Unity Bancorp Reports Record Earnings up 64% over Prior Year Quarter

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| Source: Unity Bancorp, Inc.
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Unity Bancorp Reports Record Earnings up 63% over Prior Year Quarter

Unity Bancorp Reports Record Earnings up 63% over Prior Year Quarter

Unity Bancorp Reports Record Earnings up 63% over Prior Year Quarter

Unity Bancorp, Inc.

Net Income per
Share = $0.48
 ROA = 1.53% ROE = 17.69% Net Interest
Margin = 3.99%

 

CEO COMMENTARY: 
James A. Hughes, President and CEO said, “The bank had record earnings in the first quarter of 2018.  Earnings per share, return on assets and return on equity surpassed our expectations. Hitting these financial milestones was a by-product of precision alignment with our core values; we are intensely focused on our customer base.  Unity’s fabric is woven with the threads of small businesses, entrepreneurs and consumers.  I am confident we can continue to expand our franchise while we grow our profitability.”  

Mr. Hughes added, “It was a record quarter for Unity, partially due to the Tax Reform Act.  In the spirit of sharing this benefit, Unity will give each employee a $250 bonus each quarter we achieve a return on assets of 1.50% or more.  It is our employees who make our company great, and it only seems right to reward them for our extraordinary results.  Thank you team for a job well done.”
 

CLINTON, N.J., April 24, 2018 (GLOBE NEWSWIRE) -- Unity Bancorp, Inc. (NASDAQ:UNTY), parent company of Unity Bank, reported net income of $5.2 million, or $0.48 per diluted share, for the quarter ended March 31, 2018, compared to $3.2 million, or $0.30 per diluted share, for the prior year’s first quarter.  Approximately $590 thousand, or $0.05 per diluted share, of this increase was due to the lower effective tax rate due to the tax reform bill.

Earnings Highlights

  • Net interest income, our primary driver of earnings, increased $2.5 million to $12.9 million for the quarter ended March 31, 2018 compared to the prior year’s first quarter due to strong loan growth and an increased net interest margin. 
  • Net interest margin expanded 29 basis points to 3.99%, compared to 3.70% for the prior year’s first quarter.  Higher yields on our earning assets exceeded the rising costs of deposits. 
  • The provision for loan losses increased to $500 thousand during the quarter ended March 31, 2018 compared to $250 thousand in the prior year’s quarter due to the growth in the loan portfolio. 
  • Noninterest expense increased $754 thousand compared to the prior year’s quarter.  During 2017, we added two branches and increased headcount which resulted in higher compensation, benefits and occupancy expenses. 
  • The effective tax rate declined to 19.1% as a result of the “Tax Cuts and Jobs Act”, which was enacted December 22, 2017 and lowered the corporate tax rate.  The Company expects an effective tax rate of 22% going forward.  The effective tax rate in the first quarter benefited from the exercise of stock options.

Balance Sheet Highlights

  • Total loans increased $24.4 million or 2.1%, from year-end 2017 to $1.2 billion at March 31, 2018. Residential mortgage, commercial and consumer loan portfolios increased $15.7 million, $8.1 million, and $3.4 million, respectively.  Our pipeline in all categories remains strong.
  • Total deposits increased $74.4 million, or 7.1%, to $1.1 billion at March 31, 2018.  Time deposits, savings deposits and noninterest-bearing demand deposits have increased $55.6 million, $11.7 million and $9.2 million, respectively. 
  • Borrowed funds decreased $94.0 million to $181.0 million at March 31, 2018, due to decreased overnight borrowings and the maturity of a repo. 
  • Shareholders’ equity was $123.1 million at March 31, 2018, an increase of $5.0 million from year-end 2017, due to retained net income.
  • Book value per common share was $11.50 as of March 31, 2018.
  • At March 31, 2018, the leverage, common equity Tier I, Tier I and Total Risk Based Capital ratios were 9.46%, 11.14%, 12.07% and 13.24% respectively, all in excess of the ratios required to be deemed “well-capitalized”. 
  • Credit quality remains strong with nonperforming assets to total assets of 0.30% at March 31, 2018.            

Other Highlights

  • Named one of the Best Places to work in NJ from NJ BIZ for the second year in a row.
  • Opened our 18th branch in Ramsey, NJ.
  • Ranked 43rd  by S&P Global of all community banks with assets between $1 billion and $10 billion, achieving Top 10%.

Unity Bancorp, Inc. is a financial service organization headquartered in Clinton, New Jersey, with approximately $1.4 billion in assets and $1.1 billion in deposits.  Unity Bank provides financial services to retail, corporate and small business customers through its 18 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.

