CLINTON, N.J., April 28, 2011 /PRNewswire/ -- Unity Bancorp, Inc. (NASDAQ: UNTY), parent company of Unity Bank, reported a net loss attributable to common shareholders of $164 thousand, or $0.02 per diluted share, for the quarter ended March 31, 2011, compared to net income available to common shareholders of $375 thousand, or $0.05 per diluted share for the same period a year ago. Return on average assets and average common equity for the quarter were 0.11% and (1.31)%, respectively. Quarterly results were substantially impacted by the additional $1 million loan loss provision as well as increased other real estate owned (“OREO”) and loan collection costs.
James A. Hughes, President and CEO, stated, “Our borrowers continue to face the challenges of a difficult economic environment resulting in elevated loan loss provisions.” Mr. Hughes continued, “On a positive note, during the quarter, we reported an improving margin and growth in core deposits.”
Net Interest Income
Net interest income was stable at $7.5 million for the three months ended March 31, 2011 and 2010, as average interest earning assets decreased $72.8 million. Factors affecting net interest income include:
- The yield on earning assets decreased from 5.47% in 2010 to 5.34% in 2011.
- The cost of interest-bearing liabilities decreased 50 basis points from 2.20% for 2010 to 1.70% for 2011.
- Net interest margin expanded 35 basis points to 3.92%.
Noninterest Income
For the three months ended March 31, 2011, noninterest income amounted to $1.3 million, an increase of $345 thousand from the prior year’s period. Noninterest income was affected by the following factors:
- Branch fee income of $344 thousand, which consists of deposit service charge and overdraft fees, decreased 5 percent compared to the prior year’s quarter, due to lower overdraft activity.
- Service and loan fee income increased $34 thousand compared to the prior year’s period due to higher levels of late charge fees.
- Gains on sales on SBA loans amounted to $111 thousand on $1.1 million in sales. There were no gains recognized during the first quarter of 2010.
- Gains on the sales of residential mortgage loans amounted to $169 thousand, compared to $145 thousand from the prior year period due to an increased volume of mortgage loans originated.
- Gains on the sales of investment securities amounted to $125 thousand, compared to $4 thousand in the prior year period.
Noninterest Expense
For the three months ended March 31, 2011, noninterest expenses were $6.2 million, an increase of $217 thousand or 3.7% from the same period a year ago. The following factors affected our noninterest expense:
- Compensation and benefits expense amounted to $3.1 million, an increase of $58 thousand or 1.9%, due to higher employee medical benefits costs and increased residential mortgage commissions due to a larger sales volume, partially offset by lower incentive bonus payments.
- Occupancy expense increased $43 thousand or 6.4% due primarily to seasonal snow removal expenses.
- Loan collection costs increased $40 thousand due to increased legal and appraisal costs.
- OREO expense increased $192 thousand, due to increased real estate carrying costs and valuation adjustments on OREO properties.
- The provision for income taxes includes the reversal of $150 thousand of a valuation reserve for deferred taxes related to the net operating loss carry-forward deferred tax asset.
Financial Condition
At March 31, 2011, total assets were $820.8 million, a 0.3% increase from the prior year-end.
- Total loans decreased $1.4 million or 0.2%, from $615.9 million at December 31, 2010 to $614.5 million at March 31, 2011. The decrease occurred across the following loan categories with SBA 7(a), SBA 504 and consumer loans decreasing 1.8%, 6.5%, and 3.1%, respectively. Commercial loans increased 0.7% while residential mortgage loans increased 3.2%. Loan demand has been weak due to the economy.
- Total securities decreased $7.4 million since December 31, 2010, due to sales and prepayments.
- Core deposits, excluding time deposits, increased $12.7 million during the three month period to $486.9 million. The increase was due primarily to a $16.4 million increase in savings deposits, partially offset by a $3.7 million decrease in interest-bearing demand deposits. Time deposits decreased $10.7 million for the three months ended March 31, 2011 due to planned run off of a maturing high rate promotion that was done late in 2008 to bolster liquidity.
- Shareholders’ equity was $70.4 million at March 31, 2011, an increase of $296 thousand from year-end 2010.
- Book value per common share was $7.09 as of March 31, 2011.
- At March 31, 2011 the leverage, Tier I and Total Risk Based Capital ratios were 10.21%, 13.12% and 14.39%, respectively, all in excess of the ratios required to be deemed “well-capitalized”.
Credit Quality
- Nonperforming assets totaled $26.5 million at March 31, 2011, or 4.30% of total loans and OREO, compared to $30.0 million or 4.58% of total loans and OREO a year ago.
- The SBA, commercial, residential mortgages, SBA 504 and consumer nonaccrual loans were $9.1 million, $5.8 million, $4.4 million, $4.3 million and $406 thousand, respectively. The majority of nonaccrual loans are secured by real estate.
- OREO assets totaled $2.6 million at March 31, 2011, a decrease of $716 thousand, compared to $3.3 million a year ago.
- The allowance for loan losses totaled $15.3 million at March 31, 2011, or 2.49% of total loans. The provision for loan losses for the quarter ended March 31, 2011 was $2.5 million compared to $1.5 million for the prior year’s quarter.
