0000920427-20-000002.txt : 20200123 0000920427-20-000002.hdr.sgml : 20200123 20200123122129 ACCESSION NUMBER: 0000920427-20-000002 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 6 CONFORMED PERIOD OF REPORT: 20200121 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20200123 DATE AS OF CHANGE: 20200123 FILER: COMPANY DATA: COMPANY CONFORMED NAME: UNITY BANCORP INC /NJ/ CENTRAL INDEX KEY: 0000920427 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 223282551 STATE OF INCORPORATION: NJ FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-12431 FILM NUMBER: 20541254 BUSINESS ADDRESS: STREET 1: 64 OLD HIGHWAY 22 CITY: CLINTON STATE: NJ ZIP: 08809 BUSINESS PHONE: 9087307630 MAIL ADDRESS: STREET 1: 64 OLD HIGHWAY 22 CITY: CLINTON STATE: NJ ZIP: 08809 FORMER COMPANY: FORMER CONFORMED NAME: UNITY BANCORP INC /DE/ DATE OF NAME CHANGE: 19940316 8-K 1 unty-8k4q19earnings.htm 8-K Document
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
__________________________________

FORM 8-K

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

January 21, 2020
Date of Report (Date of earliest event reported)
__________________________________unitylogoa24.jpg
UNITY BANCORP, INC.
(Exact Name of Registrant as Specified in its Charter)

New Jersey
(State or Other Jurisdiction of Incorporation)

1-12431
(Commission File Number)

22-3282551
(IRS Employer Identification No.)

64 Old Highway 22
Clinton, NJ 08809
(Address of Principal Executive Office)

(908) 730-7630
(Registrant's Telephone Number, Including Area Code)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))




Item 2.02     Results of Operation and Financial Condition

The Registrant issued a press release on January 21, 2020 announcing results for the twelve months ended December 31, 2019, the full text of which is incorporated by reference to this Item.

Item 9.01    Financial Statements and Exhibits

(d) Exhibits

Exhibit 99.1Press release issued by the Registrant on January 21, 2020.



SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.



UNITY BANCORP, INC.
(Registrant)


Date: January 23, 2020
By: /s/ Alan J. Bedner
Alan J. Bedner
EVP and Chief Financial Officer






EXHIBIT INDEX
 

EXHIBIT #    DESCRIPTION

99.1        Press release issued by the Registrant on January 21, 2020




EX-99.1 2 a4q19earningsexhibit991.htm EXHIBIT 99.1 Exhibit


For Immediate Release
News Media & Financial Analyst Contact:
Unity Bancorp, Inc. (NSDQ: UNTY)
Alan J. Bedner, EVP and CFO
January 21, 2020
(908) 713-4308

ulogoa22.jpg Unity Bancorp Reports ulogoa23.jpg
Quarterly Earnings of $6.1 Million and
Full Year Earnings of $23.7 Million
pressreleasea14.jpg

Clinton, NJ, January 21, 2020 - Unity Bancorp, Inc. (NASDAQ: UNTY), parent company of Unity Bank, reported net income of $6.1 million, or $0.55 per diluted share, for the quarter ended December 31, 2019, a 5.5% increase compared to the $5.8 million, or $0.53 per diluted share reported for the prior year’s fourth quarter.   For the year ended December 31, 2019, Unity reported net income of $23.7 million, or $2.14 per diluted share, a 7.9% increase compared to $21.9 million or $2.01 per diluted share for the prior year’s period.






Fourth Quarter Earnings Highlights
Net interest income, our primary driver of earnings, increased $599 thousand to $14.8 million for the quarter ended December 31, 2019, compared to the prior year’s quarter, due to strong loan growth.
Net interest margin decreased to 3.88% for the quarter ended December 31, 2019, compared to 4.01% for the prior year’s quarter due to recent interest rate cuts by the Federal Reserve Board. Our net interest margin remained stable compared to the 3.90% for the prior sequential quarter.
The provision for loan losses was $500 thousand for the quarter ended December 31, 2019 and 2018 as asset quality remains favorable.
Noninterest income increased $442 thousand to $2.4 million compared to the prior year’s quarter and decreased $314 thousand compared to the prior sequential quarter. The year-over-year increase was primarily due to market value fluctuations on our equity securities, increased gains on the sale of securities and increased mortgage gains as a result of an increase in volume in the current period. The decrease from the prior sequential quarter was primarily due to the $768 thousand gain on the sale of our Union, NJ branch building in September 2019.
Noninterest expense increased $451 thousand to $8.7 million compared to the prior year’s quarter and decreased $10 thousand compared to the prior sequential quarter. The year-over-year increase was primarily due to increased compensation and mortgage commissions paid on a higher origination volume.
The effective tax rate was 22.9% compared to 21.0% in the prior year’s quarter due to recent New Jersey tax legislation changes. The effective tax rate may increase in the future as a result of this legislation.

Balance Sheet Highlights

Total loans increased $121.0 million, or 9.3%, from year-end 2018 to $1.4 billion at December 31, 2019. Commercial, residential mortgage and consumer loan portfolios increased $70.9 million, $31.7 million and $19.6 million, respectively, partially offset by a decline of $1.2 million in SBA loans. Loan growth was impacted by increased payoffs in 2019; however, our pipeline remains strong.
Total deposits increased $42.4 million, or 3.5%, from year-end 2018 to $1.3 billion at December 31, 2019. Core growth resulted primarily from time deposit promotions. There was a planned reduction of $22.9 million in brokered deposits in 2019.
Borrowed funds increased $73.0 million to $283.0 million at December 31, 2019, primarily due to the reduction in brokered deposits and a new $40.0 million fixed rate advance with a maturity date of August 22, 2024, at a rate of 1.81%.
Shareholders’ equity was $160.7 million at December 31, 2019, an increase of $22.2 million from year-end 2018, due to retained net income. Shareholders’ equity continues to grow organically at a rate that exceeds balance sheet growth.
Book value per common share was $14.77 as of December 31, 2019.
At December 31, 2019, the leverage, common equity Tier I, Tier I and Total Risk Based Capital ratios were 10.59%, 11.97%, 12.73% and 13.49% respectively, all in excess of the ratios required to be deemed “well-capitalized.”
Nonperforming loans totaled $5.6 million and included $3.9 million of well-secured residential mortgage loans, compared to nonperforming loans of $6.9 million in the prior year. Nonperforming assets to total assets were 0.43% at December 31, 2019 and 0.44% at December 31, 2018 and the allowance to total loans ratio was 1.15% at December 31, 2019 and 1.19% at December 31, 2018. Net charge-offs were $107 thousand for the quarter.

