------- --------- ------- -------
ASSETS
------
Cash and due from
banks $17,035 $17,295 $21,987 -1.5% -22.5%
Federal funds
sold and
interest-bearing
deposits 48,853 37,232 29,356 31.2% 66.4%
------ ------ ------ ---- ----
Cash and cash
equivalents 65,888 54,527 51,343 20.8% 28.3%
Securities
available for
sale 140,906 132,719 70,144 6.2% 100.9%
Securities held to
maturity 30,595 32,075 29,266 -4.6% 4.5%
------ ------ ------ ---- ---
Total securities 171,501 164,794 99,410 4.1% 72.5%
SBA loans held for
sale 21,364 23,161 19,863 -7.8% 7.6%
SBA loans held to
maturity 79,342 82,157 82,551 -3.4% -3.9%
SBA 504 loans 71,432 72,619 82,227 -1.6% -13.1%
Commercial loans 298,019 299,411 311,988 -0.5% -4.5%
Residential
mortgage loans 124,313 125,466 128,216 -0.9% -3.0%
Consumer loans 62,050 62,517 60,178 -0.7% 3.1%
------ ------ ------ ---- ---
Total loans 656,520 665,331 685,023 -1.3% -4.2%
Allowance for loan
losses (12,445) (10,665) (9,913) 16.7% 25.5%
------- ------- ------ ---- ----
Net loans 644,075 654,666 675,110 -1.6% -4.6%
Premises and
equipment, net 11,911 12,067 12,475 -1.3% -4.5%
Bank owned life
insurance (BOLI) 5,946 5,890 5,727 1.0% 3.8%
Federal Home Loan
Bank stock 4,677 5,127 5,307 -8.8% -11.9%
Accrued interest
receivable 4,230 4,263 4,364 -0.8% -3.1%
Goodwill and other
intangibles 1,563 1,566 1,577 -0.2% -0.9%
Loan servicing
asset 977 1,142 1,721 -14.4% -43.2%
Other assets 11,921 9,404 7,049 26.8% 69.1%
------ ----- ----- ---- ----
Total Assets $922,689 $913,446 $864,083 1.0% 6.8%
======== ======== ======== === ===
LIABILITIES AND
SHAREHOLDERS'
EQUITY
---------------
Noninterest-bearing
checking $83,534 $83,639 $82,167 -0.1% 1.7%
Total interest-
bearing checking 92,401 84,842 87,587 8.9% 5.5%
Total savings 263,758 211,876 148,026 24.5% 78.2%
Time deposits,
under $100,000 209,050 239,893 274,845 -12.9% -23.9%
Time deposits,
$100,000 and over 101,922 111,513 92,055 -8.6% 10.7%
------- ------- ------ ---- ----
Total deposits 750,665 731,763 684,680 2.6% 9.6%
Borrowed Funds 85,000 95,000 115,000 -10.5% -26.1%
Subordinated
debentures 15,465 15,465 15,465 0.0% 0.0%
Accrued interest
payable 797 847 869 -5.9% -8.3%
Accrued expenses
and other
liabilities 3,377 3,307 1,530 2.1% 120.7%
----- ----- ----- --- -----
Total Liabilities 855,304 846,382 817,544 1.1% 4.6%
Cumulative
Perpetual
Preferred stock 18,418 18,305 - 0.6% 100.0%
Common stock 55,351 55,264 52,453 0.2% 5.5%
Retained earnings
(deficit) (1,253) (135) 591 828.1% -312.0%
Treasury stock at
cost (4,169) (4,169) (4,169) 0.0% 0.0%
Accumulated other
comprehensive loss (962) (2,201) (2,336) -56.3% -58.8%
---- ------ ------ ----- -----
Total Shareholders'
Equity 67,385 67,064 46,539 0.5% 44.8%
Total Liabilities
and Shareholders'
Equity $922,689 $913,446 $864,083 1.0% 6.8%
======== ======== ======== === ===
Common Shares at
Period End:
Shares Issued 7,544 7,544 7,535
Shares Outstanding 7,119 7,119 7,110
Treasury Shares 425 425 425
UNITY BANCORP, INC.
QTD CONSOLIDATED STATEMENTS OF INCOME
September 30, 2009
Amounts in thousands, -----------------
except percentages 2009.Q3 VS.
