10-K

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C.  20549

FORM 10-K

FOR ANNUAL AND TRANSITIONAL REPORTS PURSUANT TO

SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

(Mark One)

(X)ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year endedDecember 31, 2013

OR

(  )TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to ________

Commission file number 1-12431

Unity Bancorp, Inc.

(Exact Name of Registrant as Specified in Its Charter)

New Jersey	22-3282551
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)
64 Old Highway 22, Clinton, NJ	08809
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code (908) 730-7630

Securities registered pursuant to Section 12(b) of the Exchange Act:

Common Stock, no par valueNASDAQ

(Title of Each Class)                                                                           (Name of Exchange on Which Registered)

Securities registered pursuant to Section 12(g) of the Exchange Act: None

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Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes    No x

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

Yes    No x

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes x   No 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes x   No 

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.  [  ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company.  See the definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer                                                       Accelerated filer 

Non-accelerated filer                                                         Smaller reporting company x

Indicate by check mark whether the registrant is a shell company as defined in Rule 12b-2 of the Exchange Act  

Yes    No x

As of June 30, 2013, the aggregate market value of the registrant’s Common Stock, no par value per share, held by non-affiliates of the registrant was $35,705,836 and 5,028,991 shares of the Common Stock were outstanding to non-affiliates.  As of February 28, 2014, 7,579,377 shares of the registrant’s Common Stock were outstanding.

Documents incorporated by reference:

· Portions of Unity Bancorp’s Annual Report to Shareholders for the fiscal year ended December 31, 2013 are incorporated by reference into Parts I, II and IV of this Annual Report on Form 10-K.

· Portions of Unity Bancorp’s Proxy Statement for the Annual Meeting of Shareholders to be filed no later than 120 days from December 31, 2013 are incorporated by reference into Part III of this Annual Report on Form 10-K.

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Index to Form 10-K

Description of Financial Data		Page
Part I
Item 1.	Business
	a)  General	4
	b)  Statistical Information	10
Item 1A.	Risk Factors	11
Item 1B.	Unresolved Staff Comments	17
Item 2.	Properties	17
Item 3.	Legal Proceedings	17
Item 4.	Mine Safety Disclosures	17
Part II
Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	18
Item 6.	Selected Financial Data	19
Item 7.	Management's Discussion and Analysis of Financial Condition and Results of Operations	19
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	19
Item 8.	Financial Statements and Supplementary Data	19
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	19
Item 9A.	Controls and Procedures	19
Item 9B.	Other Information – None	19
Part III
Item 10.	Directors, Executive Officers and Corporate Governance; Compliance with Section 16(a) of the Exchange Act	20
Item 11.	Executive Compensation	20
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	20
Item 13.	Certain Relationships and Related Transactions and Director Independence	21
Item 14.	Principal Accountant Fees and Services	21
Part IV
Item 15.	Exhibits and Financial Statement Schedules	21
	Signatures	24

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PART I

Item 1.Business:

a) General

Unity Bancorp, Inc., (the "Company" or "Registrant"), is a bank holding company incorporated under the laws of the State of New Jersey to serve as a holding company for Unity Bank  (the “Bank”).  The Company was organized at the direction of the Board of Directors of the Bank for the purpose of acquiring all of the capital stock of the Bank.  Pursuant to the New Jersey Banking Act of 1948 (the "Banking Act"), and pursuant to approval of the shareholders of the Bank, the Company acquired the Bank and became its holding company on December 1, 1994.  The only significant activity of the Company is ownership and supervision of the Bank.  The Company also owns 100% of the common equity of Unity (NJ) Statutory Trust II and Unity (NJ) Statutory Trust III.  The trusts have issued $10.3 million and $5.2 million of preferred securities to investors, respectively.

The Bank opened for business on September 16, 1991.  The Bank received its charter from the New Jersey Department of Banking and Insurance on September 13, 1991.  The Bank is a full-service commercial bank, providing a wide range of business and consumer financial services through its main office in Clinton, New Jersey and fourteen New Jersey branches located in Clinton, Edison, Flemington, Highland Park, Linden, Middlesex, North Plainfield, Phillipsburg, Scotch Plains, Somerset, South Plainfield, Union, Washington and Whitehouse.  In addition, the Bank has one Pennsylvania branch located in Forks Township.  The Bank's primary service area encompasses the Route 22/Route 78 corridors between the Forks Township, Pennsylvania office and its Linden, New Jersey branch.

The principal executive offices of the Company are located at 64 Old Highway 22, Clinton, New Jersey 08809, and the telephone number is (908) 730-7630.  The Company’s website address is www.unitybank.com.

Business of the Company

The Company's primary business is ownership and supervision of the Bank.  The Company, through the Bank, conducts a traditional and community-oriented commercial banking business and offers services, including personal and business checking accounts, time deposits, money market accounts and regular savings accounts.  The Company structures its specific services and charges in a manner designed to attract the business of the small and medium sized business and professional community, as well as that of individuals residing, working and shopping in its service area.  The Company engages in a wide range of lending activities and offers commercial, Small Business Administration (“SBA”), consumer, mortgage, home equity and personal loans.

Service Areas

The Company's primary service area is defined as the neighborhoods served by the Bank's offices.  The Bank's main office, located in Clinton, NJ, in combination with its Flemington and Whitehouse offices, serves the greater area of Hunterdon County.  The Bank's North Plainfield and Somerset offices serve those communities located in the northern, eastern and central parts of Somerset County and the southernmost communities of Union County.  The Bank's Scotch Plains, Linden, and Union offices serve the majority of the communities in Union County and the southwestern communities of Essex County.  The offices in Middlesex, South Plainfield, Highland Park, and Edison extend the Company's service area into Middlesex County.  The Bank’s Phillipsburg and Washington offices serve Warren County.  The Bank’s Forks Township office serves Northampton County, Pennsylvania.

Competition

The Company is located in an extremely competitive area.  The Company's service area is also serviced by national banks, major regional banks, large thrift institutions and a variety of credit unions.  In addition, since passage of the Gramm-Leach-Bliley Financial Modernization Act of 1999 (the “Modernization Act”), securities firms and insurance companies have been allowed to acquire or form financial institutions, thereby increasing competition in the financial services market.  Most of the Company's competitors have substantially more capital, and therefore greater lending limits than the Company.  The Company's competitors generally have established positions in the service area and have greater resources than the Company with which to pay for advertising, physical facilities, personnel and interest on deposited funds.  The Company relies on the competitive pricing of its loans, deposits and other services, as well as its ability to provide local decision-making and personal service in order to compete with these larger institutions.

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Employees

At December 31, 2013, the Company employed 148 full-time and 30 part-time employees.  None of the Company's employees are represented by any collective bargaining units.  The Company believes that its relations with its employees are good.

Executive Officers of Registrant

The following table sets forth certain information as of December 31, 2013, regarding each executive officer of the Company who is not also a director.

Name, Age and Position	Officer Since	Principal Occupation During Past Five Years
John Kauchak, 60, Chief Operating Officer and Executive Vice President of the Company and Bank	2002	Previously, Mr. Kauchak was the head of Deposit Operations for Unity Bank from 1996 to 2002.
Alan J. Bedner, 43, Chief Financial Officer and Executive Vice President of the Company and Bank	2003	Previously, Mr. Bedner was Controller for Unity Bank from 2001 to 2003.
Janice Bolomey, 45, Chief Administrative Officer and Executive Vice President of the Company and Bank	2013	Previously, Ms. Bolomey was Director of Sales for Unity Bank from 2002 to 2013.

SUPERVISION AND REGULATION

General Supervision and Regulation

Bank holding companies and banks are extensively regulated under both federal and state law, and these laws are subject to change.  As an example, in the summer of 2010, Congress passed, and the President signed, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank Act”) (discussed below).  These laws and regulations are intended to protect depositors, not stockholders.  To the extent that the following information describes statutory and regulatory provisions, it is qualified in its entirety by reference to the particular statutory and regulatory provisions.  Any change in the applicable law or regulation may have a material effect on the business and prospects of the Company and the Bank.  Management of the Company is unable to predict, at this time, the impact of future changes to laws and regulations.

General Bank Holding Company Regulation

General:  As a bank holding company registered under the Bank Holding Company Act of 1956, as amended, (the "BHCA"), the Company is subject to the regulation and supervision of the Federal Reserve Board (the “FRB”).  The Company is required to file with the FRB annual reports and other information regarding its business operations and those of its subsidiaries.  Under the BHCA, the Company's activities and those of its subsidiaries are limited to banking, managing or controlling banks, furnishing services to or performing services for its subsidiaries or engaging in any other activity which the FRB determines to be so closely related to banking or managing or controlling banks as to be properly incident thereto.

The BHCA requires, among other things, the prior approval of the FRB in any case where a bank holding company proposes to; (i) acquire all or substantially all of the assets of any other bank; (ii) acquire direct or indirect ownership or control of more than 5% of the outstanding voting stock of any bank (unless it owns a majority of such bank's voting shares); or (iii) merge or consolidate with any other bank holding company.  The FRB will not approve any acquisition, merger or consolidation that would have a substantially anti-competitive effect, unless the anti-competitive impact of the proposed transaction is clearly outweighed by a greater public interest in meeting the convenience and needs of the community to be served.  The FRB also considers capital adequacy and other financial and managerial resources and future prospects of the companies and the banks concerned, together with the convenience and needs of the community to be served, when reviewing acquisitions or mergers.

The BHCA also generally prohibits a bank holding company, with certain limited exceptions, from; (i) acquiring or retaining direct or indirect ownership or control of more than 5% of the outstanding voting stock of any company which is not a bank or bank holding company; or (ii) engaging directly or indirectly in activities other than those of banking, managing or controlling banks, or performing services for its subsidiaries, unless such non-banking business is determined by the FRB to be so closely related to banking or managing or controlling banks as to be properly incident thereto.  In making such determinations, the FRB is required to weigh the expected benefits to the public such as greater convenience, increased competition or gains in efficiency, against the possible adverse effects such as undue concentration of resources, decreased or unfair competition, conflicts of interest or unsound banking practices.

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The BHCA was substantially amended through the Modernization Act.  The Modernization Act permits bank holding companies and banks, which meet certain capital, management and Community Reinvestment Act standards, to engage in a broader range of non-banking activities.  In addition, bank holding companies, which elect to become financial holding companies, may engage in certain banking and non-banking activities without prior FRB approval.  Finally, the Modernization Act imposes certain privacy requirements on all financial institutions and their treatment of consumer information.  At this time, the Company has elected not to become a financial holding company.

There are a number of obligations and restrictions imposed on bank holding companies and their depository institution subsidiaries by law and regulatory policy that are designed to minimize potential loss to the depositors of such depository institutions and the Federal Deposit Insurance Corporation (the “FDIC”) insurance fund in the event the depository institution becomes in danger of default.  Under regulations of the FRB, a bank holding company is required to serve as a source of financial strength to its subsidiary depository institutions and to commit resources to support such institutions in circumstances where it might not do so absent such policy.  The FRB also has the authority under the BHCA to require a bank holding company to terminate any activity or to relinquish control of a non-bank subsidiary upon the FRB's determination that such activity or control constitutes a serious risk to the financial soundness and stability of any bank subsidiary of the bank holding company.

Capital Adequacy Guidelines for Bank Holding Companies:  The FRB has adopted risk-based capital guidelines for bank holding companies.  The risk-based capital guidelines are designed to make regulatory capital requirements more sensitive to differences in risk profile among banks and bank holding companies, to account for off-balance sheet exposure and to minimize disincentives for holding liquid assets.  Under these guidelines, assets and off-balance sheet items are assigned to broad-risk categories, each with appropriate weights.  The resulting capital ratios represent capital as a percentage of total risk-weighted assets and off-balance sheet items.

The risk-based guidelines apply on a consolidated basis to bank holding companies with consolidated assets of $500 million or more.  The minimum ratio of total capital to risk-weighted assets (including certain off-balance sheet activities, such as standby letters of credit) is 8%.  At least 4% of the total capital is required to be "Tier I," consisting of common stockholders' equity and certain preferred stock and other qualifying hybrid instruments, less certain goodwill items and other intangible assets.  The remainder, "Tier II Capital," may consist of the allowance for loan losses of up to 1.25% of risk-weighted assets and certain other securities which do not qualify as Tier I capital.  Total capital is the sum of Tier I and Tier II capital, less reciprocal holdings of other banking organizations' capital instruments, investments in unconsolidated subsidiaries and any other deductions as determined by the FRB (determined on a case-by-case basis or as a matter of policy after formal rule-making).

Bank holding company assets are given risk-weights of 0%, 20%, 50% and 100%.  In addition, certain off-balance sheet items are given similar credit conversion factors to convert them to asset-equivalent amounts to which an appropriate risk-weighting will apply.  These computations result in the total risk-weighted assets.  Most loans are assigned to the 100% risk category, except for performing first-mortgage loans that are fully secured by residential property, which carry a 50% risk-weighting.  Most investment securities (including, primarily, general obligation claims of states or other political subdivisions of the United States) are assigned to the 20% category, except for municipal or state revenue bonds, which have a 50% risk-weighting, and direct obligations of the U.S. Treasury or obligations backed by the full faith and credit of the U.S. Government, which have a 0% risk-weighting.  In converting off-balance sheet items, direct credit substitutes (including general guarantees and standby letters of credit backing financial obligations) are given a 100% risk-weighting.  Transaction-related contingencies, such as standby letters of credit backing non-financial obligations and undrawn commitments (including commercial credit lines with an initial maturity of more than one year), have a 50% risk-weighting.  Short-term commercial letters of credit have a 20% risk-weighting and certain short-term unconditionally cancelable commitments have a 0% risk-weighting.

In addition to the risk-based capital guidelines, the FRB has adopted a minimum Tier I capital (leverage) ratio, under which a bank holding company must maintain a minimum level of Tier I capital to average total consolidated assets of at least 3% in the case of a bank holding company that has the highest regulatory examination rating and is not contemplating significant growth or expansion.  All other bank holding companies are expected to maintain a leverage ratio of at least 100 to 200 basis points above the stated minimum.

The Company is currently in compliance with these minimum Federal capital requirements. However, recently adopted regulations will change the Company’s capital requirements in the future.

The Group of Governors and Heads of Supervision, the oversight body of the Basel Committee on Banking Supervision, adopted Basel III in September 2010, which constitutes a set of capital reform measures designed to strengthen the regulation, supervision and risk management of banking organizations worldwide. In order to implement Basel III and certain additional capital changes required by the Dodd-Frank Act, on July 9, 2013, the FRB approved, as an interim final rule, the regulatory capital requirements for U.S. bank holding companies, such as us, substantially similar to final rules issued by the FDIC and the Office of the Comptroller of the Currency. 

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The interim final rule includes new risk-based capital and leverage ratios that will be phased-in from 2015 to 2019. The rule includes a new common equity Tier 1 capital to risk-weighted assets ratio of 4.5% and a common equity Tier 1 capital conservation buffer of 2.5% of risk-weighted assets, which is in addition to the Tier 1 and Total risk-based capital requirements. The interim final rule also raises the minimum ratio of Tier 1 capital to risk-weighted assets from 4.0% to 6.0% and requires a minimum leverage ratio of 4.0%. The required minimum ratio of total capital to risk-weighted assets will remain 8.0%. The new risk-based capital requirements (except for the capital conservation buffer) will become effective on January 1, 2015. The capital conservation buffer will be phased in over four years beginning on January 1, 2016, with a maximum buffer of 0.625% of risk-weighted assets for 2016, 1.25% for 2017, 1.875% for 2018, and 2.5% for 2019 and thereafter. Failure to maintain the required capital conservation buffer will result in limitations on capital distributions and on discretionary bonuses to executive officers.

The following chart compares the risk-based capital required under existing rules to those prescribed under the interim final rule under the phase-in period described above:

	Current Treatment		Treatment in Final Rule
Leverage ratio	4.00	%	4.00	%
Common equity tier 1 capital (CET1) ratio	N/A		4.50	%
Additional tier 1	N/A		1.50	%
Tier 1 capital ratio	4.00	%	6.00	%
Tier 2	4.00	%	2.00	%
Total capital ratio	8.00	%	8.00	%
Capital conservation buffer	N/A		2.50	%

The interim final rule also implements revisions and clarifications consistent with Basel III regarding the various components of Tier 1 capital, including common equity, unrealized gains and losses and instruments that will no longer qualify as Tier 1 capital. The interim final rule also sets forth certain changes for the calculation of risk-weighted assets that we will be required to implement beginning January 1, 2015. Management is currently evaluating the provisions of the interim final rule and its expected impact. Based on our current capital composition and levels, management does not presently anticipate that the interim final rule presents a material risk to our financial condition or results of operations.

General Bank Regulation

As a New Jersey-chartered commercial bank, the Bank is subject to the regulation, supervision, and control of the New Jersey Department of Banking and Insurance (the “Department”).  As an FDIC-insured institution, the Bank is subject to regulation, supervision and control of the FDIC, an agency of the federal government.  The regulations of the FDIC and the Department affect virtually all activities of the Bank, including the minimum level of capital that the Bank must maintain, the ability of the Bank to pay dividends, the ability of the Bank to expand through new branches or acquisitions and various other matters.

Insurance of Deposits:  The Dodd-Frank Act has caused significant changes in the FDIC’s insurance of deposit accounts. Among other things, the Dodd-Frank Act permanently increased the FDIC deposit insurance limit to $250 thousand per depositor.

On February 7, 2011 the FDIC announced the approval of the assessment system mandated by the Dodd-Frank Act.  Dodd-Frank required that the base on which deposit insurance assessments are charged be revised from one based on domestic deposits to one based on assets.  The FDIC’s rule to base the assessment base on average total consolidated assets minus average tangible equity instead of domestic deposits lowered assessments for many community banks with less than $10 billion in assets and reduced the Company’s costs.

Dividend Rights:  Under the Banking Act, a bank may declare and pay dividends only if, after payment of the dividend, the capital stock of the bank will be unimpaired and either the bank will have a surplus of not less than 50% of its capital stock or the payment of the dividend will not reduce the bank's surplus. Unless and until the Company develops other lines of business, payments of dividends from the Bank will remain the Company’s primary source of income and the primary source of funds for dividend payments to the shareholders of the Company. 

Capital Requirements: The FDIC imposes on the Bank minimum regulatory requirements that are substantially the same as those applicable to the Company under FRB regulations discussed above.

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Sarbanes-Oxley Act

On July 30, 2002, the Sarbanes-Oxley Act (“SOX”) was enacted.  SOX is not a banking law, but applies to all public companies, including the Company.  The stated goals of SOX are to increase corporate responsibility, to provide for enhanced penalties for accounting and auditing improprieties at publicly traded companies and to protect investors by improving the accuracy and reliability of corporate disclosures pursuant to the securities laws.  SOX is the most far-reaching U.S. securities legislation enacted in some time.  SOX generally applies to all companies, both U.S. and non-U.S., that file or are required to file periodic reports with the Securities and Exchange Commission (the “SEC”) under the Securities Exchange Act of 1934, as amended.

SOX includes very specific additional disclosure requirements and corporate governance rules and requires the SEC and securities exchanges to adopt extensive additional disclosure, corporate governance and other related rules and mandates further studies of specific issues by the SEC.  SOX represents significant federal involvement in matters traditionally left to state regulatory systems such as, the regulation of the accounting profession, and to state corporate law, such as the relationship between a board of directors and management and between a board of directors and its committees.

SOX addresses, among other matters:

· Audit Committees;

· certification of financial statements by the Chief Executive Officer and the Chief Financial Officer;

· the forfeiture of bonuses or other incentive-based compensation and profits from the sale of an issuer’s securities by directors and senior officers in the twelve-month period following initial publication of any financial statements that later require restatement;

· a prohibition on insider trading during pension plan black-out periods;

· disclosure of off-balance sheet transactions;

· a prohibition on personal loans to officers and directors, unless subject to Federal Reserve Regulation O;

· expedited filing requirements for Form 4 statements of changes of beneficial ownership of securities required to be filed by officers, directors and 10% shareholders;

· disclosure of whether or not a company has adopted a code of ethics;

· “real time” filing of periodic reports;

· auditor independence; and

· various increased criminal penalties for violations of securities laws.

Complying with the requirements of SOX as implemented by the SEC has increased our compliance costs and could make it more difficult to attract and retain board members.

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Dodd-Frank Wall Street Reform and Consumer Protection Act

The Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”), enacted on July 21, 2010, significantly changed the bank regulatory landscape and has impacted and will continue to impact the lending, deposit, investment, trading and operating activities of insured depository institutions and their holding companies. The Dodd-Frank Act requires various federal agencies to adopt a broad range of new rules and regulations.  The Dodd-Frank Act, among other things:

× capped debit card interchange fees for institutions with $10 billion in assets or more at $0.21 plus 5 basis points times the transaction amount, a substantially lower rate than the average rate in effect prior to adoption of the Dodd-Frank Act;

× provided for an increase in the FDIC assessment for depository institutions with assets of $10 billion or more, increases in the minimum reserve ratio for the DIF from 1.15% to 1.35% and changes the basis for determining FDIC premiums from deposits to assets;

× permanently increased the deposit insurance coverage to $250 thousand and allowed depository institutions to pay interest on checking accounts;

× created a new Consumer Financial Protection Bureau (“CFPB”) that has rulemaking authority for a wide range of consumer financial protection laws that apply to all banks and has broad authority to enforce these laws;

× provided for new disclosure and other requirements relating to executive compensation and corporate governance;

× changed standards for Federal preemption of state laws related to federally-chartered institutions and their subsidiaries;

× provided mortgage reform provisions regarding a customer’s ability to repay, restricting variable rate lending by requiring the ability to repay to be determined for variable rate loans by using the maximum rate that will apply during the first five years of a variable rate loan term, and making more loans subject to provisions for higher cost loans, new disclosures, and certain other revisions; and

× created a financial stability oversight council that will recommend to the Federal Reserve increasingly strict rules for capital, leverage, liquidity, risk management and other requirements as companies grow in size and complexity.

The Dodd-Frank Act also imposes new obligations on originators of residential mortgage loans, such as the Bank. Among other things, the Dodd-Frank Act requires originators to make a reasonable and good faith determination based on documented information that a borrower has a reasonable ability to repay a particular mortgage loan over the long term. If the originator cannot meet this standard, the loan may be unenforceable. The Dodd-Frank Act contains an exception from this ability-to-repay rule for “Qualified Mortgages”. A rule issued by the CFPB in January 2013, and effective January 10, 2014, sets forth specific underwriting criteria for a loan to qualify as a Qualified Mortgage. The criteria generally exclude loans that (1) are interest-only, (2) have excessive upfront points or fees, or (3) have negative amortization features, balloon payments, or terms in excess of 30 years. The underwriting criteria also impose a maximum debt to income ratio of 43%, based upon documented and verifiable information. If a loan meets these criteria and is not a “higher priced loan” as defined in FRB regulations, the CFPB rule establishes a safe harbor preventing a consumer from asserting the failure of the originator to establish the consumer’s ability to repay. However, a consumer may assert the lender’s failure to comply with the ability-to-repay rule for all residential mortgage loans other than Qualified Mortgages, and may challenge whether a loan in fact qualified as a Qualified Mortgage.

Although the majority of residential mortgages historically originated by the Bank would be considered Qualified Mortgages, the Bank has and may continue to make residential mortgage loans that would not qualify. The Bank is still evaluating the impact of the recently issued Qualified Mortgage definition and related ability-to-repay rules, as well as other rules recently issued by the by the CFPB related to mortgage origination and servicing, to determine if such rules will have any long-term impact on its mortgage loan origination and servicing activities. As a result of such rules, the Bank might experience increased compliance costs, loan losses, litigation related expenses and delays in taking title to real estate collateral, if these loans do not perform and borrowers challenge whether the Bank satisfied the ability-to-repay rule upon originating the loan.

The requirements of the Dodd-Frank Act and other regulatory reforms continue to be implemented.  It is difficult to predict at this time what specific impact certain provisions and yet-to-be-finalized rules and regulations will have on us, including any regulations promulgated by the CFPB. Financial reform legislation and rules could have adverse implications on the financial industry, the competitive environment, and our ability to conduct business. Management will have to apply resources to ensure compliance with all applicable provisions of regulatory reforms, including the Dodd-Frank Act and any implementing rules, which may increase our costs of operations and adversely impact our earnings.

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a) Statistical Information

The table below provides a cross-reference to portions of Unity Bancorp. Inc.’s Annual Report to Shareholders for the year ended December 31, 2013 (Exhibit 13 hereto), which, to the extent indicated, is incorporated by reference herein.  Information that is not applicable is indicated by (N/A):

Description of Financial Data	Exhibit 13 Pages
I. Distribution of Assets, Liabilities, and Stockholders' Equity; Interest Rates and Interest Differential
A. Analysis of Net Interest Earnings	26
B. Average Balance Sheets	27
C. Rate/Volume Analysis	29
II. Investment Portfolio
A. Book value of investment securities	59
B. Investment securities by range of maturity with corresponding average yields	59
C. Securities of issuers exceeding ten percent of stockholders' equity	N/A
III. Loan Portfolio
A. Types of loans	32
B. Maturities and sensitivities of loans to changes in interest rates	34
C. Risk elements
1) Nonaccrual, past due and restructured loans	36
2) Potential problem loans	36
3) Foreign outstandings	N/A
4) Loan concentrations	32
D. Other interest-bearing assets	N/A
IV. Summary of Loan Loss Experience
A. Analysis of the allowance for loan losses	37
B. Allocation of the allowance for loan losses	38
V. Deposits
A. Average amount and average rate paid on major categories of deposits	27
B. Other categories of deposits	N/A
C. Deposits by foreign depositors in domestic offices	N/A
D. Time deposits of $100,000 or more by remaining maturity	73
E. Time deposits of $100,000 or more by foreign offices	N/A
VI. Return on Equity and Assets	25
VII. Short-term Borrowings
A. Amounts outstanding	73
B. Maximum amount of borrowings in each category outstanding at any month-end	73
C. Average amount outstanding	73

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Item 1A.        Risk Factors:

Our business, financial condition, results of operations and the trading price of our securities can be materially and adversely affected by many events and conditions including the following:

We have been and may continue to be adversely affected by national financial markets and economic conditions, as well as local conditions.

Our business and results of operations are affected by the financial markets and general economic conditions in the United States, including factors such as the level and volatility of interest rates, inflation, home prices, unemployment and under-employment levels, bankruptcies, household income, consumer spending, investor confidence and the strength of the U.S. economy. The deterioration of any of these conditions can adversely affect our securities and loan portfolios, our level of charge-offs and provision for credit losses, our capital levels, liquidity and our results of operations.

In addition, we are affected by the economic conditions within our New Jersey and Pennsylvania trade areas.  Though there have been signs of improvement, economic growth in these areas has been slow to recover.  Unlike larger banks that are more geographically diversified, we provide banking and financial services primarily to customers in the six counties in the New Jersey market and one county in Pennsylvania in which we have branches, so any decline in the economy of New Jersey or eastern Pennsylvania could have an adverse impact on us.

Our loans, the ability of borrowers to repay these loans, and the value of collateral securing these loans are impacted by economic conditions.   Our financial results, the credit quality of our existing loan portfolio, and the ability to generate new loans with acceptable yield and credit characteristics may be adversely affected by changes in prevailing economic conditions, including declines in real estate values, changes in interest rates, adverse employment conditions and the monetary and fiscal policies of the federal government.  Although economic conditions in our primary market have fared better than other areas of the United States, we cannot assure you that these conditions will continue to prevail.  We cannot assure you that positive trends or developments discussed in this annual report will continue or that negative trends or developments will not have a significant adverse effect on us.

A significant portion of our loan portfolio is secured by real estate, and events that negatively impact the real estate market could hurt our business.

A significant portion of our loan portfolio is secured by real estate. As of December 31, 2013, approximately 96 percent of our loans had real estate as a primary or secondary component of collateral. The real estate collateral in each case provides an alternate source of repayment in the event of default by the borrower and may deteriorate in value during the time the credit is extended. Continued weakening of the real estate market in our primary market areas could result in an increase in the number of borrowers who default on their loans and a reduction in the value of the collateral securing their loans, which in turn could have an adverse effect on our profitability and asset quality. Any future declines in home prices in the New Jersey and Pennsylvania markets we serve also may result in increases in delinquencies and losses in our loan portfolios. Stress in the real estate market, combined with weak economic conditions and continued elevated unemployment levels could drive losses beyond that which is provided for in our allowance for loan losses. In that event, our earnings could be adversely affected.

Our offering of alternative credit products may expose us to increased lending risks.

The Dodd-Frank Act imposes new obligations on originators of residential mortgage loans. Among other things, the Dodd-Frank Act requires originators to make a reasonable and good faith determination based on documented information that a borrower has a reasonable ability to repay a particular mortgage loan over the long term. If the originator cannot meet this standard, the loan may be unenforceable. The Dodd-Frank Act contains an exception from this ability-to-repay rule for “Qualified Mortgages”. A rule issued by the CFPB in January 2013, and effective January 10, 2014, sets forth specific underwriting criteria for a loan to qualify as a Qualified Mortgage. The criteria generally exclude loans that (1) are interest-only, (2) have excessive upfront points or fees, or (3) have negative amortization features, balloon payments, or terms in excess of 30 years. The underwriting criteria also impose a maximum debt to income ratio of 43%, based upon documented and verifiable information. If a loan meets these criteria and is not a “higher priced loan” as defined in Federal Reserve regulations, the CFPB rule establishes a safe harbor preventing a consumer from asserting the failure of the originator to establish the consumer’s ability to repay. However, a consumer may assert the lender’s failure to comply with the ability-to-repay rule for all residential mortgage loans other than Qualified Mortgages.

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Although the majority of residential mortgages historically originated by the Bank would be considered Qualified Mortgages, the Bank has and may continue to make residential mortgage loans that would not qualify. The Bank is still evaluating the impact of the recently issued Qualified Mortgage definition and related ability-to-repay rules, as well as other rules recently issued by the by the CFPB related to mortgage origination and servicing, to determine if such rules will have any long-term impact on its mortgage loan origination and servicing activities. As a result of such rules, the Bank might experience increased compliance costs, loan losses, litigation related expenses and delays in taking title to real estate collateral, if these loans do not perform and borrowers challenge whether the Bank satisfied the ability-to-repay rule upon originating the loan.

There is a risk that the SBA will not honor their guarantee.

The Company has historically been a participant in various SBA lending programs which guarantee up to 90% of the principal on the underlying loan. There is a risk that the SBA will not honor their guarantee if a loan is not underwritten and administered to SBA guidelines. The Company follows the underwriting guidelines of the SBA; however our ability to manage this will depend on our ability to continue to attract, hire and retain skilled employees who have knowledge of the SBA program.

There is a risk that we may not be repaid in a timely manner, or at all, for loans we make.

The risk of nonpayment (or deferred or delayed payment) of loans is inherent in commercial banking.  Such nonpayment, or delayed or deferred payment of loans to the Company, if they occur, may have a material adverse effect on our earnings and overall financial condition.  Additionally, in compliance with applicable banking laws and regulations, the Company maintains an allowance for loan losses created through charges against earnings.  As of December 31, 2013, the Company’s allowance for loan losses was $13.1 million, or 1.94 percent of our total loan portfolio and 85.98 percent of our nonperforming loans.  The Company’s marketing focus on small to medium size businesses may result in the assumption by the Company of certain lending risks that are different from or greater than those which would apply to loans made to larger companies.  We seek to minimize our credit risk exposure through credit controls, which include evaluation of potential borrowers’ available collateral, liquidity and cash flow.  However, there can be no assurance that such procedures will actually reduce loan losses.

We have a significant level of nonperforming assets, and this has, and will continue, to affect our results of operations.

At December 31, 2013, our total nonperforming assets equaled $15.9 million or 2.34 percent of total loans and OREO.  This is a significant level of nonperforming assets compared to our peer group institutions.  Our level of nonperforming assets reflects the general economic slowdown in our marketplace and its effect on our borrowers, and our focus on SBA lending, which may entail greater credit risk than other types of lending. This deterioration in credit quality has negatively impacted our results of operations, through additional provisions for loan losses and reduced interest income, and will continue to impact our performance until these assets are resolved. In addition, future increases in our nonperforming assets will further negatively affect our results of operations. We can give you no assurance that our nonperforming assets will not increase further.   

Our allowance for loan losses may not be adequate to cover actual losses.

Like all financial institutions, we maintain an allowance for loan losses to provide for loan defaults and nonperformance.  Our allowance for loan losses may not be adequate to cover actual losses, and future provisions for loan losses could materially and adversely affect the results of our operations.  Risks within the loan portfolio are analyzed on a continuous basis by management; and, periodically, by an independent loan review function and by the Audit Committee.  A risk system, consisting of multiple-grading categories, is utilized as an analytical tool to assess risk and the appropriate level of loss reserves.  Along with the risk system, management further evaluates risk characteristics of the loan portfolio under current economic conditions and considers such factors as the financial condition of the borrowers, past and expected loan loss experience and other factors management feels deserve recognition in establishing an adequate reserve.  This risk assessment process is performed at least quarterly and, as adjustments become necessary, they are realized in the periods in which they become known.  The amount of future losses is susceptible to changes in economic, operating and other conditions, including changes in interest rates that may be beyond our control, and these losses may exceed current estimates.  State and federal regulatory agencies, as an integral part of their examination process, review our loans and allowance for loan losses and have in the past required an increase in our allowance for loan losses.  Although we believe that our allowance for loan losses is adequate to cover probable and reasonably estimated losses, we cannot assure you that we will not further increase the allowance for loan losses or that our regulators will not require us to increase this allowance.  Either of these occurrences could adversely affect our earnings.

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We are subject to interest rate risk and variations in interest rates may negatively affect our financial performance.

Net interest income, the difference between interest earned on our interest-earning assets and interest paid on interest-bearing liabilities, represents a significant portion of our earnings.  Both increases and decreases in the interest rate environment may reduce our profits.   Interest rates are subject to factors which are beyond our control, including general economic conditions, competition and policies of various governmental and regulatory agencies, such as the Federal Reserve Board.  Changes in monetary policy, including changes in interest rates, could influence not only the interest Unity receives on loans and investment securities and the amount of interest it pays on deposits and borrowings, but such changes could also affect (i) Unity’s ability to originate loans and obtain deposits, (ii) the fair value of Unity’s financial assets and liabilities, including the held to maturity and available for sale securities portfolios, and (iii) the average duration of Unity’s interest-earning assets. This also includes the risk that interest-earning assets may be more responsive to changes in interest rates than interest-bearing liabilities, or vice versa (repricing risk), the risk that the individual interest rates or rate indices underlying various interest-earning assets and interest-bearing liabilities may not change in the same degree over a given time period (basis risk), and the risk of changing interest rate relationships across the spectrum of interest-earning asset and interest-bearing liability maturities (yield curve risk).

The banking business is subject to significant government regulations.

We are subject to extensive governmental supervision, regulation and control. These laws and regulations are subject to change, and may require substantial modifications to our operations or may cause us to incur substantial additional compliance costs. These laws and regulations are designed to protect depositors and the public, but not our shareholders.  In addition, future legislation and government policy could adversely affect the commercial banking industry and our operations.  Such governing laws can be anticipated to continue to be the subject of future modification.  Our management cannot predict what effect any such future modifications will have on our operations.  In addition, the primary focus of Federal and state banking regulation is the protection of depositors and not the shareholders of the regulated institutions.

For example, the recently adopted Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) has resulted in substantial new compliance costs, and may restrict certain sources of revenue. The Dodd-Frank Act was signed into law on July 21, 2011.  Generally, the Act is effective the day after it was signed into law, but different effective dates apply to specific sections of the law, many of which will not become effective until various Federal regulatory agencies have promulgated rules implementing the statutory provisions.  Uncertainty remains as to the ultimate impact of the Dodd-Frank Act, which could have a material adverse impact either on the financial services industry as a whole, or on our business, results of operations and financial condition.  The Dodd-Frank Act, among other things:

× capped debit card interchange fees for institutions with $10 billion in assets or more at $0.21 plus 5 basis points times the transaction amount, a substantially lower rate than the average rate in effect prior to adoption of the Dodd-Frank Act;

× provided for an increase in the FDIC assessment for depository institutions with assets of $10 billion or more, increases in the minimum reserve ratio for the DIF from 1.15% to 1.35% and changes the basis for determining FDIC premiums from deposits to assets;

× permanently increased the deposit insurance coverage to $250 thousand and allowed depository institutions to pay interest on checking accounts;

× created a new Consumer Financial Protection Bureau (“CFPB”) that has rulemaking authority for a wide range of consumer financial protection laws that apply to all banks and has broad authority to enforce these laws;

× provided for new disclosure and other requirements relating to executive compensation and corporate governance;

× changed standards for Federal preemption of state laws related to federally-chartered institutions and their subsidiaries;

× provided mortgage reform provisions regarding a customer’s ability to repay, restricting variable rate lending by requiring the ability to repay to be determined for variable rate loans by using the maximum rate that will apply during the first five years of a variable rate loan term, and making more loans subject to provisions for higher cost loans, new disclosures, and certain other revisions; and

× created a financial stability oversight council that will recommend to the Federal Reserve increasingly strict rules for capital, leverage, liquidity, risk management and other requirements as companies grow in size and complexity.

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In addition, in order to implement Basel III and certain additional capital changes required by the Dodd-Frank Act, on July 9, 2013, the FRB approved, as an interim final rule, the regulatory capital requirements for U.S. bank holding companies, such as us, substantially similar to final rules issued by the FDIC and the Office of the Comptroller of the Currency.  These new requirements are likely to increase our capital requirements in future periods. See “Supervisions and Regulation – General Bank Holding Company Regulation.”

These provisions, as well as any other aspects of current or proposed regulatory or legislative changes to laws applicable to the financial industry, may impact the profitability of our business activities and may change certain of our business practices, including the ability to offer new products, obtain financing, attract deposits, make loans, and achieve satisfactory interest spreads, and could expose us to additional costs, including increased compliance costs. These changes also may require us to invest significant management attention and resources to make any necessary changes to operations in order to comply, and could therefore also materially and adversely affect our business, financial condition and results of operations.

Our management is actively reviewing the provisions of the Dodd-Frank Act and Basel III, many of which are to be phased-in over the next several months and years, and assessing the probable impact on our operations. However, the ultimate effect of these changes on the financial services industry in general, and us in particular, is uncertain at this time.

We are subject to changes in accounting policies or accounting standards.

Understanding Unity’s accounting policies is fundamental to understanding our financial results. Some of these policies require the use of estimates and assumptions that may affect the value of assets or liabilities and financial results. Unity has identified its accounting policies regarding the allowance for loan losses, security valuations and impairments, goodwill and income taxes to be critical because they require management to make difficult, subjective and complex judgments about matters that are inherently uncertain. Under each of these policies, it is possible that materially different amounts would be reported under different conditions, using different assumptions, or as new information becomes available.

From time to time, the FASB and the SEC change their guidance governing the form and content of Unity’s external financial statements. In addition, accounting standard setters and those who interpret U.S. generally accepted accounting principles (“GAAP”), such as the FASB, SEC, banking regulators and Unity’s outside auditors, may change or even reverse their previous interpretations or positions on how these standards should be applied. Such changes are expected to continue, and may accelerate based on the FASB and International Accounting Standards Board commitments to achieving convergence between U.S. GAAP and International Financial Reporting Standards. Changes in U.S. GAAP and changes in current interpretations are beyond Unity’s control, can be hard to predict and could materially impact how Unity reports its financial results and condition. In certain cases, Unity could be required to apply a new or revised guidance retroactively or apply existing guidance differently (also retroactively) which may result in Unity restating prior period financial statements for material amounts. Additionally, significant changes to U.S. GAAP may require costly technology changes, additional training and personnel, and other expenses that will negatively impact our results of operations.

Declines in value may adversely impact the investment portfolio.

As of December 31, 2013, we had approximately $81.1 million and $26.4 million in available for sale and held to maturity investment securities, respectively. We may be required to record impairment charges in earnings related to credit losses on our investment securities if they suffer a decline in value that is considered other-than-temporary. Additionally, (a) if we intend to sell a security or (b) it is more likely than not that we will be required to sell the security prior to recovery of its amortized cost basis, we will be required to recognize an other-than-temporary impairment charge in the statement of income equal to the full amount of the decline in fair value below amortized cost. Factors, including lack of liquidity, absence of reliable pricing information, adverse actions by regulators, or unanticipated changes in the competitive environment could have a negative effect on our investment portfolio and may result in other-than-temporary impairment on our investment securities in future periods.

Liquidity risk.

Liquidity risk is the potential that Unity will be unable to meet its obligations as they come due because of an inability to liquidate assets or obtain adequate funding in a timely basis, at a reasonable cost and within acceptable risk tolerances.

Liquidity is required to fund various obligations, including credit commitments to borrowers, mortgage and other loan originations, withdrawals by depositors, repayment of borrowings, dividends to shareholders, operating expenses and capital expenditures.

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Liquidity is derived primarily from retail deposit growth and retention; principal and interest payments on loans; principal and interest payments on investment securities; sale, maturity and prepayment of investment securities; net cash provided from operations and access to other funding sources.

Our access to funding sources in amounts adequate to finance our activities could be impaired by factors that affect us specifically or the financial services industry in general. Factors that could detrimentally impact our access to liquidity sources include a decrease in the level of our business activity due to persistent weakness, or downturn, in the economy or adverse regulatory action against us. Our ability to borrow could also be impaired by factors that are not necessarily specific to us, such as a severe disruption of the financial markets or negative views and expectations about the prospects for the financial services industry as a whole.

We are in competition with many other banks, including larger commercial banks which have greater resources than us.

The banking industry within the State of New Jersey is highly competitive.  The Company’s principal market area is also served by branch offices of large commercial banks and thrift institutions.  In addition, in 1999 the Gramm-Leach-Bliley Financial Modernization Act was passed into law.  The Modernization Act permits other financial entities, such as insurance companies and securities firms, to acquire or form financial institutions, thereby further increasing competition.  A number of our competitors have substantially greater resources than we do to expend upon advertising and marketing, and their substantially greater capitalization enables them to make much larger loans.  Our success depends a great deal upon our judgment that large and mid-size financial institutions do not adequately serve small businesses in our principal market area and upon our ability to compete favorably for such customers.  In addition to competition from larger institutions, we also face competition for individuals and small businesses from recently formed banks seeking to compete as “hometown” institutions.  Most of these new institutions have focused their marketing efforts on the smaller end of the small business market we serve.

Future offerings of common stock may adversely affect the market price of our stock.

In the future, if our or the Bank’s capital ratios fall below the prevailing regulatory required minimums, we or the Bank could be forced to raise additional capital by making additional offerings of common stock or preferred stock. Additional equity offerings may dilute the holdings of our existing shareholders or reduce the market price of our common stock, or both.

We cannot predict how changes in technology will impact our business.

The financial services market, including banking services, is increasingly affected by advances in technology, including developments in:

· telecommunications;

· data processing;

· automation;

· Internet-based banking;

· Tele-banking; and

· debit cards/smart cards

Our ability to compete successfully in the future will depend on whether we can anticipate and respond to technological changes.  To develop these and other new technologies, we will likely have to make additional capital investments.  Although we continually invest in new technology, we cannot assure you that we will have sufficient resources or access to the necessary proprietary technology to remain competitive in the future.

15

The Company’s information systems may experience an interruption or breach in security.

The Company relies heavily on communications and information systems to conduct its business.  Any failure, interruption or breach in security of these systems could result in failures or disruptions in the Company’s customer-relationship management, general ledger, deposit, loan and other systems.  