- Net charge-offs were $1.6 million for the three months ended March 31, 2011, compared to $1.3 million for the same period a year ago.
Mr. Hughes added, “Unity continues to work diligently to address problem loans. For the near term, the size of our loan loss provision will remain the most important single factor in our earnings. However, we are hopeful we will see further improvement in credit quality in 2011.”
Unity Bancorp, Inc. is a financial service organization headquartered in Clinton, New Jersey, with approximately $821 million in assets and $657 million in deposits. Unity Bank provides financial services to retail, corporate and small business customers through its 16 retail service centers located in Hunterdon, Middlesex, Somerset, Union and Warren Counties in New Jersey and Northampton County, Pennsylvania. For additional information about Unity, visit our website at www.unitybank.com, or call 800- 618-BANK.
This news release contains certain forward-looking statements, either expressed or implied, which are provided to assist the reader in understanding anticipated future financial performance. These statements 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 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.
UNITY BANCORP, INC. |
|||||||||
SUMMARY FINANCIAL HIGHLIGHTS |
|||||||||
March 31, 2011 |
|||||||||
March 31, 2011 vs. |
|||||||||
December 31, 2010 |
March 31, 2010 |
||||||||
Amounts in thousands, except percentages and per share amounts |
March 31, 2011 |
December 31, 2010 |
March 31, 2010 |
% |
% |
||||
BALANCE SHEET DATA: |
|||||||||
Total assets |
$ 820,833 |
$ 818,410 |
$ 889,927 |
0.3% |
-7.8% |
||||
Total deposits |
656,776 |
654,788 |
714,802 |
0.3% |
-8.1% |
||||
Total loans |
614,522 |
615,936 |
651,200 |
-0.2% |
-5.6% |
||||
Total securities |
120,815 |
128,242 |
138,442 |
-5.8% |
-12.7% |
||||
Total shareholders' equity |
70,381 |
70,085 |
68,712 |
0.4% |
2.4% |
||||
Allowance for loan losses |
(15,275) |
(14,364) |
(14,055) |
6.3% |
8.7% |
||||
FINANCIAL DATA - QUARTER TO DATE: |
|||||||||
Income (loss) before provision (benefit) for income taxes |
$ 72 |
$ 36 |
$ 933 |
100.0% |
-92.3% |
||||
Provision (benefit) for income taxes |
(148) |
(50) |
185 |
-196.0% |
-180.0% |
||||
Net income (loss) |
220 |
86 |
748 |
155.8% |
-70.6% |
||||
Preferred stock dividends & discount accretion |
384 |
385 |
373 |
-0.3% |
2.9% |
||||
Income available (loss attributable) to common shareholders |
$ (164) |
$ (299) |
$ 375 |
45.2% |
-143.7% |
||||
Net income (loss) per common share - Basic (1) |
$ (0.02) |
$ (0.04) |
$ 0.05 |
50.0% |
-140.0% |
||||
Net income (loss) per common share - Diluted (1) |
$ (0.02) |
$ (0.04) |
$ 0.05 |
50.0% |
-140.0% |
||||
Return (loss) on average assets |
0.11% |
0.04% |
0.34% |
175.0% |
-67.6% |
||||
Return (loss) on average equity (2) |
-1.31% |
-2.31% |
3.09% |
43.3% |
-142.4% |
||||
Efficiency ratio |
71.56% |
70.65% |
70.98% |
1.3% |
0.8% |
||||
SHARE INFORMATION: |
|||||||||
Market price per share |
6.95 |
6.05 |
5.29 |
14.9% |
31.4% |
||||
Dividends paid |
- |
- |
- |
0.0% |
0.0% |
||||
Book value per common share |
7.09 |
7.08 |
7.00 |
0.2% |
1.4% |
||||
Average diluted shares outstanding (QTD) |
7,219 |
7,209 |
7,294 |
0.1% |
-1.0% |
||||
CAPITAL RATIOS: |
|||||||||
Total equity to total assets |
8.57% |
8.56% |
7.72% |
0.1% |
11.1% |
||||
Leverage ratio |
10.21% |
9.97% |
9.18% |
2.4% |
11.2% |
||||
Tier 1 risk-based capital ratio |
13.12% |
13.04% |
12.02% |
0.6% |
9.2% |
||||
Total risk-based capital ratio |
14.39% |
14.30% |
13.28% |
0.6% |
8.4% |
||||
CREDIT QUALITY AND RATIOS: |
|||||||||
Nonperforming assets |
$ 26,525 |
$ 24,008 |
$ 29,972 |
10.5% |
-11.5% |
||||