Unity Bancorp, Inc. is a financial service organization headquartered in Clinton, New Jersey, with approximately $1.7 billion in assets and $1.3 billion in deposits. Unity Bank provides financial services to retail, corporate and small business customers through its 19 retail service centers located in Bergen, Hunterdon, Middlesex, Somerset, Union and Warren Counties in New Jersey and Northampton County in Pennsylvania. For additional information about Unity, visit our website at www.unitybank.com , or call 800-618-BANK.












This news release contains certain forward-looking statements, either expressed or implied, which are provided to assist the reader in understanding anticipated future financial performance. These statements may be identified by use of the words “believe”, “expect”, “intend”, “anticipate”, “estimate”, “project” or similar expressions. These statements involve certain risks, uncertainties, estimates and assumptions made by management, which are subject to factors beyond the company’s control and could impede its ability to achieve these goals. These factors include those items included in our Annual Report on Form 10-K under the heading “Item IA-Risk Factors” as well as general economic conditions, trends in interest rates, the ability of our borrowers to repay their loans, our ability to manage and reduce the level of our nonperforming assets, and results of regulatory exams, among other factors.

This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.






UNITY BANCORP, INC.
SUMMARY FINANCIAL HIGHLIGHTS
December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dec 31, 2019 vs.
 
 
 
 
 
 
 
 
 
 
Sep 30, 2019
 
Dec 31, 2018
 
(In thousands, except percentages and per share amounts)
 
Dec 31, 2019
 
Sep 30, 2019
 
Dec 31, 2018
 
 
 %
 
 %
 
BALANCE SHEET DATA:
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
 
$
1,718,942

 
$
1,664,308

 
$
1,579,157

 
 
3.3
 %
 
8.9
 %
 
Total deposits
 
1,250,114

 
1,273,362

 
1,207,687

 
 
(1.8
)
 
3.5

 
Total loans
 
1,425,558

 
1,368,474

 
1,304,566

 
 
4.2

 
9.3

 
Total securities
 
66,564

 
63,991

 
63,732

 
 
4.0

 
4.4

 
Total shareholders' equity
 
160,709

 
154,884

 
138,488

 
 
3.8

 
16.0

 
Allowance for loan losses
 
(16,395
)
 
(16,002
)
 
(15,488
)
 
 
2.5

 
5.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
FINANCIAL DATA - QUARTER TO DATE:
 
 
 
 
 
 
 
 
 
 
Income before provision for income taxes
 
$
7,940

 
$
7,635

 
$
7,350

 
 
4.0

 
8.0

 
Provision for income taxes
 
1,820

 
1,676

 
1,547

 
 
8.6

 
17.6

 
Net income
 
$
6,120

 
$
5,959

 
$
5,803

 
 
2.7

 
5.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income per common share - Basic
 
$
0.56

 
$
0.55

 
$
0.54

 
 
1.8

 
3.7

 
Net income per common share - Diluted
 
$
0.55

 
$
0.54

 
$
0.53

 
 
1.9

 
3.8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Performance ratios:
 
 
 
 
 
 
 
 
 
 
 
 
Return on average assets
 
1.53

%
1.53

%
1.56

%
 
 
 
 
 
Return on average equity
 
15.41

%
15.57

%
17.00

%
 
 
 
 
 
Efficiency ratio
 
51.29

%
51.06

%
50.69

%
 
 
 
 
 
Net interest margin
 
3.88

%
3.90

%
4.01

%
 
 
 
 
 
Noninterest expense to average assets
 
2.17

%
2.24

%
2.22

%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FINANCIAL DATA - YEAR TO DATE:
 
 
 
 
 
 
 
 
 
 
 
 
Income before provision for income taxes
 
$
30,315

 
 
 
$
27,307

 
 
 
 
11.0

 
Provision for income taxes
 
6,662

 
 
 
5,388

 
 
 
 
23.6

 
Net income
 
$
23,653

 
 
 
$
21,919

 
 
 
 
7.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income per common share - Basic
 
$
2.18

 
 
 
$
2.04

 
 
 
 
6.9

 
Net income per common share - Diluted
 
$
2.14

 
 
 
$
2.01

 
 
 
 
6.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Performance ratios:
 
 
 
 
 
 
 
 
 
 
 
 
Return on average assets
 
1.54

%
 
 
1.53

%
 
 
 
0.7

 
Return on average equity
 
15.86

%
 
 
17.1

%
 
 
 
(7.3
)
 
Efficiency ratio
 
52.00

%
 
 
53.07

%
 
 
 
(2.0
)
 
Net interest margin
 
3.95

%
 
 
3.97

%
 
 
 
(0.5
)
 
Noninterest expense to average assets
 
2.25

%
 
 
2.34

%
 
 
 
(3.8
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SHARE INFORMATION:
 
 
 
 
 
 
 
 
 
 
 
 
Market price per share
 
$
22.57

 
$
22.15

 
$
20.76

 
 
1.9

 
8.7

 
Dividends paid
 
$
0.08

 
$
0.08

 
$
0.07

 
 

 
14.3

 
Book value per common share
 
$
14.77

 
$
14.25

 
$
12.85

 
 
3.6

 
14.9

 
Average diluted shares outstanding (QTD)
 
11,057

 
11,036

 
10,935

 
 
0.2

 
1.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
CAPITAL RATIOS:
 
 
 
 
 
 
 
 
 
 
 
 
Total equity to total assets
 
9.35

%
9.31

%
8.77

%
 
 
 
 
 
Leverage ratio
 
10.59

%
10.54

%
9.90

%
 
 
 
 
 
Common equity tier 1 risk-based capital ratio
 
11.97

%
12.24

%
11.40

%
 
 
 
 
 
Tier 1 risk-based capital ratio
 
12.73

%
13.04

%
12.24

%
 
 
 
 
 
Total risk-based capital ratio
 
13.48

%
14.28

%
13.49

%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 





CREDIT QUALITY AND RATIOS:
 
 
 
 
 
 
 
 
 
 
 
 
Nonperforming assets
 
$
7,372

 
$
7,305

 
$
6,929

 
 
0.9

 
6.3

 
QTD net chargeoffs (annualized) to QTD average loans
 
0.03

%
0.21

%

%
 
 
 
 
 
Allowance for loan losses to total loans
 
1.15

%
1.17

%
1.19

%
 
 
 
 
 
Nonperforming assets to total loans
and OREO
 
0.52

%
0.53

%
0.53

%
 
 
 
 
 
Nonperforming assets to total assets
 
0.43

%
0.44

%
0.44

%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 






UNITY BANCORP, INC.
CONSOLIDATED BALANCE SHEETS
December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dec 31, 2019 vs.
 