-------------------------------- -------------
For the Three Months Ended 2009.Q2 2008.Q3
---------------------------- --------- -------
9/30/2009 6/30/2009 9/30/2008 % %
--------- --------- --------- --------- -------
Interest Income -
Cash $32 $29 $113 10.3% -71.7%
Interest Income -
FHLB/ACBB Stock 101 122 58 -17.2% 74.1%
Interest Income -
AFS Investments 1,482 1,509 907 -1.8% 63.4%
Interest Income -
HTM Investments 389 391 381 -0.5% 2.1%
--- --- --- ---- ---
Interest Income -
Total Investments 1,871 1,900 1,288 -1.5% 45.3%
Interest Income -
SBA Loans 1,498 1,564 2,043 -4.2% -26.7%
Interest Income -
SBA 504 Loans 1,147 1,285 1,424 -10.7% -19.5%
Interest Income -
Commercial Loans 4,973 5,051 5,453 -1.5% -8.8%
Interest Income -
Mortgage Loans 1,772 1,783 1,720 -0.6% 3.0%
Interest Income -
Consumer Loans 791 797 866 -0.8% -8.7%
--- --- --- ---- ----
Interest Income -
Total Loans 10,181 10,480 11,506 -2.9% -11.5%
------ ------ ------ ---- ----
Total Interest
Income 12,185 12,531 12,965 -2.8% -6.0%
------ ------ ------ ---- ----
Interest Expense -
Total Checking 264 267 404 -1.1% -34.7%
Interest Expense -
Total Savings 1,032 912 774 13.2% 33.3%
Interest Expense -
Total CDs 2,950 3,409 3,553 -13.5% -17.0%
Interest Expense -
Borrowings 1,081 1,085 1,152 -0.4% -6.2%
----- ----- ----- ---- ----
Total Interest
Expense 5,327 5,673 5,883 -6.1% -9.5%
----- ----- ----- ---- ----
----- ----- ----- --- ----
Net Interest Income
Before Provision 6,858 6,858 7,082 0.0% -3.2%
Provision for Loan
Losses 3,000 1,500 2,100 100.0% 42.9%
----- ----- ----- ----- ----
Net Interest Income
After Provision 3,858 5,358 4,982 -28.0% -22.6%
Branch Fee Income 373 335 381 11.3% -2.1%
Loan Fee Income 398 294 334 35.4% 19.2%
Bank Owned Life
Insurance (BOLI) 56 55 53 1.8% 5.7%
Gain (Loss) on Sale
of Mortgage Loans 71 49 - 44.9% 100.0%
Gain (Loss) on Sale
of SBA Loans - - 215 0.00% -100.0%
Other-than-temporary
impairment charges - (1,749) (946) -100.0% -100.0%
Net security gains
(losses) 158 2 (512) 7800.0% -130.9%
Other Income 106 107 131 -0.9% -19.1%
--- --- --- ---- -----
Total Noninterest
Income $1,162 $(907) $(344) -228.1% -437.8%
Total Compensation
and Benefits 2,909 2,853 2,948 2.0% -1.3%
Occupancy Expense 595 647 688 -8.0% -13.5%
Communications and
Delivery Expense 531 482 554 10.2% -4.2%
Furniture, Fixtures
and Equipment Expense 414 471 423 -12.1% -2.1%
Professional Services
Expense 274 260 285 5.4% -3.9%
Loan Expense 315 180 206 75.0% 52.9%
FDIC Insurance
Expense 351 708 117 -50.4% 200.0%
Advertising Expense 147 151 158 -2.6% -7.0%
Other Expense 574 451 400 27.3% 43.5%
--- --- --- ---- ----
Total Noninterest
Expense 6,110 6,203 5,779 -1.5% 5.7%
Net Income (Loss)
Before Taxes (1,090) (1,752) (1,141) -37.8% -4.5%
Income taxes (343) (552) (139) -37.9% 146.8%
---- ---- ---- ----- -----
Net Income (Loss) (747) (1,200) (1,002) -37.8% -25.4%
---- ------ ------ ----- -----
Preferred Dividends
& Discount Accretion 371 372 - -0.3% 100.0%
--- --- --- ---- -----
Income Available to
Common Shareholders $(1,118) $(1,572) $(1,002) -28.9% 11.6%
------- ------- ------- ----- ----
Effective Tax Rate 31.47% 31.51% 12.18%
Net Income Per
Share - Basic (0.16) (0.22) (0.14)
Net Income Per
Share - Diluted (0.16) (0.22) (0.14)
Average Shares
Outstanding - Basic 7,119 7,119 7,107
Average Shares
Outstanding -
Diluted 7,190 7,168 7,259
UNITY BANCORP, INC.