QTD net chargeoffs (annualized) to QTD average loans |
1.05% |
1.62% |
0.80% |
-35.4% |
31.3% |
||||
Allowance for loan losses to total loans |
2.49% |
2.33% |
2.16% |
6.6% |
15.2% |
||||
Nonperforming assets to total loans and OREO |
4.30% |
3.88% |
4.58% |
10.7% |
-6.1% |
||||
Nonperforming assets to total assets |
3.23% |
2.93% |
3.37% |
10.2% |
-4.1% |
||||
(1) Defined as net income adjusted for dividends accrued and accretion of discount on perpetual preferred stock divided by weighted average shares outstanding. |
|||||||||
(2) Defined as net income adjusted for dividends accrued and accretion of discount on perpetual preferred stock divided by average shareholders' equity (excluding preferred stock.) |
|||||||||
UNITY BANCORP, INC. |
|||||||||
CONSOLIDATED BALANCE SHEETS |
|||||||||
March 31, 2011 |
|||||||||
March 31, 2011 vs. |
|||||||||
December 31, 2010 |
March 31, 2010 |
||||||||
Amounts in thousands, except percentages |
March 31, 2011 |
December 31, 2010 |
March 31, 2010 |
% |
% |
||||
ASSETS |
|||||||||
Cash and due from banks |
$ 15,478 |
$ 17,637 |
$ 22,654 |
-12.2% |
-31.7% |
||||
Federal funds sold and interest-bearing deposits |
39,880 |
26,289 |
43,734 |
51.7% |
-8.8% |
||||
Cash and cash equivalents |
55,358 |
43,926 |
66,388 |
26.0% |
-16.6% |
||||
Securities available for sale |
103,238 |
107,131 |
113,465 |
-3.6% |
-9.0% |
||||
Securities held to maturity |
17,577 |
21,111 |
24,977 |
-16.7% |
-29.6% |
||||
Total securities |
120,815 |
128,242 |
138,442 |
-5.8% |
-12.7% |
||||
SBA loans held for sale |
9,933 |
10,397 |
22,617 |
-4.5% |
-56.1% |
||||
SBA loans held to maturity |
74,657 |
75,741 |
75,191 |
-1.4% |
-0.7% |
||||
SBA 504 loans |
60,092 |
64,276 |
67,000 |
-6.5% |
-10.3% |
||||
Commercial loans |
283,135 |
281,205 |
292,557 |
0.7% |
-3.2% |
||||
Residential mortgage loans |
132,512 |
128,400 |
135,596 |
3.2% |
-2.3% |
||||
Consumer loans |
54,193 |
55,917 |
58,239 |
-3.1% |
-6.9% |
||||
Total loans |
614,522 |
615,936 |
651,200 |
-0.2% |
-5.6% |
||||
Allowance for loan losses |
(15,275) |
(14,364) |
(14,055) |
6.3% |
8.7% |
||||
Net loans |
599,247 |
601,572 |
637,145 |
-0.4% |
-5.9% |
||||
Premises and equipment, net |
10,782 |
10,967 |
11,525 |
-1.7% |
-6.4% |
||||
Bank owned life insurance (BOLI) |
8,885 |
8,812 |
8,574 |
0.8% |
3.6% |
||||
Deferred tax assets |
7,833 |
7,550 |
7,856 |
3.7% |
-0.3% |
||||
Federal Home Loan Bank stock |
4,206 |
4,206 |
4,677 |
0.0% |
-10.1% |
||||
Accrued interest receivable |
3,725 |
3,791 |
4,009 |
-1.7% |
-7.1% |
||||
Prepaid FDIC insurance |
2,994 |
3,266 |
4,136 |
-8.3% |
-27.6% |
||||
Other real estate owned (OREO) |
2,602 |
2,346 |
3,318 |
10.9% |
-21.6% |
||||
Goodwill and other intangibles |
1,541 |
1,544 |
1,555 |
-0.2% |
-0.9% |
||||
Other assets |
2,845 |
2,188 |
2,302 |
30.0% |
23.6% |
||||
Total assets |
$ 820,833 |
$ 818,410 |
$ 889,927 |
0.3% |
-7.8% |
||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||||
Noninterest-bearing demand deposits |
$ 91,247 |
$ 91,272 |
$ 84,858 |
0.0% |
7.5% |
||||
Interest-bearing demand deposits |
101,878 |
105,530 |
102,846 |
-3.5% |
-0.9% |
||||
Savings deposits |
293,750 |
277,394 |
291,870 |
5.9% |
0.6% |
||||
Time deposits, under $100,000 |
110,050 |
119,478 |
149,934 |
-7.9% |
-26.6% |
||||
Time deposits, $100,000 and over |
59,851 |
61,114 |
85,294 |
-2.1% |
-29.8% |
||||
Total deposits |
656,776 |
654,788 |
714,802 |
0.3% |
-8.1% |
||||
Borrowed funds |
75,000 |
75,000 |
86,554 |
0.0% |
-13.3% |
||||
Subordinated debentures |
15,465 |
15,465 |
15,465 |
0.0% |
0.0% |
||||
Accrued interest payable |
569 |
556 |
706 |
2.3% |
-19.4% |
||||
Accrued expenses and other liabilities |
2,642 |
2,516 |
3,688 |
5.0% |
-28.4% |