We are further exposed to the risk that our external vendors may be unable to fulfill their contractual obligations (or will be subject to the same risk of fraud or operational errors by their respective employees as us) and to the risk that our (or our vendors’) business continuity and data security systems prove to be inadequate. We maintain a system of comprehensive policies and a control framework designed to monitor vendor risks including, among other things, (i) changes in the vendor’s organizational structure or internal controls, (ii) changes in the vendor’s financial condition, (iii) changes in the vendor’s support for existing products and services and (iv) changes in the vendor’s strategic focus.  In addition we maintain cyber liability insurance to mitigate against any loss incurred.

While the Company has policies and procedures designed to prevent or limit the effect of the failure, interruption or security breach of its information systems, there can be no assurance that any such failures, interruptions or security breaches will not occur; or, if they do occur, that they will be adequately addressed.  The occurrence of any failures, interruptions or security breaches of the Company’s information systems could damage the Company’s reputation, result in a loss of customer business, subject the Company to additional regulatory scrutiny or expose the Company to civil litigation and possible financial liability; any of which could have a material adverse effect on the Company’s financial condition and results of operations.

Our business strategy could be adversely affected if we are not able to attract and retain skilled employees and manage our expenses.

We expect to continue to experience growth in the scope of our operations and, correspondingly, in the number of our employees and customers.  We may not be able to successfully manage our business as a result of the strain on our management and operations that may result from this growth.  Our ability to manage this growth will depend upon our ability to continue to attract, hire and retain skilled employees.    Our success will also depend on the ability of our officers and key employees to continue to implement and improve our operational and other systems, to manage multiple, concurrent customer relationships and to hire, train and manage our employees.

Hurricanes or other adverse weather events could negatively affect our local economies or disrupt our operations, which would have an adverse effect on our business or results of operations.

Hurricanes and other weather events can disrupt our operations, result in damage to our properties and negatively affect the local economies in which we operate.  In addition, these weather events may result in a decline in value or destruction of properties securing our loans and an increase in delinquencies, foreclosures and loan losses.

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Item 1B.  Unresolved Staff Comments:  None

Item 2.  Properties:

The Company presently conducts its business through its main office located at 64 Old Highway 22, Clinton, New Jersey, and its fourteen branch offices.  The Company’s facilities are adequate to meet their needs.

The following table sets forth certain information regarding the Company’s properties from which it conducts business as of December 31, 2013.

Location	Leased or Owned	Date Leased or Acquired	Lease Expiration	2013 Annual Rental Fee
North Plainfield, NJ	Owned	1991	-	-
Clinton, NJ	Leased	1996	2018	436,662
Linden, NJ	Owned	1997	-	-
Whitehouse, NJ	Owned	1998	-	-
Union, NJ	Owned	2002	-	-
Scotch Plains, NJ	Owned	2004	-	-
Flemington, NJ	Owned	2005	-	-
Phillipsburg, NJ	Leased	2005	2015	96,952
Forks Township, PA	Leased	2006	2015	56,776
Middlesex, NJ	Owned	2007	-	-
Somerset, NJ	Leased	2012	2017	101,979
Highland Park, NJ	Owned	2013	-	28,387
South Plainfield, NJ	Owned	2013	-	34,219
Edison, NJ	Owned	2013	-	39,483

Item 3.  Legal Proceedings:

From time to time, the Company is subject to other legal proceedings and claims in the ordinary course of business.  The Company currently is not aware of any such legal proceedings or claims that it believes will have, individually or in the aggregate, a material adverse effect on the business, financial condition, or operating results of the Company.

Item 4.  Mine Safety Disclosures:  N/A

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PART II

Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities:

(a)         Market Information

The Company’s Common Stock is quoted on the NASDAQ Global Market under the symbol “UNTY.”  The following table sets forth the high and low closing prices of the Common Stock as reported on the NASDAQ Global Market for the periods indicated.

For the year ended December 31, 2013:	High		Low		Cash Dividend Paid
4th Quarter	$	7.98	$	7.10	$	0.01
3rd Quarter		8.13		6.74		0.01
2nd Quarter		7.55		6.22		0.01
1st Quarter		6.74		5.85		-
For the year ended December 31, 2012:	High		Low		Cash Dividend Paid
4th Quarter	$	6.25	$	5.50	$	-
3rd Quarter		6.23		5.55		-
2nd Quarter		6.40		5.91		-
1st Quarter		6.67		5.80		-

(b)         Holders

As of February 1, 2014, there were approximately 412 shareholders of record of the Company’s Common Stock.

(c)         Dividends

See table in Item 5(a) above.

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Item 6.  Selected Financial Data:

The information under the caption, “Selected Consolidated Financial Data,” in the Company’s Annual Report to Shareholders for the year ended December 31, 2013, is incorporated by reference herein.

Item 7.  Management’s Discussion and Analysis of Financial Condition and Results of Operations:

The information under the caption, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in the Company’s Annual Report to Shareholders for the year ended December 31, 2013, is incorporated by reference herein.

Item 7A.  Quantitative and Qualitative Disclosures About Market Risk:

The information under the caption, “Market Risk,” in the Company’s Annual Report to Shareholders for the year ended December 31, 2013, is incorporated by reference herein.

Item 8.  Financial Statements and Supplementary Data:

The Financial Statements and Notes to Consolidated Financial Statements in the Company’s Annual Report to Shareholders for the year ended December 31, 2013, are incorporated by reference herein.

Item 9.  Changes in and Disagreements with Accountants on Accounting and Financial Disclosure:  None

Item 9A.  Controls and Procedures:

(a)         Evaluation of disclosure controls and procedures:

Based on their evaluation, as of the end of the period covered by this Annual Report on Form 10-K, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures (as defined in Rules 13a-14(c) and 15d-14(c) under the Securities Exchange Act of 1934 (the “Exchange Act”)) are effective to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.

(b)         Management’s Report on Internal Control Over Financial Reporting:

The information under the caption, “Management’s Report on Internal Control Over Financial Reporting,” in the Company’s Annual Report to Shareholders for the year ended December 31, 2013, is incorporated by reference herein.

(c)         Changes in internal controls:

There were not any significant changes in internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

Item 9B.  Other Information: 

None

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PART III

Item 10.  Directors, Executive Officers and Corporate Governance; Compliance with Section 16(a) of the Exchange Act:

The information concerning the directors and executive officers of the Company under the caption “Election of Directors,” and the information under the captions, “Compliance with Section 16(a) of the Securities Exchange Act of 1934,” and, "Governance of the Company," in the Proxy Statement for the Company’s 2014 Annual Meeting of Shareholders, is incorporated by reference herein.  It is expected that such Proxy Statement will be filed with the Securities and Exchange Commission no later than April 28, 2014.

Also, refer to the information under the caption, “Executive Officers of Registrant,” in Part I of this Annual Report on Form 10-K for a description of the Company’s executive officers, who are not also directors.

Item 11.  Executive Compensation:

The information concerning executive compensation under the caption, “Executive Compensation,” in the Proxy Statement for the Company’s 2014 Annual Meeting of Shareholders, is incorporated by reference herein.  It is expected that such Proxy Statement will be filed with the Securities and Exchange Commission no later than April 28, 2014.

Item 12.  Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters:

The information concerning the security ownership of certain beneficial owners and management under the caption, “Security Ownership of Certain Beneficial Owners and Management,” in the Proxy Statement for the Company’s 2014 Annual Meeting of Shareholders is incorporated by reference herein.  It is expected that such Proxy Statement will be filed with the Securities and Exchange Commission no later than April 28, 2014.

Securities Authorized for Issuance under Equity Compensation Plans

The following table provides information with respect to the equity securities that are authorized for issuance under the Company’s compensation plans as of December 31, 2013.

Equity Compensation Plan Information
	Number of securities to be issued upon exercise of outstanding options, warrants and rights (A)		Weighted-average exercise price of outstanding options, warrants and rights (B)		Number of securities remaining available for issuance under equity compensation plans (excluding securities reflected in column (A)) (C)
Equity compensation stock option plans approved by security holders		448,975	$	6.70		87,241
Equity compensation plans approved by security holders (Restricted stock plan)		95,625		-		232,838
Equity compensation plans not approved by security holders		N/A		N/A		N/A
Total		544,600	$	5.52		320,079

There were no share repurchases during 2013 or 2012.  

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Item 13.  Certain Relationships and Related Transactions and Director Independence:

The information concerning certain relationships and related transactions under the caption, “Interest of Management and Others in Certain Transactions; Review, Approval or Ratification of Transactions with Related Persons,” in the Proxy Statement for the Company’s 2014 Annual Meeting of Shareholders is incorporated by reference herein.  It is expected that such Proxy Statement will be filed with the Securities and Exchange Commission no later than April 28, 2014.

Item 14.  Principal Accountant Fees and Services:

The information concerning principal accountant fees and services, as well as related pre-approval policies, under the caption, “Independent Registered Public Accounting Firm,” in the Proxy Statement for the Company’s 2014 Annual Meeting of Shareholders is incorporated by reference herein.  It is expected that such Proxy Statement will be filed with the Securities and Exchange Commission no later than April 28, 2014.

PART IV

Item 15.  Exhibits and Financial Statement Schedules:

a) FINANCIAL STATEMENTS:

The following Consolidated Financial Statements of the Company and subsidiaries included in the Company’s Annual Report to Shareholders for the year ended December 31, 2013, are incorporated by reference in Part II, Item 8.

· Report of Independent Registered Public Accounting Firm

· Consolidated Balance Sheets

· Consolidated Statements of Income

· Consolidated Statements of Comprehensive Income

· Consolidated Statements of Changes in Shareholders’ Equity

· Consolidated Statements of Cash Flows

· Notes to Consolidated Financial Statements

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a) EXHIBITS:

Exhibit Number	Description of Exhibits
3(i)	Certificate of Incorporation of the Company, as amended (2)
3(ii)	Bylaws of the Company (7)
4(i)	Form of Stock Certificate (7)
10(i)	1994 Stock Option Plan (1)
10(ii)	1997 Stock Option Plan (3)
10(iii)	1998 Stock Option Plan (4)
10(iv)	1999 Stock Option Plan (5)
10(v)	Employment Agreement dated March 23, 2004 with James A. Hughes (8)
10(vi)	Retention Agreement dated March 23, 2004 with Alan J. Bedner (8)
10(vii)	Retention Agreement dated March 23, 2004 with John Kauchak (8)
10(viii)	2002 Stock Option Plan (6)
10(ix)	Second Amendment dated September 19, 2003 to Lease Agreement between Unity Bank and Clinton Unity Group (8)
10(x)	Real Estate Purchase Agreement dated October 23, 2003 between Unity Bank and Premiere Development II, LLC   (8)
10(xi)	2004 Stock Bonus Plan (9)
10(xii)	2006 Stock Option Plan (10)
10(xiii)	Third Amendment to Lease by and between Clinton Unity Group, LLC and Unity Bank dated July 31, 2009 (11)
10(xiv)	2011 Stock Option Plan and 2011 Stock Bonus Plan (12)
10(xv)	2013 Stock Bonus Plan (13)
10(xvi)	Fourth Amendment to Lease by and between Clinton Unity Group, LLC and Unity Bank dated January 30, 2014 (14)
13	Portion of Unity Bancorp. Inc. 2013 Annual Report to Shareholders
21	Subsidiaries of the Registrant
23.1	Consent of McGladrey LLP
31.1	Certification of President and Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Certification of President, Chief Executive Officer, and Chief Financial Officer pursuant to Section 906
99.1	Certification of President and Chief Executive Officer pursuant to Section 111(b)(4) of the Emergency Economic Stabilization Act of 2008
99.2	Certification of Chief Financial Officer pursuant to Section 111(b)(4) of the Emergency Economic Stabilization Act of 2008
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definitions Linkbase Document

22

(1)	Previously filed with the Securities and Exchange Commission as an Exhibit to the Registration Statement on Form S-4 (File No. 33-76392) and incorporated by reference herein.
(2)	Previously filed with the Securities and Exchange Commission as an Exhibit to the Current Report on Form 8-K filed on July 22, 2002 and incorporated by reference herein.
(3)	Previously filed with the Securities and Exchange Commission as an Exhibit to the Proxy Statement for the Annual Meeting of Shareholders filed on April 4, 1997.
(4)	Previously filed with the Securities and Exchange Commission as an Exhibit to the Proxy Statement for the Annual Meeting of Shareholders filed on March 30, 1998.
(5)	Previously filed with the Securities and Exchange Commission as an Exhibit to the Proxy Statement for the Annual Meeting of Shareholders filed on April 2, 1999.
(6)	Previously filed with the Securities and Exchange Commission as an Exhibit to the Proxy Statement for the Annual Meeting of Shareholders filed on April 10, 2002.
(7)	Previously filed with the Securities and Exchange Commission as an Exhibit to the Annual Report on Form 10-K filed March 26, 2003.
(8)	Previously filed with the Securities and Exchange Commission as an Exhibit to the Annual Report on Form 10-K filed March 26, 2004.
(9)	Previously filed with the Securities and Exchange Commission as an Exhibit to the Proxy Statement for the Annual Meeting of Shareholders filed on April 15, 2004.
(10)	Previously filed with the Securities and Exchange Commission as an Exhibit to the Proxy Statement for the Annual Meeting of Shareholders filed on May 4, 2006.
(11)	Previously filed with the Securities and Exchange Commission as an Exhibit to the Current Report on Form 8-K filed on August 4, 2009 and incorporated by reference herein.
(12)	Previously filed with the Securities and Exchange Commission as an Exhibit to Form S-8 filed on May 26, 2011 and incorporated by reference herein.
(13)	Previously filed with the Securities and Exchange Commission as an Exhibit to Form S-8 filed on July 12, 2013 and incorporated by reference herein.
(14)	Previously filed with the Securities and Exchange Commission as an Exhibit to the Current Report on Form 8-K filed on February 4, 2014 and incorporated by reference herein.

b) Not applicable

23

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

UNITY BANCORP, INC.

By:	/s/   Alan J. Bedner , Jr.
	Alan J. Bedner, Jr.
	Executive Vice President
	Chief Financial Officer
Date:	February 27, 2014

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Name	Title	Date
/s/ David D. Dallas	Chairman of the Board and Director	February 27, 2014
David D. Dallas
/s/ James A. Hughes	President, Chief Executive Officer and Director	February 27, 2014
James A. Hughes
/s/ Alan J. Bedner, Jr.	Chief Financial Officer	February 27, 2014
Alan J. Bedner, Jr.	(Principal Financial and Accounting Officer)
/s/ Dr. Mark S. Brody	Director	February 27, 2014
Dr. Mark S. Brody
/s/ Wayne Courtright	Director	February 27, 2014
Wayne Courtright
/s/ Robert H. Dallas, II	Director	February 27, 2014
Robert H. Dallas, II
/s/ Mary E. Gross	Director	February 27, 2014
Mary E. Gross
/s/ Peter E. Maricondo	Director	February 27, 2014
Peter E. Maricondo
/s/ Raj Patel	Director	February 27, 2014
Raj Patel
/s/ Allen Tucker	Director	February 27, 2014
Allen Tucker

24

EX-13

	
		
			UNTY - 10K Q4 Exhibit 13 HTML
		
	
	

EX-21

EXHIBIT 21

SUBSIDIARIES OF REGISTRANT

The Registrant has three subsidiaries, Unity Bank, Unity (NJ) Statutory Trust II and Unity (NJ) Statutory Trust III. Unity Bank has nine subsidiaries, Unity Investment Services, Inc., AJB Residential Realty Enterprises, Inc., AJB Commercial Realty, Inc., MKCD Commercial, Inc., JAH Commercial, Inc., UB Commercial LLC, ASBC Holdings LLC, Unity Property Holdings 1, Inc. and Unity Property Holdings 2, Inc.  Unity Investment Services, Inc. has one subsidiary, Unity Delaware Investment 2, Inc., which has one subsidiary, Unity NJ REIT, Inc.

92

EX-23.1

EXHIBIT 23.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We consent to incorporation by reference in the registration statement Nos. 333-20687, 333-64612, 333-64614, 333-105045, 333-121409, 333-134360, 333-174521 and 333-189913 on Form S-8 of Unity Bancorp, Inc., of our report dated March 6, 2014, relating to our audit of the 2013 Consolidated Financial Statements of Unity Bancorp, Inc., which appears in the Annual Report on Form 10-K of Unity Bancorp, Inc. for the year ended December 31, 2013.

/s/ McGladrey LLP

McGladrey LLP

Blue Bell, Pennsylvania

March 6, 2014

93

EX-31.1

EXHIBIT 31.1

I, James A. Hughes, certify that:

1. I have reviewed this Annual Report on Form 10-K of Unity Bancorp, Inc;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision , to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Dated:	March 6, 2014	/s/ James A. Hughes
		James A. Hughes
		President and Chief Executive Officer

94

EX-31.2

EXHIBIT 31.2

I, Alan J. Bedner, certify that:

1. I have reviewed this Annual Report on Form 10-K of Unity Bancorp, Inc;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision , to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Dated:	March 6, 2014	/s/ Alan J. Bedner
		Alan J. Bedner
		Executive Vice President and Chief Financial Officer

95

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, each of the undersigned officers of Unity Bancorp, Inc. (the “Company”), certifies that, to the best of their knowledge:

1. The Annual Report on Form 10-K of the Company for the annual period ended December 31, 2013 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated:	March 6, 2014	/s/ James A. Hughes
		James A. Hughes
		President and Chief Executive Officer
Dated:	March 6, 2014	/s/ Alan J. Bedner, Jr.
		Alan J. Bedner, Jr.
		Executive Vice President and Chief Financial Officer

This certification is made solely for the purposes of 18 U.S.C. Section 1350, subject to the knowledge standard contained therein, and not for any other purpose.

EX-99.1

EXHIBIT 99.1

CERTIFICATION OF JAMES A HUGHES, PRESIDENT AND CHIEF EXECUTIVE OFFICER

OF UNITY BANCORP, INC.

Pursuant to §111(b)(4) of the Emergency Economic Stabilization Act of 2008 and 31 C.F.R. 30.15

I, James A. Hughes, certify, based on my knowledge, that:

(i) The compensation committee of Unity Bancorp, Inc. has discussed, reviewed, and evaluated with senior risk officers at least every six months during the period beginning on the later of September 14, 2009, or ninety days after the closing date of the agreement between the TARP recipient and Treasury and ending with the last day of the TARP recipient's fiscal year containing that date (the applicable period), the senior executive officer (SEO) compensation plans and the employee compensation plans and the risks these plans pose to Unity Bancorp, Inc.;

(ii) The compensation committee of Unity Bancorp, Inc. has identified and limited during the applicable period any features of the SEO compensation plans that could lead SEOs to take unnecessary and excessive risks that could threaten the value of Unity Bancorp, Inc., and during that same applicable period has identified any features of the employee compensation plans that pose risks to Unity Bancorp, Inc. and has limited those features to ensure that Unity Bancorp, Inc. is not unnecessarily exposed to risks;

(iii) The compensation committee has reviewed, at least every six months during the applicable period, the terms of each employee compensation plan and identified any features of the plan that could encourage the manipulation of reported earnings of Unity Bancorp, Inc. to enhance the compensation of an employee, and has limited any such features;

(iv) The compensation committee of Unity Bancorp, Inc. will certify to the reviews of the SEO compensation plans and employee compensation plans required under (i) and (iii) above;

(v) The compensation committee of Unity Bancorp, Inc. will provide a narrative description of how it limited during any part of the most recently completed fiscal year that included a TARP period the features in

(A) SEO compensation plans that could lead SEOs to take unnecessary and excessive risks that could threaten the value of Unity Bancorp, Inc.;

(B) Employee compensation plans that unnecessarily expose Unity Bancorp, Inc. to risks; and

(C) Employee compensation plans that could encourage the manipulation of reported earnings of Unity Bancorp, Inc. to enhance the compensation of an employee;

(vi) Unity Bancorp, Inc. has required that bonus payments, as defined in the regulations and guidance established under section 111 of EESA (bonus payments), of the SEOs and twenty next most highly compensated employees be subject to a recovery or “clawback” provision during any part of the most recently completed fiscal year that was a TARP period if the bonus payments were based on materially inaccurate financial statements or any other materially inaccurate performance metric criteria;

(vii) Unity Bancorp, Inc. has prohibited any golden parachute payment, as defined in the regulations and guidance established under section 111 of EESA, to an SEO or any of the next five most highly compensated employees during the period beginning on the later of the closing date of the agreement between the TARP recipient and Treasury or June 15, 2009 and ending with the last day of the TARP recipient's fiscal year containing that date;

(viii) Unity Bancorp, Inc. has limited bonus payments to its applicable employees in accordance with section 111 of EESA and the regulations and guidance established thereunder during the period beginning on the later of the closing date of the agreement between the TARP recipient and Treasury or June 15, 2009 and ending with the last day of the TARP recipient's fiscal year containing that date;

(ix) The board of directors of Unity Bancorp, Inc. has established an excessive or luxury expenditures policy, as defined in the regulations and guidance established under section 111 of EESA, by the later of September 14, 2009, or ninety days after the closing date of the agreement between the TARP recipient and Treasury; this policy has been provided to Treasury and its primary regulatory agency; Unity Bancorp, Inc. and its employees have complied with this policy during the applicable period; and any expenses that, pursuant to this policy, required approval of the board of directors, a committee of the board of directors, an SEO, or an executive officer with a similar level of responsibility were properly approved;

97

(x) Unity Bancorp, Inc. will permit a non-binding shareholder resolution in compliance with any applicable Federal securities rules and regulations on the disclosures provided under the Federal securities laws related to SEO compensation paid or accrued during the period beginning on the later of the closing date of the agreement between the TARP recipient and Treasury or June 15, 2009 and ending with the last day of the TARP recipient's fiscal year containing that date;

(xi) Unity Bancorp, Inc. will disclose the amount, nature, and justification for the offering during the period beginning on the later of the closing date of the agreement between the TARP recipient and Treasury or June 15, 2009 and ending with the last day of the TARP recipient's fiscal year containing that date of any perquisites, as defined in the regulations and guidance established under section 111 of EESA, whose total value exceeds $25,000 for any employee who is subject to the bonus payment limitations identified in paragraph (viii);

(xii) Unity Bancorp, Inc. will disclose whether Unity Bancorp, Inc., the board of directors of Unity Bancorp, Inc., or the compensation committee of Unity Bancorp, Inc. has engaged during the period beginning on the later of the closing date of the agreement between the TARP recipient and Treasury or June 15, 2009 and ending with the last day of the TARP recipient's fiscal year containing that date, a compensation consultant; and the services the compensation consultant or any affiliate of the compensation consultant provided during this period;

(xiii) Unity Bancorp, Inc. has prohibited the payment of any gross-ups, as defined in the regulations and guidance established under section 111 of EESA, to the SEOs and the next twenty most highly compensated employees during the period beginning on the later of the closing date of the agreement between the TARP recipient and Treasury or June 15, 2009 and ending with the last day of the TARP recipient's fiscal year containing that date;

(xiv) Unity Bancorp, Inc. has substantially complied with all other requirements related to employee compensation that are provided in the agreement between Unity Bancorp, Inc. and Treasury, including any amendments;

(xv) Unity Bancorp, Inc. has submitted to Treasury a complete and accurate list of the SEOs and the twenty next most highly compensated employees for the current fiscal year and the most recently completed fiscal year, with the non-SEOs ranked in descending order of level of annual compensation, and with the name, title, and employer of each SEO and most highly compensated employee identified; and

(xvi) I understand that a knowing and willful false or fraudulent statement made in connection with this certification may be punished by fine, imprisonment, or both. (See, for example, 18 U.S.C. 1001.)”

Date: March6, 2014	/s/ James A. Hughes
	James A. Hughes President and Chief Executive Officer

98

EX-99.2

EXHIBIT 99.2

CERTIFICATION OF ALAN J. BEDNER, EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER

OF UNITY BANCORP, INC.

Pursuant to §111(b)(4) of the Emergency Economic Stabilization Act of 2008 and 31 C.F.R. 30.15

I, Alan J. Bedner, certify, based on my knowledge, that:

(i) The compensation committee of Unity Bancorp, Inc. has discussed, reviewed, and evaluated with senior risk officers at least every six months during the period beginning on the later of September 14, 2009, or ninety days after the closing date of the agreement between the TARP recipient and Treasury and ending with the last day of the TARP recipient's fiscal year containing that date (the applicable period), the senior executive officer (SEO) compensation plans and the employee compensation plans and the risks these plans pose to Unity Bancorp, Inc.;

(ii) The compensation committee of Unity Bancorp, Inc. has identified and limited during the applicable period any features of the SEO compensation plans that could lead SEOs to take unnecessary and excessive risks that could threaten the value of Unity Bancorp, Inc., and during that same applicable period has identified any features of the employee compensation plans that pose risks to Unity Bancorp, Inc. and has limited those features to ensure that Unity Bancorp, Inc. is not unnecessarily exposed to risks;

(iii) The compensation committee has reviewed, at least every six months during the applicable period, the terms of each employee compensation plan and identified any features of the plan that could encourage the manipulation of reported earnings of Unity Bancorp, Inc. to enhance the compensation of an employee, and has limited any such features;

(iv) The compensation committee of Unity Bancorp, Inc. will certify to the reviews of the SEO compensation plans and employee compensation plans required under (i) and (iii) above;

(v) The compensation committee of Unity Bancorp, Inc. will provide a narrative description of how it limited during any part of the most recently completed fiscal year that included a TARP period the features in

(A) SEO compensation plans that could lead SEOs to take unnecessary and excessive risks that could threaten the value of Unity Bancorp, Inc.;

(B) Employee compensation plans that unnecessarily expose Unity Bancorp, Inc. to risks; and

(C) Employee compensation plans that could encourage the manipulation of reported earnings of Unity Bancorp, Inc. to enhance the compensation of an employee;

(vi) Unity Bancorp, Inc. has required that bonus payments, as defined in the regulations and guidance established under section 111 of EESA (bonus payments), of the SEOs and twenty next most highly compensated employees be subject to a recovery or “clawback” provision during any part of the most recently completed fiscal year that was a TARP period if the bonus payments were based on materially inaccurate financial statements or any other materially inaccurate performance metric criteria;

(vii) Unity Bancorp, Inc. has prohibited any golden parachute payment, as defined in the regulations and guidance established under section 111 of EESA, to an SEO or any of the next five most highly compensated employees during the period beginning on the later of the closing date of the agreement between the TARP recipient and Treasury or June 15, 2009 and ending with the last day of the TARP recipient's fiscal year containing that date;

(viii) Unity Bancorp, Inc. has limited bonus payments to its applicable employees in accordance with section 111 of EESA and the regulations and guidance established thereunder during the period beginning on the later of the closing date of the agreement between the TARP recipient and Treasury or June 15, 2009 and ending with the last day of the TARP recipient's fiscal year containing that date;

(ix) The board of directors of Unity Bancorp, Inc. has established an excessive or luxury expenditures policy, as defined in the regulations and guidance established under section 111 of EESA, by the later of September 14, 2009, or ninety days after the closing date of the agreement between the TARP recipient and Treasury; this policy has been provided to Treasury and its primary regulatory agency; Unity Bancorp, Inc. and its employees have complied with this policy during the applicable period; and any expenses that, pursuant to this policy, required approval of the board of directors, a committee of the board of directors, an SEO, or an executive officer with a similar level of responsibility were properly approved;

99

(x) Unity Bancorp, Inc. will permit a non-binding shareholder resolution in compliance with any applicable Federal securities rules and regulations on the disclosures provided under the Federal securities laws related to SEO compensation paid or accrued during the period beginning on the later of the closing date of the agreement between the TARP recipient and Treasury or June 15, 2009 and ending with the last day of the TARP recipient's fiscal year containing that date;

(xi) Unity Bancorp, Inc. will disclose the amount, nature, and justification for the offering during the period beginning on the later of the closing date of the agreement between the TARP recipient and Treasury or June 15, 2009 and ending with the last day of the TARP recipient's fiscal year containing that date of any perquisites, as defined in the regulations and guidance established under section 111 of EESA, whose total value exceeds $25,000 for any employee who is subject to the bonus payment limitations identified in paragraph (viii);

(xii) Unity Bancorp, Inc. will disclose whether Unity Bancorp, Inc., the board of directors of Unity Bancorp, Inc., or the compensation committee of Unity Bancorp, Inc. has engaged during the period beginning on the later of the closing date of the agreement between the TARP recipient and Treasury or June 15, 2009 and ending with the last day of the TARP recipient's fiscal year containing that date, a compensation consultant; and the services the compensation consultant or any affiliate of the compensation consultant provided during this period;

(xiii) Unity Bancorp, Inc. has prohibited the payment of any gross-ups, as defined in the regulations and guidance established under section 111 of EESA, to the SEOs and the next twenty most highly compensated employees during the period beginning on the later of the closing date of the agreement between the TARP recipient and Treasury or June 15, 2009 and ending with the last day of the TARP recipient's fiscal year containing that date;

(xiv) Unity Bancorp, Inc. has substantially complied with all other requirements related to employee compensation that are provided in the agreement between Unity Bancorp, Inc. and Treasury, including any amendments;

(xv) Unity Bancorp, Inc. has submitted to Treasury a complete and accurate list of the SEOs and the twenty next most highly compensated employees for the current fiscal year and the most recently completed fiscal year, with the non-SEOs ranked in descending order of level of annual compensation, and with the name, title, and employer of each SEO and most highly compensated employee identified; and

(xvi) I understand that a knowing and willful false or fraudulent statement made in connection with this certification may be punished by fine, imprisonment, or both. (See, for example, 18 U.S.C. 1001.)”

Date: March 6, 2014	/s/ Alan J. Bedner
	Alan J. Bedner Executive Vice President and Chief Financial Officer

100

XML

Borrowed Funds and Subordinated Debentures (Tables)

12 Months Ended

Dec. 31, 2013

Borrowed Funds and Subordinated Debentures [Abstract]

Schedule of Debt

	2013					2012					2011
(In thousands)	Amount		Rate			Amount		Rate			Amount		Rate
FHLB borrowings and repurchase agreements:
At December 31,	$	92,000		2.58	%	$	60,000		3.94	%	$	60,000		3.94	%
Year-to-date average		61,010		3.88			60,008		3.94			60,000		3.94
Maximum outstanding		95,000					61,000					60,000
Repurchase agreements:
At December 31,	$	15,000		3.67	%	$	15,000		3.67	%	$	15,000		3.67	%
Year-to-date average		15,000		3.67			15,000		3.67			15,000		3.67
Maximum outstanding		15,000					15,000					15,000
Subordinated debentures:
At December 31,	$	15,465		1.80	%	$	15,465		1.89	%	$	15,465		3.11	%
Year-to-date average		15,465		1.83			15,465		2.19			15,465		4.83
Maximum outstanding		15,465					15,465					15,465

Schedule of Maturities of Term Debt

(In thousands)	2014		2015		2016		2017		2018		Thereafter		Total
FHLB borrowings and repurchase agreements	$	32,000	$	10,000	$	20,000	$	30,000	$	-	$	-	$	92,000
Other repurchase agreements		-		-		-		-		15,000		-		15,000
Subordinated debentures		-		-		-		-		-		15,465		15,465
Total borrowings	$	32,000	$	10,000	$	20,000	$	30,000	$	15,000	$	15,465	$	122,465

XML

Condensed Financial Statements of Unity Bancorp, Inc. (Parent Company Only) (Condensed Statements of Cash Flows) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Condensed Financial Statements, Captions [Line Items]
Net income	$ 5,115	$ 4,244
Net cash provided by operating activities	11,445	13,307
Purchases of securities available for sale	(29,136)	(39,335)
Proceeds from sale of securities available for sale	12,178	8,103
Net cash used in investing activities	(104,042)	(5,619)
Redemption of perpetual preferred stock from U.S. Treasury	(20,649)
Repurchase of warrant from U.S. Treasury	(2,707)
Proceeds from exercise of stock options		173
Dividends on preferred stock	(585)	(1,032)
Dividends on common stock	(188)
Net cash provided by (used in) financing activities	97,809	3,930
Increase (decrease) in cash and cash equivalents	5,212	11,618
Cash and cash equivalents, beginning of period	94,192	82,574
Cash and cash equivalents, end of period	99,404	94,192
Cash: Interest paid	6,509	7,863
Parent Company Only [Member]
Condensed Financial Statements, Captions [Line Items]
Net income	5,115	4,244
Equity in undistributed net income of subsidiary	(4,776)	(3,983)
Gains on sales of securities	(3)
Net change in other assets and other liabilities	(22)	(8)
Net cash provided by operating activities	314	253
Purchases of securities available for sale	(100)
Proceeds from sale of securities available for sale	63
Net cash used in investing activities	(37)
Redemption of perpetual preferred stock from U.S. Treasury	(20,649)
Repurchase of warrant from U.S. Treasury	(2,707)
Proceeds from exercise of stock options		173
Dividends on preferred stock	(585)	(1,032)
Dividends on common stock	(188)
Dividend from Bank	12,707	9,000
Net cash provided by (used in) financing activities	(11,422)	8,141
Increase (decrease) in cash and cash equivalents	(11,145)	8,394
Cash and cash equivalents, beginning of period	11,869	3,475
Cash and cash equivalents, end of period	724	11,869
Cash: Interest paid	$ 287	$ 362

XML

Goodwill (Narrative) (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2013
Goodwill [Abstract]
Goodwill	$ 1.5

XML

Fair Value (Tables)

12 Months Ended

Dec. 31, 2013

Fair Value [Abstract]

Quantitative Information About Level 3 Inputs [Table Text Block]

December 31, 2013
Valuation Technique	Unobservable Input	Range		Weighted Average
Discounted Cash Flow	Prepayment rate	8 through 15	%	10.0	%
	Default rate	10 through 15	%	12.5	%
	Loss severity	10 through 25	%	18.0	%

Balances Of Assets And Liabilities Measured At Fair Value On A Recurring Basis [TableTextBlock]

	December 31, 2013
(In thousands)	Level 1		Level 2		Level 3		Total
Securities available for sale:
U.S. Government sponsored entities	$	-	$	6,418	$	-	$	6,418
State and political subdivisions		-		16,598		-		16,598
Residential mortgage-backed securities		-		44,389		-		44,389
Commercial mortgage-backed securities		-		-		888		888
Corporate and other securities		-		12,840		-		12,840
Total securities available for sale	$	-	$	80,245	$	888	$	81,133
	December 31, 2012
(In thousands)	Level 1		Level 2		Level 3		Total
Securities available for sale:
U.S. Government sponsored entities	$	-	$	2,568	$	-	$	2,568
State and political subdivisions		-		15,303		-		15,303
Residential mortgage-backed securities		-		45,545		-		45,545
Commercial mortgage-backed securities		-		-		4,463		4,463
Corporate and other securities		-		21,659		-		21,659
Total securities available for sale	$	-	$	85,075	$	4,463	$	89,538

Schedule Of Fair Value Changes In Level 3 [Table Text Block]

	For the years ended December 31,
(In thousands)	2013		2012
Commercial mortgage-backed securities:
Balance, beginning of period	$	4,463	$	-
Purchases		-		4,423
Payoffs		(815)		-
Principal paydowns		(2,722)		-
Total net losses included in:
Other comprehensive income		(38)		40
Balance, end of period	$	888	$	4,463

Assets And Liabilities Carried On The Balance Sheet By Caption And By Level Within The Hierarchy (As Described Above) [TableTextBlock]

	Fair value at December 31, 2013								Gains (losses) from fair value changes for the year ended
(In thousands)	Level 1		Level 2		Level 3		Total		December 31, 2013
Financial assets:
OREO	$	-	$	-	$	633	$	633	$	(769)
Impaired collateral-dependent loans		-		-		4,540		4,540		863
	Fair value at December 31, 2012								Gains (losses) from fair value changes for the year ended
(In thousands)	Level 1		Level 2		Level 3		Total		December 31, 2012
Financial assets:
OREO	$	-	$	-	$	864	$	864	$	(1,671)
Impaired collateral-dependent loans		-		-		8,159		8,159		2,448

Carrying Amount And Estimated Fair Values Of The Company's Financial Instruments Not Previously Presented [TableTextBlock]

			December 31, 2013				December 31, 2012
(In thousands)	Fair value level		Carrying amount		Estimated fair value		Carrying amount		Estimated fair value
Financial assets:
Cash and cash equivalents		Level 1	$	99,404	$	99,404	$	94,192	$	94,192
Securities held to maturity (1)		Level 2		26,381		25,549		21,515		22,741
SBA loans held for sale		Level 2		6,673		7,267		6,937		7,582
Loans, net of allowance for loan losses (2)		Level 2		658,887		645,582		565,341		564,528
Federal Home Loan Bank stock		Level 2		5,392		5,392		3,989		3,989
Servicing assets		Level 3		437		437		396		396
Accrued interest receivable		Level 2		3,272		3,272		3,298		3,298
Financial liabilities:
Deposits		Level 2		738,698		738,337		648,760		650,668
Borrowed funds and subordinated debentures		Level 2		122,465		129,732		90,465		100,257
Accrued interest payable		Level 2		454		454		434		434

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Loans (Officer and Director Loans) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Loans [Abstract]
Balance, beginning of year	$ 14,605	$ 15,585
New loans	4,521	537
Loan repayments	(799)	(1,517)
Balance, end of year	$ 18,327	$ 14,605

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Restrictions on Cash (Narrative) (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Restricted Cash and Cash Equivalents Items [Line Items]
Deposit Liabilities, Collateral Issued, Financial Instruments	$ 18,000,000
Electronic Funds Transfer [Member]
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted Cash and Cash Equivalents	$ 179,000	$ 179,000

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Borrowed Funds and Subordinated debentures (Narrative) (Details) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Debt Instrument [Line Items]
Subordinated debentures	$ 15,465,000	$ 15,465,000
Marketable Securities, Equity Securities	465,000
FHLB Advances [Member]
Debt Instrument [Line Items]
Number of FHLB Advances	3
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances	10,000,000
FHLB Repurchase Agreements [Member]
Debt Instrument [Line Items]
Number of FHLB Advances	3
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances	10,000,000
Subordinated Debenture July 24, 2006 [Member]
Debt Instrument [Line Items]
Debt Instrument, Maturity Date	Jul. 24, 2036
Subordinated debentures	10,000,000
Debt Instrument, Interest Rate at Period End	1.84%	1.90%
Debt Instrument, Basis Spread on Variable Rate	0.0159%
Subordinated Debenture December 19, 2006 [Member]
Debt Instrument [Line Items]
Debt Instrument, Maturity Date	Dec. 19, 2036
Subordinated debentures	5,000,000
Debt Instrument, Interest Rate at Period End	1.89%	1.96%
Debt Instrument, Basis Spread on Variable Rate	0.0165%
Securities Sold under Agreements to Repurchase [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	3.67%
Debt Instrument, Maturity Date	Feb. 28, 2018
Debt Instrument, Interest Rate at Period End	3.67%	3.67%	3.67%
Secured Debt, Repurchase Agreements	15,000,000
FHLB advance April 27, 2005 [Member]
Debt Instrument [Line Items]
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Interest Rate	3.70%
Debt Instrument, Maturity Date	Apr. 27, 2015
FHLB advance November 2, 2006 [Member]
Debt Instrument [Line Items]
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Interest Rate	4.03%
Debt Instrument, Maturity Date	Nov. 02, 2016
FHLB advance August 10, 2007 [Member]
Debt Instrument [Line Items]
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Interest Rate	4.23%
Debt Instrument, Maturity Date	Aug. 10, 2017
FHLB repo-advance December 15, 2006 [Member]
Debt Instrument [Line Items]
Debt Instrument, Maturity Date	Dec. 15, 2016
FHLB repo-advance April 5, 2007 [Member]
Debt Instrument [Line Items]
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Interest Rate	4.21%
Debt Instrument, Maturity Date	Apr. 05, 2017
FHLB repo-advance April 5, 2007 [Member] | Subordinated Debenture December 19, 2006 [Member]
Debt Instrument [Line Items]
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Interest Rate	4.13%
FHLB repo-advance December 20, 2007 [Member]
Debt Instrument [Line Items]
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Interest Rate	3.34%
Debt Instrument, Maturity Date	Dec. 20, 2017
FHLB Overnight Line of Credit [Member]
Debt Instrument [Line Items]
Federal Home Loan Bank, Advances, General Debt Obligations, Maximum Amount Available	$ 32,000,000
Debt Instrument, Interest Rate, Stated Percentage	0.40%

XML

Fair Value (Quantitative Information About Level 3 Inputs) (Details) (Commercial Mortgage Backed Securities [Member])	12 Months Ended
	Dec. 31, 2013
Minimum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Prepayment rate	8.00%
Default rate	10.00%
Loss severity	10.00%
Maximum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Prepayment rate	15.00%
Default rate	15.00%
Loss severity	25.00%
Weighted Average [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Prepayment rate	10.00%
Default rate	12.50%
Loss severity	18.00%

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Regulatory Capital (Tables)

12 Months Ended

Dec. 31, 2013

Regulatory Capital Requirements [Abstract]

Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block]

ented in the following table. 