YTD CONSOLIDATED STATEMENTS OF INCOME
September 30, 2009
Amounts in thousands, --------------
except percentages CURRENT YTD
CURRENT YTD PRIOR YTD VS. PRIOR YTD
------------- ----------- --------------
9/30/2009 9/30/2008 $ %
--------- --------- ------ ------
Interest Income - Cash $78 $404 $(326) -80.7%
Interest Income - FHLB/ACBB
Stock 219 234 (15) -6.4%
Interest Income - AFS
Investments 4,670 2,714 1,956 72.1%
Interest Income - HTM
Investments 1,167 1,216 (49) -4.0%
----- ----- --- ----
Interest Income - Total
Investments 5,837 3,930 1,907 48.5%
Interest Income - SBA Loans 4,668 6,399 (1,731) -27.1%
Interest Income - SBA 504
Loans 3,663 4,134 (471) -11.4%
Interest Income -
Commercial Loans 15,040 16,145 (1,105) -6.8%
Interest Income - Mortgage
Loans 5,419 4,008 1,411 35.2%
Interest Income - Consumer
Loans 2,383 2,613 (230) -8.8%
----- ----- ---- ----
Interest Income - Total
Loans 31,173 33,299 (2,126) -6.4%
------ ------ ---- ----
Total Interest Income 37,307 37,867 (560) -1.5%
------ ------ ---- ----
Interest Expense - Total
Checking 801 1,120 (319) -28.5%
Interest Expense - Total
Savings 2,588 3,041 (453) -14.9%
Interest Expense - Total CDs 10,084 9,779 305 3.1%
Interest Expense -
Borrowings 3,344 3,372 (28) -0.8%
----- ----- --- ----
Total Interest Expense 16,817 17,312 (495) -2.9%
------ ------ ---- ----
------ ------ --- ----
Net Interest Income Before
Provision 20,490 20,555 (65) -0.3%
Provision for Loan Losses 6,000 3,200 2,800 87.5%
----- ----- ----- ----
Net Interest Income After
Provision 14,490 17,355 (2,865) -16.5%
Branch Fee Income 1,038 1,042 (4) -0.4%
Loan Fee Income 946 936 10 1.1%
Bank Owned Life Insurance
(BOLI) 166 157 9 5.7%
Gain (Loss) on Sale of
Mortgage Loans 184 21 163 776.2%
Gain (Loss) on Sale of SBA
Loans 29 1,208 (1,179) -97.6%
Other-than-temporary
impairment charges (1,749) (1,201) (548) 45.6%
Net security gains (losses) 675 (393) 1,068 -271.8%
Other Income 316 369 (53) -14.4%
--- --- --- -----
Total Noninterest Income $1,605 $2,139 $(534) -25.0%
Total Compensation and
Benefits 8,386 9,148 (762) -8.3%
Occupancy Expense 1,929 2,102 (173) -8.2%
Communications and Delivery
Expense 1,554 1,668 (114) -6.8%
Furniture, Fixtures and
Equipment Expense 1,381 1,224 157 12.8%
Professional Services
Expense 780 626 154 24.6%
Loan Expense 694 446 248 55.6%
FDIC Insurance Expense 1,361 291 1,070 367.7%
Advertising Expense 373 299 74 24.7%
Other Expense 1,411 1,362 49 3.6%
----- ----- -- ---
Total Noninterest Expense 17,869 17,166 703 4.1%
Net Income (Loss) Before
Taxes (1,774) 2,328 (4,102) -176.2%
Income taxes (559) 982 (1,541) -156.9%
---- --- ------ ------
Net Income (Loss) (1,215) 1,346 (2,561) -190.3%
------ ----- ------ ------
Preferred Dividends &
Discount Accretion 1,122 - 1,122 100.0%
----- --- ----- -----
Income Available to Common
Shareholders $(2,337) $1,346 $(3,683) -273.6%
------- ------ ------- ------
31.5% 42.2%
Net Income Per Share - Basic (0.33) 0.19
Net Income Per Share -
Diluted (0.33) 0.19
Average Shares Outstanding -
Basic 7,119 7,091
Average Shares Outstanding -
Diluted 7,170 7,268
UNITY BANCORP, INC.