News Media & Financial Analyst Contact:
Alan J. Bedner, EVP and CFO
(908)713-4308

A photo accompanying this announcement is available at http://resource.globenewswire.com/Resource/Download/4e7a72a4-f203-460d-9506-8d7cf3de0143

 

 

 
UNITY BANCORP, INC.
SUMMARY FINANCIAL HIGHLIGHTS 
Saturday, March 31, 2018
                
                
         March 31, 2018 vs. 
         December 31, 2017 March 31, 2017 
(In thousands, except percentages and per share amounts) March 31, 2018  December 31, 2017 March 31, 2017   %   %  
BALANCE SHEET DATA:               
Total assets $1,439,902   $1,455,496  $1,226,168     (1.1)%  17.4 %
Total deposits    1,117,514      1,043,137     980,703     7.1    14.0  
Total loans    1,195,110      1,170,674   1,000,677     2.1    19.4  
Total securities    67,521      69,800     73,022     (3.3)   (7.5) 
Total shareholders' equity    123,104      118,105     109,305     4.2    12.6  
Allowance for loan losses    (14,196)    (13,556)    (12,681)    4.7    11.9  
                
FINANCIAL DATA - QUARTER TO DATE:               
Income before provision for income taxes $  6,464   $  6,408  $  4,904     0.9    31.8  
Provision for income taxes    1,235      2,175     1,712     (43.2)   (27.9) 
Impact of Tax Reform Bill    -       1,733     -      (100.0)  0.0   
Net income  $  5,229   $  2,500  $  3,192     109.2    63.8  
                
Net income per common share - Basic  $  0.49   $  0.24  $  0.30     104.2    63.3  
Net income per common share - Diluted  $  0.48   $  0.23  $  0.30     108.7    60.0  
                
Performance ratios:               
Return on average assets    1.53  %   0.74 %   1.07 %   106.8    43.0  
Return on average equity     17.69  %   8.54 %   12.02 %   107.1    47.2  
Efficiency ratio    54.00  %   52.45 %   59.08 %   3.0    (8.6) 
Net interest margin    3.99  %   3.91 %   3.70 %   2.0    7.8  
Noninterest expense to average assets    2.40  %   2.25 %   2.50 %   6.7    (4.0) 
                
SHARE INFORMATION:               
Market price per share $  22.00   $  19.75  $  16.95     11.4    29.8  
Dividends paid $  0.06   $  0.06  $  0.05     -     0.2  
Book value per common share $  11.50   $  11.13  $  10.38     3.3    10.8  
Average diluted shares outstanding (QTD)    10,853      10,794     10,705     0.5    1.4  
                
CAPITAL RATIOS:               
Total equity to total assets    8.55  %   8.11 %   8.91 %   5.4    (4.0) 
Leverage ratio    9.46  %   9.37 %   9.72 %   1.0    (2.7) 
Common equity tier 1 risk-based capital ratio    11.14  %   10.81 %   11.46 %   3.1    (2.8) 
Tier 1 risk-based capital ratio    12.07  %   11.75 %   12.53 %   2.7    (3.7) 
Total risk-based capital ratio    13.24  %   12.87 %   13.78 %   2.9    (3.9) 
                
CREDIT QUALITY AND RATIOS:               
Nonperforming assets $  4,333   $  3,420  $  8,930     26.7    (51.5) 
QTD net (recoveries) chargeoffs (annualized) to QTD average loans    (0.05)%   0.02 %   0.06 %   (350.0)   (183.3) 
Allowance for loan losses to total loans    1.19  %   1.16 %   1.27 %   2.6    (6.3) 
Nonperforming assets to total loans and OREO    0.36  %   0.29 %   0.89 %   24.1    (59.6) 
Nonperforming assets to total assets    0.30  %   0.23 %   0.73 %   30.4 %  (58.9)%
                


