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

12 Months Ended

Dec. 31, 2022

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

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

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

Balance Sheets

	December 31,		December 31,
(In thousands)	2022		2021
ASSETS
Cash and cash equivalents	$	2,225	$	1,685
Equity securities		5,697		5,043
Investment in subsidiaries		239,255		207,799
Premises and equipment, net		3,594		3,709
Other assets		972		—
Total assets	$	251,743	$	218,236
LIABILITIES AND SHAREHOLDERS’ EQUITY
Loan due to subsidiary bank	$	2,002	$	2,108
Other liabilities		204		89
Subordinated debentures		10,310		10,310
Shareholders’ equity		239,227		205,729
Total liabilities and shareholders’ equity	$	251,743	$	218,236

Statements of Income

	For the year ended December 31,
(In thousands)	2022		2021		2020
Dividend from Bank	$	4,510	$	11,285	$	8,200
Dividend from Nonbank subsidiary		1,100		823		575
Gain on sales of securities		—		4		5
Market value appreciation on equity securities		—		588		—
Other income		734		532		465
Total income		6,344		13,232		9,245
Interest expenses		349		257		349
Market value depreciation on equity securities		885		—		246
Other expenses		252		258		259
Total expenses		1,486		515		854
Income before provision for income taxes and equity in undistributed net income of subsidiary		4,858		12,717		8,391
(Benefit) provision for income taxes		(231)		219		(22)
Income before equity in undistributed net income of subsidiary		5,089		12,498		8,413
Equity in undistributed net income of subsidiaries		33,368		23,621		15,231
Net income	$	38,457	$	36,119	$	23,644

Statements of Cash Flows

	For the year ended December 31,
(In thousands)	2022		2021		2020
OPERATING ACTIVITIES
Net income	$	38,457	$	36,119	$	23,644
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed net income of subsidiaries		(33,368)		(23,621)		(15,231)
Gain on sales of securities		—		(4)		(5)
Net change in other assets and other liabilities		153		(472)		507
Net cash provided by operating activities		5,242		12,022		8,915
INVESTING ACTIVITIES
Purchase of land and building		—		—		(87)
Purchases of securities		(1,539)		(3,500)		—
Proceeds from sales of securities		—		53		111
Net cash (used in) provided by investing activities		(1,539)		(3,447)		24
FINANCING ACTIVITIES
Proceeds from exercise of stock based compensation, net of taxes		1,357		379		229
Repayment of advances from subsidiaries		(105)		(101)		(96)
Purchase of treasury stock		(42)		(4,191)		(7,442)
Cash dividends paid on common stock		(4,373)		(3,617)		(3,298)
Net cash used in financing activities		(3,163)		(7,530)		(10,607)
Increase (decrease) in cash and cash equivalents		540		1,045		(1,668)
Cash and cash equivalents, beginning of period		1,685		640		2,308
Cash and cash equivalents, end of period	$	2,225	$	1,685	$	640
SUPPLEMENTAL DISCLOSURES
Interest paid	$	436	$	361	$	458