QUARTER TO DATE NET INTEREST MARGIN
September 30, 2009
Amounts in thousands, For the Three Months Ended
except percentages --------------------------
September 30, 2009
Average
Balance Interest Rate/Yield
------------ ------------ ----------
Interest-earning Assets:
Federal funds sold and
interest-bearing deposits $32,940 $32 0.39%
Federal Home Loan Bank stock 4,677 101 8.57%
Securities available for
sale 131,360 1,495 4.55%
Securities held to maturity 31,418 407 5.18%
------ --- ----
Total securities 162,778 1,902 4.67%
------- ----- ----
SBA Loans 102,691 1,498 5.83%
SBA 504 loans 71,764 1,147 6.34%
Commercial loans 301,010 4,973 6.55%
Residential mortgage loans 123,786 1,772 5.73%
Consumer loans 62,459 791 5.02%
------ --- ----
Total loans 661,710 10,181 6.12%
------- ------ ----
Total Interest-earning
Assets 862,105 $12,216 5.64%
Noninterest-earning assets:
Cash and due from banks 18,502
Allowance for loan
losses (11,478)
Other assets 34,355
------
Total Noninterest-
earning Assets 41,379
--------
Total Assets $903,484
--------
Interest-bearing Liabilities:
Total interest-bearing
checking $88,284 $264 1.19%
Total savings 239,427 1,032 1.71%
Total time deposits 323,484 2,950 3.62%
------- ----- ----
Total Interest-bearing
Deposits 651,195 4,246 2.59%
Total borrowings 100,465 1,081 4.21%
------- ----- ----
Total Interest-bearing
Liabilities 751,660 $5,327 2.80%
------- ------ ----
Noninterest-bearing Liabilities:
Noninterest-bearing
checking 79,965
Other Liabilities 4,945
-----
Total Noninterest-bearing
Liabilities 84,910
Total Shareholders' Equity 66,914
--------
Total Liabilities and
Shareholders' Equity $903,484
--------
Net Interest Spread 6,889 2.84%
Tax-equivalent Basis Adjustment (31)
---
Net Interest Income 6,858
----
Net Interest Margin 3.17%
----
For the Three Months Ended
--------------------------
June 30, 2009
Average
Balance Interest Rate/Yield
------------ ------------ ----------
Interest-earning Assets:
Federal funds sold and
interest-bearing deposits $14,153 $29 0.82%
Federal Home Loan Bank stock 4,972 122 9.84%
Securities available for
sale 130,751 1,522 4.66%
Securities held to maturity 34,457 409 4.75%
------ --- ----
Total securities 165,208 1,931 4.68%
------- ----- ----
SBA Loans 102,255 1,564 6.12%
SBA 504 loans 74,209 1,285 6.95%
Commercial loans 303,589 5,051 6.67%
Residential mortgage loans 124,227 1,783 5.74%
Consumer loans 63,280 797 5.05%
------ --- ----
Total loans 667,560 10,480 6.29%
------- ------ ----
Total Interest-earning
Assets 851,893 $12,562 5.91%
Noninterest-earning assets:
Cash and due from banks 18,397
Allowance for loan
losses (11,095)
Other assets 32,770
------
Total Noninterest-
earning Assets 40,072
--------
Total Assets $891,965
--------
Interest-bearing Liabilities:
Total interest-bearing
checking $85,313 $267 1.26%
Total savings 189,977 912 1.93%
Total time deposits 360,885 3,409 3.79%
------- ----- ----
Total Interest-bearing
Deposits 636,175 4,588 2.89%
Total borrowings 107,163 1,085 4.01%
------- ----- ----
Total Interest-bearing
Liabilities 743,338 $5,673 3.05%
------- ------ ----
Noninterest-bearing Liabilities:
Noninterest-bearing
checking 77,630
Other Liabilities 4,148
-----
Total Noninterest-bearing
Liabilities 81,778
Total Shareholders' Equity 66,849
--------
Total Liabilities and
Shareholders' Equity $891,965
--------
Net Interest Spread 6,889 2.86%
Tax-equivalent Basis Adjustment (31)
---
Net Interest Income 6,858
----
Net Interest Margin 3.24%
----
UNITY BANCORP, INC.