 
UNITY BANCORP, INC.
CONSOLIDATED BALANCE SHEETS 
March 31, 2018
                
                
            March 31, 2018 vs. 
            December 31, 2017 March 31, 2017 
(In thousands, except percentages) March 31, 2018 December 31, 2017 March 31, 2017   %   %  
ASSETS               
Cash and due from banks $  17,044   $  23,701  $  18,345     (28.1)%  (7.1)%
Fed funds, interest-bearing deposits and repos    99,243      126,553     84,859     (21.6)   17.0  
Cash and cash equivalents    116,287      150,254     103,204     (22.6)   12.7  
Securities:               
Securities available for sale    51,353      53,493     52,246     (4.0)   (1.7) 
Securities held to maturity    16,168      16,307     20,776     (0.9)   (22.2) 
Total securities    67,521      69,800     73,022     (3.3)   (7.5) 
Loans:               
SBA loans held for sale    21,579      22,810     12,163     (5.4)   77.4  
SBA loans held for investment    42,734      43,999     42,403     (2.9)   0.8  
Commercial loans    636,684      628,865     544,449     1.2    16.9  
Residential mortgage loans    380,857      365,145     305,578     4.3    24.6  
Consumer loans     113,256      109,855     96,084     3.1    17.9  
Total loans    1,195,110      1,170,674     1,000,677     2.1    19.4  
      Allowance for loan losses    (14,196)    (13,556)    (12,681)    4.7    11.9  
            Net loans     1,180,914      1,157,118     987,996     2.1    19.5  
Premises and equipment, net    23,405      23,470     23,261     (0.3)   0.6  
Bank owned life insurance ("BOLI")    24,398      24,227     13,847     0.7    76.2  
Deferred tax assets    4,059      4,017     5,552     1.0    (26.9) 
Federal Home Loan Bank ("FHLB") stock    9,308      12,863     5,992     (27.6)   55.3  
Accrued interest receivable    5,898      5,447     4,483     8.3    31.6  
Other real estate owned ("OREO")    56      426     1,172     (86.9)   (95.2) 
Goodwill    1,516      1,516     1,516   -  -  
Other assets    6,540      6,358     6,123     2.9    6.8  
Total assets $  1,439,902   $  1,455,496  $  1,226,168     (1.1)%  17.4 %
LIABILITIES AND SHAREHOLDERS' EQUITY                
Liabilities:                
Deposits:                
Noninterest-bearing demand $  265,346   $  256,119  $  220,750     3.6 %  20.2 %
Interest-bearing demand     162,848      164,997     146,091     (1.3)   11.5  
Savings     408,255      396,557     389,802     2.9    4.7  
Time deposits   281,065    225,464    224,060     24.7    25.4  
      Total deposits    1,117,514      1,043,137     980,703     7.1    14.0  
Borrowed funds    181,000      275,000     120,000     (34.2)   50.8  
Subordinated debentures    10,310      10,310     10,310   -  -  
Accrued interest payable    410      436     405     (6.0)   1.2  
Accrued expenses and other liabilities    7,564      8,508     5,445     (11.1)   38.9  
Total liabilities    1,316,798      1,337,391     1,116,863     (1.5)   17.9  
Shareholders' equity:               
Common stock    87,361      86,782     85,757     0.7    1.9  
Retained earnings    35,713      31,117     23,414     14.8    52.5  
Accumulated other comprehensive income    30      206     134   NM  NM  
Total shareholders' equity    123,104      118,105     109,305     4.2    12.6  
Total liabilities and shareholders' equity $  1,439,902   $  1,455,496  $  1,226,168     (1.1)%  17.4 %
                
Issued and outstanding common shares    10,709      10,615     10,535       
                
NM=Not meaningful               
                


  
UNITY BANCORP, INC.
 
QTD CONSOLIDATED STATEMENTS OF INCOME 
 
March 31, 2018
 
                        
       