 
 
 
 
 
 
 
 
 
Sep 30, 2019
 
Dec 31, 2018
 
(In thousands, except percentages)
 
Dec 31, 2019
 
Sep 30, 2019
 
Dec 31, 2018
 
 
 %
 
 %
 
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
Cash and due from banks
 
$
21,106

 
$
29,426

 
$
20,028

 
 
(28.3
) %
 
5.4
 %
 
Federal funds sold, interest-bearing deposits and repos
 
136,910

 
137,334

 
125,487

 
 
(0.3
)
 
9.1

 
Cash and cash equivalents
 
158,016

 
166,760

 
145,515

 
 
(5.2
)
 
8.6

 
Securities:
 
 
 
 
 
 
 
 
 
 
 
 
Securities available for sale
 
64,275

 
47,295

 
46,713

 
 
35.9

 
37.6

 
Securities held to maturity
 

 
14,332

 
14,875

 
 
(100.0
)
 
(100.0
)
 
Equity securities
 
2,289

 
2,364

 
2,144

 
 
(3.2
)
 
6.8

 
Total securities
 
66,564

 
63,991

 
63,732

 
 
4.0

 
4.4

 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
SBA loans held for sale
 
13,529

 
13,053

 
11,171

 
 
3.6

 
21.1

 
SBA loans held for investment
 
35,767

 
36,380

 
39,333

 
 
(1.7
)
 
(9.1
)
 
Commercial loans
 
765,032

 
723,249

 
694,102

 
 
5.8

 
10.2

 
Residential mortgage loans
 
467,706

 
456,963

 
436,056

 
 
2.4

 
7.3

 
Consumer loans
 
143,524

 
138,829

 
123,904

 
 
3.4

 
15.8

 
Total loans
 
1,425,558

 
1,368,474

 
1,304,566

 
 
4.2

 
9.3

 
Allowance for loan losses
 
(16,395
)
 
(16,002
)
 
(15,488
)
 
 
2.5

 
5.9

 
Net loans
 
1,409,163

 
1,352,472

 
1,289,078

 
 
4.2

 
9.3

 
Premises and equipment, net
 
21,315

 
21,700

 
23,371

 
 
(1.8
)
 
(8.8
)
 
Bank owned life insurance ("BOLI")
 
26,323

 
25,302

 
24,710

 
 
4.0

 
6.5

 
Deferred tax assets
 
5,559

 
5,768

 
5,350

 
 
(3.6
)
 
3.9

 
Federal Home Loan Bank ("FHLB") stock
 
14,184

 
10,899

 
10,795

 
 
30.1

 
31.4

 
Accrued interest receivable
 
6,984

 
6,858

 
6,399

 
 
1.8

 
9.1

 
Other real estate owned ("OREO")
 
1,723

 
1,723

 
56

 
 

 
2,976.8

 
Goodwill
 
1,516

 
1,516

 
1,516

 
 

 

 
Other assets
 
7,595

 
7,319

 
8,635

 
 
3.8

 
(12.0
)
 
Total assets
 
$
1,718,942

 
$
1,664,308

 
$
1,579,157

 
 
3.3
 %
 
8.9
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Deposits:
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-bearing demand
 
$
279,793

 
$
279,238

 
$
270,152

 
 
0.2
 %
 
3.6
 %
 
Interest-bearing demand
 
176,335

 
179,661

 
185,792

 
 
(1.9
)
 
(5.1
)
 
Savings
 
389,795

 
394,333

 
394,727

 
 
(1.2
)
 
(1.2
)
 
Time Deposits
 
404,191

 
420,130

 
357,016

 
 
(3.8
)
 
13.2

 
Total deposits
 
1,250,114

 
1,273,362

 
1,207,687

 
 
(1.8
)
 
3.5

 
Borrowed funds
 
283,000

 
210,000

 
210,000

 
 
34.8

 
34.8

 
Subordinated debentures
 
10,310

 
10,310

 
10,310

 
 

 

 
Accrued interest payable
 
455

 
420

 
406

 
 
8.3

 
12.1

 
Accrued expenses and other liabilities
 
14,354

 
15,332

 
12,266

 
 
(6.4
)
 
17.0

 
Total liabilities
 
1,558,233

 
1,509,424

 
1,440,669

 
 
3.2

 
8.2

 
Shareholders' equity:
 
 
 
 
 
 
 
 
 
 
 
 
Common stock
 
90,113

 
89,753

 
88,484

 
 
0.4

 
1.8

 
Retained earnings
 
70,442

 
65,199

 
50,161

 
 
8.0

 
40.4

 
Accumulated other comprehensive (loss) income
 
154

 
(68
)
 
(157
)
 
 
 NM
 
 NM
 
Total shareholders' equity
 
160,709

 
154,884

 
138,488

 
 
3.8

 
16.0

 
Total liabilities and shareholders' equity
 
$
1,718,942

 
$
1,664,308

 
$
1,579,157

 
 
3.3
 %
 
8.9
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Issued and outstanding common shares
 
10,881

 
10,869

 
10,780

 
 
 
 
 
 
NM=Not meaningful





UNITY BANCORP, INC.
QTD CONSOLIDATED STATEMENTS OF INCOME
December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dec 31, 2019 vs.
 
 
 
 For the three months ended
 
 
Sep 30, 2019
 
Dec 31, 2018
 
(In thousands, except percentages and per share amounts)
 
Dec 31, 2019
 
Sep 30, 2019
 
Dec 31, 2018
 
 
$
 
%
 
$
 
%
 
INTEREST INCOME
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Federal funds sold, interest-bearing deposits and repos
 
$
182

 
$
271

 
$
210

 
 
$
(89
)
 
(32.8
)%
 
$
(28
)
 
(13.3
)%
 
FHLB stock
 
110

 
82

 
104

 
 
28

 
34.1

 
6

 
5.8

 
Securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Taxable
 
527

 
463

 
466

 
 
64

 
13.8

 
61

 
13.1

 
Tax-exempt
 
22

 
26

 
28

 
 
(4
)
 
(15.4
)
 
(6
)
 
(21.4
)
 
Total securities
 
549

 
489

 
494

 
 
60

 
12.3

 
55

 
11.1

 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SBA loans
 
900

 
943

 
974

 
 
(43
)
 
(4.6
)
 
(74
)
 
(7.6
)
 
Commercial loans
 
9,684

 
9,467

 
9,167

 
 
217

 
2.3

 
517

 
5.6

 
Residential mortgage loans
 
5,782

 
5,606

 
5,172

 
 
176

 
3.1

 
610

 
11.8

 
Consumer loans
 
2,105

 
2,197

 
1,939

 
 
(92
)
 
(4.2
)
 
166

 
8.6

 
Total loans
 
18,471

 
18,213

 
17,252

 
 
258

 
1.4

 
1,219

 
7.1

 
Total interest income
 
19,312

 
19,055

 
18,060

 
 