QUARTER TO DATE NET INTEREST MARGIN
September 30, 2009
Amounts in thousands, Three Months Ended
except percentages ------------------
September 30, 2009
Average
Balance Interest Rate/Yield
------------ ------------ ----------
Interest-earning Assets:
Federal funds sold and
interest-bearing deposits $32,940 $32 0.39%
Federal Home Loan Bank stock 4,677 101 8.57%
Securities available for sale 131,360 1,495 4.55%
Securities held to maturity 31,418 407 5.18%
------ --- ----
Total securities 162,778 1,902 4.67%
------- ----- ----
SBA Loans 102,691 1,498 5.83%
SBA 504 loans 71,764 1,147 6.34%
Commercial loans 301,010 4,973 6.55%
Residential mortgage loans 123,786 1,772 5.73%
Consumer loans 62,459 791 5.02%
------ --- ----
Total loans 661,710 10,181 6.12%
------- ------ ----
Total Interest-earning Assets 862,105 $12,216 5.64%
Noninterest-earning assets:
Cash and due from banks 18,502
Allowance for loan losses (11,478)
Other assets 34,355
------
Total Noninterest-earning
Assets 41,379
--------
Total Assets $903,484
--------
Interest-bearing Liabilities:
Total interest-bearing
checking $88,284 $264 1.19%
Total savings 239,427 1,032 1.71%
Total time deposits 323,484 2,950 3.62%
------- ----- ----
Total Interest-bearing
Deposits 651,195 4,246 2.59%
Total borrowings 100,465 1,081 4.21%
------- ----- ----
Total Interest-bearing
Liabilities 751,660 $5,327 2.80%
------- ------ ----
Noninterest-bearing Liabilities:
Noninterest-bearing
checking 79,965
Other Liabilities 4,945
-----
Total Noninterest-bearing
Liabilities 84,910
Total Shareholders' Equity 66,914
--------
Total Liabilities and
Shareholders' Equity $903,484
--------
Net Interest Spread 6,889 2.84%
Tax-equivalent Basis Adjustment (31)
---
Net Interest Income 6,858
----
Net Interest Margin 3.17%
----
Three Months Ended
------------------
September 30, 2008
Average
Balance Interest Rate/Yield
------------ ------------ ----------
Interest-earning Assets:
Federal funds sold and
interest-bearing deposits $24,118 $113 1.86%
Federal Home Loan Bank stock 4,415 58 5.23%
Securities available for sale 72,658 920 5.06%
Securities held to maturity 31,209 399 5.11%
------ --- ----
Total securities 103,867 1,319 5.08%
------- ----- ----
SBA Loans 102,383 2,043 7.98%
SBA 504 loans 76,288 1,424 7.43%
Commercial loans 317,338 5,453 6.84%
Residential mortgage loans 114,058 1,720 6.03%
Consumer loans 59,933 866 5.75%
------ --- ----
Total loans 670,000 11,506 6.84%
------- ------ ----
Total Interest-earning Assets 802,400 $12,996 6.45%
Noninterest-earning assets:
Cash and due from banks 19,166
Allowance for loan losses (9,092)
Other assets 32,229
------
Total Noninterest-earning
Assets 42,303
--------
Total Assets $844,703
--------
Interest-bearing Liabilities:
Total interest-bearing
checking $87,903 $404 1.83%
Total savings 161,707 774 1.90%
Total time deposits 353,743 3,553 4.00%
------- ----- ----
Total Interest-bearing
Deposits 603,353 4,731 3.12%
Total borrowings 110,684 1,152 4.14%
------- ----- ----
Total Interest-bearing
Liabilities 714,037 $5,883 3.28%
------- ------ ----
Noninterest-bearing Liabilities:
Noninterest-bearing
checking 81,157
Other Liabilities 2,321
-----
Total Noninterest-bearing
Liabilities 83,478
Total Shareholders' Equity 47,188
--------
Total Liabilities and
Shareholders' Equity $844,703
--------
Net Interest Spread 7,113 3.17%
Tax-equivalent Basis Adjustment (31)
---
Net Interest Income 7,082
----
Net Interest Margin 3.55%
----
UNITY BANCORP, INC.