											To be well-capitalized
						For capital					under prompt corrective
	Actual					adequacy purposes					action provisions
(In thousands)	Amount		Ratio			Amount		Ratio			Amount		Ratio
As of December 31, 2013
Leverage ratio	$	70,852		8.08	%	≥ $	35,084		4.00	%		N/A		N/A
Tier I risk-based capital ratio		70,852		10.74			26,400		4.00			N/A		N/A
Total risk-based capital ratio		79,164		11.99			52,800		8.00			N/A		N/A
As of December 31, 2012
Leverage ratio	$	89,841		11.14	%	≥ $	32,251		4.00	%		N/A		N/A
Tier I risk-based capital ratio		89,841		14.85			24,193		4.00			N/A		N/A
Total risk-based capital ratio		97,492		16.12			48,387		8.00			N/A		N/A

The Bank’s capital amounts and ratios for the last two years are presented in the following table:

											To be well-capitalized
						For capital					under prompt corrective
	Actual					adequacy purposes					action provisions
(In thousands)	Amount		Ratio			Amount		Ratio			Amount		Ratio
As of December 31, 2013
Leverage ratio	$	61,493		7.02	%	≥ $	35,058		4.00	%	≥ $	43,823		5.00	%
Tier I risk-based capital ratio		61,493		9.33			26,373		4.00			39,560		6.00
Total risk-based capital ratio		78,296		11.88			52,747		8.00			65,933		10.00
As of December 31, 2012
Leverage ratio	$	69,544		8.63	%	≥ $	32,225		4.00	%	≥ $	40,282		5.00	%
Tier I risk-based capital ratio		69,544		11.51			24,170		4.00			36,254		6.00
Total risk-based capital ratio		85,687		14.18			48,339		8.00			60,424		10.00

Schedule of Future Basel Capital Requirements

	Current Treatment		Treatment in Final Rule
Leverage ratio	4.00	%	4.00	%
Common equity tier 1 capital (CET1) ratio	N/A		4.50	%
Additional tier 1	N/A		1.50	%
Tier 1 capital ratio	4.00	%	6.00	%
Tier 2	4.00	%	2.00	%
Total capital ratio	8.00	%	8.00	%
Capital conservation buffer	N/A		2.50	%

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Securities (Tables)

12 Months Ended

Dec. 31, 2013

Securities [Abstract]

Major Components Of Securities Available For Sale ("AFS") And Held To Maturity ("HTM") At Amortized Cost And Estimated Fair Value [Table Text Block]

	December 31, 2013								December 31, 2012
(In thousands)	Amortized cost		Gross unrealized gains		Gross unrealized losses		Estimated fair value		Amortized cost		Gross unrealized gains		Gross unrealized losses		Estimated fair value
Available for sale:
U.S. Government sponsored entities	$	6,723	$	27	$	(332)	$	6,418	$	2,482	$	86	$	-	$	2,568
State and political subdivisions		16,960		192		(554)		16,598		14,690		613		-		15,303
Residential mortgage-backed securities		44,168		696		(475)		44,389		43,984		1,684		(123)		45,545
Commercial mortgage-backed securities		887		2		(1)		888		4,423		42		(2)		4,463
Corporate and other securities		13,173		67		(400)		12,840		21,741		490		(572)		21,659
Total securities available for sale	$	81,911	$	984	$	(1,762)	$	81,133	$	87,320	$	2,915	$	(697)	$	89,538
Held to maturity:
U.S. Government sponsored entities	$	5,814	$	-	$	(460)	$	5,354	$	5,050	$	38	$	-	$	5,088
State and political subdivisions		2,441		121		(17)		2,545		2,746		288		-		3,034
Residential mortgage-backed securities		10,395		145		(198)		10,342		11,048		374		(13)		11,409
Commercial mortgage-backed securities		6,750		87		(437)		6,400		2,671		539		-		3,210
Corporate and other securities		981		-		(73)		908		-		-		-		-
Total securities held to maturity	$	26,381	$	353	$	(1,185)	$	25,549	$	21,515	$	1,239	$	(13)	$	22,741

Remaining Contractual Maturities And Yields Of Securities Within The Investment Portfolios [Table Text Block]

	Within one year				After one through five years				After five through ten years				After ten years				Total carrying value
(In thousands, except percentages)	Amount		Yield		Amount		Yield		Amount		Yield		Amount		Yield		Amount		Yield
Available for sale at fair value:
U.S. Government sponsored entities	$	35	3.77	%	$	1,012	1.00	%	$	960	2.06	%	$	4,411	2.18	%	$	6,418	1.99	%
State and political subdivisions		-	-			794	2.38			11,406	2.69			4,398	2.80			16,598	2.70
Residential mortgage-backed securities		-	-			505	4.49			650	3.51			43,234	2.76			44,389	2.79
Commercial mortgage-backed securities		-	-			-	-			-	-			888	2.15			888	2.15
Corporate and other securities		-	-			401	1.28			5,636	1.82			6,803	1.52			12,840	1.65
Total securities available for sale	$	35	3.77	%	$	2,712	2.10	%	$	18,652	2.42	%	$	59,734	2.57	%	$	81,133	2.52	%
Held to maturity at cost:
U.S. Government sponsored entities	$	-	-	%	$	-	-	%	$	-	-	%	$	5,814	1.97	%	$	5,814	1.97	%
State and political subdivisions		326	0.75			-	-			-	-			2,115	4.70			2,441	4.18
Residential mortgage-backed securities		-	-			800	4.86			237	5.11			9,358	2.75			10,395	2.97
Commercial mortgage-backed securities		-	-			-	-			-	-			6,750	3.79			6,750	3.79
Corporate and other securities		-	-			-	-			981	2.95			-	-			981	2.95
Total securities held to maturity	$	326	0.75	%	$	800	4.86	%	$	1,218	3.37	%	$	24,037	3.03	%	$	26,381	3.07	%

Fair Value Of Securities With Unrealized Losses By Length Of Time That The Individual Securities Have Been In A Continuous Unrealized Loss Position [Table Text Block]

	December 31, 2013
			Less than 12 months				12 months and greater				Total
(In thousands, except number in a loss position)	Total number in a loss position		Estimated fair value		Unrealized loss		Estimated fair value		Unrealized loss		Estimated fair value		Unrealized loss
Available for sale:
U.S. Government sponsored entities		5	$	5,591	$	(332)	$	-	$	-	$	5,591	$	(332)
State and political subdivisions		19		8,575		(453)		934		(101)		9,509		(554)
Residential mortgage-backed securities		13		13,226		(398)		1,474		(77)		14,700		(475)
Commercial mortgage-backed securities		3		368		(1)		-		-		368		(1)
Corporate and other securities		9		3,994		(105)		3,088		(295)		7,082		(400)
Total temporarily impaired securities		49	$	31,754	$	(1,289)	$	5,496	$	(473)	$	37,250	$	(1,762)
Held to maturity:
U.S. Government sponsored entities		3	$	5,355	$	(460)	$	-	$	-	$	5,355	$	(460)
State and political subdivisions		2		986		(17)		-		-		986		(17)
Residential mortgage-backed securities		7		6,333		(193)		114		(5)		6,447		(198)
Commercial mortgage-backed securities		2		3,668		(437)		-		-		3,668		(437)
Corporate and other securities		1		907		(73)		-		-		907		(73)
Total temporarily impaired securities		15	$	17,249	$	(1,180)	$	114	$	(5)	$	17,363	$	(1,185)
	December 31, 2012
			Less than 12 months				12 months and greater				Total
(In thousands, except number in a loss position)	Total number in a loss position		Estimated fair value		Unrealized loss		Estimated fair value		Unrealized loss		Estimated fair value		Unrealized loss
Available for sale:
Residential mortgage-backed securities		5	$	3,272	$	(43)	$	1,951	$	(80)	$	5,223	$	(123)
Commercial mortgage-backed securities		4		2,351		(2)		-		-		2,351		(2)
Corporate and other securities		6		2,486		(26)		2,994		(546)		5,480		(572)
Total temporarily impaired securities		15	$	8,109	$	(71)	$	4,945	$	(626)	$	13,054	$	(697)
Held to maturity:
Residential mortgage-backed securities		3	$	838	$	(2)	$	279	$	(11)	$	1,117	$	(13)
Total temporarily impaired securities		3	$	838	$	(2)	$	279	$	(11)	$	1,117	$	(13)

Gross Realized Gains (Losses) On Securities [Table Text Block]

	For the years ended December 31,
(In thousands)	2013		2012
Available for sale:
Realized gains	$	394	$	570
Realized losses		(4)		(4)
Total securities available for sale		390		566
Held to maturity:
Realized gains		-		7
Realized losses		-		-
Total securities held to maturity		-		7
Net gains on sales of securities	$	390	$	573

XML

Borrowed Funds and Subordinated Debentures (Schedule of Debt) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Debt Instrument [Line Items]
Long-term Debt	$ 122,465
FHLB borrowings and repurchase agreements [Member]
Debt Instrument [Line Items]
Long-term Debt	92,000	60,000	60,000
Year-to-date average	61,010	60,008	60,000
Maximum outstanding	95,000	61,000	60,000
Interest rate, at the end of the period	2.58%	3.94%	3.94%
Interest rate, Year-to-date average	3.88%	3.94%	3.94%
Securities Sold under Agreements to Repurchase [Member]
Debt Instrument [Line Items]
Long-term Debt	15,000	15,000	15,000
Year-to-date average	15,000	15,000	15,000
Maximum outstanding	15,000	15,000	15,000
Interest rate, at the end of the period	3.67%	3.67%	3.67%
Interest rate, Year-to-date average	3.67%	3.67%	3.67%
Subordinated Debt [Member]
Debt Instrument [Line Items]
Long-term Debt	15,465	15,465	15,465
Year-to-date average		15,465	15,465
Maximum outstanding	$ 15,465	$ 15,465	$ 15,465
Interest rate, at the end of the period	1.80%	1.89%	3.11%
Interest rate, Year-to-date average	1.83%	2.19%	4.83%

XML

Premises and Equipment (Narrative) (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Premises and Equipment [Abstract]
Property, Plant and Equipment, Additions	$ 4.3
Depreciation	$ 1.2	$ 1.1

XML

Income Taxes (Schedule of Effective Income Tax Rate Reconciliation) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Income Taxes [Abstract]
Federal income tax provision at statutory rate	$ 2,612	$ 2,199
Bank owned life insurance	(118)	(100)
Tax-exempt interest	(156)	(161)
Meals and entertainment	14	17
State income taxes, net of federal income tax effect	328	356
Other, net	(113)	(85)
Income Tax Expense (Benefit), Total	$ 2,567	$ 2,226
Effective tax rate	33.40%	34.40%

XML

Securities (Investments Classified by Contractual Maturity Date) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Schedule of Investments [Line Items]
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Fair Value	$ 35
Available For Sale Securities Debt Maturities Next Twelve Months Fair Value Yield	3.77%
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Fair Value	2,712
Available For Sale Securities Debt Maturities Year Two Through Five Years Fair Value Yield	2.10%
Available-for-sale Securities, Debt Maturities, Year Six Through Ten, Fair Value	18,652
Available For Sale Securities Debt Maturities Year Six Through Ten Years Fair Value Yield	2.42%
Available-for-sale Securities, Debt Maturities, after Ten Years, Fair Value	59,734
Available For Sale Securities Debt Maturities After Ten Years Fair Value Yield	2.57%
Available-for-sale Securities	81,133	89,538
Available For Sale Securities Total Fair Value Yield	2.52%
Held-to-maturity Securities, Debt Maturities, within One Year, Net Carrying Amount	326
Held-to-maturity Securities, Debt Maturities, within One Year, Yield	0.75%
Held-to-maturity Securities, Debt Maturities, after One Through Five Years, Net Carrying Amount	800
Held To Maturity Securities, Debt Maturities, After One Through Five Years, Yield	4.86%
Held-to-maturity Securities, Debt Maturities, after Five Through Ten Years, Net Carrying Amount	1,218
Held To Maturity Securities, Debt Maturities, After Five Through Ten Years, Yield	3.37%
Held-to-maturity Securities, Debt Maturities, after Ten Years, Net Carrying Amount	24,037
Held To Maturity Securities, Debt Maturities, After Ten Years, Yield	3.03%
Securities held to maturity, Carrying amount	26,381	21,515
Held To Maturity Securities, Yield	3.07%
US Government Agencies Debt Securities [Member]
Schedule of Investments [Line Items]
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Fair Value	35
Available For Sale Securities Debt Maturities Next Twelve Months Fair Value Yield	3.77%
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Fair Value	1,012
Available For Sale Securities Debt Maturities Year Two Through Five Years Fair Value Yield	1.00%
Available-for-sale Securities, Debt Maturities, Year Six Through Ten, Fair Value	960
Available For Sale Securities Debt Maturities Year Six Through Ten Years Fair Value Yield	2.06%
Available-for-sale Securities, Debt Maturities, after Ten Years, Fair Value	4,411
Available For Sale Securities Debt Maturities After Ten Years Fair Value Yield	2.18%
Available-for-sale Securities	6,418	2,568
Available For Sale Securities Total Fair Value Yield	1.99%
Held-to-maturity Securities, Debt Maturities, after Ten Years, Net Carrying Amount	5,814
Held To Maturity Securities, Debt Maturities, After Ten Years, Yield	1.97%
Securities held to maturity, Carrying amount	5,814	5,050
Held To Maturity Securities, Yield	1.97%
US States and Political Subdivisions Debt Securities [Member]
Schedule of Investments [Line Items]
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Fair Value	794
Available For Sale Securities Debt Maturities Year Two Through Five Years Fair Value Yield	2.38%
Available-for-sale Securities, Debt Maturities, Year Six Through Ten, Fair Value	11,406
Available For Sale Securities Debt Maturities Year Six Through Ten Years Fair Value Yield	2.69%
Available-for-sale Securities, Debt Maturities, after Ten Years, Fair Value	4,398
Available For Sale Securities Debt Maturities After Ten Years Fair Value Yield	2.80%
Available-for-sale Securities	16,598	15,303
Available For Sale Securities Total Fair Value Yield	2.70%
Held-to-maturity Securities, Debt Maturities, within One Year, Net Carrying Amount	326
Held-to-maturity Securities, Debt Maturities, within One Year, Yield	0.75%
Held-to-maturity Securities, Debt Maturities, after Ten Years, Net Carrying Amount	2,115
Held To Maturity Securities, Debt Maturities, After Ten Years, Yield	4.70%
Securities held to maturity, Carrying amount	2,441	2,746
Held To Maturity Securities, Yield	4.18%
Residential Mortgage Backed Securities [Member]
Schedule of Investments [Line Items]
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Fair Value	505
Available For Sale Securities Debt Maturities Year Two Through Five Years Fair Value Yield	4.49%
Available-for-sale Securities, Debt Maturities, Year Six Through Ten, Fair Value	650
Available For Sale Securities Debt Maturities Year Six Through Ten Years Fair Value Yield	3.51%
Available-for-sale Securities, Debt Maturities, after Ten Years, Fair Value	43,234
Available For Sale Securities Debt Maturities After Ten Years Fair Value Yield	2.76%
Available-for-sale Securities	44,389	45,545
Available For Sale Securities Total Fair Value Yield	2.79%
Held-to-maturity Securities, Debt Maturities, after One Through Five Years, Net Carrying Amount	800
Held To Maturity Securities, Debt Maturities, After One Through Five Years, Yield	4.86%
Held-to-maturity Securities, Debt Maturities, after Five Through Ten Years, Net Carrying Amount	237
Held To Maturity Securities, Debt Maturities, After Five Through Ten Years, Yield	5.11%
Held-to-maturity Securities, Debt Maturities, after Ten Years, Net Carrying Amount	9,358
Held To Maturity Securities, Debt Maturities, After Ten Years, Yield	2.75%
Securities held to maturity, Carrying amount	10,395	11,048
Held To Maturity Securities, Yield	2.97%
Commercial Mortgage Backed Securities [Member]
Schedule of Investments [Line Items]
Available-for-sale Securities, Debt Maturities, after Ten Years, Fair Value	888
Available For Sale Securities Debt Maturities After Ten Years Fair Value Yield	2.15%
Available-for-sale Securities	888	4,463
Available For Sale Securities Total Fair Value Yield	2.15%
Held-to-maturity Securities, Debt Maturities, after Ten Years, Net Carrying Amount	6,750
Held To Maturity Securities, Debt Maturities, After Ten Years, Yield	3.79%
Securities held to maturity, Carrying amount	6,750	2,671
Held To Maturity Securities, Yield	3.79%
Corporate Debt Securities [Member]
Schedule of Investments [Line Items]
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Fair Value	401
Available For Sale Securities Debt Maturities Year Two Through Five Years Fair Value Yield	1.28%
Available-for-sale Securities, Debt Maturities, Year Six Through Ten, Fair Value	5,636
Available For Sale Securities Debt Maturities Year Six Through Ten Years Fair Value Yield	1.82%
Available-for-sale Securities, Debt Maturities, after Ten Years, Fair Value	6,803
Available For Sale Securities Debt Maturities After Ten Years Fair Value Yield	1.52%
Available-for-sale Securities	12,840	21,659
Available For Sale Securities Total Fair Value Yield	1.65%
Held-to-maturity Securities, Debt Maturities, after Five Through Ten Years, Net Carrying Amount	981
Held To Maturity Securities, Debt Maturities, After Five Through Ten Years, Yield	2.95%
Securities held to maturity, Carrying amount	$ 981
Held To Maturity Securities, Yield	2.95%

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Fair Value (Fair Value Of Financial Instruments) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013		Dec. 31, 2012		Dec. 31, 2011
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
SBA servicing assets	$ 437		$ 396		$ 418
Accrued interest receivable	3,272		3,298
Accrued interest payable	454		434
Impaired Financing Receivable, Recorded Investment	14,788		23,366
Carrying (Reported) Amount, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash And Cash Equivalents, Estimated fair value	99,404		94,192
Securities Held To Maturity, Estimated fair value	26,381	[1]	21,515	[1]
SBA Loans Held For Sale, Estimated fair value	6,673		6,937
Loans, Net Of Allowance For Loan Losses, Estimated fair value	658,887	[2]	565,341	[2]
Federal Home Loan Bank Stock, Estimated fair value	5,392		3,989
SBA servicing assets	437		396
Accrued interest receivable	3,272		3,298
Deposits, Estimated fair value	738,698		648,760
Borrowed Funds And Subordinated Debentures, Estimated fair value	122,465		90,465
Accrued interest payable	454		434
Estimate of Fair Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash And Cash Equivalents, Estimated fair value	99,404		94,192
Securities Held To Maturity, Estimated fair value	25,549	[1]	22,741	[1]
SBA Loans Held For Sale, Estimated fair value	7,267		7,582
Loans, Net Of Allowance For Loan Losses, Estimated fair value	645,582	[2]	564,528	[2]
Federal Home Loan Bank Stock, Estimated fair value	5,392		3,989
SBA servicing assets	437		396
Accrued interest receivable	3,272		3,298
Deposits, Estimated fair value	738,337		650,668
Borrowed Funds And Subordinated Debentures, Estimated fair value	129,732		100,257
Accrued interest payable	454		434
Impaired Financing Receivable, Recorded Investment	4,500		8,200
Commercial Mortgage Backed Securities [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities Held To Maturity, Estimated fair value	6,800		2,700
Commercial Mortgage Backed Securities [Member] | Estimate of Fair Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities Held To Maturity, Estimated fair value	$ 6,400		$ 3,200

[1] Includes held to maturity commercial mortgage-backed securities that are considered Level 3. These securities had book values of $6.8 million and $2.7 million at December 31, 2013 and 2012, respectively, and market values of $6.4 million and $3.2 million at December 31, 2013 and 2012, respectively.

[2] Includes impaired loans that are considered Level 3 and reported separately in the tables under the “Fair Value on a Nonrecurring Basis” heading. Impaired loans, net of specific reserves totaled $4.5 million and $8.2 million at December 31, 2013 and 2012, respectively.

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Deposits (Schedule of Deposits by Time Remaining on Maturity) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Deposits [Abstract]
Contractual Maturities, Time Deposits, $100,000 or More, Three Months or Less	$ 14,588	$ 13,338
Contractual Maturities, Time Deposits, $100,000 or More, Three Months Through Six Months	7,965	5,868
Contractual Maturities, Time Deposits, $100,000 or More, Six Months Through 12 Months	18,582	16,493
Contractual Maturities, Time Deposits, $100,000 or More, after 12 Months	55,961	12,272
Time Deposits, $100,000 or More, Total	97,096	47,971
Contractual Maturities, Time Deposits, Less than $100,000, Three Months or Less	8,058	10,131
Contractual Maturities, Time Deposits, Less than $100,000, Three Months Through Six Months	7,754	8,985
Contractual Maturities, Time Deposits, Less than $100,000, Six Months Through 12 Months	19,522	26,271
Contractual Maturities, Time Deposits, Less than $100,000, after 12 Months	72,924	31,607
Deposits: Time deposits, under $100,000	$ 108,258	$ 76,994

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Other Expenses (Components of Other Expenses) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Other Expenses [Abstract]
Travel, entertainment, training and recruiting	$ 608	$ 589
Director fees	367	259
Insurance	335	339
Stationery and supplies	271	237
Retail losses	4	142
Other	282	332
Total other expenses	$ 1,867	$ 1,898

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Commitments and Contingencies (Narrative) (Details) (USD $)	12 Months Ended
	Dec. 31, 2013 store	Dec. 31, 2012
Other Commitments [Line Items]
Number of Stores	15
Operating Leases, Rent Expense, Net	$ 856,000	$ 1,200,000
Other Commitment	103,000	87,000
Director [Member]
Other Commitments [Line Items]
Operating Leases, Rent Expense, Net	437,000	427,000
Lessee Leasing Arrangements, Operating Leases, Term of Contract	5 years
Lessee Leasing Arrangements, Operating Leases, Annual increase, Percentage	1.50%
Commitments to Extend Credit [Member]
Other Commitments [Line Items]
Other Commitment	103,200,000	87,200,000
Other Commitment, Due in Next Twelve Months	45,600,000	40,100,000
Standby Letters of Credit [Member]
Other Commitments [Line Items]
Other Commitment	$ 1,400,000	$ 1,600,000

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Income Taxes (Narrative) (Details) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Valuation Allowance	$ 113,000
Deferred Tax Assets, Operating Loss Carryforwards, State and Local	138,000	0
Income Tax Expense (Benefit)	2,567,000	2,226,000
Effective Income Tax Rate, Continuing Operations	33.40%	34.40%
Unrealized holding gains arising during period, after-tax	(1,550,000)	588,000
Accumulated Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax	(476,000)	1,333,000	1,121,000
State and Local Jurisdiction [Member]
Operating Loss Carryforwards	$ 2,300,000

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Deposits (Schedule of Certificates of Deposits by Year of Maturity) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013
Deposits [Abstract]
Time Deposit Maturities, Next Twelve Months	$ 76,469
Time Deposit Maturities, Year Two	24,103
Time Deposit Maturities, Year Three	39,282
Time Deposit Maturities, Year Four	6,548
Time Deposit Maturities, Year Five	58,901
Time Deposit Maturities, after Year Five	51
Time Deposits, Total	$ 205,354

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Allowance for Loan Losses and Reserve for Unfunded Loan Commitments (Activity In The Allowance For Loan Losses By Portfolio Segment ) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance				$ 14,758				$ 16,348	$ 14,758	$ 16,348
Charge-offs									(4,624)	(6,524)
Recoveries									657	934
Net charge-offs									(3,967)	(5,590)
Provision for loan losses charged to expense	800	600	300	650	800	1,000	1,000	1,200	2,350	4,000
Ending Balance	13,141				14,758				13,141	14,758
SBA held to maturity [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance				3,378				4,088	3,378	4,088
Charge-offs									(1,076)	(1,332)
Recoveries									250	518
Net charge-offs									(826)	(814)
Provision for loan losses charged to expense									35	104
Ending Balance	2,587				3,378				2,587	3,378
SBA 504 loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance				1,312				1,423	1,312	1,423
Charge-offs									(1,193)	(808)
Recoveries									182	108
Net charge-offs									(1,011)	(700)
Provision for loan losses charged to expense									656	589
Ending Balance	957				1,312				957	1,312
Total Commercial Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance				7,091				8,129	7,091	8,129
Charge-offs									(1,392)	(3,504)
Recoveries									204	306
Net charge-offs									(1,188)	(3,198)
Provision for loan losses charged to expense									937	2,160
Ending Balance	6,840				7,091				6,840	7,091
Total residential mortgage loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance				1,769				1,703	1,769	1,703
Charge-offs									(375)	(824)
Recoveries									17
Net charge-offs									(358)	(824)
Provision for loan losses charged to expense									721	890
Ending Balance	2,132				1,769				2,132	1,769
Total consumer [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance				524				536	524	536
Charge-offs									(588)	(56)
Recoveries									4	2
Net charge-offs									(584)	(54)
Provision for loan losses charged to expense									633	42
Ending Balance	573				524				573	524
Unallocated Financing Receivables [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance				684				469	684	469
Provision for loan losses charged to expense									(632)	215
Ending Balance	$ 52				$ 684				$ 52	$ 684

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Net Income per Share

12 Months Ended

Dec. 31, 2013

Net Income per Share [Abstract]

Net Income per Share

17.  Net Income per Share

The following is a reconciliation of the calculation of basic and diluted net income per share for the past two years:  

	For the years ended December 31,
(In thousands, except per share amounts)	2013		2012
Net income	$	5,115	$	4,244
Less: Preferred stock dividends and discount accretion		988		1,602
Income available to common shareholders	$	4,127	$	2,642
Weighted average common shares outstanding - Basic		7,547		7,477
Plus: Potential dilutive common stock equivalents		263		317
Weighted average common shares outstanding - Diluted		7,810		7,794
Net income per common share - Basic	$	0.55	$	0.35
Net income per common share - Diluted		0.53		0.34
Stock options and common stock excluded from the income per share calculation as their effect would have been anti-dilutive		377		506

The "potential dilutive common stock equivalents" shown in the table above includes the impact of the warrant to purchase 764,778 shares of common stock issued to the U.S. Department of Treasury under the Capital Purchase Program in December 2008, utilizing the Treasury stock method.  The warrant was repurchased on August 28, 2013 for a price of $2.7 million utilizing the Treasury Stock Method for the period outstanding.

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Quarterly Financial Information (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2013

Quarterly Financial Information (Unaudited) [Abstract]

Schedule of Quarterly Financial Information

	2013
(In thousands, except per share data)	March 31		June 30		September 30		December 31
Total interest income	$	8,313	$	8,401	$	8,474	$	8,766
Total interest expense		1,624		1,599		1,603		1,703
Net interest income		6,689		6,802		6,871		7,063
Provision for loan losses		650		300		600		800
Net interest income after provision for loan losses		6,039		6,502		6,271		6,263
Total noninterest income		1,825		1,658		1,650		1,471
Total noninterest expense		6,126		6,074		5,935		5,862
Income before provision for income taxes		1,738		2,086		1,986		1,872
Provision for income taxes		538		739		684		606
Net income		1,200		1,347		1,302		1,266
Preferred stock dividends and discount accretion		404		465		119		-
Income available to common shareholders	$	796	$	882	$	1,183	$	1,266
Net income per common share - Basic	$	0.11	$	0.12	$	0.15	$	0.17
Net income per common share - Diluted		0.10		0.11		0.15		0.17
	2012
(In thousands, except per share data)	March 31		June 30		September 30		December 31
Total interest income	$	9,058	$	8,772	$	8,871	$	8,502
Total interest expense		2,250		1,915		1,844		1,765
Net interest income		6,808		6,857		7,027		6,737
Provision for loan losses		1,200		1,000		1,000		800
Net interest income after provision for loan losses		5,608		5,857		6,027		5,937
Total noninterest income		1,715		1,841		1,774		2,008
Total noninterest expense		5,959		6,204		5,999		6,135
Income before provision for income taxes		1,364		1,494		1,802		1,810
Provision for income taxes		459		518		606		643
Net income		905		976		1,196		1,167
Preferred stock dividends and discount accretion		396		401		397		408
Income available to common shareholders	$	509	$	575	$	799	$	759
Net income per common share - Basic	$	0.07	$	0.08	$	0.10	$	0.10
Net income per common share - Diluted		0.07		0.07		0.10		0.10

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Other Income (Tables)

12 Months Ended

Dec. 31, 2013

Other Income [Abstract]

Components of Other Income

The components of other income for the past two years are as follows:

	For the years ended December 31,
(In thousands)	2013		2012
ATM and check card fees	$	487	$	413
Wire transfer fees		88		84
Safe deposit box fees		59		58
Other		80		172
Total other income	$	714	$	727

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Other Assets (Other Assets Table) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Other Assets [Abstract]
Prepaid expenses	$ 481	$ 386
SBA servicing assets	437	396
Net receivable due from SBA	429	758
Other assets	1,307	691
Total other assets	$ 2,654	$ 2,231

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Employee Benefit Plans (Transactions Under The Company's Stock Option Plans) (Details) (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Employee Benefit Plans [Abstract]
Options Outstanding, shares	516,332	643,206
Options granted, shares	37,500	25,000
Options exercised, shares	(11,667)	(117,240)
Options forfeited, shares	(8,333)	(12,499)
Options expired, shares	(84,857)	(22,135)
Options Outstanding, shares	448,975	516,332	643,206
Options Exercisable: Shares Exercisable	364,143
Weighted Average exercise Price: Options Outstanding	$ 7.06	$ 6.80
Weighted Averae Exercise Price: Optons granted	$ 6.58	$ 6.00
Weighted Average Exercise Price: Options exercised	$ 6.62	$ 4.99
Weighted Average Exercise Price: Options forfeited	$ 6.56	$ 6.06
Weighted Average Exercise Price: Options expired	$ 8.84	$ 9.73
Weighted Average exercise Price: Options Outstanding	$ 6.70	$ 7.06	$ 6.80
Weighted Average Exercise Price: Options Exercisable	$ 6.76
Weighted Average Remaining Contractual Life (in years): Options Outstanding	5 years 7 months 6 days	5 years 4 months 24 days	5 years 3 months 18 days
Weighted Average Remaining Contractual Life (in years): Options Exercisable	4 years 9 months 18 days
Aggregate Intrinsic Value: Options Outstanding	$ 739,951	$ 327,725	$ 517,867
Aggregate Intrinsic Value: Options Exercisable	$ 637,387

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Other Assets (Tables)

12 Months Ended

Dec. 31, 2013

Other Assets [Abstract]

Schedule of Other Assets

(In thousands)	December 31, 2013		December 31, 2012
Prepaid expenses	$	481	$	386
Servicing assets		437		396
Net receivable due from SBA		429		758
Other		1,307		691
Total other assets	$	2,654	$	2,231

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Summary of Significant Accounting Policies (Useful Lives of Premises and Equipment) (Details)	12 Months Ended
	Dec. 31, 2013
Building [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	30 years
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	10 years
Maximum [Member] | Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	5 years
Minimum [Member] | Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	3 years

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Loans (Troubled Debt Restructurings Loans Modified) (Details) (Commercial real estate [Member], USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013 loan	Dec. 31, 2012 loan
Commercial real estate [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Number of Contracts, Duration	1	3
Financing Receivable, Modifications, Pre-Modification Recorded Investment, Duration	$ 2,684	$ 1,856
Loans and Leases Receivable, Impaired, Interest Lost on Nonaccrual Loans	$ 50	$ 11

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Condensed Financial Statements of Unity Bancorp, Inc. (Parent Company Only) (Condensed Statements of Income) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012
Condensed Financial Statements, Captions [Line Items]
Total interest income	$ 8,766	$ 8,474	$ 8,401	$ 8,313	$ 8,502	$ 8,871	$ 8,772	$ 9,058	$ 33,954	$ 35,203
Total interest expense	1,703	1,603	1,599	1,624	1,765	1,844	1,915	2,250	6,529	7,774
Net interest income (expense)	7,063	6,871	6,802	6,689	6,737	7,027	6,857	6,808	27,425	27,429
Other expenses									1,867	1,898
Provision for income taxes	606	684	739	538	643	606	518	459
Net income	1,266	1,302	1,347	1,200	1,167	1,196	976	905	5,115	4,244
Preferred stock dividends and discount accretion		119	465	404	408	397	401	396	988	1,602
Income available to common shareholders	1,266	1,183	882	796	759	799	575	509	4,127	2,642
Parent Company Only [Member]
Condensed Financial Statements, Captions [Line Items]
Total interest income									761	761
Total interest expense									287	345
Net interest income (expense)									474	416
Gains on sales of securities									3
Other expenses									22	19
Income (loss) before provision (benefit) for income taxes and equity in undistributed net income of subsidiary									455	397
Income (loss) before equity in undistributed net income of subsidiary									339	261
Equity in undistributed net income of subsidiary									4,776	3,983
Net income									5,115	4,244
Preferred stock dividends and discount accretion									988	1,602
Income available to common shareholders									$ 4,127	$ 2,642

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Loans (Classification Of Loans By Class) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]
SBA loans held to maturity	$ 48,918	$ 58,593
SBA 504 loans	31,564	41,438
Commercial loans	363,340	301,564
Residential mortgage loans	182,067	132,094
Consumer loans	46,139	46,410
Total loans held for investment	672,028	580,099
SBA loans held for sale	6,673	6,937
Total Loans	678,701	587,036
Commercial other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loans	37,611	24,043
Total Loans	37,611	24,043
Commercial real estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loans	317,471	264,439
Total Loans	317,471	264,439
Commercial real estate construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial loans	8,258	13,082
Total Loans	8,258	13,082
Residential mortgages [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Residential mortgage loans	175,984	125,232
Total Loans		125,232
Residential Construction Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	175,984
Residential Purchased Mortgages Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Residential mortgage loans	6,083	6,862
Total Loans	6,083	6,862
Home equity [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Consumer loans	43,704	45,152
Total Loans	43,704	45,152
Consumer other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Consumer loans	2,435	1,258
Total Loans	$ 2,435	$ 1,258

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Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2013

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Transactions under the Company's stock option plans

	Shares		Weighted average exercise price		Weighted average remaining contractual life in years		Aggregate intrinsic value
Outstanding at December 31, 2011		643,206	$	6.80		5.3	$	517,867
Options granted		25,000		6.00
Options exercised		(117,240)		4.99
Options forfeited		(12,499)		6.06
Options expired		(22,135)		9.73
Outstanding at December 31, 2012		516,332	$	7.06		5.4	$	327,725
Options granted		37,500		6.58
Options exercised		(11,667)		6.62
Options forfeited		(8,333)		6.56
Options expired		(84,857)		8.84
Outstanding at December 31, 2013		448,975	$	6.70		5.6	$	739,951
Exercisable at December 31, 2013		364,143	$	6.76		4.8	$	637,387

Schedule of Stock Option Valuation Assumptions

	For the years ended December 31,
	2013			2012
Number of options granted		37,500			25,000
Weighted average exercise price	$	6.58		$	6.00
Weighted average fair value of options	$	3.19		$	2.33
Expected life in years (1)		5.75			5.07
Expected volatility (2)		51.40	%		43.61	%
Risk-free interest rate (3)		1.24	%		0.77	%
Dividend yield (4)		0.17	%		-	%

(1) The expected life of the options was estimated based on historical employee behavior and represents the period of time that options granted are expected to be outstanding.

(2) The expected volatility of the Company’s stock price was based on the historical volatility over the period commensurate with the expected life of the options.

(3) The risk-free interest rate is the U.S Treasury rate commensurate with the expected life of the options on the date of grant.

(4) The expected dividend yield is the projected annual yield based on the grant date stock price.

Schedule of Information About Options Exercised

	For the years ended December 31,
	2013		2012
Number of options exercised		11,667		117,240
Total intrinsic value of options exercised	$	15,367	$	121,973
Cash received from options exercised		-		173,325
Tax deduction realized from options exercised		6,138		43,319

Schedule of Stock Options, by Exercise Price Range

		Options outstanding						Options exercisable
Range of exercise prices		Options outstanding		Weighted average remaining contractual life (in years)		Weighted average exercise price		Options exercisable		Weighted average exercise price
$	0.00 - 4.00		119,750		5.4	$	3.87		119,750	$	3.87
	4.01 - 8.00		249,175		6.8		6.52		164,343		6.55
	8.01 - 12.00		35,399		0.9		10.13		35,399		10.13
	12.01 - 16.00		44,651		3.1		12.62		44,651		12.62
	Total		448,975		5.6	$	6.70		364,143	$	6.76

Schedule of Nonvested Share Activity

	Shares		Average grant date fair value
Nonvested restricted stock at December 31, 2012		90,975	$	6.10
Granted		42,500		7.12
Vested		(31,200)		5.88
Forfeited		(6,650)		6.16
Nonvested restricted stock at December 31, 2013		95,625	$	6.64

Restricted Stock Awards Activity

	For the years ended December 31,
	2013		2012
Number of shares granted		42,500		29,500
Average grant date fair value	$	7.12	$	6.07

Employee Stock Option [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Allocation of Share-based Compensation Costs

	For the years ended December 31,
	2013		2012
Compensation expense	$	140,873	$	148,996
Income tax benefit		56,265		54,458

Restricted Stock [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Allocation of Share-based Compensation Costs

	For the years ended December 31,
	2013		2012
Compensation expense	$	198,682	$	160,509
Income tax benefit		79,354		64,107

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Significant Accounting Policies

12 Months Ended

Dec. 31, 2013

Significant Accounting Policies [Abstract]

Significant Accounting Policies

Notes to Consolidated Financial Statements

1.  Summary of Significant Accounting Policies

Overview

The accompanying Consolidated Financial Statements include the accounts of Unity Bancorp, Inc. (the “Parent Company”) and its wholly-owned subsidiary, Unity Bank (the “Bank” or when consolidated with the Parent Company, the “Company”).  All significant intercompany balances and transactions have been eliminated in consolidation.

Unity Bancorp, Inc. is a bank holding company incorporated in New Jersey and registered under the Bank Holding Company Act of 1956, as amended.  Its wholly-owned subsidiary, the Bank, is chartered by the New Jersey Department of Banking and Insurance.  The Bank provides a full range of commercial and retail banking services through fifteen branch offices located in Hunterdon, Middlesex, Somerset, Union and Warren counties in New Jersey and Northampton County in Pennsylvania.  These services include the acceptance of demand, savings, and time deposits and the extension of consumer, real estate, Small Business Administration (“SBA”) and other commercial credits.

Unity Bank has nine wholly-owned subsidiaries: Unity Investment Services, Inc., AJB Residential Realty Enterprises, Inc., AJB Commercial Realty, Inc., MKCD Commercial, Inc., JAH Commercial, Inc., UB Commercial LLC, ASBC Holdings LLC, Unity Property Holdings 1, Inc., and Unity Property Holdings 2, Inc.  Unity Investment Services, Inc. is used to hold and administer part of the Bank’s investment portfolio.  The other subsidiaries hold, administer and maintain the Bank’s other real estate owned (“OREO”) properties.Unity Investment Services, Inc. has one subsidiary, Unity Delaware Investment 2, Inc., which has one subsidiary, Unity NJ REIT, Inc.  Unity NJ REIT, Inc. was added in 2013 to hold loans.

The Company has two unconsolidated, wholly-owned statutory trust subsidiaries.  For additional information, see Note 10 to the Consolidated Financial Statements.

Use of Estimates in the Preparation of Financial Statements

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Amounts requiring the use of significant estimates include the allowance for loan losses, valuation of deferred tax and servicing assets, the carrying value of loans held for sale and other real estate owned, the valuation of securities and the determination of other-than-temporary impairment for securities and fair value disclosures.  Actual results could differ from those estimates.

Reclassifications

Certain reclassifications have been made to the prior year to conform to the current year presentation, with no impact on prior year earnings or shareholders’ equity.

Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, amounts due from banks, federal funds sold and interest-bearing deposits.

Securities

The Company classifies its securities into two categories, available for sale and held to maturity.

Securities that are classified as available for sale are stated at fair value.  Unrealized gains and losses on securities available for sale are generally excluded from results of operations and are reported as other comprehensive income, a separate component of shareholders’ equity, net of taxes.  Securities classified as available for sale include securities that may be sold in response to changes in interest rates, changes in prepayment risks or for asset/liability management purposes.  The cost of securities sold is determined on a specific identification basis. Gains and losses on sales of securities are recognized in the Consolidated Statements of Income on the date of sale.

Securities are classified as held to maturity based on management’s intent and ability to hold them to maturity.  Such securities are stated at cost, adjusted for unamortized purchase premiums and discounts using the level yield method.

If transfers between the available for sale and held to maturity portfolios occur, they are accounted for at fair value and unrealized holding gains and losses are accounted for at the date of transfer.  For securities transferred to available for sale from held to maturity, unrealized gains or losses as of the date of the transfer are recognized in other comprehensive income (loss), a separate component of shareholders’ equity.  For securities transferred into the held to maturity portfolio from the available for sale portfolio, unrealized gains or losses as of the date of transfer continue to be reported in other comprehensive income (loss), and are amortized over the remaining life of the security as an adjustment to its yield, consistent with amortization of the premium or accretion of the discount.

For additional information on securities, see Note 4 to the Consolidated Financial Statements.

Other-Than-Temporary Impairment

The Company has a process in place to identify debt securities that could potentially incur credit impairment that is other-than-temporary.  This process involves monitoring late payments, pricing levels, downgrades by rating agencies, key financial ratios, financial statements, revenue forecasts and cash flow projections as indicators of credit issues.  Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concern warrants such evaluation.  This evaluation considers relevant facts and circumstances in evaluating whether a credit or interest rate-related impairment of a security is other-than-temporary.  Relevant facts and circumstances considered include: (1) the extent and length of time the fair value has been below cost; (2) the reasons for the decline in value; (3) the financial position and access to capital of the issuer, including the current and future impact of any specific events and (4) for fixed maturity securities, our intent to sell a security or whether it is more likely than not we will be required to sell the security before the recovery of its amortized cost which, in some cases, may extend to maturity.

For debt securities that are considered other-than-temporarily impaired where management has no intent to sell and the Company has no requirement to sell prior to recovery of its amortized cost basis, the amount of the impairment is separated into the amount that is credit related (credit loss component) and the amount due to all other factors.  The credit loss component is recognized in earnings and is the difference between the security’s amortized cost basis and the present value of its expected future cash flows.  The remaining difference between the security’s fair value and the present value of future expected cash flows is due to factors that are not credit related and is recognized in other comprehensive income.  For debt securities where management has the intent to sell, the amount of the impairment is reflected in earnings as realized losses.

The present value of expected future cash flows is determined using the best estimate cash flows discounted at the effective interest rate implicit to the security at the date of purchase or the current yield to accrete an asset-backed or floating rate security.  The methodology and assumptions for establishing the best estimate cash flows vary depending on the type of security.  The asset-backed securities cash flow estimates are based on bond specific facts and circumstances that may include collateral characteristics, expectations of delinquency and default rates, loss severity and prepayment speeds and structural support, including subordination and guarantees.  The corporate bond cash flow estimates are derived from scenario-based outcomes of expected corporate restructurings or the disposition of assets using bond specific facts and circumstances including timing, security interests and loss severity.

Transfers of Financial Assets

Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered.  Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.

Loans

Loans Held for Sale

Loans held for sale represent the guaranteed portion of SBA loans and are reflected at the lower of aggregate cost or market value.  The Company originates loans to customers under an SBA program that historically has provided for SBA guarantees of up to 90 percent of each loan.  The Company generally sells the guaranteed portion of its SBA loans to a third party and retains the servicing, holding the nonguaranteed portion in its portfolio.  The net amount of loan origination fees on loans sold is included in the carrying value and in the gain or loss on the sale.  When sales of SBA loans do occur, the premium received on the sale and the present value of future cash flows of the servicing assets are recognized in income.  All criteria for sale accounting must be met in order for the loan sales to occur; see details under the “Transfers of Financial Assets” heading above.

Servicing assets represent the estimated fair value of retained servicing rights, net of servicing costs, at the time loans are sold.  Servicing assets are amortized in proportion to, and over the period of, estimated net servicing revenues.  Impairment is evaluated based on stratifying the underlying financial assets by date of origination and term.  Fair value is determined using prices for similar assets with similar characteristics, when available, or based upon discounted cash flows using market-based assumptions.  Any impairment, if temporary, would generally be reported as a valuation allowance.

Serviced loans sold to others are not included in the accompanying Consolidated Balance Sheets.  Income and fees collected for loan servicing are credited to noninterest income when earned, net of amortization on the related servicing assets.

For additional information on servicing assets, see Note 5 to the Consolidated Financial Statements.

Loans Held for Investment

Loans held for investment are stated at the unpaid principal balance, net of unearned discounts and deferred loan origination fees and costs.  In accordance with the level yield method, loan origination fees, net of direct loan origination costs, are deferred and recognized over the estimated life of the related loans as an adjustment to the loan yield.  Interest is credited to operations primarily based upon the principal balance outstanding.  

Loans are reported as past due when either interest or principal is unpaid in the following circumstances: fixed payment loans when the borrower is in arrears for two or more monthly payments; open end credit for two or more billing cycles; and single payment notes if interest or principal remains unpaid for 30 days or more.

Nonperforming loans consist of loans that are not accruing interest as a result of principal or interest being in default for a period of 90 days or more or when the ability to collect principal and interest according to the contractual terms is in doubt (nonaccrual loans).  When a loan is classified as nonaccrual, interest accruals are discontinued and all past due interest previously recognized as income is reversed and charged against current period earnings.  Generally, until the loan becomes current, any payments received from the borrower are applied to outstanding principal until such time as management determines that the financial condition of the borrower and other factors merit recognition of a portion of such payments as interest income.  Loans may be returned to an accrual status when the ability to collect is reasonably assured and when the loan is brought current as to principal and interest.

Loans are charged off when collection is sufficiently questionable and when the Company can no longer justify maintaining the loan as an asset on the balance sheet.  Loans qualify for charge-off when, after thorough analysis, all possible sources of repayment are insufficient.  These include: 1) potential future cash flows, 2) value of collateral, and/or 3) strength of co-makers and guarantors.  All unsecured loans are charged off upon the establishment of the loan’s nonaccrual status.  Additionally, all loans classified as a loss or that portion of the loan classified as a loss is charged off.  All loan charge-offs are approved by the Board of Directors.