257

 
1.3

 
1,252

 
6.9

 
INTEREST EXPENSE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing demand deposits
 
506

 
438

 
389

 
 
68

 
15.5

 
117

 
30.1

 
Savings deposits
 
996

 
1,194

 
1,103

 
 
(198
)
 
(16.6
)
 
(107
)
 
(9.7
)
 
Time deposits
 
2,439

 
2,577

 
1,861

 
 
(138
)
 
(5.4
)
 
578

 
31.1

 
Borrowed funds and subordinated debentures
 
608

 
442

 
543

 
 
166

 
37.6

 
65

 
12.0

 
Total interest expense
 
4,549

 
4,651

 
3,896

 
 
(102
)
 
(2.2
)
 
653

 
16.8

 
Net interest income
 
14,763

 
14,404

 
14,164

 
 
359

 
2.5

 
599

 
4.2

 
Provision for loan losses
 
500

 
750

 
500

 
 
(250
)
 
(33.3
)
 

 

 
Net interest income after provision for loan losses
 
14,263

 
13,654

 
13,664

 
 
609

 
4.5

 
599

 
4.4

 
NONINTEREST INCOME
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Branch fee income
 
383

 
373

 
413

 
 
10

 
2.7

 
(30
)
 
(7.3
)
 
Service and loan fee income
 
432

 
522

 
690

 
 
(90
)
 
(17.2
)
 
(258
)
 
(37.4
)
 
Gain on sale of SBA loans held for sale, net
 
355

 

 
298

 
 
355

 
10,000.0

 
57

 
19.1

 
Gain on sale of mortgage loans, net
 
565

 
545

 
277

 
 
20

 
3.7

 
288

 
104.0

 
BOLI income
 
152

 
138

 
165

 
 
14

 
10.1

 
(13
)
 
(7.9
)
 
Net security gains (losses)
 
157

 
18

 
(193
)
 
 
139

 
772.2

 
350

 
181.3

 
Other income
 
352

 
1,114

 
304

 
 
(762
)
 
(68.4
)
 
48

 
15.8

 
Total noninterest income
 
2,396

 
2,710

 
1,954

 
 
(314
)
 
(11.6
)
 
442

 
22.6

 
NONINTEREST EXPENSE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Compensation and benefits
 
5,282

 
5,353

 
4,845

 
 
(71
)
 
(1.3
)
 
437

 
9.0

 
Occupancy
 
652

 
651

 
681

 
 
1

 
0.2

 
(29
)
 
(4.3
)
 
Processing and communications
 
711

 
749

 
716

 
 
(38
)
 
(5.1
)
 
(5
)
 
(0.7
)
 
Furniture and equipment
 
806

 
711

 
616

 
 
95

 
13.4

 
190

 
30.8

 
Professional services
 
222

 
274

 
252

 
 
(52
)
 
(19.0
)
 
(30
)
 
(11.9
)
 
Loan collection & OREO expenses (recoveries)
 
33

 
(48
)
 
31

 
 
81

 
168.8

 
2

 
6.5

 
Other loan expenses (income)
 
70

 
89

 
(2
)
 
 
(19
)
 
(21.3
)
 
72

 
3,600.0

 
Deposit insurance
 

 

 
189

 
 

 

 
(189
)
 
(100.0
)
 
Advertising
 
302

 
334

 
360

 
 
(32
)
 
(9.6
)
 
(58
)
 
(16.1
)
 
Director fees
 
175

 
171

 
169

 
 
4

 
2.3

 
6

 
3.6

 
Other expenses
 
466

 
445

 
411

 
 
21

 
4.7

 
55

 
13.4

 
Total noninterest expense
 
8,719

 
8,729

 
8,268

 
 
(10
)
 
(0.1
)
 
451

 
5.5

 
Income before provision for income taxes
 
7,940

 
7,635

 
7,350

 
 
305

 
4.0

 
590

 
8.0

 
Provision for income taxes
 
1,820

 
1,676

 
1,547

 
 
144

 
8.6

 
273

 
17.6

 
Net income
 
$
6,120

 
$
5,959

 
$
5,803

 
 
$
161

 
2.7
%
 
$
317

 
5.5
%
 





 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effective tax rate
 
22.9
%
 
22.0
%
 
21.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income per common share - Basic
 
$
0.56

 
$
0.55

 
$
0.54

 
 
 
 
 
 
 
 
 
 
Net income per common share - Diluted
 
$
0.55

 
$
0.54

 
$
0.53

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding - Basic
 
10,872

 
10,863

 
10,765

 
 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding - Diluted
 
11,057

 
11,036

 
10,935

 
 
 
 
 
 
 
 
 
 






UNITY BANCORP, INC.
YTD CONSOLIDATED STATEMENTS OF INCOME
December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
For the twelve months ended December 31,
 
 
Current YTD vs Prior YTD
 
(In thousands, except percentages and per share amounts)
 
2019
 
2018
 
 
$
 
%
 
INTEREST INCOME
 
 
 
 
 
 
 
 
 
 
Federal funds sold, interest-bearing deposits and repos
 
$
906

 
$
773

 
 
$
133

 
17.2
%
 
FHLB stock
 
385

 
462

 
 
(77
)
 
(16.7
)
 
Securities:
 
 
 
 
 
 
 
 
 
 
Taxable
 
1,926

 
1,907

 
 
19

 
1.0

 
Tax-exempt
 
104

 
117

 
 
(13
)
 
(11.1
)
 
Total securities
 
2,030

 
2,024

 
 
6

 
0.3

 
Loans:
 
 
 
 
 
 
 
 
 
 
SBA loans
 
3,780

 
4,338

 
 
(558
)
 
(12.9
)
 
Commercial loans
 
37,577

 
33,886

 
 
3,691

 
10.9

 
Residential mortgage loans
 
22,483

 
18,837

 
 
3,646

 
19.4

 
Consumer loans
 
8,487

 
6,943

 
 
1,544

 
22.2

 
Total loans
 
72,327

 
64,004

 
 
8,323

 
13.0

 
Total interest income
 
75,648

 
67,263

 
 
8,385

 
12.5

 
INTEREST EXPENSE
 
 
 
 
 
 
 
 
 
 
Interest-bearing demand deposits
 
1,795

 
1,202

 
 
593

 
49.3

 
Savings deposits
 
4,497

 
3,871

 
 
626

 
16.2

 
Time deposits
 
9,460

 
5,903

 
 
3,557

 
60.3

 
Borrowed funds and subordinated debentures
 
2,303

 
2,540

 
 
(237
)
 
(9.3
)
 
Total interest expense
 
18,055

 
13,516

 
 
4,539

 
33.6

 
Net interest income
 
57,593

 
53,747

 
 
3,846

 
7.2

 
Provision for loan losses
 
2,100

 
2,050

 
 