||||
Total liabilities |
750,452 |
748,325 |
821,215 |
0.3% |
-8.6% |
||||
Cumulative perpetual preferred stock |
19,146 |
19,019 |
18,650 |
0.7% |
2.7% |
||||
Common stock |
52,842 |
55,884 |
55,536 |
-5.4% |
-4.9% |
||||
Retained earnings (deficit) |
(2,006) |
(772) |
(1,117) |
-159.8% |
-79.6% |
||||
Treasury stock, at cost |
- |
(4,169) |
(4,169) |
100.0% |
100.0% |
||||
Accumulated other comprehensive income (loss) |
399 |
123 |
(188) |
224.4% |
312.2% |
||||
Total shareholders' equity |
70,381 |
70,085 |
68,712 |
0.4% |
2.4% |
||||
Total liabilities and shareholders' equity |
$ 820,833 |
$ 818,410 |
$ 889,927 |
0.3% |
-7.8% |
||||
Issued common shares |
7,222 |
7,636 |
7,581 |
||||||
Outstanding common shares |
7,222 |
7,211 |
7,156 |
||||||
Treasury shares |
- |
425 |
425 |
||||||
UNITY BANCORP, INC. |
|||||||||||
QTD CONSOLIDATED STATEMENTS OF INCOME |
|||||||||||
March 31, 2011 |
|||||||||||
March 31, 2011 vs. |
|||||||||||
For the Three Months Ended |
December 31, 2010 |
March 31, 2010 |
|||||||||
Amounts in thousands, except percentages and per share amounts |
March 31, 2011 |
December 31, 2010 |
March 31, 2010 |
$ |
% |
$ |
% |
||||
INTEREST INCOME |
|||||||||||
Federal funds sold and interest-bearing deposits |
$ 11 |
$ 11 |
$ 26 |
$ - |
0.0% |
$ (15) |
-57.7% |
||||
Federal Home Loan Bank stock |
66 |
86 |
34 |
(20) |
-23.3% |
32 |
94.1% |
||||
Securities available for sale |
864 |
881 |
1,280 |
(17) |
-1.9% |
(416) |
-32.5% |
||||
Securities held to maturity |
287 |
259 |
338 |
28 |
10.8% |
(51) |
-15.1% |
||||
Total securities |
1,151 |
1,140 |
1,618 |
11 |
1.0% |
(467) |
-28.9% |
||||
SBA loans |
1,236 |
1,287 |
1,452 |
(51) |
-4.0% |
(216) |
-14.9% |
||||
SBA 504 loans |
955 |
1,034 |
1,087 |
(79) |
-7.6% |
(132) |
-12.1% |
||||
Commercial loans |
4,306 |
4,585 |
4,604 |
(279) |
-6.1% |
(298) |
-6.5% |
||||
Residential mortgage loans |
1,831 |
1,955 |
1,961 |
(124) |
-6.3% |
(130) |
-6.6% |
||||
Consumer loans |
686 |
752 |
731 |
(66) |
-8.8% |
(45) |
-6.2% |
||||
Total loans |
9,014 |
9,613 |
9,835 |
(599) |
-6.2% |
(821) |
-8.3% |
||||
Total interest income |
10,242 |
10,850 |
11,513 |
(608) |
-5.6% |
(1,271) |
-11.0% |
||||
INTEREST EXPENSE |
|||||||||||
Interest-bearing demand deposits |
139 |
143 |
258 |
(4) |
-2.8% |
(119) |
-46.1% |
||||
Savings deposits |
581 |
561 |
901 |
20 |
3.6% |
(320) |
-35.5% |
||||
Time deposits |
1,097 |
1,222 |
1,813 |
(125) |
-10.2% |
(716) |
-39.5% |
||||
Borrowed funds and subordinated debentures |
950 |
1,064 |
1,077 |
(114) |
-10.7% |
(127) |
-11.8% |
||||
Total interest expense |
2,767 |
2,990 |
4,049 |
(223) |
-7.5% |
(1,282) |
-31.7% |
||||
Net interest income |
7,475 |
7,860 |
7,464 |
(385) |
-4.9% |
11 |
0.1% |
||||
Provision for loan losses |
2,500 |
2,750 |
1,500 |
(250) |
-9.1% |
1,000 |
66.7% |
||||
Net interest income after provision for loan losses |
4,975 |
5,110 |
5,964 |
(135) |
-2.6% |
(989) |
-16.6% |
||||
NONINTEREST INCOME |
|||||||||||
Branch fee income |
344 |
373 |
362 |
(29) |
-7.8% |
(18) |
-5.0% |
||||
Service and loan fee income |
243 |
274 |
209 |
(31) |
-11.3% |
34 |
16.3% |
||||
Gain on sale of SBA loans held for sale, net |
111 |
83 |
- |
28 |
33.7% |
111 |
100.0% |
||||
Gain on sale of mortgage loans |
169 |
548 |
145 |
(379) |
-69.2% |
24 |
16.6% |
||||
Bank owned life insurance (BOLI) |
73 |
80 |
73 |
(7) |
-8.8% |
- |
0.0% |
||||
Net security gains |
125 |
43 |
4 |
82 |
190.7% |
121 |
3025.0% |
||||
Other income |
190 |
127 |
117 |
63 |
49.6% |
73 |
62.4% |
||||
Total noninterest income |
1,255 |
1,528 |
910 |
$ (273) |
-17.9% |
$ 345 |
37.9% |
||||
NONINTEREST EXPENSE |
|||||||||||
Compensation and benefits |
3,057 |
3,094 |
2,999 |
(37) |
-1.2% |