Troubled debt restructurings ("TDRs") occur when a creditor, for economic or legal reasons related to a debtor’s financial condition, grants a concession to the debtor that it would not otherwise consider.  These concessions typically include reductions in interest rate, extending the maturity of a loan, or a combination of both. Interest income on accruing TDRs is credited to operations primarily based upon the principal amount outstanding, as stated in the paragraphs above. 

The Company evaluates its loans for impairment.  A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement.  The Company has defined impaired loans to be all TDRs and nonperforming loans.  Impairment is evaluated in total for smaller-balance loans of a similar nature (consumer and residential mortgage loans), and on an individual basis for all other loans.  Impairment of a loan is measured based on the present value of expected future cash flows, discounted at the loan's effective interest rate, or as a practical expedient, based on a loan’s observable market price or the fair value of collateral, net of estimated costs to sell, if the loan is collateral-dependent.  If the value of the impaired loan is less than the recorded investment in the loan, the Company establishes a valuation allowance, or adjusts existing valuation allowances, with a corresponding charge to the provision for loan losses.

For additional information on loans, see Note 5 to the Consolidated Financial Statements.

Allowance for Loan Losses and Reserve for Unfunded Loan Commitments

The allowance for loan losses is maintained at a level management considers adequate to provide for probable loan losses as of the balance sheet date.  The allowance is increased by provisions charged to expense and is reduced by net charge-offs.  

The level of the allowance is based on management’s evaluation of probable losses in the loan portfolio, after consideration of prevailing economic conditions in the Company’s market area, the volume and composition of the loan portfolio, and historical loan loss experience.  The allowance for loan losses consists of specific reserves for individually impaired credits and TDRs, reserves for nonimpaired loans based on historical loss factors adjusted for general economic factors and other qualitative risk factors such as changes in delinquency trends, industry concentrations or local/national economic trends.  This risk assessment process is performed at least quarterly, and, as adjustments become necessary, they are realized in the periods in which they become known.   

Although management attempts to maintain the allowance at a level deemed adequate to provide for probable losses, future additions to the allowance may be necessary based upon certain factors including changes in market conditions and underlying collateral values.  In addition, various regulatory agencies periodically review the adequacy of the Company’s allowance for loan losses.  These agencies may require the Company to make additional provisions based on their judgments about information available to them at the time of their examination.

The Company maintains a reserve for unfunded loan commitments at a level that management believes is adequate to absorb estimated probable losses.  Adjustments to the reserve are made through other expenses and applied to the reserve which is classified as other liabilities.

For additional information on the allowance for loan losses and reserve for unfunded loan commitments, see Note 6 to the Consolidated Financial Statements.

Premises and Equipment

Land is carried at cost.  All other fixed assets are carried at cost less accumulated depreciation.  Depreciation is computed using the straight-line method over the estimated useful lives of the assets.  The useful life of buildings is not to exceed 30 years; furniture and fixtures is generally 10 years or less, and equipment is 3 to 5 years.  Leasehold improvements are depreciated over the life of the underlying lease. 

For additional information on premises and equipment, see Note 7 to the Consolidated Financial Statements.

Bank Owned Life Insurance

The Company purchased life insurance policies on certain members of management.  Bank owned life insurance (“BOLI”) is recorded at its cash surrender value or the amount that can be realized.

Federal Home Loan Bank Stock

Federal law requires a member institution of the Federal Home Loan Bank (“FHLB”) system to hold stock of its district FHLB according to a predetermined formula.  The stock is carried at cost. Management reviews the stock for impairment based on the ultimate recoverability of the cost basis in the stock.  The stock’s value is determined by the ultimate recoverability of the par value rather than by recognizing temporary declines.  Management considers such criteria as the significance of the decline in net assets, if any, of the FHLB, the length of time this situation has persisted, commitments by the FHLB to make payments required by law or regulation, the impact of legislative and regulatory changes on the customer base of the FHLB and the liquidity position of the FHLB.

Other Real Estate Owned

Other real estate owned (“OREO”) is recorded at the fair value, less estimated costs to sell at the date of acquisition, with a charge to the allowance for loan losses for any excess of the loan carrying value over such amount.  Subsequently, other real estate owned is carried at the lower of cost or fair value, as determined by current appraisals.  Certain costs that increase the value or extend the useful life in preparing properties for sale are capitalized to the extent that the appraisal amount exceeds the carry value, and expenses of holding foreclosed properties are charged to operations as incurred.

Appraisals

The Company requires current real estate appraisals on all loans that become OREO or in-substance foreclosure, loans that are classified substandard, doubtful or loss, or loans that are over $100,000 and nonperforming.  Prior to each balance sheet date, the Company values impaired collateral-dependent loans and OREO based upon a third party appraisal, broker's price opinion, drive by appraisal, automated valuation model, updated market evaluation, or a combination of these methods.  The amount is discounted for the decline in market real estate values (for original appraisals), for any known damage or repair costs, and for selling and closing costs.  The amount of the discount is dependent upon the method used to determine the original value.  The original appraisal is generally used when a loan is first determined to be impaired.  When applying the discount, the Company takes into consideration when the appraisal was performed, the collateral’s location, the type of collateral, any known damage to the property and the type of business.  Subsequent to entering impaired status and the Company determining that there is a collateral shortfall, the Company will generally, depending on the type of collateral, order a third party appraisal, broker's price opinion, automated valuation model or updated market evaluation.  Subsequent to receiving the third party results, the Company will discount the value 6 to 10 percent for selling and closing costs.

Income Taxes

The Company follows Financial Accounting Standards Board Accounting Standards Codification ("FASB ASC") Topic 740, “Income Taxes,” which prescribes a threshold for the financial statement recognition of income taxes and provides criteria for the measurement of tax positions taken or expected to be taken in a tax return.  ASC 740 also includes guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition of income taxes.  Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis.  Deferred tax assets and liabilities are measured using the enacted tax rates applicable to taxable income for the years in which those temporary differences are expected to be recovered or settled.  The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.  Valuation reserves are established against certain deferred tax assets when it is more likely than not that the deferred tax assets will not be realized.  Increases or decreases in the valuation reserve are charged or credited to the income tax provision.

When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that ultimately would be sustained.  The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any.  The evaluation of a tax position taken is considered by itself and not offset or aggregated with other positions.  Tax positions that meet the more likely than not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority.  The portion of benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination.

Interest and penalties associated with unrecognized tax benefits are recognized in income tax expense on the income statement.

For additional information on income taxes, see Note 16 to the Consolidated Financial Statements.

Net Income Per Share

Basic net income per common share is calculated as net income available to common shareholders divided by the weighted average common shares outstanding during the reporting period.  Net income available to common shareholders is calculated as net income less accrued dividends and discount accretion related to preferred stock.

Diluted net income per common share is computed similarly to that of basic net income per common share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if all potentially dilutive common shares, principally stock options, were issued during the reporting period utilizing the Treasury stock method.  However, when a net loss rather than net income is recognized, diluted earnings per share equals basic earnings per share.

For additional information on net income per share, see Note 17 to the Consolidated Financial Statements.

Stock-Based Compensation

The Company accounts for its stock-based compensation awards in accordance with FASB ASC Topic 718, “Compensation – Stock Compensation,” which requires recognition of compensation expense related to stock-based compensation awards over the period during which an employee is required to provide service for the award.  Compensation expense is equal to the fair value of the award, net of estimated forfeitures, and is recognized over the vesting period of such awards.

For additional information on the Company’s stock-based compensation, see Note 19 to the Consolidated Financial Statements.

Fair Value

The Company follows FASB ASC Topic 820, “Fair Value Measurement and Disclosures,” which provides a framework for measuring fair value under generally accepted accounting principles.

For additional information on the fair value of the Company’s financial instruments, see Note 20 to the Consolidated Financial Statements.

Other Comprehensive Income (Loss)

Other comprehensive income (loss) consists of the change in unrealized gains (losses) on securities available for sale that were reported as a component of shareholders’ equity, net of tax.

For additional information on other comprehensive income, see Note 12 to the Consolidated Financial Statements.

Advertising

The Company expenses the costs of advertising in the period incurred.

Dividend Restrictions

Banking regulations require maintaining certain capital levels that may limit the dividends paid by our bank to our holding company or by our holding company to our shareholders.

Operating Segments

While management monitors the revenue streams of its various products and services, operating results and financial performance are evaluated on a company-wide basis.  The Company’s management uses consolidated results to make operating and strategic decisions.  Accordingly, there is only one reportable segment.

Recent Accounting Pronouncements

ASU No. 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.  In July 2013, the FASB issued ASU No. 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.  The objective of the amendments in this Update is to eliminate diversity on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists.  An unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, unless certain exceptions exist as defined in the ASU.  The amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013 and are not expected to impact the Company's financial condition, results of operations or cash flows.

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Loans (Loan Portfolio By Class According To Credit Quality Indicatiors) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Financing Receivable, Recorded Investment [Line Items]
SBA loans held to maturity	$ 48,918	$ 58,593
SBA 504 loans	31,564	41,438
Commercial loans	363,340	301,564
SBA, SBA 504, and commercial loans	443,822	401,595
Residential mortgage loans	182,067	132,094
Consumer loans	46,139	46,410
Total Loans	678,701	587,036
Commercial other [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial loans	37,611	24,043
Total Loans	37,611	24,043
Commercial real estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial loans	317,471	264,439
Total Loans	317,471	264,439
Commercial real estate construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial loans	8,258	13,082
Total Loans	8,258	13,082
Residential mortgages [Member]
Financing Receivable, Recorded Investment [Line Items]
Residential mortgage loans	175,984	125,232
Total Loans		125,232
Residential Construction Segment [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	175,984
Residential Purchased Mortgages Segment [Member]
Financing Receivable, Recorded Investment [Line Items]
Residential mortgage loans	6,083	6,862
Total Loans	6,083	6,862
Home equity [Member]
Financing Receivable, Recorded Investment [Line Items]
Consumer loans	43,704	45,152
Total Loans	43,704	45,152
Consumer other [Member]
Financing Receivable, Recorded Investment [Line Items]
Consumer loans	2,435	1,258
Total Loans	2,435	1,258
Residential Mortgage And Consumer Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	228,206	178,504
Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
SBA loans held to maturity	43,778	51,754
SBA 504 loans	20,641	28,726
Commercial loans	332,247	262,733
SBA, SBA 504, and commercial loans	396,666	343,213
Pass [Member] | Commercial other [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial loans	34,946	20,337
Pass [Member] | Commercial real estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial loans	289,220	229,516
Pass [Member] | Commercial real estate construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial loans	8,081	12,880
Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
SBA loans held to maturity	2,035	2,328
SBA 504 loans	9,595	5,860
Commercial loans	22,636	32,055
SBA, SBA 504, and commercial loans	34,266	40,243
Special Mention [Member] | Commercial other [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial loans	1,499	1,519
Special Mention [Member] | Commercial real estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial loans	21,137	30,334
Special Mention [Member] | Commercial real estate construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial loans		202
Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
SBA loans held to maturity	3,105	4,511
SBA 504 loans	1,328	6,852
Commercial loans	8,457	6,776
SBA, SBA 504, and commercial loans	12,890	18,139
Substandard [Member] | Commercial other [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial loans	1,166	2,187
Substandard [Member] | Commercial real estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial loans	7,114	4,589
Substandard [Member] | Commercial real estate construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial loans	177
Performing Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Residential mortgage loans	176,340	126,583
Consumer loans	44,459	46,093
Performing Financing Receivable [Member] | Residential mortgages [Member]
Financing Receivable, Recorded Investment [Line Items]
Residential mortgage loans	173,085	122,711
Performing Financing Receivable [Member] | Residential Purchased Mortgages Segment [Member]
Financing Receivable, Recorded Investment [Line Items]
Residential mortgage loans	3,255	3,872
Performing Financing Receivable [Member] | Home equity [Member]
Financing Receivable, Recorded Investment [Line Items]
Consumer loans	42,029	44,844
Performing Financing Receivable [Member] | Consumer other [Member]
Financing Receivable, Recorded Investment [Line Items]
Consumer loans	2,430	1,249
Performing Financing Receivable [Member] | Residential Mortgage And Consumer Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	220,799	172,676
Nonperforming Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Residential mortgage loans	5,727	5,511
Consumer loans	1,680	317
Nonperforming Financing Receivable [Member] | Residential mortgages [Member]
Financing Receivable, Recorded Investment [Line Items]
Residential mortgage loans	2,899	2,521
Nonperforming Financing Receivable [Member] | Residential Purchased Mortgages Segment [Member]
Financing Receivable, Recorded Investment [Line Items]
Residential mortgage loans	2,828	2,990
Nonperforming Financing Receivable [Member] | Home equity [Member]
Financing Receivable, Recorded Investment [Line Items]
Consumer loans	1,675	308
Nonperforming Financing Receivable [Member] | Consumer other [Member]
Financing Receivable, Recorded Investment [Line Items]
Consumer loans	5	9
Nonperforming Financing Receivable [Member] | Residential Mortgage And Consumer Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	$ 7,407	$ 5,828

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Other Expenses (Tables)

12 Months Ended

Dec. 31, 2013

Other Expenses [Abstract]

Components of Other Expenses

The components of other expenses for the past two years are as follows:

	For the years ended December 31,
(In thousands)	2013		2012
Travel, entertainment, training and recruiting	$	608	$	589
Director fees		367		259
Insurance		335		339
Stationary and supplies		271		237
Retail losses		4		142
Other		282		332
Total other expenses	$	1,867	$	1,898

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

12 Months Ended

Dec. 31, 2013

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

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

21.  Condensed Financial Statements of Unity Bancorp, Inc.

(Parent Company Only)

Balance Sheets
(In thousands)	December 31, 2013		December 31, 2012
ASSETS
Cash and cash equivalents	$	724	$	11,869
Securities available for sale		166		105
Capital note due from Bank		8,500		8,500
Investment in subsidiaries		62,814		72,213
Other assets		493		476
Total assets	$	72,697	$	93,163
LIABILITIES AND SHAREHOLDERS' EQUITY
Other liabilities	$	59	$	188
Subordinated debentures		15,465		15,465
Shareholders' equity		57,173		77,510
Total liabilities and shareholders' equity	$	72,697	$	93,163

Statements of Income	For the years ended December 31,
(In thousands)	2013		2012
Total interest income	$	761	$	761
Total interest expense		287		345
Net interest income		474		416
Gains on sales of securities		3		-
Other expenses		22		19
Income before provision for income taxes and equity in undistributed net income of subsidiary		455		397
Provision for income taxes		116		136
Income before equity in undistributed net income of subsidiary		339		261
Equity in undistributed net income of subsidiary		4,776		3,983
Net income		5,115		4,244
Preferred stock dividends and discount accretion		988		1,602
Income available to common shareholders	$	4,127	$	2,642

Statements of Cash Flows	For the years ended December 31,
(In thousands)	2013		2012
OPERATING ACTIVITIES
Net income	$	5,115	$	4,244
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed net income of subsidiary		(4,776)		(3,983)
Gains on sales of securities		(3)		-
Net change in other assets and other liabilities		(22)		(8)
Net cash provided by operating activities		314		253
INVESTING ACTIVITIES
Purchases of securities		(100)		-
Proceeds from sales of securities		63		-
Net cash used in investing activities		(37)		-
FINANCING ACTIVITIES
Redemption of perpetual preferred stock from U.S. Treasury		(20,649)		-
Repurchase of warrant from U.S. Treasury		(2,707)		-
Proceeds from exercise of stock options		-		173
Cash dividends paid on preferred stock		(585)		(1,032)
Cash dividends paid on common stock		(188)		-
Dividend from Bank		12,707		9,000
Net cash provided by (used in) financing activities		(11,422)		8,141
Increase in cash and cash equivalents		(11,145)		8,394
Cash and cash equivalents, beginning of year		11,869		3,475
Cash and cash equivalents, end of year	$	724	$	11,869
SUPPLEMENTAL DISCLOSURES
Interest paid	$	287	$	362

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Fair Value

12 Months Ended

Dec. 31, 2013

Fair Value [Abstract]

Fair Value

20.  Fair Value

Fair Value Measurement

The Company follows FASB ASC Topic 820, “Fair Value Measurement and Disclosures,” which requires additional disclosures about the Company’s assets and liabilities that are measured at fair value.  Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.  In determining fair value, the Company uses various methods including market, income and cost approaches.  Based on these approaches, the Company often utilizes certain assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and/or the risks inherent in the inputs to the valuation technique.  These inputs can be readily observable, market corroborated, or generally unobservable inputs.  The Company utilizes techniques that maximize the use of observable inputs and minimize the use of unobservable inputs.  The fair value hierarchy ranks the quality and reliability of the information used to determine fair values.  Financial assets and liabilities carried at fair value will be classified and disclosed as follows:

Level 1 Inputs

· Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

· Generally, this includes debt and equity securities and derivative contracts that are traded in an active exchange market (i.e. New York Stock Exchange), as well as certain U.S. Treasury, U.S. Government and sponsored entity agency mortgage-backed securities that are highly liquid and are actively traded in over-the-counter markets.

Level 2 Inputs

· Quoted prices for similar assets or liabilities in active markets.

· Quoted prices for identical or similar assets or liabilities in inactive markets.

· Inputs other than quoted prices that are observable, either directly or indirectly, for the term of the asset or liability (i.e., interest rates, yield curves, credit risks, prepayment speeds or volatilities) or “market corroborated inputs.”

· Generally, this includes U.S. Government and sponsored entity mortgage-backed securities, corporate debt securities and derivative contracts.

Level 3 Inputs

· Prices or valuation techniques that require inputs that are both unobservable (i.e. supported by little or no market activity) and that are significant to the fair value of the assets or liabilities.

· These assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation.

Fair Value on a Recurring Basis

The following is a description of the valuation methodologies used for instruments measured at fair value on a recurring basis:

Securities Available for Sale

55 percent of the portfolio was made up of residential mortgage-backed securities, which had a fair value of $44.4 million at December 31, 2013.  Approximately $43.1 million of the residential mortgage-backed securities are guaranteed by the Government National Mortgage Association ("GNMA"), the Federal National Mortgage Association ("FNMA") or the Federal Home Loan Mortgage Corporation ("FHLMC").  The underlying loans for these securities are residential mortgages that are geographically dispersed throughout the United States. 

All of the Company’s AFS securities, excluding commercial mortgage-backed securities, were classified as Level 2 assets at December 31, 2013.  The valuation of AFS securities using Level 2 inputs was primarily determined using the market approach, which uses quoted prices for similar assets or liabilities in active markets and all other relevant information.  It includes model pricing, defined as valuing securities based upon their relationship with other benchmark securities. 

For commercial mortgage-backedsecurities, the inputs used by either dealer market participants or an independent pricing service, may be derived from unobservable market information (Level 3 inputs).  In these instances, management evaluates the appropriateness and quality of the assumptions and the resulting prices.  In addition, management reviews the volume and level of activity for all AFS securities and attempts to identify transactions which may not be orderly or reflective of a significant level of activity and volume.  For securities meeting these criteria, the quoted prices received from either market participants or an independent pricing service may be adjusted, as necessary, to estimate fair value and this results in fair values based on Level 3 inputs.  In determining fair value, the Company utilizes unobservable inputs which reflect its own assumptions about the inputs that market participants would use in pricing each security.  In developing its assertion of market participant assumptions, the Company utilizes the best information that is both reasonable and available without undue cost and effort.

In calculating the fair value for AFS securities under Level 3, management prepared present value cash flow models for certain private label commercial mortgage-backed securities.Private label commercial mortgage-backed securities owned by the Bank are A1 and A2 tranche sequential structures and are currently paying principal.  The cash flows for the commercial mortgage-backed securities incorporated the expected cash flow of each security adjusted for default rates, loss severities and prepayments of the individual loans collateralizing the security.  The following table presents quantitative information about Level 3 inputs used to measure the fair value of commercial mortgage-backed securities at December 31, 2013:  

December 31, 2013
Valuation Technique	Unobservable Input	Range		Weighted Average
Discounted Cash Flow	Prepayment rate	8 through 15	%	10.0	%
	Default rate	10 through 15	%	12.5	%
	Loss severity	10 through 25	%	18.0	%

Significant increases or decreases in any of the unobservable inputs in the table above in isolation would result in a significantly lower or higher fair value measurement of the securities.  Generally, a change in the assumption used for the default rate is accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumption used for prepayment rates.

For the Level 3 available for sale private label commercial mortgage-backed securities, cash flow assumptions incorporate independent third party market participant data based on vintage year for each security.  The discount rate utilized in determining the present value of cash flows for the commercial mortgage-backed securities was arrived at by combining the yield on orderly transactions for similar maturity government sponsored mortgage-backed securities with (i) the historical average risk premium of similar structured private label securities, (ii) a risk premium reflecting current market conditions, including liquidity risk and (iii) if applicable, a forecasted loss premium derived from the expected cash flows of each security.  The estimated cash flows for each private label commercial mortgage-backed security are then discounted at the aforementioned effective rate to determine the fair value.  The quoted prices received from either market participants or independent pricing services are weighted with the internal price estimate to determine the fair value of each instrument.

There were no changes in the inputs or methodologies used to determine fair value during the year ended December 31, 2013, as compared to the year ended December 31, 2012.  

The tables below present the balances of assets measured at fair value on a recurring basis as of December 31stfor the past two years:

	December 31, 2013
(In thousands)	Level 1		Level 2		Level 3		Total
Securities available for sale:
U.S. Government sponsored entities	$	-	$	6,418	$	-	$	6,418
State and political subdivisions		-		16,598		-		16,598
Residential mortgage-backed securities		-		44,389		-		44,389
Commercial mortgage-backed securities		-		-		888		888
Corporate and other securities		-		12,840		-		12,840
Total securities available for sale	$	-	$	80,245	$	888	$	81,133
	December 31, 2012
(In thousands)	Level 1		Level 2		Level 3		Total
Securities available for sale:
U.S. Government sponsored entities	$	-	$	2,568	$	-	$	2,568
State and political subdivisions		-		15,303		-		15,303
Residential mortgage-backed securities		-		45,545		-		45,545
Commercial mortgage-backed securities		-		-		4,463		4,463
Corporate and other securities		-		21,659		-		21,659
Total securities available for sale	$	-	$	85,075	$	4,463	$	89,538

The following table summarizes changes in Level 3 assets during 2013 and 2012, consisting of commercial mortgage-backed available for sale securities, measured at fair value on a recurring basis. 

	For the years ended December 31,
(In thousands)	2013		2012
Commercial mortgage-backed securities:
Balance, beginning of period	$	4,463	$	-
Purchases		-		4,423
Payoffs		(815)		-
Principal paydowns		(2,722)		-
Total net losses included in:
Other comprehensive income		(38)		40
Balance, end of period	$	888	$	4,463

There were no gains or losses (realized or unrealized) including in earnings for assets and liabilities held at December 31, 2013 or 2012.

Fair Value on a Nonrecurring Basis

Certain assets and liabilities are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment).  The following is a description of the valuation methodologies used for instruments measured at fair value on a nonrecurring basis:

Appraisal Policy

All appraisals must be performed in accordance with the Uniform Standards of Professional Appraisal Practice (“USPAP”).  Appraisals are certified to the Company and performed by appraisers on the Company’s approved list of appraisers.  Evaluations are completed by a person independent of Company management.  The content of the appraisal depends on the complexity of the property.  Appraisals are completed on a “retail value” and an “as is value”.

The Company requires current real estate appraisals on all loans that become OREO or in-substance foreclosure, loans that are classified substandard, doubtful or loss, or loans that are over $100,000 and nonperforming.  Prior to each balance sheet date, the Company values impaired collateral-dependent loans and OREO based upon a third party appraisal, broker's price opinion, drive by appraisal, automated valuation model, updated market evaluation, or a combination of these methods.  The amount is discounted for the decline in market real estate values (for original appraisals), for any known damage or repair costs, and for selling and closing costs.  The amount of the discount ranges from 10 to 15 percent and is dependent upon the method used to determine the original value.  The original appraisal is generally used when a loan is first determined to be impaired.  When applying the discount, the Company takes into consideration when the appraisal was performed, the collateral’s location, the type of collateral, any known damage to the property and the type of business.  Subsequent to entering impaired status and the Company determining that there is a collateral shortfall, the Company will generally, depending on the type of collateral, order a third party appraisal, broker's price opinion, automated valuation model or updated market evaluation.  Subsequent to receiving the third party results, the Company will discount the value 8 to 10 percent for selling and closing costs.

Other Real Estate Owned ("OREO")

The fair value was determined using appraisals, which may be discounted based on management’s review and changes in market conditions (Level 3 Inputs).  

Impaired Collateral-Dependent Loans

The fair value of impaired collateral-dependent loans is derived in accordance with FASB ASC Topic 310, “Receivables.”  Fair value is determined based on the loan’s observable market price or the fair value of the collateral.  Partially charged-off loans are measured for impairment based upon an appraisal for collateral-dependent loans.  When an updated appraisal is received for a nonperforming loan, the value on the appraisal is discounted in the manner discussed above.  If there is a deficiency in the value after the Company applies these discounts, management applies a specific reserve and the loan remains in nonaccrual status.  The receipt of an updated appraisal would not qualify as a reason to put a loan back into accruing status.  The Company removes loans from nonaccrual status when the borrower makes nine months of contractual payments and demonstrates the ability to service the debt going forward.  Charge-offs are determined based upon the loss that management believes the Company will incur after evaluating collateral for impairment based upon the valuation methods described above and the ability of the borrower to pay any deficiency.

The valuation allowance for impaired loans is included in the allowance for loan losses in the consolidated balance sheets.  At December 31, 2013, the valuation allowance for impaired loans was $1.1 million, a decrease of $863 thousand from $2.0 million at December 31, 2012. 

The following tables present the assets and liabilities carried on the balance sheet by caption and by level within the hierarchy (as described above) as of December 31, 2013 and 2012 and the fair value gains (losses) recognized during the years ended December 31, 2013 and 2012:

	Fair value at December 31, 2013								Gains (losses) from fair value changes for the year ended
(In thousands)	Level 1		Level 2		Level 3		Total		December 31, 2013
Financial assets:
OREO	$	-	$	-	$	633	$	633	$	(769)
Impaired collateral-dependent loans		-		-		4,540		4,540		863
	Fair value at December 31, 2012								Gains (losses) from fair value changes for the year ended
(In thousands)	Level 1		Level 2		Level 3		Total		December 31, 2012
Financial assets:
OREO	$	-	$	-	$	864	$	864	$	(1,671)
Impaired collateral-dependent loans		-		-		8,159		8,159		2,448

Fair Value of Financial Instruments

FASB ASC Topic 825, “Financial Instruments,” requires the disclosure of the estimated fair value of certain financial instruments, including those financial instruments for which the Company did not elect the fair value option.  These estimated fair values as of December 31, 2013 and December 31, 2012 have been determined using available market information and appropriate valuation methodologies.  Considerable judgment is required to interpret market data to develop estimates of fair value.  The estimates presented are not necessarily indicative of amounts the Company could realize in a current market exchange.  The use of alternative market assumptions and estimation methodologies could have had a material effect on these estimates of fair value.  The methodology for estimating the fair value of financial assets and liabilities that are measured on a recurring or nonrecurring basis are discussed above.  

The following methods and assumptions were used to estimate the fair value of other financial instruments for which it is practicable to estimate that value:

Cash and Cash Equivalents

For these short-term instruments, the carrying value is a reasonable estimate of fair value.

Securities Held to Maturity

The fair value of held to maturity ("HTM") securities is based upon quoted market prices for similar or identical assets or other observable inputs (Level 2) or externally developed models that use unobservable inputs due to limited or no market activity of the instrument (Level 3).

SBA Loans Held for Sale

The fair value of SBA loans held for sale is estimated by using a market approach that includes significant other observable inputs.

Loans

The fair value of loans is estimated by discounting the future cash flows using current market rates that reflect the interest rate risk inherent in the loan, except for previously discussed impaired loans.

Federal Home Loan Bank Stock

Federal Home Loan Bank stock is carried at cost.  Carrying value approximates fair value based on the redemption provisions of the issues.

SBA Servicing Assets

SBA servicing assets do not trade in an active, open market with readily observable prices.  The Company estimates the fair value of SBA servicing assets using discounted cash flow models incorporating numerous assumptions from the perspective of a market participant including market discount rates and prepayment speeds.

Accrued Interest

The carrying amounts of accrued interest approximate fair value.

Deposit Liabilities

The fair value of demand deposits and savings accounts is the amount payable on demand at the reporting date (i.e. carrying value).  The fair value of fixed-maturity certificates of deposit is estimated by discounting the future cash flows using current market rates.

Borrowed Funds and Subordinated Debentures

The fair value of borrowings is estimated by discounting the projected future cash flows using current market rates.

Standby Letters of Credit

At December 31, 2013, the Bank had standby letters of credit outstanding of $1.4 million, as compared to $1.6 million at December 31, 2012.  The fair value of these commitments is nominal.

The table below presents the carrying amount and estimated fair values of the Company’s financial instruments not previously presented as of December 31st for the past two years:

			December 31, 2013				December 31, 2012
(In thousands)	Fair value level		Carrying amount		Estimated fair value		Carrying amount		Estimated fair value
Financial assets:
Cash and cash equivalents		Level 1	$	99,404	$	99,404	$	94,192	$	94,192
Securities held to maturity (1)		Level 2		26,381		25,549		21,515		22,741
SBA loans held for sale		Level 2		6,673		7,267		6,937		7,582
Loans, net of allowance for loan losses (2)		Level 2		658,887		645,582		565,341		564,528
Federal Home Loan Bank stock		Level 2		5,392		5,392		3,989		3,989
Servicing assets		Level 3		437		437		396		396
Accrued interest receivable		Level 2		3,272		3,272		3,298		3,298
Financial liabilities:
Deposits		Level 2		738,698		738,337		648,760		650,668
Borrowed funds and subordinated debentures		Level 2		122,465		129,732		90,465		100,257
Accrued interest payable		Level 2		454		454		434		434

(1) Includes held to maturity commercial mortgage-backed securities that are considered Level 3.  These securities had book values of $6.8 million and $2.7 million at December 31, 2013 and 2012, respectively, and market values of $6.4 million and $3.2 million at December 31, 2013 and 2012, respectively.

(2) Includes impaired loans that are considered Level 3 and reported separately in the tables under the “Fair Value on a Nonrecurring Basis” heading.  Impaired loans, net of specific reserves totaled $4.5 million and $8.2 million at December 31, 2013 and 2012, respectively.

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Employee Benefit Plans (Schedule of Stock Options, by Exercise Price Range) (Details) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding: Shares Outstanding	448,975	516,332	643,206
Options Outstanding: Weighted Average Remaining Contractual Life (in years)	5 years 7 months 6 days	5 years 4 months 24 days	5 years 3 months 18 days
Options Outstanding: Weighted Average Exercise Price	$ 6.70	$ 7.06	$ 6.80
Options Exercisable: Shares Exercisable	364,143
Options Exercisable: Weighted Average Exercise Price	$ 6.76
Range Of Option Exercise Prices 0.00-4.00 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding: Shares Outstanding	119,750
Options Outstanding: Weighted Average Remaining Contractual Life (in years)	5 years 4 months 24 days
Options Outstanding: Weighted Average Exercise Price	$ 3.87
Options Exercisable: Shares Exercisable	119,750
Options Exercisable: Weighted Average Exercise Price	$ 3.87
Range Of Option Exercise Prices 4.01-8.00 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding: Shares Outstanding	249,175
Options Outstanding: Weighted Average Remaining Contractual Life (in years)	6 years 9 months 18 days
Options Outstanding: Weighted Average Exercise Price	$ 6.52
Options Exercisable: Shares Exercisable	164,343
Options Exercisable: Weighted Average Exercise Price	$ 6.55
Range Of Option Exercise Prices 8.01-12.00 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding: Shares Outstanding	35,399
Options Outstanding: Weighted Average Remaining Contractual Life (in years)	10 months 24 days
Options Outstanding: Weighted Average Exercise Price	$ 10.13
Options Exercisable: Shares Exercisable	35,399
Options Exercisable: Weighted Average Exercise Price	$ 10.13
Range Of Option Exercise Prices 12.01-16.00 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding: Shares Outstanding	44,651
Options Outstanding: Weighted Average Remaining Contractual Life (in years)	3 years 1 month 6 days
Options Outstanding: Weighted Average Exercise Price	$ 12.62
Options Exercisable: Shares Exercisable	44,651
Options Exercisable: Weighted Average Exercise Price	$ 12.62

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Securities (Unrealized Gain (Loss) on Investments) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Schedule of Investments [Line Items]
Available-for-sale securities, Amortized Cost	$ 81,911	$ 87,320
Available-for-sale Securities, Gross Unrealized Gains	984	2,915
Available-for-sale Securities, Gross Unrealized Losses	(1,762)	(697)
Available-for-sale securities, Estimated Fair Value	81,133	89,538
Securities held to maturity, Amortized cost	26,381	21,515
Securities held-to-maturity, Unrecognized Holding Gain	353	1,239
Securities held-to-maturity, Unrecognized Holding Loss	(1,185)	(13)
Securities held-to-maturity, Estimated Fair Value	25,549	22,741
US Government Agencies Debt Securities [Member]
Schedule of Investments [Line Items]
Available-for-sale securities, Amortized Cost	6,723	2,482
Available-for-sale Securities, Gross Unrealized Gains	27	86
Available-for-sale Securities, Gross Unrealized Losses	(332)
Available-for-sale securities, Estimated Fair Value	6,418	2,568
Securities held to maturity, Amortized cost	5,814	5,050
Securities held-to-maturity, Unrecognized Holding Gain		38
Securities held-to-maturity, Unrecognized Holding Loss	(460)
Securities held-to-maturity, Estimated Fair Value	5,354	5,088
US States and Political Subdivisions Debt Securities [Member]
Schedule of Investments [Line Items]
Available-for-sale securities, Amortized Cost	16,960	14,690
Available-for-sale Securities, Gross Unrealized Gains	192	613
Available-for-sale Securities, Gross Unrealized Losses	(554)
Available-for-sale securities, Estimated Fair Value	16,598	15,303
Securities held to maturity, Amortized cost	2,441	2,746
Securities held-to-maturity, Unrecognized Holding Gain	121	288
Securities held-to-maturity, Unrecognized Holding Loss	(17)
Securities held-to-maturity, Estimated Fair Value	2,545	3,034
Residential Mortgage Backed Securities [Member]
Schedule of Investments [Line Items]
Available-for-sale securities, Amortized Cost	44,168	43,984
Available-for-sale Securities, Gross Unrealized Gains	696	1,684
Available-for-sale Securities, Gross Unrealized Losses	(475)	(123)
Available-for-sale securities, Estimated Fair Value	44,389	45,545
Securities held to maturity, Amortized cost	10,395	11,048
Securities held-to-maturity, Unrecognized Holding Gain	145	374
Securities held-to-maturity, Unrecognized Holding Loss	(198)	(13)
Securities held-to-maturity, Estimated Fair Value	10,342	11,409
Commercial Mortgage Backed Securities [Member]
Schedule of Investments [Line Items]
Available-for-sale securities, Amortized Cost	887	4,423
Available-for-sale Securities, Gross Unrealized Gains	2	42
Available-for-sale Securities, Gross Unrealized Losses	(1)	(2)
Available-for-sale securities, Estimated Fair Value	888	4,463
Securities held to maturity, Amortized cost	6,750	2,671
Securities held-to-maturity, Unrecognized Holding Gain	87	539
Securities held-to-maturity, Unrecognized Holding Loss	(437)
Securities held-to-maturity, Estimated Fair Value	6,400	3,210
Corporate Debt Securities [Member]
Schedule of Investments [Line Items]
Available-for-sale securities, Amortized Cost	13,173	21,741
Available-for-sale Securities, Gross Unrealized Gains	67	490
Available-for-sale Securities, Gross Unrealized Losses	(400)	(572)
Available-for-sale securities, Estimated Fair Value	12,840	21,659
Securities held to maturity, Amortized cost	981
Securities held-to-maturity, Unrecognized Holding Loss	(73)
Securities held-to-maturity, Estimated Fair Value	$ 908

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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Taxes [Abstract]

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

The components of the provision for income taxes for the past two years are as follows:

	For the years ended December 31,
(In thousands)	2013		2012
Federal - current provision	$	1,579	$	1,227
Federal - deferred provision		491		459
Total federal provision		2,070		1,686
State - current provision		599		216
State - deferred (benefit) provision		(102)		324
Total state provision		497		540
Total provision for income taxes	$	2,567	$	2,226

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

	For the years ended December 31,
(In thousands, except percentages)	2013			2012
Federal income tax provision at statutory rate	$	2,612		$	2,199
Increases (decreases) resulting from:
Bank owned life insurance		(118)			(100)
Tax-exempt interest		(156)			(161)
Meals and entertainment		14			17
State income taxes, net of federal income tax effect		328			356
Other, net		(113)			(85)
Provision for income taxes	$	2,567		$	2,226
Effective tax rate		33.4	%		34.4	%

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

(In thousands)	December 31, 2013		December 31, 2012
Deferred tax assets:
Allowance for loan losses	$	5,249	$	5,895
Lost interest on nonaccrual loans		802		717
Stock-based compensation		427		390
Depreciation		418		256
Net unrealized security losses		303		-
Deferred compensation		190		174
State net operating loss		138		-
Disallowed write-down on OREO properties		-		60
Other		95		102
Gross deferred tax assets		7,622		7,594
Valuation allowance		(113)		-
Total deferred tax assets		7,509		7,594
Deferred tax liabilities:
Net unrealized security gains		-		885
Deferred loan costs		318		354
Goodwill		326		286
Bond accretion		113		115
Other		-		-
Total deferred tax liabilities		757		1,640
Net deferred tax asset	$	6,752	$	5,954

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Quarterly Financial Information (Unaudited)

12 Months Ended

Dec. 31, 2013

Quarterly Financial Information (Unaudited) [Abstract]

Quarterly Financial Information (Unaudited)

Quarterly Financial Information (Unaudited)

The following quarterly financial information for the years ended December 31, 2013 and 2012 is unaudited.  However, in the opinion of management, all adjustments, which include normal recurring adjustments necessary to present fairly the results of operations for the periods, are reflected.

	2013
(In thousands, except per share data)	March 31		June 30		September 30		December 31
Total interest income	$	8,313	$	8,401	$	8,474	$	8,766
Total interest expense		1,624		1,599		1,603		1,703
Net interest income		6,689		6,802		6,871		7,063
Provision for loan losses		650		300		600		800
Net interest income after provision for loan losses		6,039		6,502		6,271		6,263
Total noninterest income		1,825		1,658		1,650		1,471
Total noninterest expense		6,126		6,074		5,935		5,862
Income before provision for income taxes		1,738		2,086		1,986		1,872
Provision for income taxes		538		739		684		606
Net income		1,200		1,347		1,302		1,266
Preferred stock dividends and discount accretion		404		465		119		-
Income available to common shareholders	$	796	$	882	$	1,183	$	1,266
Net income per common share - Basic	$	0.11	$	0.12	$	0.15	$	0.17
Net income per common share - Diluted		0.10		0.11		0.15		0.17
	2012
(In thousands, except per share data)	March 31		June 30		September 30		December 31
Total interest income	$	9,058	$	8,772	$	8,871	$	8,502
Total interest expense		2,250		1,915		1,844		1,765
Net interest income		6,808		6,857		7,027		6,737
Provision for loan losses		1,200		1,000		1,000		800
Net interest income after provision for loan losses		5,608		5,857		6,027		5,937
Total noninterest income		1,715		1,841		1,774		2,008
Total noninterest expense		5,959		6,204		5,999		6,135
Income before provision for income taxes		1,364		1,494		1,802		1,810
Provision for income taxes		459		518		606		643
Net income		905		976		1,196		1,167
Preferred stock dividends and discount accretion		396		401		397		408
Income available to common shareholders	$	509	$	575	$	799	$	759
Net income per common share - Basic	$	0.07	$	0.08	$	0.10	$	0.10
Net income per common share - Diluted		0.07		0.07		0.10		0.10

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Significant Accounting Policies (Policy)

12 Months Ended

Dec. 31, 2013

Significant Accounting Policies [Abstract]

Overview

Overview

The accompanying Consolidated Financial Statements include the accounts of Unity Bancorp, Inc. (the “Parent Company”) and its wholly-owned subsidiary, Unity Bank (the “Bank” or when consolidated with the Parent Company, the “Company”).  All significant intercompany balances and transactions have been eliminated in consolidation.

Unity Bancorp, Inc. is a bank holding company incorporated in New Jersey and registered under the Bank Holding Company Act of 1956, as amended.  Its wholly-owned subsidiary, the Bank, is chartered by the New Jersey Department of Banking and Insurance.  The Bank provides a full range of commercial and retail banking services through fifteen branch offices located in Hunterdon, Middlesex, Somerset, Union and Warren counties in New Jersey and Northampton County in Pennsylvania.  These services include the acceptance of demand, savings, and time deposits and the extension of consumer, real estate, Small Business Administration (“SBA”) and other commercial credits.

Unity Bank has nine wholly-owned subsidiaries: Unity Investment Services, Inc., AJB Residential Realty Enterprises, Inc., AJB Commercial Realty, Inc., MKCD Commercial, Inc., JAH Commercial, Inc., UB Commercial LLC, ASBC Holdings LLC, Unity Property Holdings 1, Inc., and Unity Property Holdings 2, Inc.  Unity Investment Services, Inc. is used to hold and administer part of the Bank’s investment portfolio.  The other subsidiaries hold, administer and maintain the Bank’s other real estate owned (“OREO”) properties.Unity Investment Services, Inc. has one subsidiary, Unity Delaware Investment 2, Inc., which has one subsidiary, Unity NJ REIT, Inc.  Unity NJ REIT, Inc. was added in 2013 to hold loans.

The Company has two unconsolidated, wholly-owned statutory trust subsidiaries.  For additional information, see Note 10 to the Consolidated Financial Statements.

Stock-Based Compensation

Stock-Based Compensation

The Company accounts for its stock-based compensation awards in accordance with FASB ASC Topic 718, “Compensation – Stock Compensation,” which requires recognition of compensation expense related to stock-based compensation awards over the period during which an employee is required to provide service for the award.  Compensation expense is equal to the fair value of the award, net of estimated forfeitures, and is recognized over the vesting period of such awards.

For additional information on the Company’s stock-based compensation, see Note 19 to the Consolidated Financial Statements.

Securities

Securities

The Company classifies its securities into two categories, available for sale and held to maturity.

Securities that are classified as available for sale are stated at fair value.  Unrealized gains and losses on securities available for sale are generally excluded from results of operations and are reported as other comprehensive income, a separate component of shareholders’ equity, net of taxes.  Securities classified as available for sale include securities that may be sold in response to changes in interest rates, changes in prepayment risks or for asset/liability management purposes.  The cost of securities sold is determined on a specific identification basis. Gains and losses on sales of securities are recognized in the Consolidated Statements of Income on the date of sale.

Securities are classified as held to maturity based on management’s intent and ability to hold them to maturity.  Such securities are stated at cost, adjusted for unamortized purchase premiums and discounts using the level yield method.

If transfers between the available for sale and held to maturity portfolios occur, they are accounted for at fair value and unrealized holding gains and losses are accounted for at the date of transfer.  For securities transferred to available for sale from held to maturity, unrealized gains or losses as of the date of the transfer are recognized in other comprehensive income (loss), a separate component of shareholders’ equity.  For securities transferred into the held to maturity portfolio from the available for sale portfolio, unrealized gains or losses as of the date of transfer continue to be reported in other comprehensive income (loss), and are amortized over the remaining life of the security as an adjustment to its yield, consistent with amortization of the premium or accretion of the discount.

For additional information on securities, see Note 4 to the Consolidated Financial Statements.