50

 
2.4

 
Net interest income after provision for loan losses
 
55,493

 
51,697

 
 
3,796

 
7.3

 
NONINTEREST INCOME
 
 
 
 
 
 
 
 
 
 
Branch fee income
 
1,502

 
1,519

 
 
(17
)
 
(1.1
)
 
Service and loan fee income
 
1,965

 
2,130

 
 
(165
)
 
(7.7
)
 
Gain on sale of SBA loans held for sale, net
 
909

 
1,680

 
 
(771
)
 
(45.9
)
 
Gain on sale of mortgage loans, net
 
2,090

 
1,719

 
 
371

 
21.6

 
BOLI income
 
588

 
975

 
 
(387
)
 
(39.7
)
 
Net security gains (losses)
 
373

 
(199
)
 
 
572

 
287.4

 
Other income
 
2,112

 
1,207

 
 
905

 
75.0

 
Total noninterest income
 
9,539

 
9,031

 
 
508

 
5.6

 
NONINTEREST EXPENSE
 
 
 
 
 
 
 
 
 
 
Compensation and benefits
 
20,666

 
20,119

 
 
547

 
2.7

 
Occupancy
 
2,650

 
2,739

 
 
(89
)
 
(3.2
)
 
Processing and communications
 
2,924

 
2,788

 
 
136

 
4.9

 
Furniture and equipment
 
2,894

 
2,348

 
 
546

 
23.3

 
Professional services
 
1,061

 
934

 
 
127

 
13.6

 
Loan collection & OREO expenses (recoveries)
 
41

 
(361
)
 
 
402

 
111.4

 
Other loan expenses
 
272

 
208

 
 
64

 
30.8

 
Deposit insurance
 
301

 
782

 
 
(481
)
 
(61.5
)
 
Advertising
 
1,358

 
1,411

 
 
(53
)
 
(3.8
)
 
Director fees
 
673

 
671

 
 
2

 
0.3

 
Other expenses
 
1,877

 
1,782

 
 
95

 
5.3

 
Total noninterest expense
 
34,717

 
33,421

 
 
1,296

 
3.9

 
Income before provision for income taxes
 
30,315

 
27,307

 
 
3,008

 
11.0

 
Provision for income taxes
 
6,662

 
5,388

 
 
1,274

 
23.6

 
Net income
 
$
23,653

 
$
21,919

 
 
$
1,734

 
7.9
%
 
 
 
 
 
 
 
 
 
 
 
 





Effective tax rate
 
22.0
%
 
19.7
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income per common share - Basic
 
$
2.18

 
$
2.04

 
 
 
 
 
 
Net income per common share - Diluted
 
$
2.14

 
$
2.01

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding - Basic
 
10,845

 
10,726

 
 
 
 
 
 
Weighted average common shares outstanding - Diluted
 
11,029

 
10,916

 
 
 
 
 
 






UNITY BANCORP, INC.
QUARTER TO DATE NET INTEREST MARGIN
December 31, 2019
(Dollar amounts in thousands, interest amounts and interest rates/yields on a fully tax-equivalent basis)
 
 
For the three months ended
 
 
December 31, 2019
 
December 31, 2018
 
 
Average Balance
 
Interest
 
 Rate/Yield
 
Average Balance
 
Interest
 
 Rate/Yield
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
Interest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
 
Federal funds sold, interest-bearing deposits and repos
 
$
44,147

 
$
182

 
1.64
%
 
$
34,551

 
$
210

 
2.41
%
FHLB stock
 
6,949

 
110

 
6.28

 
5,762

 
104

 
7.16

Securities:
 
 
 
 
 
 
 
 
 
 
 
 
Taxable
 
62,986

 
527

 
3.32

 
58,350

 
466

 
3.17

Tax-exempt
 
4,106

 
27

 
2.61

 
4,776

 
35

 
2.91

Total securities (A)
 
67,092

 
554

 
3.28

 
63,126

 
501

 
3.15

Loans:
 
 
 
 
 
 
 
 
 
 
 
 
SBA loans
 
50,016

 
900

 
7.14

 
53,803

 
974

 
7.18

Commercial loans
 
742,071

 
9,684

 
5.18

 
698,609

 
9,167

 
5.21

Residential mortgage loans
 
460,450

 
5,782

 
4.98

 
423,674

 
5,172

 
4.84

Consumer loans
 
140,458

 
2,105

 
5.95

 
121,214

 
1,939

 
6.35

Total loans (B)
 
1,392,995

 
18,471

 
5.26

 
1,297,300

 
17,252

 
5.28

Total interest-earning assets
 
$
1,511,183

 
$
19,317

 
5.07
%
 
$
1,400,739

 
$
18,067

 
5.12
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
 
Cash and due from banks
 
27,964

 
 
 
 
 
25,410

 
 
 
 
Allowance for loan losses
 
(16,293
)
 
 
 
 
 
(15,266
)
 
 
 
 
Other assets
 
69,226

 
 
 
 
 
66,925

 
 
 
 
Total noninterest-earning assets
 
80,897

 
 
 
 
 
77,069

 
 
 
 
Total assets
 
$
1,592,080

 
 
 
 
 
$
1,477,808

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
 
 
 
 
 
Interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Total interest-bearing demand deposits
 
$
196,638

 
$
506

 
1.02
%
 
$
187,827

 
$
389

 
0.82
%
Total savings deposits
 
397,401

 
996

 
0.99

 
406,681

 
1,103

 
1.08

Total time deposits
 
411,445

 
2,439

 
2.35

 
356,520

 
1,861

 
2.07

Total interest-bearing deposits
 
1,005,484

 
3,941

 
1.56

 
951,028

 
3,353

 
1.40

Borrowed funds and subordinated debentures
 
132,533

 
608

 
1.82

 
108,465

 
543

 
1.99

Total interest-bearing liabilities
 
$
1,138,017

 
$
4,549

 
1.59
%
 
$
1,059,493

 
$
3,896

 
1.46
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-bearing demand deposits
 
279,925

 
 
 
 
 
271,440

 
 
 
 
Other liabilities
 
16,611

 
 
 
 
 
11,454

 
 
 
 
Total noninterest-bearing liabilities
 
296,536

 
 
 
 
 
282,894

 
 
 
 
Total shareholders' equity
 
157,527

 
 
 
 
 
135,421

 
 
 
 
Total liabilities and shareholders' equity
 
$
1,592,080

 
 
 
 
 
$
1,477,808

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest spread
 
 
 
$
14,768

 
3.48
%
 
 
 
$
14,171

 
3.66
%
Tax-equivalent basis adjustment
 
 
 
(5
)
 
 
 
 
 
(7
)
 
 
Net interest income
 
 
 
$
14,763

 
 
 
 
 
$
14,164

 
 
Net interest margin
 
 
 
 
 
3.88
%
 
 
 
 
 
4.01
%
(A)
Yields related to securities exempt from federal and state income taxes are stated on a fully tax-equivalent basis. They are reduced by the nondeductable portion of interest expense, assuming a federal tax rate of 21 percent and applicable state rates.
(B)
The loan averages are stated net of unearned income, and the averages include loans on which the accrual of interest has been discontinued.