              March 31, 2018 vs. 
   For the three months ended    December 31, 2017 March 31, 2017
(In thousands, except percentages and per share amounts) March 31, 2018 December 31, 2017 March 31, 2017    $   %   $   % 
INTEREST INCOME                       
Fed funds, interest-bearing deposits and repos $  205   $  257  $129   $  (52)    (20.2)%$  76     58.9%
FHLB stock    134      119   93      15     12.6     41     44.1 
Securities:                        
Taxable    492      488   491      4     0.8     1     0.2 
Tax-exempt    31      31   44      -      -      (13)    (29.5)
Total securities    523      519   535      4     0.8     (12)    (2.2)
Loans:                       
SBA loans    1,183      1,023   854      160     15.6     329     38.5 
Commercial loans    7,726   7,590   6,467    136   1.8   1,259   19.5 
Residential mortgage loans    4,340      4,046   3,384      294     7.3     956     28.3 
Consumer loans    1,529      1,490   1,132      39     2.6     397     35.1 
Total loans  14,778    14,149   11,837    629   4.4   2,941     24.8 
      Total interest income    15,640      15,044   12,594    596     4.0   3,046     24.2 
INTEREST EXPENSE                        
Interest-bearing demand deposits    224      183   153      41     22.4     71     46.4 
Savings deposits    776      744   583      32     4.3     193     33.1 
Time deposits    1,000      837   804      163     19.5     196     24.4 
Borrowed funds and subordinated debentures    768      780   664      (12)    (1.5)    104     15.7 
Total interest expense    2,768      2,544   2,204      224     8.8     564     25.6 
  Net interest income     12,872      12,500   10,390      372     3.0     2,482     23.9 
        Provision for loan losses    500      500   250      -      -      250     100.0 
Net interest income after provision for loan losses    12,372      12,000   10,140      372     3.1     2,232     22.0 
NONINTEREST INCOME                        
Branch fee income    330      354   331      (24)    (6.8)    (1)    (0.3)
Service and loan fee income    564      628   512      (64)    (10.2)    52     10.2 
Gain on sale of SBA loans held for sale, net    547      268   485      279     104.1     62     12.8 
Gain on sale of mortgage loans, net    424      343   532      81     23.6     (108)    (20.3)
BOLI income    171      181   88      (10)    (5.5)    83     94.3 
Net security gains (losses)    (15)    (7)  -      (8)    (114.3)    (15)    (100.0)
Other income    265      270   256      (5)    (1.9)    9     3.5 
Total noninterest income    2,286      2,037   2,204      249     12.2     82     3.7 
NONINTEREST EXPENSE                        
Compensation and benefits    4,834      4,455   4,095      379     8.5     739     18.0 
Occupancy    690      591   600      99     16.8     90     15.0 
Processing and communications    689      659   604      30     4.6     85     14.1 
Furniture and equipment    536      542   511      (6)    (1.1)    25     4.9 
Professional services    251      298   226      (47)    (15.8)    25     11.1 
Loan collection & OREO expenses    6      (30)  341      36     120.0     (335)    (98.2)
Other loan expenses    33      38   83      (5)    (13.2)    (50)    (60.2)
Deposit insurance    186      170   76      16     9.4     110     144.7 
Advertising    319      321   236      (2)    (0.6)    83     35.2 
Director fees    162      141   197      21     14.9     (35)    (17.8)
Other expenses    488      444   471      44     9.9     17     3.6 
Total noninterest expense    8,194      7,629   7,440      565     7.4     754     10.1 
                              
Income before provision for income taxes    6,464      6,408   4,904      56     0.9     1,560     31.8 
Provision for income taxes    1,235      2,175   1,712      (940)    (43.2)    (477)    (27.9)
Impact of Tax Reform Bill    -       1,733   -      (1,733)    (100.0)    -      -  
Net income  $  5,229   $  2,500  $3,192   $  2,729     109.2 %$  2,037     63.8%
                         
Effective tax rate    19.1  %   61.0 % 34.9 %            
                         
Net income per:                        
Common share - basic $  0.49   $  0.24  $0.30              
Common share - diluted $  0.48   $  0.23  $0.30              
                         
Weighted average common shares outstanding - Basic    10,678      10,604   10,509              
Weighted average common shares outstanding - Diluted    10,853      10,794   10,705              
                         


       
UNITY BANCORP, INC.
 
QUARTER TO DATE NET INTEREST MARGIN
 
March 31, 2018
 
                
(Dollar amounts in thousands, interest amounts and interest rates/yields on a fully tax-equivalent basis)   
  For the three months ended   
  March 31, 2018  December 31, 2017  
  Average Balance Interest  Rate/Yield   Average Balance Interest  Rate/Yield   
ASSETS                     
Interest-earning assets:                     
Fed funds, interest-bearing deposits and repos $48,936  $205     1.70 %$61,621  $257   1.65 %
FHLB stock  7,799   134     6.97    7,523   119   6.28  
Securities:                     
Taxable  63,393   492     3.15    65,967   488   2.93  
Tax-exempt  5,349   38     2.88    5,469   47   3.41  
Total securities (A)  68,742   530     3.13    71,436   535   2.97  
Loans:                     
SBA loans  68,376   1,183     7.02    63,275   1,023   6.41  
Commercial loans  632,409   7,726    4.95    611,863   7,590   4.92  
Residential mortgage loans  371,061   4,340     4.74    344,636   4,046   4.66  
Consumer loans   110,947   1,529     5.59    109,300   1,490   5.41  
Total loans (B)  1,182,793   14,778     5.07    1,129,074   14,149   4.97  
Total interest-earning assets $1,308,270  $15,647     4.85  %$1,269,654  $15,060   4.71 %
                      
Noninterest-earning assets:                     
Cash and due from banks  23,244          23,248         
Allowance for loan losses    (13,949)           (13,373)        
Other assets  65,686          65,785         
Total noninterest-earning assets  74,981          75,660         
Total assets $1,383,251         $1,345,314         
                      