Other-Than-Temporary Impairment

The Company has a process in place to identify debt securities that could potentially incur credit impairment that is other-than-temporary.  This process involves monitoring late payments, pricing levels, downgrades by rating agencies, key financial ratios, financial statements, revenue forecasts and cash flow projections as indicators of credit issues.  Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concern warrants such evaluation.  This evaluation considers relevant facts and circumstances in evaluating whether a credit or interest rate-related impairment of a security is other-than-temporary.  Relevant facts and circumstances considered include: (1) the extent and length of time the fair value has been below cost; (2) the reasons for the decline in value; (3) the financial position and access to capital of the issuer, including the current and future impact of any specific events and (4) for fixed maturity securities, our intent to sell a security or whether it is more likely than not we will be required to sell the security before the recovery of its amortized cost which, in some cases, may extend to maturity.

For debt securities that are considered other-than-temporarily impaired where management has no intent to sell and the Company has no requirement to sell prior to recovery of its amortized cost basis, the amount of the impairment is separated into the amount that is credit related (credit loss component) and the amount due to all other factors.  The credit loss component is recognized in earnings and is the difference between the security’s amortized cost basis and the present value of its expected future cash flows.  The remaining difference between the security’s fair value and the present value of future expected cash flows is due to factors that are not credit related and is recognized in other comprehensive income.  For debt securities where management has the intent to sell, the amount of the impairment is reflected in earnings as realized losses.

The present value of expected future cash flows is determined using the best estimate cash flows discounted at the effective interest rate implicit to the security at the date of purchase or the current yield to accrete an asset-backed or floating rate security.  The methodology and assumptions for establishing the best estimate cash flows vary depending on the type of security.  The asset-backed securities cash flow estimates are based on bond specific facts and circumstances that may include collateral characteristics, expectations of delinquency and default rates, loss severity and prepayment speeds and structural support, including subordination and guarantees.  The corporate bond cash flow estimates are derived from scenario-based outcomes of expected corporate restructurings or the disposition of assets using bond specific facts and circumstances including timing, security interests and loss severity.

Transfers of Financial Assets

Transfers of Financial Assets

Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered.  Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.

Use Of Estimates in the Preparation of Financial Statements

Use of Estimates in the Preparation of Financial Statements

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Amounts requiring the use of significant estimates include the allowance for loan losses, valuation of deferred tax and servicing assets, the carrying value of loans held for sale and other real estate owned, the valuation of securities and the determination of other-than-temporary impairment for securities and fair value disclosures.  Actual results could differ from those estimates.

Reclassifications

Reclassifications

Certain reclassifications have been made to the prior year to conform to the current year presentation, with no impact on prior year earnings or shareholders’ equity.

Cash and Cash Equivalents

Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, amounts due from banks, federal funds sold and interest-bearing deposits.

Loan Held to Maturity and Loans Held for Sale

Loans

Loans Held for Sale

Loans held for sale represent the guaranteed portion of SBA loans and are reflected at the lower of aggregate cost or market value.  The Company originates loans to customers under an SBA program that historically has provided for SBA guarantees of up to 90 percent of each loan.  The Company generally sells the guaranteed portion of its SBA loans to a third party and retains the servicing, holding the nonguaranteed portion in its portfolio.  The net amount of loan origination fees on loans sold is included in the carrying value and in the gain or loss on the sale.  When sales of SBA loans do occur, the premium received on the sale and the present value of future cash flows of the servicing assets are recognized in income.  All criteria for sale accounting must be met in order for the loan sales to occur; see details under the “Transfers of Financial Assets” heading above.

Servicing assets represent the estimated fair value of retained servicing rights, net of servicing costs, at the time loans are sold.  Servicing assets are amortized in proportion to, and over the period of, estimated net servicing revenues.  Impairment is evaluated based on stratifying the underlying financial assets by date of origination and term.  Fair value is determined using prices for similar assets with similar characteristics, when available, or based upon discounted cash flows using market-based assumptions.  Any impairment, if temporary, would generally be reported as a valuation allowance.

Serviced loans sold to others are not included in the accompanying Consolidated Balance Sheets.  Income and fees collected for loan servicing are credited to noninterest income when earned, net of amortization on the related servicing assets.

For additional information on servicing assets, see Note 5 to the Consolidated Financial Statements.

Loans Held for Investment

Loans held for investment are stated at the unpaid principal balance, net of unearned discounts and deferred loan origination fees and costs.  In accordance with the level yield method, loan origination fees, net of direct loan origination costs, are deferred and recognized over the estimated life of the related loans as an adjustment to the loan yield.  Interest is credited to operations primarily based upon the principal balance outstanding.  

Loans are reported as past due when either interest or principal is unpaid in the following circumstances: fixed payment loans when the borrower is in arrears for two or more monthly payments; open end credit for two or more billing cycles; and single payment notes if interest or principal remains unpaid for 30 days or more.

Nonperforming loans consist of loans that are not accruing interest as a result of principal or interest being in default for a period of 90 days or more or when the ability to collect principal and interest according to the contractual terms is in doubt (nonaccrual loans).  When a loan is classified as nonaccrual, interest accruals are discontinued and all past due interest previously recognized as income is reversed and charged against current period earnings.  Generally, until the loan becomes current, any payments received from the borrower are applied to outstanding principal until such time as management determines that the financial condition of the borrower and other factors merit recognition of a portion of such payments as interest income.  Loans may be returned to an accrual status when the ability to collect is reasonably assured and when the loan is brought current as to principal and interest.

Loans are charged off when collection is sufficiently questionable and when the Company can no longer justify maintaining the loan as an asset on the balance sheet.  Loans qualify for charge-off when, after thorough analysis, all possible sources of repayment are insufficient.  These include: 1) potential future cash flows, 2) value of collateral, and/or 3) strength of co-makers and guarantors.  All unsecured loans are charged off upon the establishment of the loan’s nonaccrual status.  Additionally, all loans classified as a loss or that portion of the loan classified as a loss is charged off.  All loan charge-offs are approved by the Board of Directors.

Troubled debt restructurings ("TDRs") occur when a creditor, for economic or legal reasons related to a debtor’s financial condition, grants a concession to the debtor that it would not otherwise consider.  These concessions typically include reductions in interest rate, extending the maturity of a loan, or a combination of both. Interest income on accruing TDRs is credited to operations primarily based upon the principal amount outstanding, as stated in the paragraphs above. 

The Company evaluates its loans for impairment.  A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement.  The Company has defined impaired loans to be all TDRs and nonperforming loans.  Impairment is evaluated in total for smaller-balance loans of a similar nature (consumer and residential mortgage loans), and on an individual basis for all other loans.  Impairment of a loan is measured based on the present value of expected future cash flows, discounted at the loan's effective interest rate, or as a practical expedient, based on a loan’s observable market price or the fair value of collateral, net of estimated costs to sell, if the loan is collateral-dependent.  If the value of the impaired loan is less than the recorded investment in the loan, the Company establishes a valuation allowance, or adjusts existing valuation allowances, with a corresponding charge to the provision for loan losses.

For additional information on loans, see Note 5 to the Consolidated Financial Statements.

Allowance for Loan Losses and Reserve for Unfunded Loan Commitments

Allowance for Loan Losses and Reserve for Unfunded Loan Commitments

The allowance for loan losses is maintained at a level management considers adequate to provide for probable loan losses as of the balance sheet date.  The allowance is increased by provisions charged to expense and is reduced by net charge-offs.  

The level of the allowance is based on management’s evaluation of probable losses in the loan portfolio, after consideration of prevailing economic conditions in the Company’s market area, the volume and composition of the loan portfolio, and historical loan loss experience.  The allowance for loan losses consists of specific reserves for individually impaired credits and TDRs, reserves for nonimpaired loans based on historical loss factors adjusted for general economic factors and other qualitative risk factors such as changes in delinquency trends, industry concentrations or local/national economic trends.  This risk assessment process is performed at least quarterly, and, as adjustments become necessary, they are realized in the periods in which they become known.   

Although management attempts to maintain the allowance at a level deemed adequate to provide for probable losses, future additions to the allowance may be necessary based upon certain factors including changes in market conditions and underlying collateral values.  In addition, various regulatory agencies periodically review the adequacy of the Company’s allowance for loan losses.  These agencies may require the Company to make additional provisions based on their judgments about information available to them at the time of their examination.

The Company maintains a reserve for unfunded loan commitments at a level that management believes is adequate to absorb estimated probable losses.  Adjustments to the reserve are made through other expenses and applied to the reserve which is classified as other liabilities.

Premises and Equipment

Premises and Equipment

Land is carried at cost.  All other fixed assets are carried at cost less accumulated depreciation.  Depreciation is computed using the straight-line method over the estimated useful lives of the assets.  The useful life of buildings is not to exceed 30 years; furniture and fixtures is generally 10 years or less, and equipment is 3 to 5 years.  Leasehold improvements are depreciated over the life of the underlying lease. 

For additional information on premises and equipment, see Note 7 to the Consolidated Financial Statements.

Bank Owned Life Insurance

Bank Owned Life Insurance

The Company purchased life insurance policies on certain members of management.  Bank owned life insurance (“BOLI”) is recorded at its cash surrender value or the amount that can be realized.

Federal Home Loan Bank Stock

Federal Home Loan Bank Stock

Federal law requires a member institution of the Federal Home Loan Bank (“FHLB”) system to hold stock of its district FHLB according to a predetermined formula.  The stock is carried at cost. Management reviews the stock for impairment based on the ultimate recoverability of the cost basis in the stock.  The stock’s value is determined by the ultimate recoverability of the par value rather than by recognizing temporary declines.  Management considers such criteria as the significance of the decline in net assets, if any, of the FHLB, the length of time this situation has persisted, commitments by the FHLB to make payments required by law or regulation, the impact of legislative and regulatory changes on the customer base of the FHLB and the liquidity position of the FHLB.

Other Real Estate Owned

Other Real Estate Owned

Other real estate owned (“OREO”) is recorded at the fair value, less estimated costs to sell at the date of acquisition, with a charge to the allowance for loan losses for any excess of the loan carrying value over such amount.  Subsequently, other real estate owned is carried at the lower of cost or fair value, as determined by current appraisals.  Certain costs that increase the value or extend the useful life in preparing properties for sale are capitalized to the extent that the appraisal amount exceeds the carry value, and expenses of holding foreclosed properties are charged to operations as incurred.

Appraisals

The Company requires current real estate appraisals on all loans that become OREO or in-substance foreclosure, loans that are classified substandard, doubtful or loss, or loans that are over $100,000 and nonperforming.  Prior to each balance sheet date, the Company values impaired collateral-dependent loans and OREO based upon a third party appraisal, broker's price opinion, drive by appraisal, automated valuation model, updated market evaluation, or a combination of these methods.  The amount is discounted for the decline in market real estate values (for original appraisals), for any known damage or repair costs, and for selling and closing costs.  The amount of the discount is dependent upon the method used to determine the original value.  The original appraisal is generally used when a loan is first determined to be impaired.  When applying the discount, the Company takes into consideration when the appraisal was performed, the collateral’s location, the type of collateral, any known damage to the property and the type of business.  Subsequent to entering impaired status and the Company determining that there is a collateral shortfall, the Company will generally, depending on the type of collateral, order a third party appraisal, broker's price opinion, automated valuation model or updated market evaluation.  Subsequent to receiving the third party results, the Company will discount the value 6 to 10 percent for selling and closing costs.

Income Taxes

Income Taxes

The Company follows Financial Accounting Standards Board Accounting Standards Codification ("FASB ASC") Topic 740, “Income Taxes,” which prescribes a threshold for the financial statement recognition of income taxes and provides criteria for the measurement of tax positions taken or expected to be taken in a tax return.  ASC 740 also includes guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition of income taxes.  Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis.  Deferred tax assets and liabilities are measured using the enacted tax rates applicable to taxable income for the years in which those temporary differences are expected to be recovered or settled.  The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.  Valuation reserves are established against certain deferred tax assets when it is more likely than not that the deferred tax assets will not be realized.  Increases or decreases in the valuation reserve are charged or credited to the income tax provision.

When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that ultimately would be sustained.  The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any.  The evaluation of a tax position taken is considered by itself and not offset or aggregated with other positions.  Tax positions that meet the more likely than not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority.  The portion of benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination.

Interest and penalties associated with unrecognized tax benefits are recognized in income tax expense on the income statement.

For additional information on income taxes, see Note 16 to the Consolidated Financial Statements.

Net Income Per Share

Net Income Per Share

Basic net income per common share is calculated as net income available to common shareholders divided by the weighted average common shares outstanding during the reporting period.  Net income available to common shareholders is calculated as net income less accrued dividends and discount accretion related to preferred stock.

Diluted net income per common share is computed similarly to that of basic net income per common share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if all potentially dilutive common shares, principally stock options, were issued during the reporting period utilizing the Treasury stock method.  However, when a net loss rather than net income is recognized, diluted earnings per share equals basic earnings per share.

For additional information on net income per share, see Note 17 to the Consolidated Financial Statements.

Fair Value

The Company follows FASB ASC Topic 820, “Fair Value Measurement and Disclosures,” which requires additional disclosures about the Company’s assets and liabilities that are measured at fair value.  Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.  In determining fair value, the Company uses various methods including market, income and cost approaches.  Based on these approaches, the Company often utilizes certain assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and/or the risks inherent in the inputs to the valuation technique.  These inputs can be readily observable, market corroborated, or generally unobservable inputs.  The Company utilizes techniques that maximize the use of observable inputs and minimize the use of unobservable inputs.  The fair value hierarchy ranks the quality and reliability of the information used to determine fair values.  Financial assets and liabilities carried at fair value will be classified and disclosed as follows:

Level 1 Inputs

· Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

· Generally, this includes debt and equity securities and derivative contracts that are traded in an active exchange market (i.e. New York Stock Exchange), as well as certain U.S. Treasury, U.S. Government and sponsored entity agency mortgage-backed securities that are highly liquid and are actively traded in over-the-counter markets.

Level 2 Inputs

· Quoted prices for similar assets or liabilities in active markets.

· Quoted prices for identical or similar assets or liabilities in inactive markets.

· Inputs other than quoted prices that are observable, either directly or indirectly, for the term of the asset or liability (i.e., interest rates, yield curves, credit risks, prepayment speeds or volatilities) or “market corroborated inputs.”

· Generally, this includes U.S. Government and sponsored entity mortgage-backed securities, corporate debt securities and derivative contracts.

Level 3 Inputs

· Prices or valuation techniques that require inputs that are both unobservable (i.e. supported by little or no market activity) and that are significant to the fair value of the assets or liabilities.

These assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation.

Other Comprehensive Income (Loss)

Other Comprehensive Income (Loss)

Other comprehensive income (loss) consists of the change in unrealized gains (losses) on securities available for sale that were reported as a component of shareholders’ equity, net of tax.

For additional information on other comprehensive income, see Note 12 to the Consolidated Financial Statements.

Advertising

Advertising

The Company expenses the costs of advertising in the period incurred.

Dividend Restrictions

Dividend Restrictions

Banking regulations require maintaining certain capital levels that may limit the dividends paid by our bank to our holding company or by our holding company to our shareholders.

Operating Segments

Operating Segments

While management monitors the revenue streams of its various products and services, operating results and financial performance are evaluated on a company-wide basis.  The Company’s management uses consolidated results to make operating and strategic decisions.  Accordingly, there is only one reportable segment.

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Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
OPERATING ACTIVITIES:
Net income	$ 5,115	$ 4,244
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses	2,350	4,000
Net amortization of purchase premiums and discounts on securities	713	827
Depreciation and amortization	1,267	1,358
Deferred income tax expense	389	783
Net security gains	(390)	(573)
Stock compensation expense	340	310
Loss on sale of OREO	52	85
Valuation writedowns on OREO	255	83
Gain on sale of mortgage loans held for sale, net	(1,650)	(2,274)
Gain on sale of SBA loans held for sale, net	(628)	(688)
Origination of mortgage loans held for sale	(78,432)	(105,543)
Origination of SBA loans held for sale	(6,103)	(6,427)
Proceeds from sale of mortgage loans held for sale, net	80,082	107,817
Proceeds from sale of SBA loans held for sale, net	6,962	7,452
Net change in other assets and liabilities	1,123	1,853
Net cash provided by operating activities	11,445	13,307
INVESTING ACTIVITIES:
Purchases of securities held to maturity	(9,871)	(7,629)
Purchases of securities available for sale	(29,136)	(39,335)
Purchases of Federal Home Loan Bank stock, at cost	(6,504)
Maturities and principal payments on securities held to maturity	4,841	4,733
Maturities and principal payments on securities available for sale	22,210	30,667
Proceeds from sale of securities available for sale	12,178	8,103
Proceeds from redemption of Federal Home Loan Bank stock	5,101	99
Proceeds from sale of OREO	2,119	3,765
Net increase in loans	(97,191)	(4,205)
Purchase of BOLI	(3,000)
Purchases of premises and equipment	(4,789)	(1,817)
Net cash used in investing activities	(104,042)	(5,619)
FINANCING ACTIVITIES:
Net increase (decrease) in deposits	89,938	4,789
Proceeds from new borrowings	32,000
Redemption of perpetual preferred stock from U.S. Treasury	(20,649)
Repurchase of warrant from U.S. Treasury	(2,707)
Proceeds from exercise of stock options		173
Dividends on preferred stock	(585)	(1,032)
Dividends on common stock	(188)
Net cash provided by financing activities	97,809	3,930
Increase in cash and cash equivalents	5,212	11,618
Cash and cash equivalents, beginning of period	94,192
Cash and cash equivalents, end of period	99,404	94,192
SUPPLEMENTAL DISCLOSURES:
Cash: Interest paid	6,509	7,863
Cash: Income taxes paid	2,527	969
Noncash investing activities:
Transfer of SBA loans held for sale to held to maturity	33	394
Transfer of loans to OREO	$ 1,233	$ 3,560

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Fair Value (Policy)

12 Months Ended

Dec. 31, 2013

Fair Value [Abstract]

Fair Value Measurement, Policy [Policy Text Block]

The Company follows FASB ASC Topic 820, “Fair Value Measurement and Disclosures,” which requires additional disclosures about the Company’s assets and liabilities that are measured at fair value.  Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.  In determining fair value, the Company uses various methods including market, income and cost approaches.  Based on these approaches, the Company often utilizes certain assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and/or the risks inherent in the inputs to the valuation technique.  These inputs can be readily observable, market corroborated, or generally unobservable inputs.  The Company utilizes techniques that maximize the use of observable inputs and minimize the use of unobservable inputs.  The fair value hierarchy ranks the quality and reliability of the information used to determine fair values.  Financial assets and liabilities carried at fair value will be classified and disclosed as follows:

Level 1 Inputs

· Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

· Generally, this includes debt and equity securities and derivative contracts that are traded in an active exchange market (i.e. New York Stock Exchange), as well as certain U.S. Treasury, U.S. Government and sponsored entity agency mortgage-backed securities that are highly liquid and are actively traded in over-the-counter markets.

Level 2 Inputs

· Quoted prices for similar assets or liabilities in active markets.

· Quoted prices for identical or similar assets or liabilities in inactive markets.

· Inputs other than quoted prices that are observable, either directly or indirectly, for the term of the asset or liability (i.e., interest rates, yield curves, credit risks, prepayment speeds or volatilities) or “market corroborated inputs.”

· Generally, this includes U.S. Government and sponsored entity mortgage-backed securities, corporate debt securities and derivative contracts.

Level 3 Inputs

· Prices or valuation techniques that require inputs that are both unobservable (i.e. supported by little or no market activity) and that are significant to the fair value of the assets or liabilities.

These assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation.

Fair Value On A Recurring Basis Policy [Policy Text Block]

Fair Value on a Recurring Basis

The following is a description of the valuation methodologies used for instruments measured at fair value on a recurring basis:

Securities Available for Sale

55 percent of the portfolio was made up of residential mortgage-backed securities, which had a fair value of $44.4 million at December 31, 2013.  Approximately $43.1 million of the residential mortgage-backed securities are guaranteed by the Government National Mortgage Association ("GNMA"), the Federal National Mortgage Association ("FNMA") or the Federal Home Loan Mortgage Corporation ("FHLMC").  The underlying loans for these securities are residential mortgages that are geographically dispersed throughout the United States. 

All of the Company’s AFS securities, excluding commercial mortgage-backed securities, were classified as Level 2 assets at December 31, 2013.  The valuation of AFS securities using Level 2 inputs was primarily determined using the market approach, which uses quoted prices for similar assets or liabilities in active markets and all other relevant information.  It includes model pricing, defined as valuing securities based upon their relationship with other benchmark securities. 

For commercial mortgage-backedsecurities, the inputs used by either dealer market participants or an independent pricing service, may be derived from unobservable market information (Level 3 inputs).  In these instances, management evaluates the appropriateness and quality of the assumptions and the resulting prices.  In addition, management reviews the volume and level of activity for all AFS securities and attempts to identify transactions which may not be orderly or reflective of a significant level of activity and volume.  For securities meeting these criteria, the quoted prices received from either market participants or an independent pricing service may be adjusted, as necessary, to estimate fair value and this results in fair values based on Level 3 inputs.  In determining fair value, the Company utilizes unobservable inputs which reflect its own assumptions about the inputs that market participants would use in pricing each security.  In developing its assertion of market participant assumptions, the Company utilizes the best information that is both reasonable and available without undue cost and effort.

In calculating the fair value for AFS securities under Level 3, management prepared present value cash flow models for certain private label commercial mortgage-backed securities.Private label commercial mortgage-backed securities owned by the Bank are A1 and A2 tranche sequential structures and are currently paying principal.  The cash flows for the commercial mortgage-backed securities incorporated the expected cash flow of each security adjusted for default rates, loss severities and prepayments of the individual loans collateralizing the security.  The following table presents quantitative information about Level 3 inputs used to measure the fair value of commercial mortgage-backed securities at December 31, 2013:  

December 31, 2013
Valuation Technique	Unobservable Input	Range		Weighted Average
Discounted Cash Flow	Prepayment rate	8 through 15	%	10.0	%
	Default rate	10 through 15	%	12.5	%
	Loss severity	10 through 25	%	18.0	%

Significant increases or decreases in any of the unobservable inputs in the table above in isolation would result in a significantly lower or higher fair value measurement of the securities.  Generally, a change in the assumption used for the default rate is accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumption used for prepayment rates.

For the Level 3 available for sale private label commercial mortgage-backed securities, cash flow assumptions incorporate independent third party market participant data based on vintage year for each security.  The discount rate utilized in determining the present value of cash flows for the commercial mortgage-backed securities was arrived at by combining the yield on orderly transactions for similar maturity government sponsored mortgage-backed securities with (i) the historical average risk premium of similar structured private label securities, (ii) a risk premium reflecting current market conditions, including liquidity risk and (iii) if applicable, a forecasted loss premium derived from the expected cash flows of each security.  The estimated cash flows for each private label commercial mortgage-backed security are then discounted at the aforementioned effective rate to determine the fair value.  The quoted prices received from either market participants or independent pricing services are weighted with the internal price estimate to determine the fair value of each instrument.

Fair Value On A Nonrecurring Basis Policy [Policy Text Block]

	December 31, 2013
(In thousands)	Level 1		Level 2		Level 3		Total
Securities available for sale:
U.S. Government sponsored entities	$	-	$	6,418	$	-	$	6,418
State and political subdivisions		-		16,598		-		16,598
Residential mortgage-backed securities		-		44,389		-		44,389
Commercial mortgage-backed securities		-		-		888		888
Corporate and other securities		-		12,840		-		12,840
Total securities available for sale	$	-	$	80,245	$	888	$	81,133
	December 31, 2012
(In thousands)	Level 1		Level 2		Level 3		Total
Securities available for sale:
U.S. Government sponsored entities	$	-	$	2,568	$	-	$	2,568
State and political subdivisions		-		15,303		-		15,303
Residential mortgage-backed securities		-		45,545		-		45,545
Commercial mortgage-backed securities		-		-		4,463		4,463
Corporate and other securities		-		21,659		-		21,659
Total securities available for sale	$	-	$	85,075	$	4,463	$	89,538

The following table summarizes changes in Level 3 assets during 2013 and 2012, consisting of commercial mortgage-backed available for sale securities, measured at fair value on a recurring basis. 

	For the years ended December 31,
(In thousands)	2013		2012
Commercial mortgage-backed securities:
Balance, beginning of period	$	4,463	$	-
Purchases		-		4,423
Payoffs		(815)		-
Principal paydowns		(2,722)		-
Total net losses included in:
Other comprehensive income		(38)		40
Balance, end of period	$	888	$	4,463

There were no gains or losses (realized or unrealized) including in earnings for assets and liabilities held at December 31, 2013 or 2012.

Fair Value on a Nonrecurring Basis

Certain assets and liabilities are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment).  The following is a description of the valuation methodologies used for instruments measured at fair value on a nonrecurring basis:

Appraisal Policy

All appraisals must be performed in accordance with the Uniform Standards of Professional Appraisal Practice (“USPAP”).  Appraisals are certified to the Company and performed by appraisers on the Company’s approved list of appraisers.  Evaluations are completed by a person independent of Company management.  The content of the appraisal depends on the complexity of the property.  Appraisals are completed on a “retail value” and an “as is value”.

The Company requires current real estate appraisals on all loans that become OREO or in-substance foreclosure, loans that are classified substandard, doubtful or loss, or loans that are over $100,000 and nonperforming.  Prior to each balance sheet date, the Company values impaired collateral-dependent loans and OREO based upon a third party appraisal, broker's price opinion, drive by appraisal, automated valuation model, updated market evaluation, or a combination of these methods.  The amount is discounted for the decline in market real estate values (for original appraisals), for any known damage or repair costs, and for selling and closing costs.  The amount of the discount ranges from 10 to 15 percent and is dependent upon the method used to determine the original value.  The original appraisal is generally used when a loan is first determined to be impaired.  When applying the discount, the Company takes into consideration when the appraisal was performed, the collateral’s location, the type of collateral, any known damage to the property and the type of business.  Subsequent to entering impaired status and the Company determining that there is a collateral shortfall, the Company will generally, depending on the type of collateral, order a third party appraisal, broker's price opinion, automated valuation model or updated market evaluation.  Subsequent to receiving the third party results, the Company will discount the value 8 to 10 percent for selling and closing costs.

Other Real Estate Owned ("OREO")

The fair value was determined using appraisals, which may be discounted based on management’s review and changes in market conditions (Level 3 Inputs).  

Impaired Collateral-Dependent Loans

The fair value of impaired collateral-dependent loans is derived in accordance with FASB ASC Topic 310, “Receivables.”  Fair value is determined based on the loan’s observable market price or the fair value of the collateral.  Partially charged-off loans are measured for impairment based upon an appraisal for collateral-dependent loans.  When an updated appraisal is received for a nonperforming loan, the value on the appraisal is discounted in the manner discussed above.  If there is a deficiency in the value after the Company applies these discounts, management applies a specific reserve and the loan remains in nonaccrual status.  The receipt of an updated appraisal would not qualify as a reason to put a loan back into accruing status.  The Company removes loans from nonaccrual status when the borrower makes nine months of contractual payments and demonstrates the ability to service the debt going forward.  Charge-offs are determined based upon the loss that management believes the Company will incur after evaluating collateral for impairment based upon the valuation methods described above and the ability of the borrower to pay any deficiency.

The valuation allowance for impaired loans is included in the allowance for loan losses in the consolidated balance sheets.  At December 31, 2013, the valuation allowance for impaired loans was $1.1 million, a decrease of $863 thousand from $2.0 million at December 31, 2012. 

Fair Value of Financial Instruments, Policy [Policy Text Block]

	Fair value at December 31, 2013								Gains (losses) from fair value changes for the year ended
(In thousands)	Level 1		Level 2		Level 3		Total		December 31, 2013
Financial assets:
OREO	$	-	$	-	$	633	$	633	$	(769)
Impaired collateral-dependent loans		-		-		4,540		4,540		863
	Fair value at December 31, 2012								Gains (losses) from fair value changes for the year ended
(In thousands)	Level 1		Level 2		Level 3		Total		December 31, 2012
Financial assets:
OREO	$	-	$	-	$	864	$	864	$	(1,671)
Impaired collateral-dependent loans		-		-		8,159		8,159		2,448

Fair Value of Financial Instruments

FASB ASC Topic 825, “Financial Instruments,” requires the disclosure of the estimated fair value of certain financial instruments, including those financial instruments for which the Company did not elect the fair value option.  These estimated fair values as of December 31, 2013 and December 31, 2012 have been determined using available market information and appropriate valuation methodologies.  Considerable judgment is required to interpret market data to develop estimates of fair value.  The estimates presented are not necessarily indicative of amounts the Company could realize in a current market exchange.  The use of alternative market assumptions and estimation methodologies could have had a material effect on these estimates of fair value.  The methodology for estimating the fair value of financial assets and liabilities that are measured on a recurring or nonrecurring basis are discussed above.  

The following methods and assumptions were used to estimate the fair value of other financial instruments for which it is practicable to estimate that value:

Cash and Cash Equivalents

For these short-term instruments, the carrying value is a reasonable estimate of fair value.

Securities Held to Maturity

The fair value of held to maturity ("HTM") securities is based upon quoted market prices for similar or identical assets or other observable inputs (Level 2) or externally developed models that use unobservable inputs due to limited or no market activity of the instrument (Level 3).

SBA Loans Held for Sale

The fair value of SBA loans held for sale is estimated by using a market approach that includes significant other observable inputs.

Loans

The fair value of loans is estimated by discounting the future cash flows using current market rates that reflect the interest rate risk inherent in the loan, except for previously discussed impaired loans.

Federal Home Loan Bank Stock

Federal Home Loan Bank stock is carried at cost.  Carrying value approximates fair value based on the redemption provisions of the issues.

SBA Servicing Assets

SBA servicing assets do not trade in an active, open market with readily observable prices.  The Company estimates the fair value of SBA servicing assets using discounted cash flow models incorporating numerous assumptions from the perspective of a market participant including market discount rates and prepayment speeds.

Accrued Interest

The carrying amounts of accrued interest approximate fair value.

Deposit Liabilities

The fair value of demand deposits and savings accounts is the amount payable on demand at the reporting date (i.e. carrying value).  The fair value of fixed-maturity certificates of deposit is estimated by discounting the future cash flows using current market rates.

Borrowed Funds and Subordinated Debentures

The fair value of borrowings is estimated by discounting the projected future cash flows using current market rates.

Standby Letters of Credit

At December 31, 2013, the Bank had standby letters of credit outstanding of $1.4 million, as compared to $1.6 million at December 31, 2012.  The fair value of these commitments is nominal.

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Accumulated Other Comprehensive Income (Loss) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Accumulated Other Comprehensive Income (Loss) [Abstract]
Unrealized holding gains (losses) on securities arising, Pre-tax	$ (2,606)	$ 920
Less: Reclassification adjustment for gains included in net income, Pre-tax	390	566
Net unrealized gains (losses) on securities arising during the period, Pre-tax	(2,996)	354
Unrealized holding gains (losses) on securities arising, Tax	(1,056)	332
Less: Reclassification adjustment for gains included in net income, Tax	131	190
Net unrealized gains (losses) on securities arising during the period, Tax	(1,187)	142
Balance, beginning of period	1,333	1,121
Unrealized holding gains (losses) on securities arising, After-tax	(1,550)	588
Less: Reclassification adjustment for gains included in net income, after-tax	259	376
Net unrealized gains (losses) on securities arising during the period, After-tax	(1,809)	212
Balance, end of period	$ (476)	$ 1,333

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Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2013

Commitments and Contingencies [Abstract]

Operating Leases of Lessee Disclosure

(In thousands)	2014		2015		2016		2017		2018		Thereafter		Total
Operating lease rental payments	$	670	$	572	$	526	$	473	$	418	$	-	$	2,659

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Significant Accounting Policies (Commitments Narrative) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Significant Accounting Policies [Abstract]
Purchases of premises and equipment	$ 4,789	$ 1,817

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Allowance for Loan Losses and Reserve for Unfunded Loan Commitments (Loans And Their Related Allowance For Loan Losses, By Portfolio Segment ) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans and Leases Receivable, Allowance, Total	$ 13,141	$ 14,758	$ 16,348
Total loans	678,701	587,036
Other Commitment	103	87
SBA held to maturity [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment	831	1,159
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	1,756	2,219
Loans and Leases Receivable, Allowance, Total	2,587	3,378	4,088
Financing Receivable, Individually Evaluated for Impairment	2,740	3,712
Financing Receivable, Collectively Evaluated for Impairment	46,178	54,881
Total loans	48,918	58,593
SBA 504 loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment	29	217
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	928	1,095
Loans and Leases Receivable, Allowance, Total	957	1,312	1,423
Financing Receivable, Individually Evaluated for Impairment	2,928	6,852
Financing Receivable, Collectively Evaluated for Impairment	28,636	34,586
Total loans	31,564	41,438
Total Commercial Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment	278	625
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	6,562	6,466
Loans and Leases Receivable, Allowance, Total	6,840	7,091	8,129
Financing Receivable, Individually Evaluated for Impairment	9,120	12,802
Financing Receivable, Collectively Evaluated for Impairment	354,220	288,762
Total loans	363,340	301,564
Total residential mortgage loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	2,132	1,769
Loans and Leases Receivable, Allowance, Total	2,132	1,769	1,703
Financing Receivable, Collectively Evaluated for Impairment	182,067	132,094
Total loans	182,067	132,094
Total consumer [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	573	524
Loans and Leases Receivable, Allowance, Total	573	524	536
Financing Receivable, Collectively Evaluated for Impairment	46,139	46,410
Total loans	46,139	46,410
Unallocated Financing Receivables [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	52	684
Loans and Leases Receivable, Allowance, Total	52	684	469
Loans Held for Investment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment	1,138	2,001
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	12,003	12,757
Loans and Leases Receivable, Allowance, Total	13,141	14,758
Financing Receivable, Individually Evaluated for Impairment	14,788	23,366
Financing Receivable, Collectively Evaluated for Impairment	657,240	556,733
Total loans	$ 672,028	$ 580,099

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Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
ASSETS
Cash and due from banks	$ 24,272	$ 23,705
Federal funds sold and interest-bearing deposits	75,132	70,487
Cash and cash equivalents	99,404	94,192
Securities:
Securities available for sale	81,133	89,538
Securities held to maturity (fair value of $25,549 and $22,741 in 2013 and 2012, respectively)	26,381	21,515
Total securities	107,514	111,053
Loans:
SBA loans held for sale	6,673	6,937
SBA loans held to maturity	48,918	58,593
SBA 504 loans	31,564	41,438
Commercial loans	363,340	301,564
Residential mortgage loans	182,067	132,094
Consumer loans	46,139	46,410
Total loans	678,701	587,036
Allowance for loan losses	(13,141)	(14,758)
Net loans	665,560	572,278
Premises and equipment, net	15,672	12,062
Bank owned life insurance ("BOLI")	12,749	9,402
Deferred tax assets	6,752	5,954
Federal Home Loan Bank stock	5,392	3,989
Accrued interest receivable	3,272	3,298
Other real estate owned ("OREO")	633	1,826
Prepaid FDIC insurance		1,929
Goodwill and other intangibles	1,516	1,516
Other assets	2,654	2,231
Total assets	921,118	819,730
Liabilities:
Deposits: Noninterest-bearing demand deposits	136,035	114,424
Deposits: Interest-bearing demand deposits	130,806	114,838
Deposits: Savings deposits	266,503	294,533
Deposits: Time deposits, under $100,000	108,258	76,994
Deposits: Time deposits, $100,000 and over	97,096	47,971
Total deposits	738,698	648,760
Borrowed funds	107,000	75,000
Subordinated debentures	15,465	15,465
Accrued interest payable	454	434
Accrued expenses and other liabilities	2,328	2,561
Total liabilities	863,945	742,220
Commitments and contingencies
Shareholders' equity:
Cumulative perpetual preferred stock		20,115
Common stock	52,051	54,274
Retained earnings	5,598	1,788
Accumulated other comprehensive income (loss)	(476)	1,333
Total shareholders' equity	57,173	77,510
Total liabilities and shareholders' equity	$ 921,118	$ 819,730

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Net Income per Share (Tables)

12 Months Ended

Dec. 31, 2013

Net Income per Share [Abstract]

Reconciliation Of The Calculation Of Basic And Diluted Income Per Share [TableTextBlock]

	For the years ended December 31,
(In thousands, except per share amounts)	2013		2012
Net income	$	5,115	$	4,244
Less: Preferred stock dividends and discount accretion		988		1,602
Income available to common shareholders	$	4,127	$	2,642
Weighted average common shares outstanding - Basic		7,547		7,477
Plus: Potential dilutive common stock equivalents		263		317
Weighted average common shares outstanding - Diluted		7,810		7,794
Net income per common share - Basic	$	0.55	$	0.35
Net income per common share - Diluted		0.53		0.34
Stock options and common stock excluded from the income per share calculation as their effect would have been anti-dilutive		377		506

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Employee Benefit Plans (Narrative) (Details) (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Defined Contribution Plan, Maximum Annual Contribution Per Employee, Percent	80.00%
Defined Contribution Plan, Employer Discretionary Contribution Amount	$ 240	$ 244
Deferred fees	44	42
Interest paid on deferred fees	19	17
Deferred Compensation Arrangement with Individual, Distributions Paid	22	0
Life Settlement Contracts, Fair Value Method, Face Value	250
Postemployment Benefits, Period Expense	4	5
Life Settlement Contracts, Period Expense	4	5
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	3 years
Share Based Compensation Arrangement By ShareBased Payment Award Award Expiration Period	10 years
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	1,720,529
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	448,975	516,332	643,206
Share Based Compensation Arrangement By Share Based Payment Award Options Exercised Forfited Or Expired Number	1,184,313
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	87,241
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	37,500	25,000
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized	194
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition	1 year 10 months 24 days
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	4 years
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	471,551
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	232,838
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized	$ 579
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition	2 years 10 months 24 days
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	37,500	25,000

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Quarterly Financial Information (Schedule of Quarterly Financial Information) (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012
Interest income	$ 8,766	$ 8,474	$ 8,401	$ 8,313	$ 8,502	$ 8,871	$ 8,772	$ 9,058	$ 33,954	$ 35,203
Interest and Dividend Income, Operating	8,766	8,474	8,401	8,313	8,502	8,871	8,772	9,058	33,954	35,203
Interest expense	1,703	1,603	1,599	1,624	1,765	1,844	1,915	2,250	6,529	7,774
Net interest income	7,063	6,871	6,802	6,689	6,737	7,027	6,857	6,808	27,425	27,429
Provision for loan losses	800	600	300	650	800	1,000	1,000	1,200	2,350	4,000
Net interest income after provision for loan losses	6,263	6,271	6,502	6,039	5,937	6,027	5,857	5,608	25,075	23,429
Noninterest income	1,471	1,650	1,658	1,825	2,008	1,774	1,841	1,715	6,604	7,338
Noninterest expense	5,862	5,935	6,074	6,126	6,135	5,999	6,204	5,959	23,997	24,297
Income before provision for income taxes	1,872	1,986	2,086	1,738	1,810	1,802	1,494	1,364	7,682	6,470
Provision for income taxes	606	684	739	538	643	606	518	459
Net income	1,266	1,302	1,347	1,200	1,167	1,196	976	905	5,115	4,244
Preferred stock dividends and discount accretion		119	465	404	408	397	401	396	988	1,602
Income available to common shareholders	1,266	1,183	882	796	759	799	575	509	4,127	2,642
Net income per common share - Basic	$ 0.17	$ 0.15	$ 0.12	$ 0.11	$ 0.10	$ 0.10	$ 0.08	$ 0.07	$ 0.55	$ 0.35
Net income per common share - Diluted	$ 0.17	$ 0.15	$ 0.11	$ 0.10	$ 0.10	$ 0.10	$ 0.07	$ 0.07	$ 0.53	$ 0.34
Parent Company Only [Member]
Interest income									761	761
Interest and Dividend Income, Operating									761	761
Interest expense									287	345
Net interest income									474	416
Net income									5,115	4,244
Preferred stock dividends and discount accretion									988	1,602
Income available to common shareholders									$ 4,127	$ 2,642

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Consolidated Statements of Changes in Shareholder's Equity (USD $) In Thousands	Preferred Stock Including Additional Paid in Capital [Member]	Common Stock [Member]	Retained Earnings (deficit) [Member]	Accumulated Other Comprehensive Income [Member]	Total
Shareholders' equity at Dec. 31, 2011	$ 19,545	$ 53,746	$ (854)	$ 1,121	$ 73,558
Common Stock, Shares, Beginning Balance at Dec. 31, 2011		7,459
Net income			4,244		4,244
Other comprehensive income (loss), net of tax	570		(570)	212	212
Dividends on preferred stock (5% annually)			(1,032)		(1,032)
Common stock issued and related tax effects		528			528
Shares, Common stock issued and related tax effects		75
Shareholders' equity at Dec. 31, 2012	20,115	54,274	1,788	1,333	77,510
Common Stock, Shares, Ending Balance at Dec. 31, 2012		7,534			7,534
Net income			5,115		5,115
Other comprehensive income (loss), net of tax				(1,809)	(1,809)
Redemption of perpetual preferred stock	(20,649)				(20,649)
Repurchase of warrants from U.S. Treasury		(2,617)	(90)		(2,707)
Accretion of discount on preferred stock	534		(534)
Dividends on common stock ($0.03 per share)		39	(227)		(188)
Dividends on preferred stock (5% annually)			(454)		(454)
Common stock issued and related tax effects		355			355
Shares, Common stock issued and related tax effects		43
Shareholders' equity at Dec. 31, 2013		$ 52,051	$ 5,598	$ (476)	$ 57,173
Common Stock, Shares, Ending Balance at Dec. 31, 2013		7,577			7,577

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Regulatory Capital (Schedule Regulatory Capital Requirements) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Leverage ratio: Actual Amount	$ 70,852	$ 89,841
Tier I risk-based capital ratio: Actual Amount	70,852	89,841
Total risk-based capital ratio: Actual Amount	79,164	97,492
Leverage ratio: Actual Ratio	8.08%	11.14%
Tier I risk-based capital ratio: Actual Ratio	10.74%	14.85%
Total risk--based capital ratio: Actual Ratio	11.99%	16.12%
Leverage ratio: For Capital Adequacy Purposes Amount	35,084	32,251
Tier I risk-based capital ratio: For Capital Adequacy Purposes Amount	26,400	24,193
Total risk-based capital ratio: For Capital Adequacy Purposes Amount	52,800	48,387
Leverage ratio: For Capital Adequacy Purposes Ratio	4.00%	4.00%
Tier I risk-based capital ratio: For Capital Adequacy Purposes Ratio	4.00%	4.00%
Total risk-based capital ratio: For Capital Adequacy Purposes Ratio	8.00%	8.00%
Bank [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Leverage ratio: Actual Amount	61,493	69,544
Tier I risk-based capital ratio: Actual Amount	61,493	69,544
Total risk-based capital ratio: Actual Amount	78,296	85,687
Leverage ratio: Actual Ratio	7.02%	8.63%
Tier I risk-based capital ratio: Actual Ratio	9.33%	11.51%
Total risk--based capital ratio: Actual Ratio	11.88%	14.18%
Leverage ratio: For Capital Adequacy Purposes Amount	35,058	32,225
Tier I risk-based capital ratio: For Capital Adequacy Purposes Amount	26,373	24,170
Total risk-based capital ratio: For Capital Adequacy Purposes Amount	52,747	48,339
Leverage ratio: For Capital Adequacy Purposes Ratio	4.00%	4.00%
Tier I risk-based capital ratio: For Capital Adequacy Purposes Ratio	4.00%	4.00%
Total risk-based capital ratio: For Capital Adequacy Purposes Ratio	8.00%	8.00%
Tier I risk-based capital ratio: To Be Well-Capitalized Under Prompt Corrective Action Provisions Amount	43,823	40,282
Leverage ratio: To Be Well-Capitalized Under Prompt Corrective Action Provisions Amount	39,560	36,254
Total risk-based capital ratio: To Be Well-Capitalized Under Prompt Corrective Action Provisions Amount	$ 65,933	$ 60,424
Leverage ratio: To Be Well-Capitalized Under Prompt Corrective Action Provisions Ratio	5.00%	5.00%
Tier I risk-based capital ratio: To Be Well-Capitalized Under Prompt Corrective Action Provisions Ratio	6.00%	6.00%
Total risk-based capital ratio: To Be Well-Capitalized Under Prompt Corrective Action Provisions Ratio	10.00%	10.00%

