Condensed Financial Statements of Unity Bancorp, Inc. (Parent Company Only)

12 Months Ended

Dec. 31, 2011

Condensed Financial Statements of Unity Bancorp, Inc. (Parente Company Only)

Condensed Financial Statements of Unity Bancorp, Inc. (Parent Company Only)

21.Condensed Financial Statements of Unity Bancorp, Inc. (Parent Company Only)

Balance Sheets

	December 31,
(In thousands)	2011		2010
ASSETS:
Cash and cash equivalents	$	3,475	$	4,056
Securities available for sale		88		98
Capital note due from Bank		8,500		8,500
Investment in subsidiaries		76,698		72,888
Other assets		500		669
Total Assets	$	89,261	$	86,211
LIABILITIES AND SHAREHOLDERS' EQUITY:
Other liabilities	$	238	$	661
Other borrowings		15,465		15,465
Shareholders' equity		73,558		70,085
Total Liabilities and Shareholders' Equity	$	89,261	$	86,211

Statements of Income

	Years ended December 31,
(In thousands)	2011			2010
Interest income	$	749		$	746
Interest expense		757			862
Net interest expense		(8	)		(116	)
Other expenses		21			21
Loss before income tax benefit and equity in undistributed net income of subsidiary		(29	)		(137	)
Income tax benefit		(11	)		(45	)
Loss before equity in undistributed net income of subsidiary		(18	)		(92	)
Equity in undistributed net income of subsidiary		2,564			2,332
Net income		2,546			2,240
Preferred stock dividends and discount accretion		1,558			1,520
Income available to common shareholders	$	988		$	720

Statements of Cash Flows

	Years ended December 31,
(In thousands)	2011			2010
OPERATING ACTIVITIES:
Net income	$	2,546		$	2,240
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Equity in undistributed net income of subsidiary		(2,564	)		(2,332	)
Net change in other assets and liabilities		23			9
Net cash provided by (used in) operating activities		5			(83	)
FINANCING ACTIVITIES:
Proceeds from exercise of common stock		446			94
Cash dividends paid on preferred stock		(1,032	)		(1,032	)
Net cash used in financing activities		(586	)		(938	)
Decrease in cash and cash equivalents		(581	)		(1,021	)
Cash and cash equivalents at beginning of year		4,056			5,077
Cash and cash equivalents at end of year	$	3,475		$	4,056
SUPPLEMENTAL DISCLOSURES:
Interest paid	$	757		$	860