UNITY BANCORP, INC.
QUARTER TO DATE NET INTEREST MARGIN
December 31, 2019
(Dollar amounts in thousands, interest amounts and interest rates/yields on a fully tax-equivalent basis)
 
 
For the three months ended
 
 
December 31, 2019
 
September 30, 2019
 
 
Average Balance
 
Interest
 
 Rate/Yield
 
Average Balance
 
Interest
 
 Rate/Yield
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
Interest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
 
Federal funds sold, interest-bearing deposits and repos
 
$
44,147

 
$
182

 
1.64
%
 
$
51,744

 
$
271

 
2.08
%
FHLB stock
 
6,949

 
110

 
6.28

 
5,138

 
82

 
6.33

Securities:
 
 
 
 
 
 
 
 
 
 
 
 
Taxable
 
62,986

 
527

 
3.32

 
58,144

 
463

 
3.16

Tax-exempt
 
4,106

 
27

 
2.61

 
4,418

 
32

 
2.87

Total securities (A)
 
67,092

 
554

 
3.28

 
62,562

 
495

 
3.14

Loans:
 
 
 
 
 
 
 
 
 
 
 
 
SBA loans
 
50,016

 
900

 
7.14

 
47,187

 
943

 
7.93

Commercial loans
 
742,071

 
9,684

 
5.18

 
713,785

 
9,467

 
5.26

Residential mortgage loans
 
460,450

 
5,782

 
4.98

 
450,105

 
5,606

 
4.94

Consumer loans
 
140,458

 
2,105

 
5.95

 
136,239

 
2,197

 
6.40

Total loans (B)
 
1,392,995

 
18,471

 
5.26

 
1,347,316

 
18,213

 
5.36

Total interest-earning assets
 
$
1,511,183

 
$
19,317

 
5.07
%
 
$
1,466,760

 
$
19,061

 
5.16
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
 
Cash and due from banks
 
27,964

 
 
 
 
 
24,345

 
 
 
 
Allowance for loan losses
 
(16,293
)
 
 
 
 
 
(16,224
)
 
 
 
 
Other assets
 
69,226

 
 
 
 
 
70,484

 
 
 
 
Total noninterest-earning assets
 
80,897

 
 
 
 
 
78,605

 
 
 
 
Total assets
 
$
1,592,080

 
 
 
 
 
$
1,545,365

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
 
 
 
 
 
Interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Total interest-bearing demand deposits
 
$
196,638

 
$
506

 
1.02
%
 
$
176,953

 
$
438

 
0.98
%
Total savings deposits
 
397,401

 
996

 
0.99

 
398,676

 
1,194

 
1.19

Total time deposits
 
411,445

 
2,439

 
2.35

 
432,035

 
2,577

 
2.37

Total interest-bearing deposits
 
1,005,484

 
3,941

 
1.56

 
1,007,664

 
4,209

 
1.66

Borrowed funds and subordinated debentures
 
132,533

 
608

 
1.82

 
92,326

 
442

 
1.90

Total interest-bearing liabilities
 
$
1,138,017

 
$
4,549

 
1.59
%
 
$
1,099,990

 
$
4,651

 
1.68
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-bearing demand deposits
 
279,925

 
 
 
 
 
279,150

 
 
 
 
Other liabilities
 
16,611

 
 
 
 
 
14,364

 
 
 
 
Total noninterest-bearing liabilities
 
296,536

 
 
 
 
 
293,514

 
 
 
 
Total shareholders' equity
 
157,527

 
 
 
 
 
151,861

 
 
 
 
Total liabilities and shareholders' equity
 
$
1,592,080

 
 
 
 
 
$
1,545,365

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest spread
 
 
 
$
14,768

 
3.48
%
 
 
 
$
14,410

 
3.48
%
Tax-equivalent basis adjustment
 
 
 
(5
)
 
 
 
 
 
(6
)
 
 
Net interest income
 
 
 
$
14,763

 
 
 
 
 
$
14,404

 
 
Net interest margin
 
 
 
 
 
3.88
%
 
 
 
 
 
3.90
%
(A)
Yields related to securities exempt from federal and state income taxes are stated on a fully tax-equivalent basis. They are reduced by the nondeductable portion of interest expense, assuming a federal tax rate of 21 percent and applicable state rates.
(B)
The loan averages are stated net of unearned income, and the averages include loans on which the accrual of interest has been discontinued.





UNITY BANCORP, INC.
YEAR TO DATE NET INTEREST MARGIN
December 31, 2019
(Dollar amounts in thousands, interest amounts and interest rates/yields on a fully tax-equivalent basis)
 
 
For the twelve months ended
 
 
December 31, 2019
 
December 31, 2018
 
 
Average Balance
 
Interest
 
 Rate/Yield
 
Average Balance
 
Interest
 
 Rate/Yield
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
Interest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
 
Federal funds sold, interest-bearing deposits and repos
 
$
43,305

 
$
906

 
2.09
%
 
$
40,700

 
$
773

 
1.90
%
FHLB stock
 
6,066

 
385

 
6.35

 
6,786

 
462

 
6.81

Securities:
 
 
 
 
 
 
 
 
 
 
 
 
Taxable
 
59,459

 
1,926

 
3.24

 
60,734

 
1,907

 
3.14

Tax-exempt
 
4,394

 
129

 
2.94

 
5,104

 
145

 
2.84

Total securities (A)
 
63,853

 
2,055

 
3.22

 
65,838

 
2,052

 
3.12

Loans:
 
 
 
 
 
 
 
 
 
 
 
 
SBA loans
 
48,686

 
3,780

 
7.76

 
60,321

 
4,338

 
7.19

Commercial loans
 
715,301

 
37,577

 
5.25

 
668,144

 
33,886

 
5.07

Residential mortgage loans
 
449,003

 
22,483

 
5.01

 
396,731

 
18,837

 
4.75

Consumer loans
 
133,918

 
8,487

 
6.34

 
116,311

 
6,943

 
5.97

Total loans (B)
 
1,346,908

 
72,327

 
5.37

 
1,241,507

 
64,004

 
5.16

Total interest-earning assets
 
$
1,460,132

 
$
75,673

 
5.18
%
 
$
1,354,831

 
$
67,291

 
4.97
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
 
Cash and due from banks
 
25,761

 
 
 
 