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Securities (Gross Realized Gains (Losses) on Investments) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Securities [Abstract]
Available-for-sale Securities, Gross Realized Gains	$ 394	$ 570
Available-for-sale Securities, Gross Realized Losses	(4)	(4)
Available-for-sale Securities, Gross Realized Gain (Loss), Total	390	566
Held-to-maturity Securities, Sold Security, Realized Gain		7
Held-to-maturity Securities, Sold Security, Realized Gain (Loss), Total		7
Gain (Loss) on Sale of Securities, Net, Total	$ 390	$ 573

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Employee Benefit Plans (Schedule of Information About Options Exercised ) (Details) (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Employee Benefit Plans [Abstract]
Number of options exercised	11,667	117,240
Total intrinsic value of options exercised	$ 15,367	$ 121,973
Cash received from options exercised		173,325
Tax deduction realized from options exercised	$ 6,138	$ 43,319

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Allowance for Loan Losses and Reserve for Unfunded Loan Commitments (Tables)

12 Months Ended

Dec. 31, 2013

Allowance for Loan Losses and Reserve for Unfunded Loan Commitments [Abstract]

Allowance for Credit Losses on Financing Receivables [Table Text Block]

	December 31, 2013
(In thousands)	SBA held for investment		SBA 504		Commercial		Residential		Consumer		Unallocated		Total
Allowance for loan losses ending balance:
Individually evaluated for impairment	$	831	$	29	$	278	$	-	$	-	$	-	$	1,138
Collectively evaluated for impairment		1,756		928		6,562		2,132		573		52		12,003
Total	$	2,587	$	957	$	6,840	$	2,132	$	573	$	52	$	13,141
Loan ending balances:
Individually evaluated for impairment	$	2,740	$	2,928	$	9,120	$	-	$	-	$	-	$	14,788
Collectively evaluated for impairment		46,178		28,636		354,220		182,067		46,139		-		657,240
Total	$	48,918	$	31,564	$	363,340	$	182,067	$	46,139	$	-	$	672,028

	December 31, 2012
(In thousands)	SBA held for investment		SBA 504		Commercial		Residential		Consumer		Unallocated		Total
Allowance for loan losses ending balance:
Individually evaluated for impairment	$	1,159	$	217	$	625	$	-	$	-	$	-	$	2,001
Collectively evaluated for impairment		2,219		1,095		6,466		1,769		524		684		12,757
Total	$	3,378	$	1,312	$	7,091	$	1,769	$	524	$	684	$	14,758
Loan ending balances:
Individually evaluated for impairment	$	3,712	$	6,852	$	12,802	$	-	$	-	$	-	$	23,366
Collectively evaluated for impairment		54,881		34,586		288,762		132,094		46,410		-		556,733
Total	$	58,593	$	41,438	$	301,564	$	132,094	$	46,410	$	-	$	580,099

Schedule of Credit Losses for Financing Receivables, Current [Table Text Block]

The following tables detail the activity in the allowance for loan losses by portfolio segment for the past two years:

	For the year ended December 31, 2013
(In thousands)	SBA held for investment		SBA 504		Commercial		Residential		Consumer		Unallocated		Total
Balance, beginning of period	$	3,378	$	1,312	$	7,091	$	1,769	$	524	$	684	$	14,758
Charge-offs		(1,076)		(1,193)		(1,392)		(375)		(588)		-		(4,624)
Recoveries		250		182		204		17		4		-		657
Net charge-offs		(826)		(1,011)		(1,188)		(358)		(584)		-		(3,967)
Provision for loan losses charged to expense		35		656		937		721		633		(632)		2,350
Balance, end of period	$	2,587	$	957	$	6,840	$	2,132	$	573	$	52	$	13,141

	For the year ended December 31, 2012
(In thousands)	SBA held for investment		SBA 504		Commercial		Residential		Consumer		Unallocated		Total
Balance, beginning of period	$	4,088	$	1,423	$	8,129	$	1,703	$	536	$	469	$	16,348
Charge-offs		(1,332)		(808)		(3,504)		(824)		(56)		-		(6,524)
Recoveries		518		108		306		-		2		-		934
Net charge-offs		(814)		(700)		(3,198)		(824)		(54)		-		(5,590)
Provision for loan losses charged to expense		104		589		2,160		890		42		215		4,000
Balance, end of period	$	3,378	$	1,312	$	7,091	$	1,769	$	524	$	684	$	14,758

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Loans (Average Recorded Investments In Impaired Loans And Related Amount Of Interest Recognized) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Average Recorded Investment	$ 25,348	$ 37,517
Impaired Financing Receivable, Interest Income, Accrual Method	810	1,005
SBA held to maturity [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Average Recorded Investment	3,244	4,161
Impaired Financing Receivable, Interest Income, Accrual Method	197	212
SBA 504 loans [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Average Recorded Investment	5,066	6,184
Impaired Financing Receivable, Interest Income, Accrual Method	173	278
Commercial other [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Average Recorded Investment	1,461	3,201
Impaired Financing Receivable, Interest Income, Accrual Method	100	53
Commercial real estate [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Average Recorded Investment	9,751	17,909
Impaired Financing Receivable, Interest Income, Accrual Method	324	462
Commercial real estate construction [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Average Recorded Investment	171	133
Residential mortgages [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Average Recorded Investment	2,757	2,070
Residential Construction Segment [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Average Recorded Investment		904
Residential Purchased Mortgages Segment [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Average Recorded Investment	1,927	2,655
Home equity [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Average Recorded Investment	970	292
Impaired Financing Receivable, Interest Income, Accrual Method	16
Consumer other [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Average Recorded Investment	$ 1	$ 8

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Other Income

12 Months Ended

Dec. 31, 2013

Other Income [Abstract]

Other Income

14. Other Income

The components of other income for the past two years are as follows:

	For the years ended December 31,
(In thousands)	2013		2012
ATM and check card fees	$	487	$	413
Wire transfer fees		88		84
Safe deposit box fees		59		58
Other		80		172
Total other income	$	714	$	727

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Premises and Equipment (Tables)

12 Months Ended

Dec. 31, 2013

Premises and Equipment [Abstract]

Premises and Equipment

(In thousands)	December 31, 2013		December 31, 2012
Land and buildings	$	17,022	$	12,347
Furniture, fixtures and equipment		6,603		6,719
Leasehold improvements		1,656		2,319
Gross premises and equipment		25,281		21,385
Less: Accumulated depreciation		(9,609)		(9,323)
Net premises and equipment	$	15,672	$	12,062

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Employee Benefit Plans (Fair Value Assumptions) (Details) (USD $)	12 Months Ended
	Dec. 31, 2013		Dec. 31, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	37,500		25,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price	$ 6.58		$ 6.00
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	37,500		25,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price	$ 6.58		$ 6.00
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 3.19		$ 2.33
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	5 years 9 months	[1]	5 years 26 days	[1]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate	51.40%	[2]	43.61%	[2]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate	1.24%	[3]	0.77%	[3]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate	0.17%	[4]

[1] The expected life of the options was estimated based on historical employee behavior and represents the period of time that options granted are expected to be outstanding.

[2] The expected volatility of the Company’s stock price was based on the historical volatility over the period commensurate with the expected life of the options.

[3] The risk-free interest rate is the U.S Treasury rate commensurate with the expected life of the options on the date of grant.

[4] The expected dividend yield is the projected annual yield based on the grant date stock price.

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Income Taxes

12 Months Ended

Dec. 31, 2013

Income Taxes [Abstract]

Income Taxes

16.  Income Taxes

The components of the provision for income taxes for the past two years are as follows:

	For the years ended December 31,
(In thousands)	2013		2012
Federal - current provision	$	1,579	$	1,227
Federal - deferred provision		491		459
Total federal provision		2,070		1,686
State - current provision		599		216
State - deferred (benefit) provision		(102)		324
Total state provision		497		540
Total provision for income taxes	$	2,567	$	2,226

Reconciliation between the reported income tax provision and the amount computed by multiplying income before taxes by the statutory Federal income tax rate for the past two years is as follows:

	For the years ended December 31,
(In thousands, except percentages)	2013			2012
Federal income tax provision at statutory rate	$	2,612		$	2,199
Increases (decreases) resulting from:
Bank owned life insurance		(118)			(100)
Tax-exempt interest		(156)			(161)
Meals and entertainment		14			17
State income taxes, net of federal income tax effect		328			356
Other, net		(113)			(85)
Provision for income taxes	$	2,567		$	2,226
Effective tax rate		33.4	%		34.4	%

Deferred income taxes are provided for temporary differences between the financial reporting basis and the tax basis of the Company’s assets and liabilities.  The components of the net deferred tax asset at December 31, 2013 and 2012 are as follows:

(In thousands)	December 31, 2013		December 31, 2012
Deferred tax assets:
Allowance for loan losses	$	5,249	$	5,895
Lost interest on nonaccrual loans		802		717
Stock-based compensation		427		390
Depreciation		418		256
Net unrealized security losses		303		-
Deferred compensation		190		174
State net operating loss		138		-
Disallowed write-down on OREO properties		-		60
Other		95		102
Gross deferred tax assets		7,622		7,594
Valuation allowance		(113)		-
Total deferred tax assets		7,509		7,594
Deferred tax liabilities:
Net unrealized security gains		-		885
Deferred loan costs		318		354
Goodwill		326		286
Bond accretion		113		115
Other		-		-
Total deferred tax liabilities		757		1,640
Net deferred tax asset	$	6,752	$	5,954

The Company computes deferred income taxes under the asset and liability method.  Deferred income taxes are recognized for tax consequences of “temporary differences” by applying enacted statutory tax rates to differences between the financial reporting and the tax basis of existing assets and liabilities.  A deferred tax liability is recognized for all temporary differences that will result in future taxable income.  A deferred tax asset is recognized for all temporary differences that will result in future tax deductions subject to reduction of the asset by a valuation allowance.

During 2013, the Company established a $113 thousand valuation allowance for deferred tax assets related to its state net operating loss carry-forward deferred tax asset, the balance of which was $138 thousand and $0 at December 31, 2013 and 2012, respectively.  The Company’s state net operating loss carry-forwards totaled approximately $2.3 million at December 31, 2013 and expires between 2014 and 2033.

Included as a component of deferred tax assets is an income tax expense (benefit) related to unrealized gains (losses) on securities available for sale.  The after-tax component was an unrealized loss of $476 thousand for 2013 and an unrealized gain of $1.3 millionfor 2012,  and is included in other comprehensive income (loss) in shareholders’ equity.

The Company follows FASB ASC Topic 740, “Income Taxes,” which prescribes a threshold for the financial statement recognition of income taxes and provides criteria for the measurement of tax positions taken or expected to be taken in a tax return.  ASC 740 also includes guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition of income taxes.  The Company did not recognize or accrue any interest or penalties related to income taxes during the years ended December 31, 2013 and 2012.  The Company does not have an accrual for uncertain tax positions as of December 31, 2013 or 2012, as deductions taken and benefits accrued are based on widely understood administrative practices and procedures and are based on clear and unambiguous tax law.  Tax returns for all years 2009 and thereafter are subject to future examination by tax authorities.

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Loans (Troubled Debt Restructurings Types Of Modifications) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Financing Receivable, Impaired [Line Items]
Financing Receivable, Modifications, Post-Modficiation Recorded Investment, Duration	$ 2,749	$ 1,890
Commercial real estate [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Modifications, Post-Modficiation Recorded Investment, Duration		1,890
Interest only [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Modifications, Post-Modficiation Recorded Investment, Duration		1,890
Interest only [Member] | Commercial real estate [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Modifications, Post-Modficiation Recorded Investment, Duration		$ 1,890

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Fair Value (Fair Value On A Nonrecurring Basis) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
OREO	$ 633	$ 864
Impaired collateral-dependent loans	4,540	8,159
Change During Period, Fair Value Disclosure [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
OREO	(769)	(1,671)
Impaired collateral-dependent loans	863	2,448
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
OREO	633	864
Impaired collateral-dependent loans	$ 4,540	$ 8,159

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Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Consolidated Statements of Changes in Shareholders' Equity [Abstract]
Preferred Stock, Dividend Rate, Percentage	5.00%	5.00%
Common Stock, Dividends, Per Share, Cash Paid	$ 0.03

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Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Consolidated Balance Sheets [Abstract]
Held to maturity securities, fair value	$ 25,549	$ 22,741
Preferred Stock, Liquidation Preference Per Share	$ 1	$ 1
Preferred Stock, Shares Authorized	500,000	500,000
Preferred Stock, Shares Outstanding	21,000	21,000
Preferred Stock, Shares Issued	21,000	21,000
Common Stock, No Par Value
Common Stock, Shares Authorized	12,500,000	12,500,000
Issued common shares	7,577,000	7,534,000
Outstanding common shares	7,577,000	7,534,000

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Deposits

12 Months Ended

Dec. 31, 2013

Deposits [Abstract]

Deposits

9.  Deposits

The following table details the maturity distribution of time deposits as of December 31st for the past two years:

	Three		More than three		More than six		More than
	months		months through		months through		twelve
(In thousands)	or less		six months		twelve months		months		Total
At December 31, 2013:
$100,000 or more	$	14,588	$	7,965	$	18,582	$	55,961	$	97,096
Less than $100,000		8,058		7,754		19,522		72,924		108,258
At December 31, 2012:
$100,000 or more	$	13,338	$	5,868	$	16,493	$	12,272	$	47,971
Less than $100,000		10,131		8,985		26,271		31,607		76,994

The following table presents the expected maturities of time deposits over the next five years:

(In thousands)	2014		2015		2016		2017		2018		Thereafter		Total
Balance maturing	$	76,469	$	24,103	$	39,282	$	6,548	$	58,901	$	51	$	205,354

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Employee Benefit Plans (Restricted Stock Awards Activity) (Details) (Restricted Stock [Member], USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted	42,500	29,500
Average grant date fair value	$ 7.12	$ 6.07

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Regulatory Capital Narrative) (Details) (USD $) In Thousands, except Share data, unless otherwise specified	6 Months Ended		12 Months Ended
	Dec. 31, 2013	Jun. 30, 2013	Dec. 31, 2013	Dec. 31, 2012
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Stock Redeemed or Called During Period, Value	$ 10,400	$ 10,300	$ 20,649
Payments for Repurchase of Warrants			2,707
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	764,788		764,788
Leverage ratio: For Capital Adequacy Purposes Amount	35,084		35,084	32,251
Tier I risk-based capital ratio: For Capital Adequacy Purposes Amount	26,400		26,400	24,193
Total risk-based capital ratio: For Capital Adequacy Purposes Amount	52,800		52,800	48,387
Leverage ratio: For Capital Adequacy Purposes Ratio	4.00%		4.00%	4.00%
Parent Company Only [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Payments for Repurchase of Warrants			2,707
Leverage Ratio			3.00%
Bank [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Leverage ratio: For Capital Adequacy Purposes Amount	35,058		35,058	32,225
Tier I risk-based capital ratio: For Capital Adequacy Purposes Amount	26,373		26,373	24,170
Total risk-based capital ratio: For Capital Adequacy Purposes Amount	$ 52,747		$ 52,747	$ 48,339
Leverage ratio: For Capital Adequacy Purposes Ratio	4.00%		4.00%	4.00%

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Net Income per Share (Calculation of Basic and Diluted EPS) (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012
Net Income per Share [Abstract]
Net income	$ 1,266	$ 1,302	$ 1,347	$ 1,200	$ 1,167	$ 1,196	$ 976	$ 905	$ 5,115	$ 4,244
Less: Preferred stock dividends and discount accretion		119	465	404	408	397	401	396	988	1,602
Income available to common shareholders	$ 1,266	$ 1,183	$ 882	$ 796	$ 759	$ 799	$ 575	$ 509	$ 4,127	$ 2,642
Weighted average common shares outstanding - Basic									7,547	7,477
Plus: Potential dilutive common stock equivalents									263	317
Weighted average common shares oustanding - Diluted									7,810	7,794
Net income per common share - Basic	$ 0.17	$ 0.15	$ 0.12	$ 0.11	$ 0.10	$ 0.10	$ 0.08	$ 0.07	$ 0.55	$ 0.35
Net income per common share - Diluted	$ 0.17	$ 0.15	$ 0.11	$ 0.10	$ 0.10	$ 0.10	$ 0.07	$ 0.07	$ 0.53	$ 0.34
Stock options and common stock excluded from the income per share computation as their effect would have been anti-dilutive									377	506

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Document and Entity Information (USD $)	12 Months Ended
	Dec. 31, 2013	Feb. 28, 2014	Jun. 30, 2013
Document and Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	FY
Entity Registrant Name	UNITY BANCORP INC /NJ/
Entity Central Index Key	0000920427
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		7,579,377
Trading Symbol	unty
Entity Public Float			$ 35,705,836
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Well-known Seasoned Issuer	No

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Borrowed Funds and Subordinated Debentures

12 Months Ended

Dec. 31, 2013

Borrowed Funds and Subordinated Debentures [Abstract]

Borrowed Funds and Subordinated Deentures

10.  Borrowed Funds and Subordinated Debentures

The following table presents the period-end and average balances of borrowed funds and subordinated debentures for the past three years with resultant rates:

	2013					2012					2011
(In thousands)	Amount		Rate			Amount		Rate			Amount		Rate
FHLB borrowings and repurchase agreements:
At December 31,	$	92,000		2.58	%	$	60,000		3.94	%	$	60,000		3.94	%
Year-to-date average		61,010		3.88			60,008		3.94			60,000		3.94
Maximum outstanding		95,000					61,000					60,000
Repurchase agreements:
At December 31,	$	15,000		3.67	%	$	15,000		3.67	%	$	15,000		3.67	%
Year-to-date average		15,000		3.67			15,000		3.67			15,000		3.67
Maximum outstanding		15,000					15,000					15,000
Subordinated debentures:
At December 31,	$	15,465		1.80	%	$	15,465		1.89	%	$	15,465		3.11	%
Year-to-date average		15,465		1.83			15,465		2.19			15,465		4.83
Maximum outstanding		15,465					15,465					15,465

The following table presents the expected maturities of borrowed funds and subordinated debentures over the next five years:

(In thousands)	2014		2015		2016		2017		2018		Thereafter		Total
FHLB borrowings and repurchase agreements	$	32,000	$	10,000	$	20,000	$	30,000	$	-	$	-	$	92,000
Other repurchase agreements		-		-		-		-		15,000		-		15,000
Subordinated debentures		-		-		-		-		-		15,465		15,465
Total borrowings	$	32,000	$	10,000	$	20,000	$	30,000	$	15,000	$	15,465	$	122,465

FHLB Borrowings

FHLB borrowings at December 31, 2013 and 2012 consisted of three  $10.0 million advances and three  $10.0 million repurchase agreements, respectively.  FHLB borrowings at December 31, 2013 also included $32.0 million overnight line of credit advance, versus no overnight line of credit at December 31, 2012.  The terms of these transactions are as follows:

· The $32.0 million FHLB overnight line of credit advance issued on December 31, 2013 was at a rate of 0.40 percent and was repaid on January 2, 2014.

· The FHLB advance that was issued on April 27, 2005 has a fixed rate of 3.70 percent, matures on April 27, 2015 and is callable quarterly on the 27th of July, October, January and April.

· The FHLB advance that was issued on November 2, 2006 has a fixed rate of 4.03 percent, matures on November 2, 2016 and is callable quarterly on the 2nd of February, May, August and November.

· The FHLB advance that was issued on August 10, 2007 has a fixed rate of 4.23 percent, matures on August 10, 2017 and is callable quarterly on the 10th of November, February, May and August.

· The FHLB repo-advance that was issued on December 15, 2006 has a fixed rate of 4.13 percent, matures on December 15, 2016 and is callable quarterly on the 15th of March, June, September and December.

· The FHLB repo-advance that was issued on April 5, 2007 has a fixed rate of 4.21 percent, matures on April 5, 2017 and is callable quarterly on the 5th of July, October, January and April.

· The FHLB repo-advance that was issued on December 20, 2007 has a fixed rate of 3.34 percent, matures on December 20, 2017 and is callable quarterly on the 20th of March, June, September and December.

Due to the call provisions of these advances, the expected maturity could differ from the contractual maturity.

Repurchase Agreements

At December 31, 2013 and 2012, the Company was a party to a $15.0 million repurchase agreement that was entered into in February 2008, has a term of 10 years expiring on February 28, 2018, and a rate of 3.67 percent.  The borrowing was callable by the issuer on the repurchase date of May 29, 2008 and quarterly thereafter. 

Due to the call provisions of this advance, the expected maturity could differ from the contractual maturity.

Subordinated Debentures

At December 31, 2013 and 2012, the Company was a party in the following subordinated debenture transactions:

· On July 24, 2006, Unity (NJ) Statutory Trust II, a statutory business trust and wholly-owned subsidiary of Unity Bancorp, Inc., issued $10.0 million of floating rate capital trust pass through securities to investors due on July 24, 2036.  The subordinated debentures are redeemable in whole or part, prior to maturity but after July 24, 2011.  The floating interest rate on the subordinated debentures is the three-month LIBOR plus 159 basis points and reprices quarterly.  The floating interest rate was 1.84 percent at December 31, 2013 and 1.90 percent at December 31, 2012.

· On December 19, 2006, Unity (NJ) Statutory Trust III, a statutory business trust and wholly-owned subsidiary of Unity Bancorp, Inc., issued $5.0 million of floating rate capital trust pass through securities to investors due on December 19, 2036.  The subordinated debentures are redeemable in whole or part, prior to maturity but after December 19, 2011.  The floating interest rate on the subordinated debentures is the three-month LIBOR plus 165 basis points and reprices quarterly.  The floating interest rate was 1.89 percent at December 31, 2013 and 1.96 percent at December 31, 2012.

· In connection with the formation of the statutory business trusts, the trusts also issued $465 thousand of common equity securities to the Company, which together with the proceeds stated above were used to purchase the subordinated debentures, under the same terms and conditions. 

The capital securities in each of the above transactions have preference over the common securities with respect to liquidation and other distributions and qualify as Tier I capital.  Under the terms of the Dodd-Frank Wall Street Reform and Consumer Protection Act, these securities will continue to qualify as Tier 1 capital as the Company has less than $10 billion in assets.  In accordance with FASB ASC Topic 810, “Consolidation,” the Company does not consolidate the accounts and related activity of Unity (NJ) Statutory Trust II and Unity (NJ) Statutory Trust III because it is not the primary beneficiary.  The additional capital from each of these transactions was used to bolster the Company’s capital ratios and for general corporate purposes, including among other things, capital contributions to Unity Bank.

The Company has the ability to defer interest payments on the subordinated debentures for up to five years without being in default.  Due to the redemption provisions of these securities, the expected maturity could differ from the contractual maturity.

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Borrowed Funds and Subordinated Debentures (Scheduled Maturities of Term Borrowings) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Debt Instrument [Line Items]
2014	$ 32,000
2015	10,000
2016	20,000
2017	30,000
2018	15,000
Thereafter	15,465
Total	122,465
FHLB borrowings and repurchase agreements [Member]
Debt Instrument [Line Items]
2014	32,000
2015	10,000
2016	20,000
2017	30,000
Total	92,000	60,000	60,000
Securities Sold under Agreements to Repurchase [Member]
Debt Instrument [Line Items]
2018	15,000
Total	15,000	15,000	15,000
Subordinated Debt [Member]
Debt Instrument [Line Items]
Thereafter	15,465
Total	$ 15,465	$ 15,465	$ 15,465

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Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Deferred tax assets:
Allowance for loan losses	$ 5,249	$ 5,895
Lost interest on nonaccrual loans	802	717
Stock-based compensation	427	390
Depreciation	418	256
Net unrealized security losses	303
Deferred compensation	190	174
State net operating loss	138	0
Disallowed writedowns on OREO properties		60
Other	95	102
Total deferred tax assets	7,622	7,594
Deferred Tax Assets, Valuation Allowance	(113)
Net deferred tax assets	7,509	7,594
Deferred tax liabilities:
Net unrealized security gains		885
Deferred loan costs	318	354
Goodwill	326	286
Bond accretion	113	115
Total deferred tax liabilities	757	1,640
Net deferred tax asset	$ 6,752	$ 5,954

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Consolidated Statements of Income (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
INTEREST INCOME
Federal funds sold and interest-bearing deposits	$ 39	$ 72
Federal Home Loan Bank stock	159	189
Securities:
Taxable	2,443	2,823
Tax-exempt	460	473
Total securities	2,903	3,296
Loans:
SBA loans	2,660	3,430
SBA 504 loans	1,911	2,645
Commercial loans	17,322	16,982
Residential mortgage loans	7,013	6,445
Consumer loans	1,947	2,144
Total loans	30,853	31,646
Total interest income	33,954	35,203
INTEREST EXPENSE
Interest-bearing demand deposits	383	486
Savings deposits	710	1,185
Time deposits	2,191	2,796
Borrowed funds and subordinated debentures	3,245	3,307
Total interest expense	6,529	7,774
Net interest income	27,425	27,429
Provision for loan losses	2,350	4,000
Net interest income after provision for loan losses	25,075	23,429
NONINTEREST INCOME
Branch fee income	1,505	1,528
Service and loan fee income	1,370	1,252
Gain on sale of SBA loans held for sale, net	628	688
Gain on sale of mortgage loans, net	1,650	2,274
BOLI income	347	296
Net security gains	390	573
Other income	714	727
Total noninterest income	6,604	7,338
NONINTEREST EXPENSE
Compensation and benefits	12,251	12,560
Occupancy	2,571	2,722
Processing and communications	2,309	2,180
Furniture and equipment	1,478	1,480
Professional services	828	789
Loan collection costs	822	682
OREO expenses	458	483
Deposit insurance	666	664
Advertising	747	839
Other expenses	1,867	1,898
Total noninterest expense	23,997	24,297
Income before provision for income taxes	7,682	6,470
Provision for income taxes	2,567	2,226
Net income	5,115	4,244
Preferred stock dividends and discount accretion	988	1,602
Income available to common shareholders	$ 4,127	$ 2,642
Net income per common share
Basic	$ 0.55	$ 0.35
Diluted	$ 0.53	$ 0.34
Weighted average common shares outstanding:
Basic	7,547	7,477
Diluted	7,810	7,794

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Securities

12 Months Ended

Dec. 31, 2013

Securities [Abstract]

Securities

4.  Securities

This table provides the major components of securities available for sale (“AFS”) and held to maturity (“HTM”) at amortized cost and estimated fair value at December 31, 2013 and December 31, 2012:

	December 31, 2013								December 31, 2012
(In thousands)	Amortized cost		Gross unrealized gains		Gross unrealized losses		Estimated fair value		Amortized cost		Gross unrealized gains		Gross unrealized losses		Estimated fair value
Available for sale:
U.S. Government sponsored entities	$	6,723	$	27	$	(332)	$	6,418	$	2,482	$	86	$	-	$	2,568
State and political subdivisions		16,960		192		(554)		16,598		14,690		613		-		15,303
Residential mortgage-backed securities		44,168		696		(475)		44,389		43,984		1,684		(123)		45,545
Commercial mortgage-backed securities		887		2		(1)		888		4,423		42		(2)		4,463
Corporate and other securities		13,173		67		(400)		12,840		21,741		490		(572)		21,659
Total securities available for sale	$	81,911	$	984	$	(1,762)	$	81,133	$	87,320	$	2,915	$	(697)	$	89,538
Held to maturity:
U.S. Government sponsored entities	$	5,814	$	-	$	(460)	$	5,354	$	5,050	$	38	$	-	$	5,088
State and political subdivisions		2,441		121		(17)		2,545		2,746		288		-		3,034
Residential mortgage-backed securities		10,395		145		(198)		10,342		11,048		374		(13)		11,409
Commercial mortgage-backed securities		6,750		87		(437)		6,400		2,671		539		-		3,210
Corporate and other securities		981		-		(73)		908		-		-		-		-
Total securities held to maturity	$	26,381	$	353	$	(1,185)	$	25,549	$	21,515	$	1,239	$	(13)	$	22,741

This table provides the remaining contractual maturities and yields of securities within the investment portfolios.  The carrying value of securities at December 31, 2013 is distributed by contractual maturity.  Mortgage-backed securities and other securities, which may have principal prepayment provisions, are distributed based on contractual maturity.  Expected maturities will differ materially from contractual maturities as a result of early prepayments and calls.

	Within one year				After one through five years				After five through ten years				After ten years				Total carrying value
(In thousands, except percentages)	Amount		Yield		Amount		Yield		Amount		Yield		Amount		Yield		Amount		Yield
Available for sale at fair value:
U.S. Government sponsored entities	$	35	3.77	%	$	1,012	1.00	%	$	960	2.06	%	$	4,411	2.18	%	$	6,418	1.99	%
State and political subdivisions		-	-			794	2.38			11,406	2.69			4,398	2.80			16,598	2.70
Residential mortgage-backed securities		-	-			505	4.49			650	3.51			43,234	2.76			44,389	2.79
Commercial mortgage-backed securities		-	-			-	-			-	-			888	2.15			888	2.15
Corporate and other securities		-	-			401	1.28			5,636	1.82			6,803	1.52			12,840	1.65
Total securities available for sale	$	35	3.77	%	$	2,712	2.10	%	$	18,652	2.42	%	$	59,734	2.57	%	$	81,133	2.52	%
Held to maturity at cost:
U.S. Government sponsored entities	$	-	-	%	$	-	-	%	$	-	-	%	$	5,814	1.97	%	$	5,814	1.97	%
State and political subdivisions		326	0.75			-	-			-	-			2,115	4.70			2,441	4.18
Residential mortgage-backed securities		-	-			800	4.86			237	5.11			9,358	2.75			10,395	2.97
Commercial mortgage-backed securities		-	-			-	-			-	-			6,750	3.79			6,750	3.79
Corporate and other securities		-	-			-	-			981	2.95			-	-			981	2.95
Total securities held to maturity	$	326	0.75	%	$	800	4.86	%	$	1,218	3.37	%	$	24,037	3.03	%	$	26,381	3.07	%

The fair value of securities with unrealized losses by length of time that the individual securities have been in a continuous unrealized loss position at December 31, 2013 and December 31, 2012 are as follows:

	December 31, 2013
			Less than 12 months				12 months and greater				Total
(In thousands, except number in a loss position)	Total number in a loss position		Estimated fair value		Unrealized loss		Estimated fair value		Unrealized loss		Estimated fair value		Unrealized loss
Available for sale:
U.S. Government sponsored entities		5	$	5,591	$	(332)	$	-	$	-	$	5,591	$	(332)
State and political subdivisions		19		8,575		(453)		934		(101)		9,509		(554)
Residential mortgage-backed securities		13		13,226		(398)		1,474		(77)		14,700		(475)
Commercial mortgage-backed securities		3		368		(1)		-		-		368		(1)
Corporate and other securities		9		3,994		(105)		3,088		(295)		7,082		(400)
Total temporarily impaired securities		49	$	31,754	$	(1,289)	$	5,496	$	(473)	$	37,250	$	(1,762)
Held to maturity:
U.S. Government sponsored entities		3	$	5,355	$	(460)	$	-	$	-	$	5,355	$	(460)
State and political subdivisions		2		986		(17)		-		-		986		(17)
Residential mortgage-backed securities		7		6,333		(193)		114		(5)		6,447		(198)
Commercial mortgage-backed securities		2		3,668		(437)		-		-		3,668		(437)
Corporate and other securities		1		907		(73)		-		-		907		(73)
Total temporarily impaired securities		15	$	17,249	$	(1,180)	$	114	$	(5)	$	17,363	$	(1,185)
	December 31, 2012
			Less than 12 months				12 months and greater				Total
(In thousands, except number in a loss position)	Total number in a loss position		Estimated fair value		Unrealized loss		Estimated fair value		Unrealized loss		Estimated fair value		Unrealized loss
Available for sale:
Residential mortgage-backed securities		5	$	3,272	$	(43)	$	1,951	$	(80)	$	5,223	$	(123)
Commercial mortgage-backed securities		4		2,351		(2)		-		-		2,351		(2)
Corporate and other securities		6		2,486		(26)		2,994		(546)		5,480		(572)
Total temporarily impaired securities		15	$	8,109	$	(71)	$	4,945	$	(626)	$	13,054	$	(697)
Held to maturity:
Residential mortgage-backed securities		3	$	838	$	(2)	$	279	$	(11)	$	1,117	$	(13)
Total temporarily impaired securities		3	$	838	$	(2)	$	279	$	(11)	$	1,117	$	(13)

Unrealized Losses

The unrealized losses in each of the categories presented in the tables above are discussed in the paragraphs that follow:

U.S. government sponsored entities and state and political subdivision securities: The unrealized losses on investments in these types of securities were caused by the increase in interest rate spreads or the increase in interest rates at the long end of the Treasury curve.  The contractual terms of these investments do not permit the issuer to settle the securities at a price less than the par value of the investments.  Because the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost basis, which may be at maturity, the Company did not consider these investments to be other-than temporarily impaired as of December 31, 2013.  There was no impairment on these securities at December 31, 2012.

Residential and commercial mortgage-backed securities:  The unrealized losses on investments in mortgage-backed securities were caused by increases in interest rate spreads orthe increase in interest rates at the long end of the Treasury curve.  The majority of contractual cash flows of these securities are guaranteed by Fannie Mae, Ginnie Mae and the Federal Home Loan Mortgage Corporation.  It is expected that the securities would not be settled at a price significantly less than the par value of the investment.  Because the decline in fair value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be at maturity, the Company did not consider these investments to be other-than-temporarily impaired as of December 31, 2013 or December 31, 2012.

Corporate and other securities: Included in this category are corporate debt securities, Community Reinvestment Act (“CRA”) investments, asset-backed securities, and one trust preferred security.  The unrealized losses on corporate debt securities were due to widening credit spreads or the increase in interest rates at the long end of the Treasury curve and the unrealized losses on CRA investments were caused by decreases in the market prices of the shares.  The Company evaluated the prospects of the issuers and forecasted a recovery period; and as a result determined it did not consider these investments to be other-than-temporarily impaired as of December 31, 2013 or December 31, 2012. The unrealized loss on the trust preferred security  was caused by an inactive trading market and changes in market credit spreads.  At December 31, 2013 and December 31, 2012, this category consisted of one single-issuer trust preferred security.  The contractual terms do not allow the security to be settled at a price less than the par value.  Because the Company does not intend to sell the security and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis, which may be at maturity, the Company did not consider this security to be other-than-temporarily impaired as of December 31, 2013 or December 31, 2012.

Realized Gains and Losses

Gross realized gains and losses on securities for the past two years are detailed in the table below:

	For the years ended December 31,
(In thousands)	2013		2012
Available for sale:
Realized gains	$	394	$	570
Realized losses		(4)		(4)
Total securities available for sale		390		566
Held to maturity:
Realized gains		-		7
Realized losses		-		-
Total securities held to maturity		-		7
Net gains on sales of securities	$	390	$	573

The net realized gains are included in noninterest income in the Consolidated Statements of Income as net security gains.  For 2013 and 2012, gross realized gains on sales of securities amounted to $394 thousand and $577 thousand, respectively, and gross realized losses were $4 thousand in each year.

· The net gains during 2013  are attributed to the sale of fiveasset-backed securities with a total book value of $6.4 million and resulting net gains of $195 thousand, the sale of four corporate bonds with a total book value of $4.8 million and resulting gains of $186 thousand, the sale of two mortgage-backed securities with a book value of $517 thousand for a gain of $9 thousand, and the sale of one equity security with a book value of $60 thousand for a gain of $4 thousand, offset by the partial call of onemunicipal security resulting in a loss of $4 thousand.

· The net gains during 2012 are attributed to the sale of ten municipal securities with a total book value of $4.2 million and resulting net gains of $419 thousand, the sale of two mortgage-backed securities with a total book value of $2.0 million and resulting gains of $88 thousand, the sale of one corporate bond with a book value of $1.5 million for a gain of $56 thousand, and the call of one held to maturity municipal security resulting in a gain of $7 thousand, offset by the partial call of one municipal security resulting in a loss of $4 thousand. 

Pledged Securities

Securities with a carrying value of $74.5million and $78.4 million at December 31, 2013 and December 31, 2012, respectively, were pledged to secure Government deposits, secure other borrowings and for other purposes required or permitted by law.  Included in these figures was $19.9 million and $25.1 million pledged against Government deposits at December 31, 2013 and December 31, 2012, respectively.

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Restrictions on Cash

12 Months Ended

Dec. 31, 2013

Restrictions on Cash [Abstract]

Restrictions on Cash

3.  Restrictions on Cash

Federal law requires depository institutions to hold reserves in the form of vault cash or, if vault cash is insufficient, in the form of a deposit maintained with a Federal Reserve Bank (“FRB”).  The dollar amount of a depository institution's reserve requirement is determined by applying the reserve ratios specified in the FRB’s Regulation D to an institution's reservable liabilities.  As of December 31, 2013 and 2012 the Company had sufficient vault cash to meet its reserve requirements and no additional reserves were required.

In addition, the Company’s contract with its current electronic funds transfer (“EFT”) provider requires a predetermined balance be maintained in a settlement account controlled by the provider equal to the Company’s average daily net settlement position multiplied by four days.  The required balance was $179 thousand as of December 31, 2013 and 2012. This balance can be adjusted periodically to reflect actual transaction volume and seasonal factors.

The Governmental Unit Deposit Protection Act ("GUDPA") is a supplemental insurance program set forth by the New Jersey Legislature to protect the deposits of municipalities and local government agencies, administered by the Commissioner of the New Jersey Department of Banking and Insurance.  At December 31, 2013, the Company had $18.0 million in cash as eligible collateral pledged to the State of New Jersey Department of Banking and Insurance to secure its municipal deposits.  No cash was pledged at December 31, 2012.

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Other Expenses

12 Months Ended

Dec. 31, 2013

Other Expenses [Abstract]

Other Expenses

15. Other Expenses

The components of other expenses for the past two years are as follows:

	For the years ended December 31,
(In thousands)	2013		2012
Travel, entertainment, training and recruiting	$	608	$	589
Director fees		367		259
Insurance		335		339
Stationary and supplies		271		237
Retail losses		4		142
Other		282		332
Total other expenses	$	1,867	$	1,898

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Commitments and Contingencies

12 Months Ended

Dec. 31, 2013

Commitments and Contingencies [Abstract]

Commitments and Contingencies

11.  Commitments and Contingencies

Facility Lease Obligations

The Company operates fifteen branches, four branches are under operating leases, including its headquarters, and eleven branches are owned.  Three previously leased branches were purchased during the second quarter of 2013, therefore rental expense for 2013 includes lease payments for those three branches up through the purchase date.The contractual expiration range on the remaining four leases is between the years 2014 and 2018. 

The following table summarizes the contractual rent payments expected in future years:

(In thousands)	2014		2015		2016		2017		2018		Thereafter		Total
Operating lease rental payments	$	670	$	572	$	526	$	473	$	418	$	-	$	2,659

Rent expense totaled $856 thousand for 2013 and $1.2 million for 2012.  The Company currently accounts for all of its leases as operating leases.  In addition, the Company has one lease with a related party.  The Company leases its Clinton, New Jersey headquarters from a partnership in which two Board members, Messrs. D. Dallas and R. Dallas are partners.  Under the lease for the facility, the Company paid aggregate rental payments of $437 thousand in 2013 and $427 thousand in 2012.  Rental payments reflect market rents and the lease reflects terms that are comparable to those which could have been obtained in a lease with an unaffiliated third party.  When this lease expired at the end of 2013, it was renewed for another five-year term expiring at the end of 2018.  The annual rent is increased each year beginning January 1, 2016 by the increase in the Consumer Price Index (“CPI”) for the New York Metropolitan area (not to exceed 1.5 percent).

Litigation

The Company may, in the ordinary course of business, become a party to litigation involving collection matters, contract claims and other legal proceedings relating to the conduct of its business.  In the best judgment of management, based upon consultation with counsel, the consolidated financial position and results of operations of the Company will not be affected materially by the final outcome of any pending legal proceedings or other contingent liabilities and commitments.

Commitments to Borrowers

Commitments to extend credit are legally binding loan commitments with set expiration dates.  They are intended to be disbursed, subject to certain conditions, upon the request of the borrower.  The Company was committed to advance approximately $103.2 million to its borrowers as of December 31, 2013, compared to $87.2 million at December 31, 2012.  At December 31, 2013, $45.6 million of these commitments expire within one year, compared to $40.1 million a year earlier.  At December 31, 2013, the Company had $1.4 million in standby letters of credit compared to $1.6 million at December 31, 2012.  The estimated fair value of these guarantees is not significant.  The Company believes it has the necessary liquidity to honor all commitments.

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Shareholders' Equity (Narrative) (Details) (USD $)	6 Months Ended		12 Months Ended
	Dec. 31, 2013	Jun. 30, 2013	Dec. 31, 2013	Dec. 31, 2008
Shareholders' Equity [Abstract]
Proceeds from Issuance of Warrants				$ 2,600,000
Stock Repurchase Program, Number of Shares Authorized to be Repurchased	556,000		556,000
Stockholders' Equity, Period Increase (Decrease)			20,300,000
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased	153,000		153,000
Stock Redeemed or Called During Period, Value	10,400,000	10,300,000	20,649,000
Stock Redeemed or Called During Period, Shares	10,325,000	10,324,000
Payments for Repurchase of Warrants			$ 2,707,000
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	764,788		764,788
Class of Warrant or Right, Exercise Price of Warrants or Rights	4.05		4.05

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Premises and Equipment

12 Months Ended

Dec. 31, 2013

Premises and Equipment [Abstract]

Premises and Equipment

7.  Premises and Equipment

The detail of premises and equipment as of December 31st for the past two years is as follows:

(In thousands)	December 31, 2013		December 31, 2012
Land and buildings	$	17,022	$	12,347
Furniture, fixtures and equipment		6,603		6,719
Leasehold improvements		1,656		2,319
Gross premises and equipment		25,281		21,385
Less: Accumulated depreciation		(9,609)		(9,323)
Net premises and equipment	$	15,672	$	12,062

The December 31, 2013 figures reflect theBank’s purchase of three of its leased branch locations for $4.3 million in April 2013.Amounts charged to noninterest expense for depreciation of premises and equipment amounted to $1.2 million and $1.1 million in 2013 and 2012, respectively.