58 |
1.9% |
||||
Occupancy |
720 |
612 |
677 |
108 |
17.6% |
43 |
6.4% |
||||
Processing and communications |
507 |
530 |
524 |
(23) |
-4.3% |
(17) |
-3.2% |
||||
Furniture and equipment |
384 |
444 |
423 |
(60) |
-13.5% |
(39) |
-9.2% |
||||
Professional services |
202 |
80 |
229 |
122 |
152.5% |
(27) |
-11.8% |
||||
Loan collection costs |
224 |
266 |
184 |
(42) |
-15.8% |
40 |
21.7% |
||||
OREO expense |
222 |
647 |
30 |
(425) |
-65.7% |
192 |
640.0% |
||||
Deposit insurance |
319 |
317 |
330 |
2 |
0.6% |
(11) |
-3.3% |
||||
Advertising |
118 |
146 |
106 |
(28) |
-19.2% |
12 |
11.3% |
||||
Other expenses |
405 |
466 |
439 |
(61) |
-13.1% |
(34) |
-7.7% |
||||
Total noninterest expense |
6,158 |
6,602 |
5,941 |
(444) |
-6.7% |
217 |
3.7% |
||||
Income (loss) before provision (benefit) for income taxes |
72 |
36 |
933 |
36 |
100.0% |
(861) |
-92.3% |
||||
Provision (benefit) for income taxes |
(148) |
(50) |
185 |
(98) |
-196.0% |
(333) |
-180.0% |
||||
Net income (loss) |
220 |
86 |
748 |
134 |
155.8% |
(528) |
-70.6% |
||||
Preferred stock dividends & discount accretion |
384 |
385 |
373 |
(1) |
-0.3% |
11 |
2.9% |
||||
Income available (loss attributable) to common shareholders |
$ (164) |
$ (299) |
$ 375 |
$ 135 |
45.2% |
$ (539) |
-143.7% |
||||
Effective tax rate |
-205.6% |
-138.9% |
19.8% |
||||||||
Net income (loss) per common share - Basic |
$ (0.02) |
$ (0.04) |
$ 0.05 |
||||||||
Net income (loss) per common share - Diluted |
$ (0.02) |
$ (0.04) |
$ 0.05 |
||||||||
Weighted average common shares outstanding - Basic (1) |
7,219 |
7,209 |
7,150 |
||||||||
Weighted average common shares outstanding - Diluted (1) |
7,219 |
7,209 |
7,294 |
||||||||
(1) Defined as net income adjusted for dividends accrued and accretion of discount on perpetual preferred stock divided by weighted average shares outstanding. |
|||||||||||
UNITY BANCORP, INC. |
|||||||||
QUARTER TO DATE NET INTEREST MARGIN |
|||||||||
March 31, 2011 |
|||||||||
For the Three Months Ended |
|||||||||
March 31, 2011 |
December 31, 2010 |
||||||||
Amounts in thousands, except percentages |
Average Balance |
Interest |
Rate/Yield |
Average Balance |
Interest |
Rate/Yield |
|||
ASSETS |
|||||||||
Interest-earning assets: |
|||||||||
Federal funds sold and interest-bearing deposits |
$ 33,252 |
$ 11 |
0.13% |
$ 36,274 |
$ 11 |
0.12% |
|||
Federal Home Loan Bank stock |
4,206 |
66 |
6.36% |
4,597 |
86 |
7.42% |
|||
Securities available for sale |
105,027 |
912 |
3.47% |
108,718 |
906 |
3.33% |
|||
Securities held to maturity |
19,516 |
292 |
5.98% |
21,292 |
264 |
4.96% |
|||
Total securities (A) |
124,543 |
1,204 |
3.87% |
130,010 |
1,170 |
3.60% |
|||
SBA loans |
85,861 |
1,236 |
5.76% |
90,426 |
1,287 |
5.69% |
|||
SBA 504 loans |
61,998 |
955 |
6.25% |
64,874 |
1,034 |
6.32% |
|||
Commercial loans |
282,605 |
4,306 |
6.18% |
282,184 |
4,585 |
6.45% |
|||
Residential mortgage loans |
130,745 |
1,831 |
5.60% |
129,696 |
1,955 |
6.03% |
|||
Consumer loans |
54,849 |
686 |
5.07% |
57,029 |
752 |
5.23% |
|||
Total loans (A), (B) |
616,058 |
9,014 |
5.91% |
624,209 |
9,613 |
6.13% |
|||
Total interest-earning assets |
$ 778,059 |
$ 10,295 |
5.34% |
$ 795,090 |
$ 10,880 |
5.45% |
|||
Noninterest-earning assets: |
|||||||||
Cash and due from banks |
17,764 |
18,339 |
|||||||
Allowance for loan losses |
(15,054) |
(14,681) |
|||||||
Other assets |
39,767 |
42,696 |
|||||||
Total noninterest-earning assets |
42,477 |
46,354 |
|||||||
Total assets |
$ 820,536 |
$ 841,444 |
|||||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||||
Interest-bearing liabilities: |
|||||||||
Interest-bearing demand deposits |
$ 103,550 |
$ 139 |
0.54% |
$ 104,900 |
$ 143 |
0.54% |
|||
Savings deposits |