YEAR TO DATE NET INTEREST MARGIN
September 30, 2009
-------------------------------------------
Amounts in thousands, September 30, 2009
except percentages Average
Balance Interest Rate/Yield
------------ ------------ ----------
Interest-earning Assets:
Federal funds sold and
interest-bearing deposits $19,222 $78 0.54%
Federal Home Loan Bank stock 5,190 219 5.64%
Securities available for sale 133,446 4,709 4.71%
Securities held to maturity 33,277 1,222 4.90%
------ ----- ----
Total securities 166,723 5,931 4.74%
------- ----- ----
SBA Loans 103,321 4,668 6.02%
SBA 504 loans 74,266 3,663 6.59%
Commercial loans 303,234 15,040 6.63%
Residential mortgage loans 125,667 5,419 5.75%
Consumer loans 62,630 2,383 5.09%
------ ----- ----
Total loans 669,118 31,173 6.22%
------- ------ ----
Total Interest-earning Assets 860,253 $37,401 5.81%
Noninterest-earning assets:
Cash and due from banks 18,838
Allowance for loan losses (11,173)
Other assets 33,409
------
Total Noninterest-earning
Assets 41,074
--------
Total Assets $901,327
--------
Interest-bearing Liabilities:
Total interest-bearing
checking $86,232 $801 1.24%
Total savings 192,559 2,588 1.80%
Total time deposits 357,073 10,084 3.78%
------- ------ ----
Total Interest-bearing
Deposits 635,864 13,473 2.83%
Total borrowings 116,427 3,344 3.79%
------- ----- ----
Total Interest-bearing
Liabilities 752,291 $16,817 2.98%
------- ------- ----
Noninterest-bearing Liabilities:
Noninterest-bearing
checking 77,730
Other Liabilities 4,297
-----
Total Noninterest-bearing
Liabilities 82,027
Total Shareholders' Equity 67,009
--------
Total Liabilities and
Shareholders' Equity $901,327
--------
Net Interest Spread 20,584 2.83%
Tax-equivalent Basis Adjustment (94)
---
Net Interest Income 20,490
----
Net Interest Margin 3.20%
----
September 30, 2008
Average
Balance Interest Rate/Yield
------------ ------------ ----------
Interest-earning Assets:
Federal funds sold and
interest-bearing deposits $23,135 $404 2.33%
Federal Home Loan Bank stock 4,330 234 7.22%
Securities available for sale 73,337 2,789 5.07%
Securities held to maturity 32,297 1,270 5.24%
------ ----- ----
Total securities 105,634 4,059 5.12%
------- ----- ----
SBA Loans 100,674 6,399 8.47%
SBA 504 loans 73,324 4,134 7.53%
Commercial loans 308,173 16,145 7.00%
Residential mortgage loans 89,551 4,008 5.97%
Consumer loans 58,679 2,613 5.95%
------ ----- ----
Total loans 630,401 33,299 7.05%
------- ------ ----
Total Interest-earning Assets 763,500 $37,996 6.64%
Noninterest-earning assets:
Cash and due from banks 16,189
Allowance for loan losses (8,866)
Other assets 31,268
------
Total Noninterest-earning
Assets 38,591
--------
Total Assets $802,091
--------
Interest-bearing Liabilities:
Total interest-bearing
checking $83,050 $1,120 1.80%
Total savings 179,254 3,041 2.27%
Total time deposits 304,298 9,779 4.29%
------- ----- ----
Total Interest-bearing
Deposits 566,602 13,940 3.29%
Total borrowings 107,345 3,372 4.20%
------- ----- ----
Total Interest-bearing
Liabilities 673,947 $17,312 3.43%
------- ------- ----
Noninterest-bearing Liabilities:
Noninterest-bearing
checking 78,259
Other Liabilities 2,354
-----
Total Noninterest-bearing
Liabilities 80,613
Total Shareholders' Equity 47,531
--------
Total Liabilities and
Shareholders' Equity $802,091
--------
Net Interest Spread 20,684 3.21%
Tax-equivalent Basis Adjustment (129)
----
Net Interest Income 20,555
----
Net Interest Margin 3.61%
----
UNITY BANCORP, INC.