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Securities (Unrealized Losses Narrative) (Details) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Schedule of Investments [Line Items]
Available-for-sale securities, Amortized Cost	$ 81,911,000	$ 87,320,000
Available-for-sale Securities, Gross Realized Gains	394,000	570,000
Available-for-sale Securities, Gross Realized Losses	4,000	4,000
Gross Realized Gains on Marketable Securities	394,000	577,000
Gross Realized Losses on Marketable Securities	4,000	4,000
Available-for-sale Securities, Gross Realized Gains (Losses), Sale Proceeds	6,400,000
Available-for-sale Securities, Gross Realized Gain (Loss)	390,000	566,000
Available-for-sale Securities Pledged as Collateral	74,500,000	78,400,000
Available For Sale Securities Pledged As Collateral Against Government Deposits	19,900,000	25,100,000
US States and Political Subdivisions Debt Securities [Member]
Schedule of Investments [Line Items]
Available-for-sale securities, Amortized Cost	16,960,000	14,690,000
Gross Realized Gains on Marketable Securities	195,000	7,000
Available-for-sale Securities, Gross Realized Gains (Losses), Sale Proceeds		4,200,000
Available-for-sale Securities, Gross Realized Gain (Loss)		419,000
Residential Mortgage Backed Securities [Member]
Schedule of Investments [Line Items]
Available-for-sale securities, Amortized Cost	44,168,000	43,984,000
Gross Realized Gains on Marketable Securities	186,000
Available-for-sale Securities, Gross Realized Gains (Losses), Sale Proceeds	4,800,000	2,000,000
Available-for-sale Securities, Gross Realized Gain (Loss)		88,000
Corporate Debt Securities [Member]
Schedule of Investments [Line Items]
Available-for-sale securities, Amortized Cost	13,173,000	21,741,000
Gross Realized Gains on Marketable Securities	9,000
Available-for-sale Securities, Gross Realized Gains (Losses), Sale Proceeds		1,500,000
Available-for-sale Securities, Gross Realized Gain (Loss)		56,000
Available-for-sale Securities Pledged as Collateral	517,000,000
Held-to-maturity Securities [Member]
Schedule of Investments [Line Items]
Gross Realized Gains on Marketable Securities	4,000
Equity Securities [Member]
Schedule of Investments [Line Items]
Available-for-sale Securities, Gross Realized Gains (Losses), Sale Proceeds	60,000
Available-for-sale Securities, Gross Realized Gain (Loss)	$ 4,000

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Condensed Financial Statements of Unity Bancorp, Inc. (Parent Company Only) (Condensed Balance Sheets) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Condensed Financial Statements, Captions [Line Items]
Cash and cash equivalents	$ 99,404	$ 94,192
Securities available for sale	81,133	89,538
Other assets	2,654	2,231
Total assets	921,118	819,730
Other liabilities	2,328	2,561
Subordinated debentures	15,465	15,465
Shareholders' equity	57,173	77,510	73,558
Total liabilities and shareholders' equity	921,118	819,730
Parent Company Only [Member]
Condensed Financial Statements, Captions [Line Items]
Cash and cash equivalents	724	11,869
Securities available for sale	166	105
Capital note due from Bank	8,500	8,500
Investment in subsidiaries	62,814	72,213
Other assets	493	476
Total assets	72,697	93,163
Other liabilities	59	188
Subordinated debentures	15,465	15,465
Shareholders' equity	57,173	77,510
Total liabilities and shareholders' equity	$ 72,697	$ 93,163

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Loans

12 Months Ended

Dec. 31, 2013

Loans [Abstract]

Loans

5.  Loans

The following table sets forth the classification of loans by class, including unearned fees, deferred costs and excluding the allowance for loan losses for the past two years:

(In thousands)	December 31, 2013		December 31, 2012
SBA loans held for investment	$	48,918	$	58,593
SBA 504 loans		31,564		41,438
Commercial loans
Commercial other		37,611		24,043
Commercial real estate		317,471		264,439
Commercial real estate construction		8,258		13,082
Residential mortgage loans
Residential mortgages		175,984		125,232
Purchased residential mortgages		6,083		6,862
Consumer loans
Home equity		43,704		45,152
Consumer other		2,435		1,258
Total loans held for investment	$	672,028	$	580,099
SBA loans held for sale		6,673		6,937
Total loans	$	678,701	$	587,036

Loans are made to individuals as well as commercial entities.  Specific loan terms vary as to interest rate, repayment, and collateral requirements based on the type of loan requested and the credit worthiness of the prospective borrower.  Credit risk, excluding SBA loans, tends to be geographically concentrated in that a majority of the loan customers are located in the markets serviced by the Bank.  As a preferred SBA lender, a portion of the SBA portfolio is to borrowers outside the Company’s lending area.  However, during late 2008, the Company withdrew from SBA lending outside of its primary trade area, but continues to offer SBA loan products as an additional credit product within its primary trade area.  Loan performance may be adversely affected by factors impacting the general economy or conditions specific to the real estate market such as geographic location and/or property type.  A description of the Company's different loan segments follows:

SBA Loans:  SBA 7(a) loans, on which the SBA has historically provided guarantees of up to 90 percent of the principal balance, are considered a higher risk loan product for the Company than its other loan products.  The guaranteed portion of the Company’s SBA loans is generally sold in the secondary market with the nonguaranteed portion held in the portfolio as a loan held for investment.  SBA loans are for the purpose of providing working capital, financing the purchase of equipment, inventory or commercial real estate and for other business purposes.  Loans are guaranteed by the businesses' major owners. SBA loans are made based primarily on the historical and projected cash flow of the business and secondarily on the underlying collateral provided.

SBA 504 Loans:  The SBA 504 program consists of real estate backed commercial mortgages where the Company has the first mortgage and the SBA has the second mortgage on the property.  SBA 504 loans are made based primarily on the historical and projected cash flow of the business and secondarily on the underlying collateral provided.  Generally, the Company has a 50 percent loan to value ratio on SBA 504 program loans at origination.

Commercial Loans:  Commercial credit is extended primarily to middle market and small business customers.  Commercial loans are generally made in the Company’s market place for the purpose of providing working capital, financing the purchase of equipment, inventory or commercial real estate and for other business purposes.  Loans will generally be guaranteed in full or for a meaningful amount by the businesses' major owners.  Commercial loans are made based primarily on the historical and projected cash flow of the business and secondarily on the underlying collateral provided.

ResidentialMortgage and Consumer Loans:  The Company originates mortgage and consumer loans including principally residential real estate and home equity lines and loans.  Each loan type is evaluated on debt to income, type of collateral and loan to collateral value, credit history and Company relationship with the borrower.

Inherent in the lending function is credit risk, which is the possibility a borrower may not perform in accordance with the contractual terms of their loan.  A borrower’s inability to pay their obligations according to the contractual terms can create the risk of past due loans and, ultimately, credit losses, especially on collateral deficient loans.  The Company minimizes its credit risk by loan diversification and adhering to credit administration policies and procedures.  Due diligence on loans begins when we initiate contact regarding a loan with a borrower.  Documentation, including a borrower’s credit history, materials establishing the value and liquidity of potential collateral, the purpose of the loan, the source of funds for repayment of the loan, and other factors, are analyzed before a loan is submitted for approval.  The loan portfolio is then subject to on-going internal reviews for credit quality, as well as independent credit reviews by an outside firm.

The Company's extension of credit is governed by the Credit Risk Policy which was established to control the quality of the Company's loans.  These policies and procedures are reviewed and approved by the Board of Directors on a regular basis.

Credit Ratings

For SBA 7(a), SBA 504 and commercial loans, management uses internally assigned risk ratings as the best indicator of credit quality.  A loan’s internal risk rating is updated at least annually and more frequently if circumstances warrant a change in risk rating.  The Company uses a 1 through 10 loan grading system that follows regulatory accepted definitions.

Pass:  Risk ratings of 1 through 6 are used for loans that are performing, as they meet, and are expected to continue to meet, all of the terms and conditions set forth in the original loan documentation, and are generally current on principal and interest payments.  These performing loans are termed “Pass”.

Special Mention:  Criticized loans are assigned a risk rating of 7 and termed “Special Mention”, as the borrowers exhibit potential credit weaknesses or downward trends deserving management’s close attention.  If not checked or corrected, these trends will weaken the Bank’s collateral and position.  While potentially weak, these borrowers are currently marginally acceptable and no loss of interest or principal is anticipated.  As a result, special mention assets do not expose an institution to sufficient risk to warrant adverse classification.  Included in “Special Mention” could be turnaround situations, such as borrowers with deteriorating trends beyond one year, borrowers in start up or deteriorating industries, or borrowers with a poor market share in an average industry.  "Special Mention" loans may include an element of asset quality, financial flexibility, or below average management.  Management and ownership may have limited depth or experience.  Regulatory agencies have agreed on a consistent definition of “Special Mention” as an asset with potential weaknesses which, if left uncorrected, may result in deterioration of the repayment prospects for the asset or in the Bank’s credit position at some future date.  This definition is intended to ensure that the “Special Mention” category is not used to identify assets that have as their sole weakness credit data exceptions or collateral documentation exceptions that are not material to the repayment of the asset.

Substandard:  Classified loans are assigned a risk rating of an 8 or 9, depending upon the prospect for collection, and deemed “Substandard”.  A risk rating of 8 is used for borrowers with well-defined weaknesses that jeopardize the orderly liquidation of debt.  The loan is inadequately protected by the current paying capacity of the obligor or by the collateral pledged, if any.  Normal repayment from the borrower is in jeopardy, although no loss of principal is envisioned.  There is a distinct possibility that a partial loss of interest and/or principal will occur if the deficiencies are not corrected.  Loss potential, while existing in the aggregate amount of substandard assets, does not have to exist in individual assets classified “Substandard”.  

A risk rating of 9 is used for borrowers that have all the weaknesses inherent in a loan with a risk rating of 8, with the added characteristic that the weaknesses make collection of debt in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.  Serious problems exist to the point where partial loss of principal is likely.  The possibility of loss is extremely high, but because of certain important, reasonably specific pending factors that may work to strengthen the assets, the loans’ classification as estimated losses is deferred until a more exact status may be determined.  Pending factors include proposed merger, acquisition, or liquidation procedures; capital injection; perfecting liens on additional collateral; and refinancing plans.  Partial charge-offs are likely.

Loss:  Once a borrower is deemed incapable of repayment of unsecured debt, the risk rating becomes a 10, the loan is termed a “Loss”, and charged-off immediately.  Loans to such borrowers are considered uncollectible and of such little value that continuance as active assets of the Bank is not warranted.  This classification does not mean that the loan has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off these basically worthless assets even though partial recovery may be affected in the future.

For residential mortgage and consumer loans, management uses performing versus nonperforming as the best indicator of credit quality.  Nonperforming loans consist of loans that are not accruing interest (nonaccrual loans) as a result of principal or interest being in default for a period of 90 days or more or when the ability to collect principal and interest according to the contractual terms is in doubt.  These credit quality indicators are updated on an ongoing basis, as a loan is placed on nonaccrual status as soon as management believes there is sufficient doubt as to the ultimate ability to collect interest on a loan.

The tables below detail the Company’s loan portfolio by class according to their credit quality indicators discussed in the paragraphs above as of December 31, 2013:

	December 31, 2013
	SBA, SBA 504 & Commercial loans - Internal risk ratings
(In thousands)	Pass		Special mention		Substandard		Total
SBA loans held for investment	$	43,778	$	2,035	$	3,105	$	48,918
SBA 504 loans		20,641		9,595		1,328		31,564
Commercial loans
Commercial other		34,946		1,499		1,166		37,611
Commercial real estate		289,220		21,137		7,114		317,471
Commercial real estate construction		8,081		-		177		8,258
Total commercial loans		332,247		22,636		8,457		363,340
Total SBA, SBA 504 and commercial loans	$	396,666	$	34,266	$	12,890	$	443,822
	Residential mortgage & Consumer loans - Performing/Nonperforming
(In thousands)			Performing		Nonperforming		Total
Residential mortgage loans
Residential mortgages			$	173,085	$	2,899	$	175,984
Purchased residential mortgages				3,255		2,828		6,083
Total residential mortgage loans				176,340		5,727		182,067
Consumer loans
Home equity				42,029		1,675		43,704
Consumer other				2,430		5		2,435
Total consumer loans				44,459		1,680		46,139
Total residential mortgage and consumer loans			$	220,799	$	7,407	$	228,206

The tables below detail the Company’s loan portfolio by class according to their credit quality indicators discussed in the paragraphs above as of December 31, 2012: 

	December 31, 2012
	SBA, SBA 504 & Commercial loans - Internal risk ratings
(In thousands)	Pass		Special mention		Substandard		Total
SBA loans held for investment	$	51,754	$	2,328	$	4,511	$	58,593
SBA 504 loans		28,726		5,860		6,852		41,438
Commercial loans
Commercial other		20,337		1,519		2,187		24,043
Commercial real estate		229,516		30,334		4,589		264,439
Commercial real estate construction		12,880		202		-		13,082
Total commercial loans		262,733		32,055		6,776		301,564
Total SBA, SBA 504 and commercial loans	$	343,213	$	40,243	$	18,139	$	401,595
	Residential mortgage & Consumer loans - Performing/Nonperforming
(In thousands)			Performing		Nonperforming		Total
Residential mortgage loans
Residential mortgages			$	122,711	$	2,521	$	125,232
Purchased residential mortgages				3,872		2,990		6,862
Total residential mortgage loans				126,583		5,511		132,094
Consumer loans
Home equity				44,844		308		45,152
Consumer other				1,249		9		1,258
Total consumer loans				46,093		317		46,410
Total residential mortgage and consumer loans			$	172,676	$	5,828	$	178,504

Nonperforming and Past Due Loans

Nonperforming loans consist of loans that are not accruing interest (nonaccrual loans) as a result of principal or interest being in default for a period of 90 days or more or when the ability to collect principal and interest according to the contractual terms is in doubt.  Loans past due 90 days or more and still accruing interest are not included in nonperforming loans and generally represent loans that are well collateralized and in a continuing process expected to result in repayment or restoration to current status.  The risk of loss is difficult to quantify and is subject to fluctuations in collateral values, general economic conditions and other factors.  The majority of the Company’s nonaccrual loans are the result of the 2008 recession and subsequent collection efforts.  The state of the economy and the downturn in the real estate market has resulted in increased loan delinquencies and defaults.  In some cases, these factors have also resulted in significant impairment to the value of loan collateral.  The Company values its collateral through the use of appraisals, broker price opinions, and knowledge of its local market.  In response to the credit risk in its portfolio, the Company has increased staffing in its credit monitoring department and increased efforts in the collection and analysis of borrowers’ financial statements and tax returns.  The following tables set forth an aging analysis of past due and nonaccrual loans as of December 31, 2013 and December 31, 2012:

	December 31, 2013
(In thousands)	30-59 days past due		60-89 days past due		90+ days and still accruing		Nonaccrual (1)		Total past due		Current		Total loans
SBA loans held for investment	$	4,314	$	264	$	-	$	2,746	$	7,324	$	41,594	$	48,918
SBA 504 loans		-		-		-		1,101		1,101		30,463		31,564
Commercial loans
Commercial other		123		-		-		67		190		37,421		37,611
Commercial real estate		347		190		14		3,785		4,336		313,135		317,471
Commercial real estate construction		-		-		-		177		177		8,081		8,258
Residential mortgage loans
Residential mortgages		2,514		-		-		2,899		5,413		170,571		175,984
Purchased residential mortgages		536		-		5		2,828		3,369		2,714		6,083
Consumer loans
Home equity		142		69		-		1,675		1,886		41,818		43,704
Consumer other		9		1		-		5		15		2,420		2,435
Total loans held for investment	$	7,985	$	524	$	19	$	15,283	$	23,811	$	648,217	$	672,028
SBA loans held for sale		65		-		-		-		65		6,608		6,673
Total loans	$	8,050	$	524	$	19	$	15,283	$	23,876	$	654,825	$	678,701

(1) At December 31, 2013, nonaccrual loans included $467 thousand of TDRs and $540 thousand of loans guaranteed by the SBA.  The remaining $7.5 million of TDRs are in accrual status because they are performing in accordance with their restructured terms, and have been for at least six months.

	December 31, 2012
(In thousands)	30-59 days past due		60-89 days past due		90+ days and still accruing		Nonaccrual (1)		Total past due		Current		Total loans
SBA loans held for investment	$	1,912	$	296	$	-	$	4,633	$	6,841	$	51,752	$	58,593
SBA 504 loans		5,037		-		-		2,562		7,599		33,839		41,438
Commercial loans
Commercial other		-		-		109		1,122		1,231		22,812		24,043
Commercial real estate		3,763		-		-		3,323		7,086		257,353		264,439
Commercial real estate construction		-		202		-		-		202		12,880		13,082
Residential mortgage loans
Residential mortgages		2,651		1,878		-		2,521		7,050		118,182		125,232
Purchased residential mortgages		134		78		-		2,990		3,202		3,660		6,862
Consumer loans
Home equity		833		-		-		308		1,141		44,011		45,152
Consumer other		-		-		-		9		9		1,249		1,258
Total loans held for investment	$	14,330	$	2,454	$	109	$	17,468	$	34,361	$	545,738	$	580,099
SBA loans held for sale		-		-		-		-		-		6,937		6,937
Total loans	$	14,330	$	2,454	$	109	$	17,468	$	34,361	$	552,675	$	587,036

(1) At December 31, 2012, nonaccrual loans included $1.1 million of TDRs and $1.8 million of loans guaranteed by the SBA.  The remaining $13.6 million of TDRs are in accrual status because they are performing in accordance with their restructured terms, and have been for at least six months.

Impaired Loans

The Company has defined impaired loans to be all nonperforming loans and troubled debt restructurings.  Management considers a loan impaired when, based on current information and events, it is determined that the Company will not be able to collect all amounts due according to the loan contract.

The following tables provide detail on the Company’s impaired loans with the associated allowance amount, if applicable, as of December 31, 2013 and December 31, 2012: 

	December 31, 2013
(In thousands)	Unpaid principal balance		Recorded investment		Specific reserves
With no related allowance:
SBA loans held for investment (1)	$	1,123	$	835	$	-
SBA 504 loans		2,251		2,251		-
Commercial loans
Commercial other		56		55		-
Commercial real estate		6,116		5,969		-
Total commercial loans		6,172		6,024		-
Total impaired loans with no related allowance		9,546		9,110		-
With an allowance:
SBA loans held for investment (1)		2,282		1,905		831
SBA 504 loans		1,277		677		29
Commercial loans
Commercial other		24		12		12
Commercial real estate		3,557		2,907		230
Commercial real estate construction		202		177		36
Total commercial loans		3,783		3,096		278
Total impaired loans with a related allowance		7,342		5,678		1,138
Total individually evaluated impaired loans:
SBA loans held for investment (1)		3,405		2,740		831
SBA 504 loans		3,528		2,928		29
Commercial loans
Commercial other		80		67		12
Commercial real estate		9,673		8,876		230
Commercial real estate construction		202		177		36
Total commercial loans		9,955		9,120		278
Total individually evaluated impaired loans	$	16,888	$	14,788	$	1,138

(1) Balances are reduced by amount guaranteed by the SBA of $540thousand at December 31, 2013.

	December 31, 2012
(In thousands)	Unpaid principal balance		Recorded investment		Specific reserves
With no related allowance:
SBA loans held for investment (1)	$	1,352	$	866	$	-
SBA 504 loans		5,812		5,555		-
Commercial loans
Commercial other		2,032		2,033		-
Commercial real estate		5,220		4,752		-
Total commercial loans		7,252		6,785		-
Total impaired loans with no related allowance		14,416		13,206		-
With an allowance:
SBA loans held for investment (1)		3,355		2,846		1,159
SBA 504 loans		1,297		1,297		217
Commercial loans
Commercial other		126		38		38
Commercial real estate		6,014		5,979		587
Total commercial loans		6,140		6,017		625
Total impaired loans with a related allowance		10,792		10,160		2,001
Total individually evaluated impaired loans:
SBA loans held for investment (1)		4,707		3,712		1,159
SBA 504 loans		7,109		6,852		217
Commercial loans
Commercial other		2,158		2,071		38
Commercial real estate		11,234		10,731		587
Total commercial loans		13,392		12,802		625
Total individually evaluated impaired loans	$	25,208	$	23,366	$	2,001

(1) Balances are reduced by amount guaranteed by the SBA of $1.8 million at December 31, 2012.

The following table presents the average recorded investments in impaired loans and the related amount of interest recognized during the time period in which the loans were impaired for the years ended December 31, 2013 and 2012.  The average balances are calculated based on the month-end balances of impaired loans.  When the ultimate collectability of the total principal of an impaired loan is in doubt and the loan is on nonaccrual status, all payments are applied to principal under the cost recovery method, therefore no interest income is recognized.  Any interest income recognized on a cash basis during the years ended December 31, 2013 and 2012 was immaterial.  The interest recognized on impaired loans noted below represents accruing troubled debt restructurings only.

	For the years ended December 31,
	2013				2012
(In thousands)	Average recorded investment		Interest income recognized on impaired loans		Average recorded investment		Interest income recognized on impaired loans
SBA loans held for investment (1)	$	3,244	$	197	$	4,161	$	212
SBA 504 loans		5,066		173		6,184		278
Commercial loans
Commercial other		1,461		100		3,201		53
Commercial real estate		9,751		324		17,909		462
Commercial real estate construction		171		-		133		-
Residential mortgage loans
Residential mortgages		2,757		-		2,070		-
Residential construction		-		-		904		-
Purchased residential mortgages		1,927		-		2,655		-
Consumer loans
Home equity		970		16		292		-
Consumer other		1		-		8		-
Total	$	25,348	$	810	$	37,517	$	1,005

(1) Balances are reduced by the average amount guaranteed by the SBA of $953 thousand and $667thousand for years ended December 31, 2013 and 2012, respectively.

Troubled Debt Restructurings

The Company's loan portfolio includes certain loans that have been modified in a troubled debt restructuring (“TDR”).  TDRs occur when a creditor, for economic or legal reasons related to a debtor’s financial condition, grants a concession to the debtor that it would not otherwise consider, unless it results in a delay in payment that is insignificant.  These concessions typically include reductions in interest rate, extending the maturity of a loan, other modifications of payment terms, or a combination of modifications.  When the Company modifies a loan, management evaluates for any possible impairment using either the discounted cash flows method, where the value of the modified loan is based on the present value of expected cash flows, discounted at the contractual interest rate of the original loan agreement, or by using the fair value of the collateral less selling costs if the loan is collateral-dependent.  If management determines that the value of the modified loan is less than the recorded investment in the loan, impairment is recognized by segment or class of loan, as applicable, through an allowance estimate or charge-off to the allowance.  This process is used, regardless of loan type, and for loans modified as TDRs that subsequently default on their modified terms.

TDRs of $7.9million and $14.7 million are included in the impaired loan numbers as of December 31, 2013 and December 31, 2012, respectively.  The decrease was due to payoffs, note sales, a refinanced transaction and principal pay downs, partially offset by the addition of two loans.  Specific reserves for these TDRs were $363 thousand and $659 thousand as of December 31, 2013 and December 31, 2012, respectively.  At December 31, 2013, $467 thousand of TDRs were in nonaccrual status, compared to $1.1 million at December 31, 2012.  The remaining TDRs are in accrual status since they continue to perform in accordance with their restructured terms.  There are no commitments to lend additional funds on these loans. 

The following table details loans modified during the years ended December 31, 2013 and 2012, including the number of modifications, the recorded investment at the time of the modification and the year-to-date impact to interest income as a result of the modification.  

	For the years ended December 31,
	2013						2012
(In thousands, except number of contracts)	Number of contracts		Recorded investment at time of modification		Impact of interest rate change on income		Number of contracts		Recorded investment at time of modification		Impact of interest rate change on income
SBA loans held for investment		1	$	65	$	-		-	$	-	$	-
Commercial real estate		1		2,684		50		3		1,856		11
Total		2	$	2,749	$	50		3	$	1,856	$	11

In addition, there were no qualifying subsequent defaults to TDRs in 2013.  In 2012, there was one commercial real estate loan with outstanding principal of $961 thousand modified as a TDR within the previous 12 months where a concession was made and the loan subsequently defaulted at some point during the year ended December 31, 2012.  In this case, subsequent default is defined as 90 days past due or transferred to nonaccrual status.

To date, the Company’s TDRs consisted of interest rate reductions, interest only periods and maturity extensions.  There has been no principal forgiveness.  The following tables show the types of modifications done during the years ended December 31, 2013 and 2012, with the respective loan balances as of those period ends:

	For the year ended December 31, 2013
(In thousands)	SBA		Commercial real estate		Total
Type of modification:
Interest only with reduced interest rate	$	-	$	2,684	$	2,684
Interest only with nominal principal		65		-		65
Total TDRs	$	65	$	2,684	$	2,749

	For the year ended December 31, 2012
(In thousands)	Commercial real estate		Total
Type of modification:
Interest only	$	1,890	$	1,890
Total TDRs	$	1,890	$	1,890

Other Loan Information

Servicing Assets:

Loans sold to others and serviced by the Company are not included in the accompanying Consolidated Balance Sheets.  The total amount of such loans serviced, but owned by outside investors, amounted to approximately $101.9 million and $109.9 million at December 31, 2013 and 2012, respectively.  At December 31, 2013 and 2012, the carrying value, which approximates fair value, of servicing assets was $437 thousand and $396 thousand, respectively, and is included in Other Assets.  The fair value of SBA servicing assets was determined using a discount rate of 15 percent, constant prepayment speeds ranging from 15 to 18, and interest strip multiples ranging from 2.08 to 3.80, depending on each individual credit.  The fair value of mortgage servicing assets was determined using a discount rate of 15 percent and constant prepayment speeds ranging from 15 to 18.  A summary of the changes in the related servicing assets for the past two years follows:

	For the years ended December 31,
(In thousands)	2013		2012
Balance, beginning of year	$	396	$	418
Servicing assets capitalized		187		155
Amortization of expense		(146)		(177)
Provision for loss in fair value		-		-
Balance, end of year	$	437	$	396

In addition, the Company had a $502 thousand and $487 thousand discount related to the retained portion of the unsold SBA loans at December 31, 2013 and 2012, respectively.

Officer and Director Loans:

In the ordinary course of business, the Company may extend credit to officers, directors or their associates.  These loans are subject to the Company’s normal lending policy.  An analysis of such loans, all of which are current as to principal and interest payments, is as follows:

	For the years ended December 31,
(In thousands)	2013		2012
Balance, beginning of year	$	14,605	$	15,585
New loans		4,521		537
Loan repayments		(799)		(1,517)
Balance, end of year	$	18,327	$	14,605

Loan Portfolio Collateral:

The majority of the Company’s loans are secured by real estate.  Declines in the market values of real estate in the Company’s trade area impact the value of the collateral securing its loans.  This could lead to greater losses in the event of defaults on loans secured by real estate.  At December 31, 2013, approximately 96 percent of the Company’s loan portfolio was secured by real estate, compared to 97 percent at December 31, 2012.

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Allowance for Loan Losses and Reserve for Unfunded Loan Commitments

12 Months Ended

Dec. 31, 2013

Allowance for Loan Losses and Reserve for Unfunded Loan Commitments [Abstract]

Allowance for Loan Losses and Reserve for Unfunded Loan Commitments

6. Allowance for Loan Losses and Reserve for Unfunded Loan Commitments

Allowance for Loan Losses

The Company has an established methodology to determine the adequacy of the allowance for loan losses that assesses the risks and losses inherent in the loan portfolio.  At a minimum, the adequacy of the allowance for loan losses is reviewed by management on a quarterly basis.  For purposes of determining the allowance for loan losses, the Company has segmented the loans in its portfolio by loan type.  Loans are segmented into the following pools: SBA 7(a), SBA 504, commercial, residential mortgages, and consumer loans.  Certain portfolio segments are further broken down into classes based on the associated risks within those segments and the type of collateral underlying each loan.  Commercial loans are divided into the following three classes: commercial real estate, commercial real estate construction and commercial other.  Residential mortgage loans are divided into the following three classes: Residential mortgages, residential construction and purchased mortgages.  Consumer loans are divided into two classes as follows:  Home equity and other.

The standardized methodology used to assess the adequacy of the allowance includes the allocation of specific and general reserves.  The same standard methodology is used, regardless of loan type.  Specific reserves are made to individual impaired loans and troubled debt restructurings (see Note 1 for additional information on this term).  The general reserve is set based upon a representative average historical net charge-off rate adjusted for the following environmental factors: delinquency and impairment trends, charge-off and recovery trends, changes in the volume of restructured loans, volume and loan term trends, changes in risk and underwriting policy trends, staffing and experience changes, national and local economic trends, industry conditions and credit concentration changes.  Within the five-year historical net charge-off rate, the Company weights the past three years more because it believes they are more indicative of future losses.  All of the environmental factors are ranked and assigned a basis points value based on the following scale: low, low moderate, moderate, high moderate and high risk.  Each environmental factor is evaluated separately for each class of loans and risk weighted based on its individual characteristics. 

· For SBA 7(a), SBA 504 and commercial loans, the estimate of loss based on pools of loans with similar characteristics is made through the use of a standardized loan grading system that is applied on an individual loan level and updated on a continuous basis.  The loan grading system incorporates reviews of the financial performance of the borrower, including cash flow, debt-service coverage ratio, earnings power, debt level and equity position, in conjunction with an assessment of the borrower's industry and future prospects.  It also incorporates analysis of the type of collateral and the relative loan to value ratio.

· For residential mortgage and consumer loans, the estimate of loss is based on pools of loans with similar characteristics.  Factors such as credit score, delinquency status and type of collateral are evaluated.  Factors are updated frequently to capture the recent behavioral characteristics of the subject portfolios, as well as any changes in loss mitigation or credit origination strategies, and adjustments to the reserve factors are made as needed. 

According to the Company’s policy, a loss (“charge-off”) is to be recognized and charged to the allowance for loan losses as soon as a loan is recognized as uncollectable.  All credits which are 90 days past due must be analyzed for the Company’s ability to collect on the credit.  Once a loss is known to exist, the charge-off approval process is immediately expedited.  This charge-off policy is followed for all loan types.

The allocated allowance is the total of identified specific and general reserves by loan category.  The allocation is not necessarily indicative of the categories in which future losses may occur.  The total allowance is available to absorb losses from any segment of the portfolio.An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses.  The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in methodologies for estimating allocated and general reserves in the portfolio.

The following tables detail the activity in the allowance for loan losses by portfolio segment for the past two years:

	For the year ended December 31, 2013
(In thousands)	SBA held for investment		SBA 504		Commercial		Residential		Consumer		Unallocated		Total
Balance, beginning of period	$	3,378	$	1,312	$	7,091	$	1,769	$	524	$	684	$	14,758
Charge-offs		(1,076)		(1,193)		(1,392)		(375)		(588)		-		(4,624)
Recoveries		250		182		204		17		4		-		657
Net charge-offs		(826)		(1,011)		(1,188)		(358)		(584)		-		(3,967)
Provision for loan losses charged to expense		35		656		937		721		633		(632)		2,350
Balance, end of period	$	2,587	$	957	$	6,840	$	2,132	$	573	$	52	$	13,141

	For the year ended December 31, 2012
(In thousands)	SBA held for investment		SBA 504		Commercial		Residential		Consumer		Unallocated		Total
Balance, beginning of period	$	4,088	$	1,423	$	8,129	$	1,703	$	536	$	469	$	16,348
Charge-offs		(1,332)		(808)		(3,504)		(824)		(56)		-		(6,524)
Recoveries		518		108		306		-		2		-		934
Net charge-offs		(814)		(700)		(3,198)		(824)		(54)		-		(5,590)
Provision for loan losses charged to expense		104		589		2,160		890		42		215		4,000
Balance, end of period	$	3,378	$	1,312	$	7,091	$	1,769	$	524	$	684	$	14,758

The following tables present loans and their related allowance for loan losses, by portfolio segment, as of December 31st for the past two years:

	December 31, 2013
(In thousands)	SBA held for investment		SBA 504		Commercial		Residential		Consumer		Unallocated		Total
Allowance for loan losses ending balance:
Individually evaluated for impairment	$	831	$	29	$	278	$	-	$	-	$	-	$	1,138
Collectively evaluated for impairment		1,756		928		6,562		2,132		573		52		12,003
Total	$	2,587	$	957	$	6,840	$	2,132	$	573	$	52	$	13,141
Loan ending balances:
Individually evaluated for impairment	$	2,740	$	2,928	$	9,120	$	-	$	-	$	-	$	14,788
Collectively evaluated for impairment		46,178		28,636		354,220		182,067		46,139		-		657,240
Total	$	48,918	$	31,564	$	363,340	$	182,067	$	46,139	$	-	$	672,028

	December 31, 2012
(In thousands)	SBA held for investment		SBA 504		Commercial		Residential		Consumer		Unallocated		Total
Allowance for loan losses ending balance:
Individually evaluated for impairment	$	1,159	$	217	$	625	$	-	$	-	$	-	$	2,001
Collectively evaluated for impairment		2,219		1,095		6,466		1,769		524		684		12,757
Total	$	3,378	$	1,312	$	7,091	$	1,769	$	524	$	684	$	14,758
Loan ending balances:
Individually evaluated for impairment	$	3,712	$	6,852	$	12,802	$	-	$	-	$	-	$	23,366
Collectively evaluated for impairment		54,881		34,586		288,762		132,094		46,410		-		556,733
Total	$	58,593	$	41,438	$	301,564	$	132,094	$	46,410	$	-	$	580,099

Changes in Methodology:

The Company did not make any changes to its allowance for loan losses methodology in the current period.

Reserve for Unfunded Loan Commitments

In addition to the allowance for loan losses, the Company maintains a reserve for unfunded loan commitments at a level that management believes is adequate to absorb estimated probable losses.  Adjustments to the reserve are made through other expense and applied to the reserve which is classified as other liabilities.  At December 31, 2013, a $103 thousand commitment reserve was reported on the balance sheet as an “other liability”, compared to an  $87 thousand commitment reserve at December 31, 2012.  There were no losses on unfunded loan commitments during 2013 or 2012.

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Other Assets

12 Months Ended

Dec. 31, 2013

Other Assets [Abstract]

Other Assets

8.  Other Assets

The detail of other assets as of December 31st for the past two years is as follows:

(In thousands)	December 31, 2013		December 31, 2012
Prepaid expenses	$	481	$	386
Servicing assets		437		396
Net receivable due from SBA		429		758
Other		1,307		691
Total other assets	$	2,654	$	2,231

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Loans (Impaired Loans With Associated Allowance Amount) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	$ 9,546	$ 14,416
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	7,342	10,792
Impaired Financing Receivable, Unpaid Principal Balance, Total	16,888	25,208
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	9,110	13,206
Impaired Financing Receivable, with Related Allowance, Recorded Investment	5,678	10,160
Impaired Financing Receivable, Recorded Investment, Total	14,788	23,366
Impaired Financing Receivable, Related Allowance	1,138	2,001
SBA held to maturity [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	1,123	1,352
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	2,282	3,355
Impaired Financing Receivable, Unpaid Principal Balance, Total	3,405	4,707
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	835	866
Impaired Financing Receivable, with Related Allowance, Recorded Investment	1,905	2,846
Impaired Financing Receivable, Recorded Investment, Total	2,740	3,712
Impaired Financing Receivable, Related Allowance	831	1,159
SBA 504 loans [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	2,251	5,812
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	1,277	1,297
Impaired Financing Receivable, Unpaid Principal Balance, Total	3,528	7,109
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	2,251	5,555
Impaired Financing Receivable, with Related Allowance, Recorded Investment	677	1,297
Impaired Financing Receivable, Recorded Investment, Total	2,928	6,852
Impaired Financing Receivable, Related Allowance	29	217
Commercial other [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	56	2,032
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	24	126
Impaired Financing Receivable, Unpaid Principal Balance, Total	80	2,158
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	55	2,033
Impaired Financing Receivable, with Related Allowance, Recorded Investment	12	38
Impaired Financing Receivable, Recorded Investment, Total	67	2,071
Impaired Financing Receivable, Related Allowance	12	38
Commercial real estate [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	6,116	5,220
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	3,557	6,014
Impaired Financing Receivable, Unpaid Principal Balance, Total	9,673	11,234
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	5,969	4,752
Impaired Financing Receivable, with Related Allowance, Recorded Investment	2,907	5,979
Impaired Financing Receivable, Recorded Investment, Total	8,876	10,731
Impaired Financing Receivable, Related Allowance	230	587
Commercial real estate construction [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	202
Impaired Financing Receivable, Unpaid Principal Balance, Total	202
Impaired Financing Receivable, with Related Allowance, Recorded Investment	177
Impaired Financing Receivable, Recorded Investment, Total	177
Impaired Financing Receivable, Related Allowance	36
Total Commercial Loans [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	6,172	7,252
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	3,783	6,140
Impaired Financing Receivable, Unpaid Principal Balance, Total	9,955	13,392
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	6,024	6,785
Impaired Financing Receivable, with Related Allowance, Recorded Investment	3,096	6,017
Impaired Financing Receivable, Recorded Investment, Total	9,120	12,802
Impaired Financing Receivable, Related Allowance	$ 278	$ 625

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Other Income (Components of Other Income) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Other Income [Abstract]
ATM and check card fees	$ 487	$ 413
Wire transfer fees	88	84
Safe deposit box fees	59	58
Other	80	172
Total other income	$ 714	$ 727

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Loans (Troubled Debt Restructurings Narrative) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Average Recorded Investment	$ 25,348	$ 37,517
Impaired Financing Receivable, Related Allowance	1,138	2,001
Troubled Debt Restructuring (TDR) [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Average Recorded Investment	7,900	14,700
Nonaccrual Status [Member] | Troubled Debt Restructuring (TDR) [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Average Recorded Investment		$ 1,100

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Employee Benefit Plans (Transactions Under the Restricted Stock Plan) (Details) (Restricted Stock [Member], USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Nonvested restricted stock: shares	90,975
Granted: shares	42,500	29,500
Vested: shares	(31,200)
Forfeited: shares	(6,650)
Nonvested restricted stock: shares	95,625	90,975
Nonvested restricted stock: Average Grant Date Fair Value	$ 6.10
Granted: Average Grant Date Fair Value	$ 7.12	$ 6.07
Vested: Average Grant Date Fair Value	$ 5.88
Forfeited: Average Grant Date Fair Value	$ 6.16
Nonvested restricted stock: Average Grant Date Fair Value	$ 6.64	$ 6.10

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Loans (Aging Analysis Of Past Due And Nonaccrual Loans By Class) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013		Dec. 31, 2012
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, 30 to 59 Days Past Due	$ 8,050		$ 14,330
Financing Receivable, Recorded Investment, 60 to 89 Days Past Due	524		2,454
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due	19		109
Financing Receivable, Recorded Investment, Nonaccrual Status	15,283	[1]	17,468	[2]
Financing Receivable, Recorded Investment, Past Due	23,876		34,361
Financing Receivable, Recorded Investment, Current	654,825		552,675
Total loans	678,701		587,036
SBA held to maturity [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, 30 to 59 Days Past Due	4,314		1,912
Financing Receivable, Recorded Investment, 60 to 89 Days Past Due	264		296
Financing Receivable, Recorded Investment, Nonaccrual Status	2,746	[1]	4,633	[2]
Financing Receivable, Recorded Investment, Past Due	7,324		6,841
Financing Receivable, Recorded Investment, Current	41,594		51,752
Total loans	48,918		58,593
SBA 504 loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, 30 to 59 Days Past Due			5,037
Financing Receivable, Recorded Investment, Nonaccrual Status	1,101	[1]	2,562	[2]
Financing Receivable, Recorded Investment, Past Due	1,101		7,599
Financing Receivable, Recorded Investment, Current	30,463		33,839
Total loans	31,564		41,438
Commercial other [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, 30 to 59 Days Past Due	123
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due			109
Financing Receivable, Recorded Investment, Nonaccrual Status	67	[1]	1,122	[2]
Financing Receivable, Recorded Investment, Past Due	190		1,231
Financing Receivable, Recorded Investment, Current	37,421		22,812
Total loans	37,611		24,043
Commercial real estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, 30 to 59 Days Past Due	347		3,763
Financing Receivable, Recorded Investment, 60 to 89 Days Past Due	190
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due	14
Financing Receivable, Recorded Investment, Nonaccrual Status	3,785	[1]	3,323	[2]
Financing Receivable, Recorded Investment, Past Due	4,336		7,086
Financing Receivable, Recorded Investment, Current	313,135		257,353
Total loans	317,471		264,439
Commercial real estate construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, 60 to 89 Days Past Due			202
Financing Receivable, Recorded Investment, Nonaccrual Status	177	[1]
Financing Receivable, Recorded Investment, Past Due	177		202
Financing Receivable, Recorded Investment, Current	8,081		12,880
Total loans	8,258		13,082
Residential mortgages [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, 30 to 59 Days Past Due			2,651
Financing Receivable, Recorded Investment, 60 to 89 Days Past Due			1,878
Financing Receivable, Recorded Investment, Nonaccrual Status			2,521	[2]
Financing Receivable, Recorded Investment, Past Due			7,050
Financing Receivable, Recorded Investment, Current			118,182
Total loans			125,232
Residential Construction Segment [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, 30 to 59 Days Past Due	2,514
Financing Receivable, Recorded Investment, Nonaccrual Status	2,899	[1]
Financing Receivable, Recorded Investment, Past Due	5,413
Financing Receivable, Recorded Investment, Current	170,571
Total loans	175,984
Residential Purchased Mortgages Segment [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, 30 to 59 Days Past Due	536		134
Financing Receivable, Recorded Investment, 60 to 89 Days Past Due			78
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due	5
Financing Receivable, Recorded Investment, Nonaccrual Status	2,828	[1]	2,990	[2]
Financing Receivable, Recorded Investment, Past Due	3,369		3,202
Financing Receivable, Recorded Investment, Current	2,714		3,660
Total loans	6,083		6,862
Home equity [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, 30 to 59 Days Past Due	142		833
Financing Receivable, Recorded Investment, 60 to 89 Days Past Due	69
Financing Receivable, Recorded Investment, Nonaccrual Status	1,675	[1]	308	[2]
Financing Receivable, Recorded Investment, Past Due	1,886		1,141
Financing Receivable, Recorded Investment, Current	41,818		44,011
Total loans	43,704		45,152
Consumer other [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, 30 to 59 Days Past Due	9
Financing Receivable, Recorded Investment, 60 to 89 Days Past Due	1
Financing Receivable, Recorded Investment, Nonaccrual Status	5	[1]	9	[2]
Financing Receivable, Recorded Investment, Past Due	15		9
Financing Receivable, Recorded Investment, Current	2,420		1,249
Total loans	2,435		1,258
Loans Held for Investment [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, 30 to 59 Days Past Due	7,985		14,330
Financing Receivable, Recorded Investment, 60 to 89 Days Past Due	524		2,454
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due	19		109
Financing Receivable, Recorded Investment, Nonaccrual Status	15,283	[1]	17,468	[2]
Financing Receivable, Recorded Investment, Past Due	23,811		34,361
Financing Receivable, Recorded Investment, Current	648,217		545,738
Total loans	672,028		580,099
SBA Loans Held for Sale [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, 30 to 59 Days Past Due	65
Financing Receivable, Recorded Investment, Past Due	65
Financing Receivable, Recorded Investment, Current	6,608		6,937
Total loans	$ 6,673		$ 6,937

[1] December 31, 2013(In thousands)30-59 days past due60-89 days past due90+ days and still accruingNonaccrual (1)Total past dueCurrentTotal loansSBA loans held for investment$4,314$264$ -$2,746$7,324$41,594$48,918SBA 504 loans - - -1,1011,10130,46331,564Commercial loansCommercial other123 - -6719037,42137,611Commercial real estate347190143,7854,336313,135317,471Commercial real estate construction - - -1771778,0818,258Residential mortgage loansResidential mortgages2,514 - -2,8995,413170,571175,984Purchased residential mortgages536 -52,8283,3692,7146,083Consumer loansHome equity14269 -1,6751,88641,81843,704Consumer other91 -5152,4202,435Total loans held for investment$7,985$524$19$15,283$23,811$648,217$672,028SBA loans held for sale65 - - -656,6086,673Total loans$8,050$524$19$15,283$23,876$654,825$678,701At December 31, 2013, nonaccrual loans included $467 thousand of TDRs and $540 thousand of loans guaranteed by the SBA.  The remaining $7.5 million of TDRs are in accrual status because they are performing in accordance with their restructured terms, and have been for at least six months.