289,805 |
581 |
0.81% |
284,853 |
561 |
0.78% |
|||
Time deposits |
174,620 |
1,097 |
2.55% |
183,997 |
1,222 |
2.63% |
|||
Total interest-bearing deposits |
567,975 |
1,817 |
1.30% |
573,750 |
1,926 |
1.33% |
|||
Borrowed funds and subordinated debentures |
90,465 |
950 |
4.20% |
100,080 |
1,064 |
4.16% |
|||
Total interest-bearing liabilities |
$ 658,440 |
$ 2,767 |
1.70% |
$ 673,830 |
$ 2,990 |
1.75% |
|||
Noninterest-bearing liabilities: |
|||||||||
Noninterest-bearing demand deposits |
88,797 |
93,049 |
|||||||
Other liabilities |
3,530 |
4,196 |
|||||||
Total noninterest-bearing liabilities |
92,327 |
97,245 |
|||||||
Total shareholders' equity |
69,769 |
70,369 |
|||||||
Total liabilities and shareholders' equity |
$ 820,536 |
$ 841,444 |
|||||||
Net interest spread |
$ 7,528 |
3.64% |
$ 7,890 |
3.70% |
|||||
Tax-equivalent basis adjustment |
(53) |
(30) |
|||||||
Net interest income |
$ 7,475 |
$ 7,860 |
|||||||
Net interest margin |
3.92% |
3.94% |
|||||||
(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 nondeductible portion of interest expense, assuming a federal tax rate of 34 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 |
|||||||||
March 31, 2011 |
|||||||||
For the Three Months Ended |
|||||||||
March 31, 2011 |
March 31, 2010 |
||||||||
Amounts in thousands, except percentages |
Average Balance |
Interest |
Rate/Yield |
Average Balance |
Interest |
Rate/Yield |
|||
ASSETS |
|||||||||
Interest-earning assets: |
|||||||||
Federal funds sold and interest-bearing deposits |
$ 33,252 |
$ 11 |
0.13% |
$ 32,493 |
$ 26 |
0.32% |
|||
Federal Home Loan Bank stock |
4,206 |
66 |
6.36% |
4,677 |
34 |
2.95% |
|||
Securities available for sale |
105,027 |
912 |
3.47% |
131,295 |
1,294 |
3.94% |
|||
Securities held to maturity |
19,516 |
292 |
5.98% |
27,323 |
354 |
5.18% |
|||
Total securities (A) |
124,543 |
1,204 |
3.87% |
158,618 |
1,648 |
4.16% |
|||
SBA loans |
85,861 |
1,236 |
5.76% |
98,140 |
1,452 |
5.92% |
|||
SBA 504 loans |
61,998 |
955 |
6.25% |
70,444 |
1,087 |
6.26% |
|||
Commercial loans |
282,605 |
4,306 |
6.18% |
292,055 |
4,604 |
6.39% |
|||
Residential mortgage loans |
130,745 |
1,831 |
5.60% |
134,611 |
1,961 |
5.83% |
|||
Consumer loans |
54,849 |
686 |
5.07% |
59,779 |
731 |
4.96% |
|||
Total loans (A), (B) |
616,058 |
9,014 |
5.91% |
655,029 |
9,835 |
6.06% |
|||
Total interest-earning assets |
$ 778,059 |
$ 10,295 |
5.34% |
$ 850,817 |
$ 11,543 |
5.47% |
|||
Noninterest-earning assets: |
|||||||||
Cash and due from banks |
17,764 |
21,962 |
|||||||
Allowance for loan losses |
(15,054) |
(14,581) |
|||||||
Other assets |
39,767 |
40,896 |
|||||||
Total noninterest-earning assets |
42,477 |
48,277 |
|||||||
Total assets |
$ 820,536 |
$ 899,094 |
|||||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||||
Interest-bearing liabilities: |
|||||||||
Interest-bearing demand deposits |
$ 103,550 |
$ 139 |
0.54% |
$ 102,593 |
$ 258 |
1.02% |
|||
Savings deposits |
289,805 |
581 |
0.81% |
289,251 |
901 |
1.26% |
|||
Time deposits |
174,620 |
1,097 |
2.55% |
251,774 |
1,813 |
2.92% |
|||
Total interest-bearing deposits |
567,975 |
1,817 |
1.30% |
643,618 |
2,972 |
1.87% |
|||
Borrowed funds and subordinated debentures |
90,465 |
950 |
4.20% |
100,500 |
1,077 |
4.29% |
|||
Total interest-bearing liabilities |
$ 658,440 |
$ 2,767 |
1.70% |
$ 744,118 |
$ 4,049 |
2.20% |
|||
Noninterest-bearing liabilities: |
|||||||||
Noninterest-bearing demand deposits |
88,797 |
83,164 |
|||||||
Other liabilities |
3,530 |
4,069 |
|||||||
Total noninterest-bearing liabilities |
92,327 |
87,233 |
|||||||
Total shareholders' equity |
69,769 |
67,743 |
|||||||
Total liabilities and shareholders' equity |
$ 820,536 |
$ 899,094 |