 
24,598

 
 
 
 
Allowance for loan losses
 
(16,058
)
 
 
 
 
 
(14,640
)
 
 
 
 
Other assets
 
69,987

 
 
 
 
 
65,770

 
 
 
 
Total noninterest-earning assets
 
79,690

 
 
 
 
 
75,728

 
 
 
 
Total assets
 
$
1,539,822

 
 
 
 
 
$
1,430,559

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
 
 
 
 
 
Interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Total interest-bearing demand deposits
 
$
182,540

 
$
1,795

 
0.98
%
 
$
177,022

 
$
1,202

 
0.68
%
Total savings deposits
 
397,122

 
4,497

 
1.13

 
404,613

 
3,871

 
0.96

Total time deposits
 
409,406

 
9,460

 
2.31

 
314,224

 
5,903

 
1.88

Total interest-bearing deposits
 
989,068

 
15,752

 
1.59

 
895,859

 
10,976

 
1.23

Borrowed funds and subordinated debentures
 
113,511

 
2,303

 
2.03

 
134,664

 
2,540

 
1.89

Total interest-bearing liabilities
 
$
1,102,579

 
$
18,055

 
1.64
%
 
$
1,030,523

 
$
13,516

 
1.32
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-bearing demand deposits
 
273,338

 
 
 
 
 
261,976

 
 
 
 
Other liabilities
 
14,755

 
 
 
 
 
9,903

 
 
 
 
Total noninterest-bearing liabilities
 
288,093

 
 
 
 
 
271,879

 
 
 
 
Total shareholders' equity
 
149,150

 
 
 
 
 
128,157

 
 
 
 
Total liabilities and shareholders' equity
 
$
1,539,822

 
 
 
 
 
$
1,430,559

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest spread
 
 
 
$
57,618

 
3.54
%
 
 
 
$
53,775

 
3.65
%
Tax-equivalent basis adjustment
 
 
 
(25
)
 
 
 
 
 
(28
)
 
 
Net interest income
 
 
 
$
57,593

 
 
 
 
 
$
53,747

 
 
Net interest margin
 
 
 
 
 
3.95
%
 
 
 
 
 
3.97
%
(A)
Yields related to securities exempt from federal and state income taxes are stated on a fully tax-equivalent basis. They are reduced by the nondeductable portion of interest expense, assuming a federal tax rate of 21 percent and applicable state rates.
(B)
The loan averages are stated net of unearned income, and the averages include loans on which the accrual of interest has been discontinued.







UNITY BANCORP, INC.
QUARTERLY ALLOWANCE FOR LOAN LOSSES AND LOAN QUALITY SCHEDULES
December 31, 2019
Amounts in thousands, except percentages
 
Dec 31, 2019
 
Sep 30, 2019
 
Jun 30, 2019
 
Mar 31, 2019
 
Dec 31, 2018
ALLOWANCE FOR LOAN LOSSES:
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period
 
$
16,002

 
$
15,965

 
$
15,684

 
$
15,488

 
$
14,988

Provision for loan losses charged to expense
 
500

 
750

 
350

 
500

 
500

 
 
16,502

 
16,715

 
16,034

 
15,988

 
15,488

Less: Chargeoffs
 
 
 
 
 
 
 
 
 
 
SBA loans
 
43

 
98

 
85

 
308

 

Commercial loans
 

 
500

 

 
1

 
10

Residential mortgage loans
 
75

 
130

 

 

 

Consumer loans
 

 

 

 
1

 

Total chargeoffs
 
118

 
728

 
85

 
310

 
10

Add: Recoveries
 
 
 
 
 
 
 
 
 
 
SBA loans
 
7

 
12

 
2

 
1

 
4

Commercial loans
 
4

 
3

 
4

 
5

 
5

Residential mortgage loans
 

 

 

 

 

Consumer loans
 

 

 
10

 

 
1

Total recoveries
 
11

 
15

 
16

 
6

 
10

Net chargeoffs
 
107

 
713

 
69

 
304

 

Balance, end of period
 
$
16,395

 
$
16,002

 
$
15,965

 
$
15,684

 
$
15,488

 
 
 
 
 
 
 
 
 
 
 
LOAN QUALITY INFORMATION:
 
 
 
 
 
 
 
 
 
 
Nonperforming loans:
 
 
 
 
 
 
 
 
 
 
SBA loans
 
$
1,164

 
$
503

 
$
437

 
$
814

 
$
1,560

Commercial loans
 
529

 
629

 
54

 
1,046

 
1,076

Residential mortgage loans
 
3,936

 
4,427

 
3,924

 
5,243

 
4,211

Consumer loans
 
20

 
23

 

 
171

 
26

Total nonperforming loans (1)
 
5,649

 
5,582

 
4,415

 
7,274

 
6,873

Other real estate owned ("OREO")
 
1,723

 
1,723

 
921

 
273

 
56

Nonperforming assets
 
7,372

 
7,305

 
5,336

 
7,547

 
6,929

Less: Amount guaranteed by SBA
 
59

 
63

 
68

 
68

 
89

Net nonperforming assets
 
$
7,313

 
$
7,242

 
$
5,268

 
$
7,479

 
$
6,840

 
 
 
 
 
 
 
 
 
 
 
 Loans 90 days past due & still accruing
 
$
930

 
$
140

 
$

 
$
39

 
$
98

 
 
 
 
 
 
 
 
 
 
 
Performing Troubled Debt Restructurings (TDRs)
 
$
705

 
$
718

 
$
728

 
$
738

 
$
745

(1) Nonperforming TDRs included in nonperforming loans
 

 

 

 

 

Total TDRs
 
$
705

 
$
718

 
$
728

 
$
738

 
$
745

 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses to:
 
 
 
 
 
 
 
 
 
 
Total loans at quarter end
 
1.15
%
 
1.17
%
 
1.19
%
 
1.19
%
 
1.19
%
Nonperforming loans (1)
 
290.43

 
286.67

 
361.61

 
215.62

 
225.35

Nonperforming assets
 
222.40

 
219.06

 
299.19

 
207.82

 
223.52

Net nonperforming assets
 
224.19

 
220.96

 
303.06

 
209.71

 
226.43

 
 
 
 
 
 
 
 
 
 
 
QTD net chargeoffs (recoveries) (annualized) to QTD average loans:
 
 
 
 
 
 
 
 
 
 
SBA loans
 
0.29
%
 
0.72
%
 
0.70
%
 
2.49
%
 
(0.03
)%
Commercial loans
 

 
0.28

 

 

 

Residential mortgage loans
 
0.06

 
0.11

 

 

 

Consumer loans
 

 

 
(0.03
)
 

 

Total loans
 
0.03
%
 
0.21
%
 
0.02
%
 
0.09
%
 
%
 
 
 