[2] December 31, 2012(In thousands)30-59 days past due60-89 days past due90+ days and still accruingNonaccrual (1)Total past dueCurrentTotal loansSBA loans held for investment$1,912$296$ -$4,633$6,841$51,752$58,593SBA 504 loans5,037 - -2,5627,59933,83941,438Commercial loansCommercial other - -1091,1221,23122,81224,043Commercial real estate3,763 - -3,3237,086257,353264,439Commercial real estate construction -202 - -20212,88013,082Residential mortgage loansResidential mortgages2,6511,878 -2,5217,050118,182125,232Purchased residential mortgages13478 -2,9903,2023,6606,862Consumer loansHome equity833 - -3081,14144,01145,152Consumer other - - -991,2491,258Total loans held for investment$14,330$2,454$109$17,468$34,361$545,738$580,099SBA loans held for sale - - - - -6,9376,937Total loans$14,330$2,454$109$17,468$34,361$552,675$587,036At December 31, 2012, nonaccrual loans included $1.1 million of TDRs and $1.8 million of loans guaranteed by the SBA.  The remaining $13.6 million of TDRs are in accrual status because they are performing in accordance with their restructured terms, and have been for at least six months.

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Net Income per Share (Narrative) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013
Net Income per Share [Abstract]
Incremental Common Shares Attributable to Call Options and Warrants	764,778
Payments for Repurchase of Warrants	$ 2,707

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Loans (Tables)

12 Months Ended

Dec. 31, 2013

Loans [Abstract]

Classification Of Loans By Class [Table Text Block]

(In thousands)	December 31, 2013		December 31, 2012
SBA loans held for investment	$	48,918	$	58,593
SBA 504 loans		31,564		41,438
Commercial loans
Commercial other		37,611		24,043
Commercial real estate		317,471		264,439
Commercial real estate construction		8,258		13,082
Residential mortgage loans
Residential mortgages		175,984		125,232
Purchased residential mortgages		6,083		6,862
Consumer loans
Home equity		43,704		45,152
Consumer other		2,435		1,258
Total loans held for investment	$	672,028	$	580,099
SBA loans held for sale		6,673		6,937
Total loans	$	678,701	$	587,036

Loan Portfolio By Class According To Their Credit Quality Indicators [Table Text Block]

The tables below detail the Company’s loan portfolio by class according to their credit quality indicators discussed in the paragraphs above as of December 31, 2013:

	December 31, 2013
	SBA, SBA 504 & Commercial loans - Internal risk ratings
(In thousands)	Pass		Special mention		Substandard		Total
SBA loans held for investment	$	43,778	$	2,035	$	3,105	$	48,918
SBA 504 loans		20,641		9,595		1,328		31,564
Commercial loans
Commercial other		34,946		1,499		1,166		37,611
Commercial real estate		289,220		21,137		7,114		317,471
Commercial real estate construction		8,081		-		177		8,258
Total commercial loans		332,247		22,636		8,457		363,340
Total SBA, SBA 504 and commercial loans	$	396,666	$	34,266	$	12,890	$	443,822
	Residential mortgage & Consumer loans - Performing/Nonperforming
(In thousands)			Performing		Nonperforming		Total
Residential mortgage loans
Residential mortgages			$	173,085	$	2,899	$	175,984
Purchased residential mortgages				3,255		2,828		6,083
Total residential mortgage loans				176,340		5,727		182,067
Consumer loans
Home equity				42,029		1,675		43,704
Consumer other				2,430		5		2,435
Total consumer loans				44,459		1,680		46,139
Total residential mortgage and consumer loans			$	220,799	$	7,407	$	228,206

The tables below detail the Company’s loan portfolio by class according to their credit quality indicators discussed in the paragraphs above as of December 31, 2012: 

	December 31, 2012
	SBA, SBA 504 & Commercial loans - Internal risk ratings
(In thousands)	Pass		Special mention		Substandard		Total
SBA loans held for investment	$	51,754	$	2,328	$	4,511	$	58,593
SBA 504 loans		28,726		5,860		6,852		41,438
Commercial loans
Commercial other		20,337		1,519		2,187		24,043
Commercial real estate		229,516		30,334		4,589		264,439
Commercial real estate construction		12,880		202		-		13,082
Total commercial loans		262,733		32,055		6,776		301,564
Total SBA, SBA 504 and commercial loans	$	343,213	$	40,243	$	18,139	$	401,595
	Residential mortgage & Consumer loans - Performing/Nonperforming
(In thousands)			Performing		Nonperforming		Total
Residential mortgage loans
Residential mortgages			$	122,711	$	2,521	$	125,232
Purchased residential mortgages				3,872		2,990		6,862
Total residential mortgage loans				126,583		5,511		132,094
Consumer loans
Home equity				44,844		308		45,152
Consumer other				1,249		9		1,258
Total consumer loans				46,093		317		46,410
Total residential mortgage and consumer loans			$	172,676	$	5,828	$	178,504

Aging Analysis Of Past Due And Nonaccrual Loans By Loan Class [Table Text Block]

	December 31, 2013
(In thousands)	30-59 days past due		60-89 days past due		90+ days and still accruing		Nonaccrual (1)		Total past due		Current		Total loans
SBA loans held for investment	$	4,314	$	264	$	-	$	2,746	$	7,324	$	41,594	$	48,918
SBA 504 loans		-		-		-		1,101		1,101		30,463		31,564
Commercial loans
Commercial other		123		-		-		67		190		37,421		37,611
Commercial real estate		347		190		14		3,785		4,336		313,135		317,471
Commercial real estate construction		-		-		-		177		177		8,081		8,258
Residential mortgage loans
Residential mortgages		2,514		-		-		2,899		5,413		170,571		175,984
Purchased residential mortgages		536		-		5		2,828		3,369		2,714		6,083
Consumer loans
Home equity		142		69		-		1,675		1,886		41,818		43,704
Consumer other		9		1		-		5		15		2,420		2,435
Total loans held for investment	$	7,985	$	524	$	19	$	15,283	$	23,811	$	648,217	$	672,028
SBA loans held for sale		65		-		-		-		65		6,608		6,673
Total loans	$	8,050	$	524	$	19	$	15,283	$	23,876	$	654,825	$	678,701

(1) At December 31, 2013, nonaccrual loans included $467 thousand of TDRs and $540 thousand of loans guaranteed by the SBA.  The remaining $7.5 million of TDRs are in accrual status because they are performing in accordance with their restructured terms, and have been for at least six months.

	December 31, 2012
(In thousands)	30-59 days past due		60-89 days past due		90+ days and still accruing		Nonaccrual (1)		Total past due		Current		Total loans
SBA loans held for investment	$	1,912	$	296	$	-	$	4,633	$	6,841	$	51,752	$	58,593
SBA 504 loans		5,037		-		-		2,562		7,599		33,839		41,438
Commercial loans
Commercial other		-		-		109		1,122		1,231		22,812		24,043
Commercial real estate		3,763		-		-		3,323		7,086		257,353		264,439
Commercial real estate construction		-		202		-		-		202		12,880		13,082
Residential mortgage loans
Residential mortgages		2,651		1,878		-		2,521		7,050		118,182		125,232
Purchased residential mortgages		134		78		-		2,990		3,202		3,660		6,862
Consumer loans
Home equity		833		-		-		308		1,141		44,011		45,152
Consumer other		-		-		-		9		9		1,249		1,258
Total loans held for investment	$	14,330	$	2,454	$	109	$	17,468	$	34,361	$	545,738	$	580,099
SBA loans held for sale		-		-		-		-		-		6,937		6,937
Total loans	$	14,330	$	2,454	$	109	$	17,468	$	34,361	$	552,675	$	587,036

(1) At December 31, 2012, nonaccrual loans included $1.1 million of TDRs and $1.8 million of loans guaranteed by the SBA.  The remaining $13.6 million of TDRs are in accrual status because they are performing in accordance with their restructured terms, and have been for at least six months.

Impaired Loans With The Associated Allowance Amount [Table Text Block]

	December 31, 2013
(In thousands)	Unpaid principal balance		Recorded investment		Specific reserves
With no related allowance:
SBA loans held for investment (1)	$	1,123	$	835	$	-
SBA 504 loans		2,251		2,251		-
Commercial loans
Commercial other		56		55		-
Commercial real estate		6,116		5,969		-
Total commercial loans		6,172		6,024		-
Total impaired loans with no related allowance		9,546		9,110		-
With an allowance:
SBA loans held for investment (1)		2,282		1,905		831
SBA 504 loans		1,277		677		29
Commercial loans
Commercial other		24		12		12
Commercial real estate		3,557		2,907		230
Commercial real estate construction		202		177		36
Total commercial loans		3,783		3,096		278
Total impaired loans with a related allowance		7,342		5,678		1,138
Total individually evaluated impaired loans:
SBA loans held for investment (1)		3,405		2,740		831
SBA 504 loans		3,528		2,928		29
Commercial loans
Commercial other		80		67		12
Commercial real estate		9,673		8,876		230
Commercial real estate construction		202		177		36
Total commercial loans		9,955		9,120		278
Total individually evaluated impaired loans	$	16,888	$	14,788	$	1,138

(1) Balances are reduced by amount guaranteed by the SBA of $540thousand at December 31, 2013.

	December 31, 2012
(In thousands)	Unpaid principal balance		Recorded investment		Specific reserves
With no related allowance:
SBA loans held for investment (1)	$	1,352	$	866	$	-
SBA 504 loans		5,812		5,555		-
Commercial loans
Commercial other		2,032		2,033		-
Commercial real estate		5,220		4,752		-
Total commercial loans		7,252		6,785		-
Total impaired loans with no related allowance		14,416		13,206		-
With an allowance:
SBA loans held for investment (1)		3,355		2,846		1,159
SBA 504 loans		1,297		1,297		217
Commercial loans
Commercial other		126		38		38
Commercial real estate		6,014		5,979		587
Total commercial loans		6,140		6,017		625
Total impaired loans with a related allowance		10,792		10,160		2,001
Total individually evaluated impaired loans:
SBA loans held for investment (1)		4,707		3,712		1,159
SBA 504 loans		7,109		6,852		217
Commercial loans
Commercial other		2,158		2,071		38
Commercial real estate		11,234		10,731		587
Total commercial loans		13,392		12,802		625
Total individually evaluated impaired loans	$	25,208	$	23,366	$	2,001

Balances are reduced by amount guaranteed by the SBA of $1.8 million at December 31, 2012.

Average Recorded Investments In Impaired Loans And The Related Amount Of Interest Recognized [TableText Block]

	For the years ended December 31,
	2013				2012
(In thousands)	Average recorded investment		Interest income recognized on impaired loans		Average recorded investment		Interest income recognized on impaired loans
SBA loans held for investment (1)	$	3,244	$	197	$	4,161	$	212
SBA 504 loans		5,066		173		6,184		278
Commercial loans
Commercial other		1,461		100		3,201		53
Commercial real estate		9,751		324		17,909		462
Commercial real estate construction		171		-		133		-
Residential mortgage loans
Residential mortgages		2,757		-		2,070		-
Residential construction		-		-		904		-
Purchased residential mortgages		1,927		-		2,655		-
Consumer loans
Home equity		970		16		292		-
Consumer other		1		-		8		-
Total	$	25,348	$	810	$	37,517	$	1,005

(1) Balances are reduced by the average amount guaranteed by the SBA of $953 thousand and $667thousand for years ended December 31, 2013 and 2012, respectively.

Troubled Debt Restructurings Loans Modified [Table Text Block]

The following table details loans modified during the years ended December 31, 2013 and 2012, including the number of modifications, the recorded investment at the time of the modification and the year-to-date impact to interest income as a result of the modification.  

	For the years ended December 31,
	2013						2012
(In thousands, except number of contracts)	Number of contracts		Recorded investment at time of modification		Impact of interest rate change on income		Number of contracts		Recorded investment at time of modification		Impact of interest rate change on income
SBA loans held for investment		1	$	65	$	-		-	$	-	$	-
Commercial real estate		1		2,684		50		3		1,856		11
Total		2	$	2,749	$	50		3	$	1,856	$	11

In addition, there were no qualifying subsequent defaults to TDRs in 2013.  In 2012, there was one commercial real estate loan with outstanding principal of $961 thousand modified as a TDR within the previous 12 months where a concession was made and the loan subsequently defaulted at some point during the year ended December 31, 2012.  In this case, subsequent default is defined as 90 days past due or transferred to nonaccrual status.

Troubled Debt Restructurings Types Of Modifications [TableText Block]

The following tables show the types of modifications done during the years ended December 31, 2013 and 2012, with the respective loan balances as of those period ends:

	For the year ended December 31, 2013
(In thousands)	SBA		Commercial real estate		Total
Type of modification:
Interest only with reduced interest rate	$	-	$	2,684	$	2,684
Interest only with nominal principal		65		-		65
Total TDRs	$	65	$	2,684	$	2,749

	For the year ended December 31, 2012
(In thousands)	Commercial real estate		Total
Type of modification:
Interest only	$	1,890	$	1,890
Total TDRs	$	1,890	$	1,890

Schedule of Servicing Assets

	For the years ended December 31,
(In thousands)	2013		2012
Balance, beginning of year	$	396	$	418
Servicing assets capitalized		187		155
Amortization of expense		(146)		(177)
Provision for loss in fair value		-		-
Balance, end of year	$	437	$	396

Schedule of Related Party Transactions

	For the years ended December 31,
(In thousands)	2013		2012
Balance, beginning of year	$	14,605	$	15,585
New loans		4,521		537
Loan repayments		(799)		(1,517)
Balance, end of year	$	18,327	$	14,605

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Summary of Significant Accounting Policies (Narrative) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013 store
Significant Accounting Policies [Abstract]
Number of Branches	15
Number of wholly-owned subsidiaries	9
Number of wholly-owned statutory trust subsidiaries	2
Payments to Acquire Life Insurance Policies	$ 3,000
Treasury Stock, Shares, Retired	131

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Shareholders' Equity

12 Months Ended

Dec. 31, 2013

Shareholders' Equity [Abstract]

Shareholders' Equity

13.  Shareholders’ Equity

Shareholders’ equity decreased $20.3 million to $57.2 million at December 31, 2013 compared to $77.5 million at December 31, 2012, due primarily to the redemption of $20.6 million in perpetual preferred stock issued by the U.S. Treasury.  Other items impacting shareholders’ equity included the completed $2.7 million repurchase of a common stock purchase warrant from the U.S. Treasury, $1.8 million of depreciation in the net unrealized losses on available for sale securities, $454 thousand in dividends accrued on preferred stock, and $188 thousand in dividends paid on common stock, partially offset by net income of $5.1 million and $355 thousand from the issuance of common stock under employee benefit plans.  The issuance of common stock under employee benefit plans includes nonqualified stock options and restricted stock expense related entries, employee option exercises and the tax benefit of options exercised.

Preferred Stock

On October 3, 2008, Congress passed the Emergency Economic Stabilization Act of 2008 (“EESA”), which provided the U.S. Secretary of the Treasury with broad authority to implement certain actions to help restore stability and liquidity to the U.S. markets.  One of the programs resulting from the EESA was the Treasury’s Capital Purchase Program (“CPP”) which provided direct equity investment of perpetual preferred stock by the U.S. Treasury in qualified financial institutions.  This program was voluntary and required an institution to comply with several restrictions and provisions, including limits on executive compensation, stock redemptions, and declaration of dividends.  The perpetual preferred stock had a dividend rate of 5 percent per year until the fifth anniversary of the Treasury investment and a dividend rate of 9 percent thereafter.  The Company received an investment in perpetual preferred stock of $20.6 million on December 5, 2008.  These proceeds were allocated between the preferred stock and warrants based on relative fair value in accordance with FASB ASC Topic 470, “Debt.”  The allocation of proceeds resulted in a discount on the preferred stock to be accreted over five years.  The Company issued a warrant to purchase 764,778 shares of common stock to the U.S. Treasury and $2.6 million of the proceeds were allocated to the warrant.  The warrant was accounted for as an equity security with a contractual life of ten years and an exercise price of $4.05.

On May 9, 2013, the Company announced that it received approval of its application from the U.S. Department of Treasury to redeem half of the 20,649 shares of preferred stock issued in connection with the Company’s participation in the Treasury’s CPP.  On May 15, 2013, the Company paid $10.3 million to the Treasury to repurchase 10,324 shares of the preferred stock, including accrued and unpaid dividends for the shares.  On July 1, 2013, the Company announced that it received approval to redeem the remaining 10,325 shares of preferred stock.  On July 3, 2013, the Company paid $10.4 million to the Treasury to repurchase the remaining shares of the preferred stock, including accrued and unpaid dividends for the shares.  On August 28, 2013, the Company completed the $2.7 million repurchase of the warrant to purchase 764,788 shares of the Company’s common stock issued to the U.S. Department of the Treasury as part of the Company’s participation in the Treasury’s CPP.

Repurchase Plan

On October 21, 2002, the Company authorized the repurchase of up to 10 percent of its outstanding common stock.  The amount and timing of purchases is dependent upon a number of factors, including the price and availability of the Company’s shares, general market conditions and competing alternate uses of funds.  As of December 31, 2013, the Company had repurchased a total of 556 thousand shares, of which 131 thousand shares have been retired, leaving 153 thousand shares remaining to be repurchased under the plan.  There were no shares repurchased during 2013 or 2012.

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Regulatory Capital

12 Months Ended

Dec. 31, 2013

Regulatory Capital Requirements [Abstract]

Regulatory Capital

18.  Regulatory Capital

A significant measure of the strength of a financial institution is its capital base.  Federal regulators have classified and defined capital into the following components: (1) tier 1 capital, which includes tangible shareholders’ equity for common stock, qualifying preferred stock and certain qualifying hybrid instruments, and (2) tier 2 capital, which includes a portion of the allowance for loan losses, subject to limitations, certain qualifying long-term debt, preferred stock and hybrid instruments, which do not qualify for tier 1 capital.  The parent company and its subsidiary bank are subject to various regulatory capital requirements administered by banking regulators.  Quantitative measures of capital adequacy include the leverage ratio (tier 1 capital as a percentage of tangible assets), tier 1 risk-based capital ratio (tier 1 capital as a percent of risk-weighted assets) and total risk-based capital ratio (total risk-based capital as a percent of total risk-weighted assets).

Minimum capital levels are regulated by risk-based capital adequacy guidelines, which require the Company and the Bank to maintain certain capital as a percentage of assets and certain off-balance sheet items adjusted for predefined credit risk factors (risk-weighted assets).  Failure to meet minimum capital requirements can initiate certain mandatory and possibly discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements.  Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines.  However, prompt corrective action provisions are not applicable to bank holding companies. At a minimum, tier 1 capital as a percentage of risk-weighted assets of 4 percent and combined tier 1 and tier 2 capital as a percentage of risk-weighted assets of 8 percent must be maintained.  

In addition to the risk-based guidelines, regulators require that a bank or holding company, which meets the regulator’s highest performance and operation standards, maintain a minimum leverage ratio of 3 percent.  For those institutions with higher levels of risk or that are experiencing or anticipating significant growth, the minimum leverage ratio will be proportionately increased.  Minimum leverage ratios for each institution are evaluated through the ongoing regulatory examination process.

During 2013, the Company repurchased the $20.6 million in preferred stock issued in connection with the CPP, and completed the $2.7 million repurchase of the warrant to purchase 764,788 shares of the Company’s common stock issued to the U.S. Department of the Treasury as a part of the CPP.  The Company’s capital amounts and ratios reflect these capital decreases and are presented in the following table. 

											To be well-capitalized
						For capital					under prompt corrective
	Actual					adequacy purposes					action provisions
(In thousands)	Amount		Ratio			Amount		Ratio			Amount		Ratio
As of December 31, 2013
Leverage ratio	$	70,852		8.08	%	≥ $	35,084		4.00	%		N/A		N/A
Tier I risk-based capital ratio		70,852		10.74			26,400		4.00			N/A		N/A
Total risk-based capital ratio		79,164		11.99			52,800		8.00			N/A		N/A
As of December 31, 2012
Leverage ratio	$	89,841		11.14	%	≥ $	32,251		4.00	%		N/A		N/A
Tier I risk-based capital ratio		89,841		14.85			24,193		4.00			N/A		N/A
Total risk-based capital ratio		97,492		16.12			48,387		8.00			N/A		N/A

The Bank’s capital amounts and ratios for the last two years are presented in the following table:

											To be well-capitalized
						For capital					under prompt corrective
	Actual					adequacy purposes					action provisions
(In thousands)	Amount		Ratio			Amount		Ratio			Amount		Ratio
As of December 31, 2013
Leverage ratio	$	61,493		7.02	%	≥ $	35,058		4.00	%	≥ $	43,823		5.00	%
Tier I risk-based capital ratio		61,493		9.33			26,373		4.00			39,560		6.00
Total risk-based capital ratio		78,296		11.88			52,747		8.00			65,933		10.00
As of December 31, 2012
Leverage ratio	$	69,544		8.63	%	≥ $	32,225		4.00	%	≥ $	40,282		5.00	%
Tier I risk-based capital ratio		69,544		11.51			24,170		4.00			36,254		6.00
Total risk-based capital ratio		85,687		14.18			48,339		8.00			60,424		10.00

The Group of Governors and Heads of Supervision, the oversight body of the Basel Committee on Banking Supervision, adopted Basel III in September 2010, which constitutes a set of capital reform measures designed to strengthen the regulation, supervision and risk management of banking organizations worldwide. In order to implement Basel III and certain additional capital changes required by the Dodd-Frank Act, on July 9, 2013, the FDIC approved, as an interim final rule, the regulatory capital requirements for U.S. state nonmember banks, such as us, substantially similar to final rules issued by the Board of Governors of the Federal Reserve System (“Federal Reserve”) and the Office of the Comptroller of the Currency.

The interim final rule includes new risk-based capital and leverage ratios that will be phased-in from 2015 to 2019 for most state nonmember banks, including us. The rule includes a new common equity Tier 1 capital to risk-weighted assets ratio of 4.5% and a common equity Tier 1 capital conservation buffer of 2.5% of risk-weighted assets, which is in addition to the Tier 1 and Total risk-based capital requirements.  The interim final rule also raises the minimum ratio of Tier 1 capital to risk-weighted assets from 4.0% to 6.0% and requires a minimum leverage ratio of 4.0%.  The required minimum ratio of total capital to risk-weighted assets will remain 8.0%.  The new risk-based capital requirements (except for the capital conservation buffer) will become effective for the Bank on January 1, 2015.  The capital conservation buffer will be phased in over four years beginning on January 1, 2016, with a maximum buffer of 0.625% of risk-weighted assets for 2016, 1.25% for 2017, 1.875% for 2018, and 2.5% for 2019 and thereafter.  Failure to maintain the required capital conservation buffer will result in limitations on capital distributions and on discretionary bonuses to executive officers.

The following chart compares the risk-based capital required under existing rules to those prescribed under the interim final rule under the phase-in period described above:

	Current Treatment		Treatment in Final Rule
Leverage ratio	4.00	%	4.00	%
Common equity tier 1 capital (CET1) ratio	N/A		4.50	%
Additional tier 1	N/A		1.50	%
Tier 1 capital ratio	4.00	%	6.00	%
Tier 2	4.00	%	2.00	%
Total capital ratio	8.00	%	8.00	%
Capital conservation buffer	N/A		2.50	%

The interim final rule also implements revisions and clarifications consistent with Basel III regarding the various components of Tier 1 capital, including common equity, unrealized gains and losses and instruments that will no longer qualify as Tier 1 capital.  The interim final rule also sets forth certain changes for the calculation of risk-weighted assets that the Bank will be required to implement beginning January 1, 2015.  Management is currently evaluating the provisions of the interim final rule and its expected impact.  Based on our current capital composition and levels, management does not presently anticipate that the interim final rule presents a material risk to our financial condition or results of operations.

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Regulatory Capital (Schedule of Future Basel III Capital Requirements) (Details)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Leverage ratio	4.00%	4.00%
Tier 1 capital ratio	4.00%	4.00%
Tier 2	4.00%
Total capital ratio	8.00%	8.00%
Scenario, Forecast, Year One [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Capital Conservation Buffer	0.625%
Scenario, Forecast, Year Two [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Capital Conservation Buffer	1.25%
Scenario, Forecast, Year Three [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Capital Conservation Buffer	1.875%
Scenario, Forecast, Final [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Leverage ratio	4.00%
Common equity tier 1 capital (CET1) ratio	4.50%
Additional tier 1	1.50%
Tier 1 capital ratio	6.00%
Tier 2	2.00%
Total capital ratio	8.00%
Capital Conservation Buffer	2.50%

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

12 Months Ended

Dec. 31, 2013

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

Condensed Balance Sheets

Balance Sheets
(In thousands)	December 31, 2013		December 31, 2012
ASSETS
Cash and cash equivalents	$	724	$	11,869
Securities available for sale		166		105
Capital note due from Bank		8,500		8,500
Investment in subsidiaries		62,814		72,213
Other assets		493		476
Total assets	$	72,697	$	93,163
LIABILITIES AND SHAREHOLDERS' EQUITY
Other liabilities	$	59	$	188
Subordinated debentures		15,465		15,465
Shareholders' equity		57,173		77,510
Total liabilities and shareholders' equity	$	72,697	$	93,163

Condensed Statements of Income

Statements of Income	For the years ended December 31,
(In thousands)	2013		2012
Total interest income	$	761	$	761
Total interest expense		287		345
Net interest income		474		416
Gains on sales of securities		3		-
Other expenses		22		19
Income before provision for income taxes and equity in undistributed net income of subsidiary		455		397
Provision for income taxes		116		136
Income before equity in undistributed net income of subsidiary		339		261
Equity in undistributed net income of subsidiary		4,776		3,983
Net income		5,115		4,244
Preferred stock dividends and discount accretion		988		1,602
Income available to common shareholders	$	4,127	$	2,642

Condensed Statements of Cash Flows

Statements of Cash Flows	For the years ended December 31,
(In thousands)	2013		2012
OPERATING ACTIVITIES
Net income	$	5,115	$	4,244
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed net income of subsidiary		(4,776)		(3,983)
Gains on sales of securities		(3)		-
Net change in other assets and other liabilities		(22)		(8)
Net cash provided by operating activities		314		253
INVESTING ACTIVITIES
Purchases of securities		(100)		-
Proceeds from sales of securities		63		-
Net cash used in investing activities		(37)		-
FINANCING ACTIVITIES
Redemption of perpetual preferred stock from U.S. Treasury		(20,649)		-
Repurchase of warrant from U.S. Treasury		(2,707)		-
Proceeds from exercise of stock options		-		173
Cash dividends paid on preferred stock		(585)		(1,032)
Cash dividends paid on common stock		(188)		-
Dividend from Bank		12,707		9,000
Net cash provided by (used in) financing activities		(11,422)		8,141
Increase in cash and cash equivalents		(11,145)		8,394
Cash and cash equivalents, beginning of year		11,869		3,475
Cash and cash equivalents, end of year	$	724	$	11,869
SUPPLEMENTAL DISCLOSURES
Interest paid	$	287	$	362

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Fair Value (Fair Value On A Recurring Basis) (Narrative) (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2013
Fair Value [Abstract]
Percentage Of Portfolio In Residential Mortgage Backed Securities	55.00%
Residential Mortgage Backed Securities Guaranteed By Government National Mortgage Association Or Federal National Mortgage Association Or Federal Home Loan Mortgage Corporation	$ 43.1

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Accumulated Other Comprehensive Income (Loss) (Tables)

12 Months Ended

Dec. 31, 2013

Accumulated Other Comprehensive Income (Loss) [Abstract]

Changes In Other Comprehensive Income (Loss)

	For the years ended December 31,
	2013						2012
(In thousands)	Pre-tax		Tax		After-tax		Pre-tax		Tax		After-tax
Balance, beginning of period					$	1,333					$	1,121
Unrealized holding gains (losses) on securities arising during period	$	(2,606)	$	(1,056)		(1,550)	$	920	$	332		588
Less: Reclassification adjustment for gains included in net income		390		131		259		566		190		376
Net unrealized gains (losses) on securities arising during the period	$	(2,996)	$	(1,187)	$	(1,809)	$	354	$	142	$	212
Balance, end of period					$	(476)					$	1,333

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Fair Value (Fair Value On A Nonrecurring Basis) (Narrative) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired Financing Receivable, Related Allowance	$ 1,138	$ 2,001
Impaired Financing Receivable Related Allowance, Increase (Decrease)	863
Impaired Financing Receivable, Recorded Investment	$ 14,788	$ 23,366
Minimum [Member] | Market Approach Valuation Technique [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Inputs, Discount Rate	10.00%
Minimum [Member] | Third Party Appraisal [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Inputs, Discount Rate	8.00%
Maximum [Member] | Market Approach Valuation Technique [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Inputs, Discount Rate	15.00%
Maximum [Member] | Third Party Appraisal [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Inputs, Discount Rate	10.00%

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Consolidated Statements of Comprehensive Income (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Consolidated Statements of Comprehensive Income [Abstract]
Net income	$ 5,115	$ 4,244
Other comprehensive income (loss), net of tax:
Unrealized holding gains (losses) on securities arising, After-tax	(1,550)	588
Less: Reclassification adjustment for gains included in net income, after-tax	259	376
Total other comprehensive income (loss)	(1,809)	212
Total comprehensive income	$ 3,306	$ 4,456

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Income Taxes (Schedule of Components of Income Tax Expense (Benefit)) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Income Taxes [Abstract]
Federal - current provision	$ 1,579	$ 1,227
Federal - deferred provision (benefit)	491	459
Total Federal provision	2,070	1,686
State - current provision (benefit)	599	216
State - deferred provision	(102)	324
Total state provision	497	540
Income Tax Expense (Benefit), Total	$ 2,567	$ 2,226

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Goodwill

12 Months Ended

Dec. 31, 2013

Goodwill [Abstract]

Goodwill

2.  Goodwill

The Company accounts for goodwill and other intangible assets in accordance with FASB ASC Topic 350, “Intangibles – Goodwill and Other,” which allows an entityto first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test.  Based on a qualitative assessment, management determined that the Company’s recorded goodwill totaling $1.5 million, which resulted from the 2005 acquisition of its Phillipsburg, New Jersey branch, is not impaired as of December 31, 2013. 

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Securities (Schedule of Unrealized Loss on Investments) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013 security	Dec. 31, 2012 security
Schedule of Investments [Line Items]
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	49	15
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	$ 31,754	$ 8,109
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses	(1,289)	(71)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	5,496	4,945
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses	(473)	(626)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total	37,250	13,054
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses, Total	(1,762)	(697)
Held-to-maturity, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	15	3
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	17,249	838
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses	(1,180)	(2)
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	114	279
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses	(5)	(11)
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value, Total	17,363	1,117
Held-to-maturity Securities, Continuous Unrealized Loss Position, Aggregate Losses, Total	(1,185)	(13)
US Government Agencies Debt Securities [Member]
Schedule of Investments [Line Items]
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	5
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	5,591
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses	(332)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total	5,591
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses, Total	(332)
Held-to-maturity, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	3
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	5,355
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses	(460)
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value, Total	5,355
Held-to-maturity Securities, Continuous Unrealized Loss Position, Aggregate Losses, Total	(460)
US States and Political Subdivisions Debt Securities [Member]
Schedule of Investments [Line Items]
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	19
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	8,575
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses	(453)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	934
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses	(101)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total	9,509
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses, Total	(554)
Held-to-maturity, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	2
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	986
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses	(17)
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value, Total	986
Held-to-maturity Securities, Continuous Unrealized Loss Position, Aggregate Losses, Total	(17)
Residential Mortgage Backed Securities [Member]
Schedule of Investments [Line Items]
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	13	5
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	13,226	3,272
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses	(398)	(43)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	1,474	1,951
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses	(77)	(80)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total	14,700	5,223
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses, Total	(475)	(123)
Held-to-maturity, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	7	3
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	6,333	838
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses	(193)	(2)
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	114	279
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses	(5)	(11)
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value, Total	6,447	1,117
Held-to-maturity Securities, Continuous Unrealized Loss Position, Aggregate Losses, Total	(198)	(13)
Commercial Mortgage Backed Securities [Member]
Schedule of Investments [Line Items]
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	3	4
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	368	2,351
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses	(1)	(2)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total	368	2,351
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses, Total	(1)	(2)
Held-to-maturity, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	2
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	3,668
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses	(437)
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value, Total	3,668
Held-to-maturity Securities, Continuous Unrealized Loss Position, Aggregate Losses, Total	(437)
Corporate Debt Securities [Member]
Schedule of Investments [Line Items]
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	9	6
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	3,994	2,486
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses	(105)	(26)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	3,088	2,994
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses	(295)	(546)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total	7,082	5,480
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses, Total	(400)	(572)
Held-to-maturity, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	1
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	907
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses	(73)
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value, Total	907
Held-to-maturity Securities, Continuous Unrealized Loss Position, Aggregate Losses, Total	$ (73)

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Commitments and Contingencies (Operating Leases of Lessee Disclosure) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013
Commitments and Contingencies [Abstract]
Operating Lease Rental Payments: 2013	$ 670
Operating Leases, Future Minimum Payments, Due in Two Years	572
Operating Leases, Future Minimum Payments, Due in Three Years	526
Operating Leases, Future Minimum Payments, Due in Four Years	473
Operating Leases, Future Minimum Payments, Due in Five Years	418
Operating Leases, Future Minimum Payments Due, Total	$ 2,659

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Fair Value (Fair Value On A Recurring Basis) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	$ 81,133	$ 89,538
US Government Agencies Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	6,418	2,568
US States and Political Subdivisions Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	16,598	15,303
Residential Mortgage Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	44,389	45,545
Commercial Mortgage Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	888	4,463
Corporate Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	12,840	21,659
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	80,245	85,075
Fair Value, Inputs, Level 2 [Member] | US Government Agencies Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	6,418	2,568
Fair Value, Inputs, Level 2 [Member] | US States and Political Subdivisions Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	16,598	15,303
Fair Value, Inputs, Level 2 [Member] | Residential Mortgage Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	44,389	45,545
Fair Value, Inputs, Level 2 [Member] | Corporate Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	12,840	21,659
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	888	4,463
Fair Value, Inputs, Level 3 [Member] | Commercial Mortgage Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	$ 888	$ 4,463

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Loans (Servicing Assets) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Loans [Abstract]
Balance, beginning of year	$ 396	$ 418
SBA servicing assets capitalized	187	155
Amortization of expense	(146)	(177)
Balance, end of year	$ 437	$ 396

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Employee Benefit Plans

12 Months Ended

Dec. 31, 2013

Employee Benefit Plans [Abstract]

Employee Benefit Plans

19.  Employee Benefit Plans

The Bank has a 401(k) savings plan covering substantially all employees.  Under the Plan, an employee can contribute up to 80 percent of their salary on a tax deferred basis.  The Bank may also make discretionary contributions to the Plan.  The Bank contributed $240 thousand and $244 thousand to the Plan in 2013 and 2012, respectively.

The Company has a deferred fee plan for Directors and executive management.  Directors of the Company have the option to elect to defer up to 100 percent of their respective retainer and Board of Director fees, and each member of executive management has the option to elect to defer 100 percent of their year-end cash bonuses.  Director and executive deferred fees totaled $44 thousand in 2013 and $42 thousand in 2012, and the interest paid on deferred balances totaled $19 thousand in 2013 and $17 thousand in 2012.  In 2013, $22 thousand in deferred fees were distributed.  No fees were distributed in 2012.

Certain members of management are also enrolled in a split-dollar life insurance plan with a post retirement death benefit of $250 thousand.  Total expenses related to this plan were $4 thousand in 2013 and $5 thousand in 2012.

Stock Transactions

Stock Option Plans

The Company has incentive and nonqualified option plans, which allow for the grant of options to officers, employees and members of the Board of Directors.  Transactions under the Company’s stock option plans for 2013 and 2012 are summarized in the following table:

	Shares		Weighted average exercise price		Weighted average remaining contractual life in years		Aggregate intrinsic value
Outstanding at December 31, 2011		643,206	$	6.80		5.3	$	517,867
Options granted		25,000		6.00
Options exercised		(117,240)		4.99
Options forfeited		(12,499)		6.06
Options expired		(22,135)		9.73
Outstanding at December 31, 2012		516,332	$	7.06		5.4	$	327,725
Options granted		37,500		6.58
Options exercised		(11,667)		6.62
Options forfeited		(8,333)		6.56
Options expired		(84,857)		8.84
Outstanding at December 31, 2013		448,975	$	6.70		5.6	$	739,951
Exercisable at December 31, 2013		364,143	$	6.76		4.8	$	637,387

Grants under the Company’s incentive and nonqualified option plans generally vest over 3 years and must be exercised within 10 years of the date of grant.  The exercise price of each option is the market price on the date of grant.  As of December 31, 2013,1,720,529 shares have been reserved for issuance upon the exercise of options,448,975 option grants are outstanding, and 1,184,313 option grants have been exercised, forfeited or expired, leaving 87,241 shares available for grant.

The fair values of the options granted during 2013 and 2012 were estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions:

	For the years ended December 31,
	2013			2012
Number of options granted		37,500			25,000
Weighted average exercise price	$	6.58		$	6.00
Weighted average fair value of options	$	3.19		$	2.33
Expected life in years (1)		5.75			5.07
Expected volatility (2)		51.40	%		43.61	%
Risk-free interest rate (3)		1.24	%		0.77	%
Dividend yield (4)		0.17	%		-	%

(1) The expected life of the options was estimated based on historical employee behavior and represents the period of time that options granted are expected to be outstanding.

(2) The expected volatility of the Company’s stock price was based on the historical volatility over the period commensurate with the expected life of the options.

(3) The risk-free interest rate is the U.S Treasury rate commensurate with the expected life of the options on the date of grant.

(4) The expected dividend yield is the projected annual yield based on the grant date stock price.

Upon exercise, the Company issues shares from its authorized but unissued common stock to satisfy the options.  The following table presents information about options exercised during 2013 and 2012:

	For the years ended December 31,
	2013		2012
Number of options exercised		11,667		117,240
Total intrinsic value of options exercised	$	15,367	$	121,973
Cash received from options exercised		-		173,325
Tax deduction realized from options exercised		6,138		43,319

The following table summarizes information about stock options outstanding and exercisable at December 31, 2013:

		Options outstanding						Options exercisable
Range of exercise prices		Options outstanding		Weighted average remaining contractual life (in years)		Weighted average exercise price		Options exercisable		Weighted average exercise price
$	0.00 - 4.00		119,750		5.4	$	3.87		119,750	$	3.87
	4.01 - 8.00		249,175		6.8		6.52		164,343		6.55
	8.01 - 12.00		35,399		0.9		10.13		35,399		10.13
	12.01 - 16.00		44,651		3.1		12.62		44,651		12.62
	Total		448,975		5.6	$	6.70		364,143	$	6.76

FASB ASC Topic 718, “Compensation - Stock Compensation,” requires an entity to recognize the fair value of equity awards as compensation expense over the period during which an employee is required to provide service in exchange for such an award (vesting period).  Compensation expense related to stock options and the related income tax benefit for the years ended December 31, 2013 and 2012 are detailed in the following table:

	For the years ended December 31,
	2013		2012
Compensation expense	$	140,873	$	148,996
Income tax benefit		56,265		54,458

As of December 31, 2013, unrecognized compensation costs related to nonvested share-based compensation arrangements granted under the Company’s stock option plans totaled approximately $194 thousand.  That cost is expected to be recognized over a weighted average period of 1.9years.

Restricted Stock Awards

Restricted stock is issued under the stock bonus program to reward employees and directors and to retain them by distributing stock over a period of time.  The following table summarizes nonvested restricted stock activity for the year ended December 31, 2013:

	Shares		Average grant date fair value
Nonvested restricted stock at December 31, 2012		90,975	$	6.10
Granted		42,500		7.12
Vested		(31,200)		5.88
Forfeited		(6,650)		6.16
Nonvested restricted stock at December 31, 2013		95,625	$	6.64

Restricted stock awards granted to date vest over a period of 4 years and are recognized as compensation to the recipient over the vesting period.  The awards are recorded at fair market value at the time of grant and amortized into salary expense on a straight line basis over the vesting period.  As of December 31, 2013,  471,551 shares of restricted stock were reserved for issuance, of which 232,838 shares are available for grant.

Restricted stock awards granted during the years ended December 31, 2013 and 2012 were as follows:

	For the years ended December 31,
	2013		2012
Number of shares granted		42,500		29,500
Average grant date fair value	$	7.12	$	6.07

Compensation expense related to the restricted stock for the years ended December 31, 2013 and 2012 is detailed in the following table:

	For the years ended December 31,
	2013		2012
Compensation expense	$	198,682	$	160,509
Income tax benefit		79,354		64,107

As of December 31, 2013, there was approximately $579 thousand of unrecognized compensation cost related to nonvested restricted stock awards granted under the Company’s stock incentive plans.  That cost is expected to be recognized over a weighted average period of 2.9years. 

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Premises and Equipment (Summary of Premises and Equipment) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 25,281	$ 21,385
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	(9,609)	(9,323)
Property, Plant and Equipment, Net	15,672	12,062
Land and Building [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	17,022	12,347
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	6,603	6,719
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 1,656	$ 2,319

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Deposits (Tables)

12 Months Ended

Dec. 31, 2013

Deposits [Abstract]

Schedule of Deposits by Time Remaining on Maturity [Table Text Block]

The following table details the maturity distribution of time deposits as of December 31st for the past two years:

	Three		More than three		More than six		More than
	months		months through		months through		twelve
(In thousands)	or less		six months		twelve months		months		Total
At December 31, 2013:
$100,000 or more	$	14,588	$	7,965	$	18,582	$	55,961	$	97,096
Less than $100,000		8,058		7,754		19,522		72,924		108,258
At December 31, 2012:
$100,000 or more	$	13,338	$	5,868	$	16,493	$	12,272	$	47,971
Less than $100,000		10,131		8,985		26,271		31,607		76,994

Schedule of Certificates of Deposits by Year of Maturity [Table Text Block]

(In thousands)	2014		2015		2016		2017		2018		Thereafter		Total
Balance maturing	$	76,469	$	24,103	$	39,282	$	6,548	$	58,901	$	51	$	205,354

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Accumulated Other Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2013

Accumulated Other Comprehensive Income (Loss) [Abstract]

Accumulated Other Comprehensive Income (Loss)

12.  Accumulated Other Comprehensive Income (Loss)

The following table shows the changes in other comprehensive income (loss) for the past two years:

	For the years ended December 31,
	2013						2012
(In thousands)	Pre-tax		Tax		After-tax		Pre-tax		Tax		After-tax
Balance, beginning of period					$	1,333					$	1,121
Unrealized holding gains (losses) on securities arising during period	$	(2,606)	$	(1,056)		(1,550)	$	920	$	332		588
Less: Reclassification adjustment for gains included in net income		390		131		259		566		190		376
Net unrealized gains (losses) on securities arising during the period	$	(2,996)	$	(1,187)	$	(1,809)	$	354	$	142	$	212
Balance, end of period					$	(476)					$	1,333

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Employee Benefit Plans (Allocation of Share-based Compensation Costs) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense	$ 198,682	$ 160,509
Income tax benefit	79,354	64,107
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense	140,873	148,996
Income tax benefit	$ 56,265	$ 54,458