|||||||
Net interest spread |
$ 7,528 |
3.64% |
$ 7,494 |
3.27% |
|||||
Tax-equivalent basis adjustment |
(53) |
(30) |
|||||||
Net interest income |
$ 7,475 |
$ 7,464 |
|||||||
Net interest margin |
3.92% |
3.57% |
|||||||
(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 nondeductible portion of interest expense, assuming a federal tax rate of 34 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. |
||||||
ALLOWANCE FOR LOAN LOSSES AND LOAN QUALITY SCHEDULES |
||||||
March 31, 2011 |
||||||
Amounts in thousands, except percentages |
3/31/2011 |
12/31/2010 |
9/30/2010 |
6/30/2010 |
3/31/2010 |
|
ALLOWANCE FOR LOAN LOSSES: |
||||||
Balance, beginning of period |
$ 14,364 |
$ 14,163 |
$ 13,946 |
$ 14,055 |
$ 13,842 |
|
Provision for loan losses charged to expense |
2,500 |
2,750 |
1,500 |
1,500 |
1,500 |
|
16,864 |
16,913 |
15,446 |
15,555 |
15,342 |
||
Less: Chargeoffs |
||||||
SBA loans |
761 |
445 |
389 |
517 |
- |
|
SBA 504 loans |
- |
798 |
- |
- |
750 |
|
Commercial loans |
848 |
1,115 |
989 |
1,038 |
485 |
|
Residential mortgage loans |
92 |
190 |
95 |
115 |
100 |
|
Consumer loans |
- |
234 |
9 |
2 |
- |
|
Total chargeoffs |
1,701 |
2,782 |
1,482 |
1,672 |
1,335 |
|
Add: Recoveries |
||||||
SBA loans |
8 |
128 |
17 |
53 |
45 |
|
SBA 504 loans |
- |
- |
- |
- |
- |
|
Commercial loans |
98 |
105 |
178 |
10 |
3 |
|
Residential mortgage loans |
4 |
- |
- |
- |
- |
|
Consumer loans |
2 |
- |
4 |
- |
- |
|
Total recoveries |
112 |
233 |
199 |
63 |
48 |
|
Net chargeoffs |
1,589 |
2,549 |
1,283 |
1,609 |
1,287 |
|
Balance, end of period |
$ 15,275 |
$ 14,364 |
$ 14,163 |
$ 13,946 |
$ 14,055 |
|
LOAN QUALITY INFORMATION: |
||||||
Nonperforming loans |
$ 23,923 |
$ 21,662 |
$ 27,304 |
$ 26,071 |
$ 26,654 |
|
Other real estate owned (OREO) |
2,602 |
2,346 |
5,773 |
3,728 |
3,318 |
|
Nonperforming assets |
26,525 |
24,008 |
33,077 |
29,799 |
29,972 |
|
Less: Amount guaranteed by Small Business Administration |
3,355 |
2,706 |
2,094 |
1,436 |
2,205 |
|
Net nonperforming assets |
$ 23,170 |
$ 21,302 |
$ 30,983 |
$ 28,363 |
$ 27,767 |
|
Loans 90 days past due & still accruing |
$ 4,248 |
$ 374 |
$ 2,467 |
$ 2,780 |
$ 3,061 |
|
Allowance for loan losses to: |
||||||
Total loans at quarter end |
2.49% |
2.33% |
2.25% |
2.19% |
2.16% |
|
Nonperforming loans |
63.85% |
66.31% |
51.87% |
53.49% |
52.73% |
|
Nonperforming assets |
57.59% |
59.83% |
42.82% |
46.80% |
46.89% |
|
Net nonperforming assets |
65.93% |
67.43% |
45.71% |
49.17% |
50.62% |
|
QTD net chargeoffs (annualized) to QTD average loans: |
||||||
SBA loans |
3.56% |
1.39% |
1.56% |
1.89% |
-0.19% |
|
SBA 504 loans |
0.00% |
4.88% |
0.00% |
0.00% |
4.32% |
|
Commercial loans |
1.08% |
1.42% |
1.14% |
1.44% |
0.67% |
|
Residential mortgage loans |
0.27% |
0.58% |
0.29% |
0.35% |
0.30% |
|
Consumer loans |
-0.01% |
1.63% |
0.03% |
0.01% |
0.00% |
|
Total loans |
1.05% |
1.62% |
0.80% |
1.00% |
0.80% |
|
Nonperforming loans to total loans |
3.89% |
3.52% |
4.34% |
4.09% |
4.09% |
|
Nonperforming assets to total loans and OREO |
4.30% |
3.88% |
5.21% |
4.65% |
4.58% |
|
Nonperforming assets to total assets |
3.23% |
2.93% |
3.91% |
3.43% |
3.37% |
|
UNITY BANCORP, INC. |
||||||
QUARTERLY FINANCIAL DATA |
||||||
March 31, 2011 |
||||||
Amounts in thousands, except percentages and per share amounts |
3/31/2011 |
12/31/2010 |
9/30/2010 |
6/30/2010 |
3/31/2010 |
|
SUMMARY OF INCOME: |
||||||
Total interest income |
$ 10,242 |
$ 10,850 |
$ 10,726 |
$ 10,944 |
$ 11,513 |
|
Total interest expense |
2,767 |
2,990 |
3,314 |
3,681 |
4,049 |
|
Net interest income |
7,475 |
7,860 |
7,412 |
7,263 |
7,464 |
|
Provision for loan losses |
2,500 |
2,750 |
1,500 |
1,500 |
1,500 |
|