 
 
 
 
 
 
 
 
Nonperforming loans to total loans
 
0.40
%
 
0.41
%
 
0.33
%
 
0.55
%
 
0.53
%
Nonperforming loans and TDRs to total loans
 
0.45

 
0.46

 
0.38

 
0.61

 
0.58

Nonperforming assets to total loans and OREO
 
0.52

 
0.53

 
0.40

 
0.57

 
0.53

Nonperforming assets to total assets
 
0.43

 
0.44

 
0.33

 
0.47

 
0.44






UNITY BANCORP, INC.
QUARTERLY FINANCIAL DATA
December 31, 2019
(In thousands, except percentages and per share amounts)
 
Dec 31, 2019
 
Sep 30, 2019
 
Jun 30, 2019
 
Mar 31, 2019
 
Dec 31, 2018
SUMMARY OF INCOME:
 
 
 
 
 
 
 
 
 
 
Total interest income
 
$
19,312

 
$
19,055

 
$
18,781

 
$
18,500

 
$
18,060

Total interest expense
 
4,549

 
4,651

 
4,571

 
4,284

 
3,896

Net interest income
 
14,763

 
14,404

 
14,210

 
14,216

 
14,164

Provision for loan losses
 
500

 
750

 
350

 
500

 
500

Net interest income after provision for loan losses
 
14,263

 
13,654

 
13,860

 
13,716

 
13,664

Total noninterest income
 
2,396

 
2,710

 
2,411

 
2,022

 
1,954

Total noninterest expense
 
8,719

 
8,729

 
8,791

 
8,478

 
8,268

Income before provision for income taxes
 
7,940

 
7,635

 
7,480

 
7,260

 
7,350

Provision for income taxes
 
1,820

 
1,676

 
1,646

 
1,520

 
1,547

Net income
 
$
6,120

 
$
5,959

 
$
5,834

 
$
5,740

 
$
5,803

 
 
 
 
 
 
 
 
 
 
 
Net income per common share - Basic
 
$
0.56

 
$
0.55

 
$
0.54

 
$
0.53

 
$
0.54

Net income per common share - Diluted
 
$
0.55

 
$
0.54

 
$
0.53

 
$
0.52

 
$
0.53

 
 
 
 
 
 
 
 
 
 
 
COMMON SHARE DATA:
 
 
 
 
 
 
 
 
 
 
Market price per share
 
$
22.57

 
$
22.15

 
$
22.70

 
$
18.88

 
$
20.76

Dividends paid
 
$
0.08

 
$
0.08

 
$
0.08

 
$
0.07

 
$
0.07

Book value per common share
 
$
14.77

 
$
14.25

 
$
13.76

 
$
13.28

 
$
12.85

 
 
 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding - Basic
 
10,872

 
10,863

 
10,843

 
10,801

 
10,765

Weighted average common shares outstanding - Diluted
 
11,057

 
11,036

 
11,026

 
10,955

 
10,935

Issued and outstanding common shares
 
10,881

 
10,869

 
10,856

 
10,822

 
10,780

 
 
 
 
 
 
 
 
 
 
 
PERFORMANCE RATIOS (Annualized):
 
 
 
 
 
 
 
 
 
 
Return on average assets
 
1.53
%
 
1.53
%
 
1.54
%
 
1.55
%
 
1.56
%
Return on average equity
 
15.41

 
15.57

 
16.01

 
16.52

 
17.00

Efficiency ratio
 
51.29

 
51.06

 
53.20

 
52.53

 
50.69

Noninterest expense to average assets
 
2.17

 
2.24

 
2.32

 
2.29

 
2.22

 
 
 
 
 
 
 
 
 
 
 
BALANCE SHEET DATA:
 
 
 
 
 
 
 
 
 
 
Total assets
 
1,718,942

 
1,664,308

 
1,626,737

 
1,590,046

 
1,579,157

Total deposits
 
1,250,114

 
1,273,362

 
1,264,353

 
1,226,586

 
1,207,687

Total loans
 
1,425,558

 
1,368,474

 
1,344,757

 
1,312,994

 
1,304,566

Total securities
 
66,564

 
63,991

 
62,122

 
62,962

 
63,732

Total shareholders' equity
 
160,709

 
154,884

 
149,383

 
143,717

 
138,488

Allowance for loan losses
 
(16,395
)
 
(16,002
)
 
(15,965
)
 
(15,684
)
 
(15,488
)
 
 
 
 
 
 
 
 
 
 
 
TAX EQUIVALENT YIELDS AND RATES:
 
 
 
 
 
 
 
 
 
 
Interest-earning assets
 
5.07
%
 
5.16
%
 
5.24
%
 
5.28
%
 
5.12
%
Interest-bearing liabilities
 
1.59

 
1.68

 
1.69

 
1.60

 
1.46

Net interest spread
 
3.48

 
3.48

 
3.55

 
3.68

 
3.66

Net interest margin
 
3.88

 
3.90

 
3.96

 
4.06

 
4.01

 
 
 
 
 
 
 
 
 
 
 
CREDIT QUALITY:
 
 
 
 
 
 
 
 
 
 
Nonperforming assets
 
7,372

 
7,305

 
5,336

 
7,547

 
6,929

QTD net chargeoffs (annualized) to QTD average loans
 
0.03
%
 
0.21
%
 
0.02
%
 
0.09
%
 
%
Allowance for loan losses to total loans
 
1.15

 
1.17

 
1.19

 
1.19

 
1.19

Nonperforming assets to total loans and OREO
 
0.52

 
0.53

 
0.40

 
0.57

 
0.53

Nonperforming assets to total assets
 
0.43

 
0.44

 
0.33

 
0.47

 
0.44

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 





(In thousands, except percentages and per share amounts)
 
Dec 31, 2019
 
Sep 30, 2019
 
Jun 30, 2019
 
Mar 31, 2019
 
Dec 31, 2018
CAPITAL RATIOS AND OTHER:
 
 
 
 
 
 
 
 
 
 
Total equity to total assets
 
9.35
%
 
9.31
%
 
9.18
%
 
9.04
%
 
8.77
%
Leverage ratio
 
10.59

 
10.54

 
10.36

 
10.09

 
9.90

Common equity tier 1 risk-based capital ratio
 
11.97

 
12.24

 
11.99

 
11.78

 
11.40

Tier 1 risk-based capital ratio
 
12.73

 
13.04

 
12.81

 
12.62

 
12.24

Total risk-based capital ratio
 
13.49

 
14.28

 
14.06

 
13.87

 
13.49

Number of banking offices
 
19

 
19

 
19

 
19

 
19

Number of ATMs
 
20

 
20

 
20

 
20

 
20

Number of employees
 
203

 
194

 
185

 
190

 
198




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