ALLOWANCE FOR LOAN LOSSES AND LOAN QUALITY SCHEDULES
September 30, 2009
Amounts in thousands,
except percentages
9/30/2009 6/30/2009 3/31/2009 12/31/2008 9/30/2008
--------- --------- --------- ---------- ---------
ALLOWANCE FOR LOAN
LOSSES:
------------------
Balance, Beginning of
Quarter $10,665 $10,307 $10,326 $9,913 $8,945
Provision for Loan
Losses Charged to
Expense 3,000 1,500 1,500 1,300 2,100
----- ----- ----- ----- -----
13,665 11,807 11,826 11,213 11,045
Less: Chargeoffs
SBA loans 448 323 1,106 310 423
SBA 504 loans - 112 200 500 500
Commercial loans 673 798 249 148 200
Residential
mortgage loans 125 33 58 - -
Consumer loans 11 11 - 5 78
-- -- --- --- --
Total Chargeoffs 1,257 1,277 1,613 963 1,201
----- ----- ----- --- -----
Add: Recoveries
SBA loans 14 56 33 72 40
SBA 504 loans 22 - 5 - -
Commercial loans (1) 79 53 4 29
Residential
mortgage
loans - - - - -
Consumer loans 2 - 3 - -
--- --- --- --- ---
Total Recoveries 37 135 94 76 69
-- --- -- -- --
Net Chargeoffs 1,220 1,142 1,519 887 1,132
----- ----- ----- --- -----
Balance, End of
Quarter 12,445 10,665 10,307 10,326 9,913
====== ====== ====== ====== =====
LOAN QUALITY
INFORMATION:
-------------
Nonperforming loans $24,687 $22,774 $19,886 $16,120 $10,636
Other real estate
owned
(OREO) 2,774 466 763 710 318
----- --- --- --- ---
Total nonperforming
assets 27,461 23,240 20,649 16,830 10,954
------ ------ ------ ------ ------
Less: Amount
guaranteed by
Small Business
Administration 1,759 3,214 2,426 $1,983 $998
----- ----- ----- ------ ----
Net nonperforming
assets 25,702 20,026 18,223 14,847 9,956
====== ====== ====== ====== =====
Loans 90 Days Past
Due & Still Accruing $1,609 $781 $853 $2,536 $3,532
Allowance for Loan
Losses to:
Total Loans at
Quarter End 1.90% 1.60% 1.54% 1.51% 1.45%
Nonperforming loans 50.41% 46.83% 51.83% 64.06% 93.19%
Total nonperforming
assets 45.32% 45.89% 49.92% 61.36% 90.50%
Net nonperforming
assets 48.42% 53.26% 56.56% 69.55% 99.57%
QTD net chargeoffs
(annualized) to QTD
average loans 0.73% 0.69% 0.91% 0.52% 0.67%
Nonperforming Loans
to Total Loans 3.76% 3.42% 2.97% 2.35% 1.55%
Nonperforming Assets
to Total Loans & OREO 4.17% 3.49% 3.08% 2.45% 1.60%
Nonperforming Assets
to Total Assets 2.98% 2.54% 2.33% 1.87% 1.27%
UNITY BANCORP, INC.