Net interest income after provision for loan losses |
4,975 |
5,110 |
5,912 |
5,763 |
5,964 |
|
Total noninterest income (loss) |
1,255 |
1,528 |
1,460 |
1,170 |
910 |
|
Total noninterest expense |
6,158 |
6,602 |
6,404 |
6,040 |
5,941 |
|
Income (loss) before provision (benefit) for income taxes |
72 |
36 |
968 |
893 |
933 |
|
Provision (benefit) for income taxes |
(148) |
(50) |
242 |
212 |
185 |
|
Net income (loss) |
220 |
86 |
726 |
681 |
748 |
|
Preferred stock dividends & discount accretion |
384 |
385 |
385 |
379 |
373 |
|
Income available (loss attributable) to common shareholders |
$ (164) |
$ (299) |
$ 341 |
$ 302 |
$ 375 |
|
Net income (loss) per common share - Basic |
$ (0.02) |
$ (0.04) |
$ 0.05 |
$ 0.04 |
$ 0.05 |
|
Net income (loss) per common share - Diluted |
$ (0.02) |
$ (0.04) |
$ 0.05 |
$ 0.04 |
$ 0.05 |
|
COMMON SHARE DATA: |
||||||
Market price per share |
$ 6.95 |
$ 6.05 |
$ 5.25 |
$ 5.35 |
$ 5.29 |
|
Dividends paid |
$ - |
$ - |
$ - |
$ - |
$ - |
|
Book value per common share |
$ 7.09 |
$ 7.08 |
$ 7.19 |
$ 7.11 |
$ 7.00 |
|
QTD weighted average shares - basic (1) |
7,219 |
7,209 |
7,176 |
7,156 |
7,150 |
|
QTD weighted average shares - diluted (1) |
7,219 |
7,209 |
7,467 |
7,475 |
7,294 |
|
Outstanding common shares |
7,222 |
7,211 |
7,207 |
7,154 |
7,156 |
|
OPERATING RATIOS (Annualized): |
||||||
Return (loss) on average assets |
0.11% |
0.04% |
0.34% |
0.31% |
0.34% |
|
Return (loss) on average equity (2) |
-1.31% |
-2.31% |
2.66% |
2.43% |
3.09% |
|
Efficiency ratio |
71.56% |
70.65% |
72.47% |
71.66% |
70.98% |
|
BALANCE SHEET DATA: |
||||||
Total assets |
$ 820,833 |
$ 818,410 |
$ 846,385 |
$ 869,735 |
$ 889,927 |
|
Total deposits |
656,776 |
654,788 |
670,158 |
693,232 |
714,802 |
|
Total loans |
614,522 |
615,936 |
629,516 |
637,180 |
651,200 |
|
Total securities |
120,815 |
128,242 |
134,820 |
143,662 |
138,442 |
|
Total shareholders' equity |
70,381 |
70,085 |
70,730 |
69,633 |
68,712 |
|
Allowance for loan losses |
(15,275) |
(14,364) |
(14,163) |
(13,946) |
(14,055) |
|
TAX EQUIVALENT YIELDS AND RATES: |
||||||
Interest-earning assets |
5.34% |
5.45% |
5.30% |
5.28% |
5.47% |
|
Interest-bearing liabilities |
1.70% |
1.75% |
1.89% |
2.04% |
2.20% |
|
Net interest spread |
3.64% |
3.70% |
3.41% |
3.24% |
3.27% |
|
Net interest margin |
3.92% |
3.94% |
3.66% |
3.51% |
3.57% |
|
CREDIT QUALITY: |
||||||
Nonperforming assets |
$ 26,525 |
$ 24,008 |
$ 33,077 |
$ 29,799 |
$ 29,972 |
|
QTD net chargeoffs (annualized) to QTD average loans |
1.05% |
1.62% |
0.80% |
1.00% |
0.80% |
|
Allowance for loan losses to total loans |
2.49% |
2.33% |
2.25% |
2.19% |
2.16% |
|
Nonperforming assets to total loans and OREO |
4.30% |
3.88% |
5.21% |
4.65% |
4.58% |
|
Nonperforming assets to total assets |
3.23% |
2.93% |
3.91% |
3.43% |
3.37% |
|
CAPITAL RATIOS AND OTHER: |
||||||
Total equity to total assets |
8.57% |
8.56% |
8.36% |
8.01% |
7.72% |
|
Leverage ratio |
10.21% |
9.97% |
9.83% |
9.43% |
9.18% |
|
Tier 1 risk-based capital ratio |
13.12% |
13.04% |
12.67% |
12.39% |
12.02% |
|
Total risk-based capital ratio |
14.39% |
14.30% |
13.93% |
13.65% |
13.28% |
|
Number of banking offices |
16 |
16 |
16 |
16 |
16 |
|
Number of ATMs |
18 |
18 |
18 |
18 |
19 |
|
Number of employees |
170 |
172 |
173 |
165 |
171 |
|
(1) Defined as net income adjusted for dividends accrued and accretion of discount on perpetual preferred stock divided by weighted average shares outstanding. |
||||||
(2) Defined as net income adjusted for dividends accrued and accretion of discount on perpetual preferred stock divided by average shareholders' equity (excluding preferred stock.) |
||||||
SOURCE Unity Bancorp
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