QUARTERLY FINANCIAL DATA
September 30, 2009
Amounts in thousands, except
percentages and per share data
--------- --------- --------- ---------- ---------
9/30/2009 6/30/2009 3/31/2009 12/31/2008 9/30/2008
--------- --------- --------- ---------- ---------
SUMMARY OF INCOME:
------------------
Total Interest
Income $12,185 $12,531 $12,590 $12,898 $12,965
Total Interest
Expense 5,327 5,673 5,816 6,162 5,883
----- ----- ----- ----- -----
Net Interest Income
Before Provision 6,858 6,858 6,774 6,736 7,082
Provision for Loan
Losses 3,000 1,500 1,500 1,300 2,100
----- ----- ----- ----- -----
Net Interest Income
After Provision 3,858 5,358 5,274 5,436 4,982
Total Noninterest
Income (Loss) 1,162 (907) 1,348 555 (344)
Total Noninterest
Expense 6,110 6,203 5,555 5,773 5,779
----- ----- ----- ----- -----
Net (Loss)Income
Before Taxes (1,090) (1,752) 1,067 218 (1,141)
Income taxes
(benefit) (343) (552) 336 (366) (139)
---- ---- --- ---- ----
Net (Loss) income (747) (1,200) 731 584 (1,002)
Preferred Dividends
& Discount Accretion 371 372 379 110 -
--- --- --- --- ---
Income Available
(Loss Attributable)
to Common
Shareholders $(1,118) $(1,572) $352 $474 $(1,002)
======= ======= ==== ==== =======
Net (Loss) Income Per
Share - Basic (0.16) (0.22) 0.05 0.07 (0.14)
Net (Loss) Income Per
Share -Diluted (0.16) (0.22) 0.05 0.07 (0.14)
COMMON SHARE DATA:
------------------
Market Price Per Share 4.20 3.55 3.19 3.90 4.00
Dividends Paid - - - - -
Book Value Per
Common Share 6.88 6.85 6.93 6.99 6.55
Average Shares
Outstanding - Basic 7,119 7,119 7,119 7,113 7,107
Average Shares
Outstanding -
Diluted 7,190 7,168 7,148 7,190 7,259
Shares Outstanding 7,119 7,119 7,119 7,119 7,110
OPERATING RATIOS
ANNUALIZED:
-----------------
Return on Average
Assets -0.33% -0.54% 0.33% 0.26% -0.47%
Return on Average
Common Equity -9.14% -12.97% 2.90% 3.56% -8.45%
Efficiency Ratio 77.72% 80.58% 73.02% 75.81% 70.51%
BALANCE SHEET DATA:
-------------------
Total Assets $922,689 $913,446 $886,677 $898,310 $864,083
Total deposits 750,665 731,763 703,266 707,117 684,680
Total loans 656,520 665,331 669,902 685,946 685,023
Total securities 171,501 164,794 158,022 149,509 99,410
Total
Shareholders' Equity 67,385 67,064 67,525 67,803 46,539
Allowance for loan
losses (12,445) (10,665) (10,307) (10,326) (9,913)
TAX EQUIVALENT
YIELDS AND RATES:
------------------
Interest-earning
Assets 5.64% 5.91% 5.87% 6.18% 6.45%
Interest-bearing
Liabilities 2.80% 3.05% 3.10% 3.30% 3.28%
Net Interest Spread 2.84% 2.86% 2.77% 2.88% 3.17%
Net Interest Margin 3.17% 3.24% 3.14% 3.25% 3.55%
CREDIT QUALITY:
---------------
Nonperforming Assets 27,461 23,240 20,649 16,830 10,954
QTD Net Chargeoffs
(annualized) to
QTD Average Loans 0.73% 0.69% 0.91% 0.52% 0.67%
Allowance for Loan
Losses to Total
Loans 1.90% 1.60% 1.54% 1.51% 1.45%
Nonperforming
Assets to Total
Loans and OREO 4.17% 3.49% 3.08% 2.45% 1.60%
Nonperforming Assets
to Total Assets 2.98% 2.54% 2.33% 1.87% 1.27%
CAPITAL RATIOS AND
OTHER:
------------------
Total Equity to
Total Assets 7.30% 7.34% 7.62% 7.55% 5.39%
Leverage Ratio 9.08% 9.30% 9.28% 9.54% 7.42%
Tier 1 Risk-Based
Capital Ratio 11.83% 11.88% 12.32% 12.02% 9.07%
Total Risk-Based
Capital Ratio 13.09% 13.13% 13.57% 13.27% 10.33%
Number of Banking
Offices 16 16 16 16 16
Number of ATMs 19 19 19 19 19
Number of Employees 175 168 162 167 176
Related Headlines
- UNITY BANCORP INC /NJ/ Financials - EDGAR Online Financials
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- UNITY BANCORP INC /NJ/ Files SEC form 8-K, Results of Operations and Financial Condition, Financial Statements and Ex - EDGAR Online
- Unity Bancorp Reports Third Quarter and Nine Month Results - PR Newswire
- Looking For Value In Eastern Banks: Hidden Gems In Specific Regions - Wall Street Transcript
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