LIABILITIES AND SHAREHOLDERS' EQUITY                     
Interest-bearing liabilities:                     
Total interest-bearing demand deposits $178,385  $224     0.51  %$167,918  $183   0.43 %
Total savings deposits  403,222   776     0.78    406,281   744   0.73  
Total time deposits  252,000   1,000     1.61    220,062   837   1.51  
Total interest-bearing deposits  833,607   2,000     0.97    794,261   1,764   0.88  
Borrowed funds and subordinated debentures  167,458   768     1.86    166,669   780   1.86  
Total interest-bearing liabilities $1,001,065  $2,768     1.12  %$960,930  $2,544   1.05 %
                      
Noninterest-bearing liabilities:                     
Noninterest-bearing demand deposits  252,128          258,616         
Other liabilities  10,165          9,615         
Total noninterest-bearing liabilities  262,293          268,231         
Total shareholders' equity  119,893          116,153         
Total liabilities and shareholders' equity $1,383,251         $1,345,314         
                      
Net interest spread    $12,879     3.73  %   $12,516   3.66 %
Tax-equivalent basis adjustment       (7)           (16)     
Net interest income    $12,872         $12,500      
Net interest margin          3.99  %       3.91 %
                      
(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 21 percent in 2018 and 35 percent in 2017 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, 2018
 
                      
                      
(Dollar amounts in thousands, interest amounts and interest rates/yields on a fully tax-equivalent basis)   
  For the three months ended   
  March 31, 2018  March 31, 2017  
  Average Balance Interest  Rate/Yield   Average Balance Interest  Rate/Yield   
ASSETS                     
Interest-earning assets:                     
Fed funds, interest-bearing deposits and repos $48,936  $205     1.70 %$77,943  $129   0.67 %
FHLB stock  7,799   134     6.97    5,776   93   6.53  
Securities:                     
Taxable  63,393   492     3.15    64,148   491   3.10  
Tax-exempt  5,349   38     2.88    6,443   67   4.22  
Total securities (A)  68,742   530     3.13    70,591   558   3.22  
Loans:                     
SBA loans  68,376   1,183     7.02    57,960   854   5.98  
Commercial loans  632,409   7,726     4.95    538,593   6,467   4.87  
Residential mortgage loans  371,061   4,340     4.74    297,203   3,384   4.62  
Consumer loans   110,947   1,529     5.59    94,217   1,132   4.87  
Total loans (B)  1,182,793   14,778     5.07    987,973   11,837   4.86  
Total interest-earning assets $1,308,270  $15,647     4.85  %$1,142,283  $12,617   4.48 %
                      
Noninterest-earning assets:                     
Cash and due from banks  23,244          23,578         
Allowance for loan losses    (13,949)           (12,785)        
Other assets  65,686          55,493         
Total noninterest-earning assets  74,981          66,286         
Total assets $1,383,251         $1,208,569         
                      
LIABILITIES AND SHAREHOLDERS' EQUITY                     
Interest-bearing liabilities:                     
Total interest-bearing demand deposits $178,385  $224     0.51  %$152,392  $153   0.41 %
Total savings deposits  403,222   776     0.78    378,439   583   0.62  
Total time deposits  252,000   1,000     1.61    222,307   804   1.47  
Total interest-bearing deposits  833,607   2,000     0.97    753,138   1,540   0.83  
Borrowed funds and subordinated debentures  167,458   768     1.86    125,499   664   2.15  
Total interest-bearing liabilities $1,001,065  $2,768     1.12  %$878,637  $2,204   1.02 %
                      
Noninterest-bearing liabilities:                     
Noninterest-bearing demand deposits  252,128          215,405         
Other liabilities  10,165          6,792         
Total noninterest-bearing liabilities  262,293          222,197         
Total shareholders' equity  119,893          107,735         
Total liabilities and shareholders' equity $1,383,251         $1,208,569         
                      
Net interest spread    $12,879     3.73  %   $10,413   3.46 %
Tax-equivalent basis adjustment       (7)           (23)     
Net interest income    $12,872         $10,390      
Net interest margin          3.99  %       3.70 %
                      
(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 21 percent in 2018 and 35 percent in 2017 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 
  
March 31, 2018
  
                  
Amounts in thousands, except percentages  Mar. 31, 2018 Dec. 31, 2017 Sept. 30, 2017 Jun. 30, 2017  Mar. 31, 2017 
ALLOWANCE FOR LOAN LOSSES:                 
Balance, beginning of period $13,556  $13,113  $12,800  $12,681  $12,579  
Provision for loan losses charged to expense  500   500   500   400   250  
   14,056   13,613   13,300   13,081   12,829  
Less: Chargeoffs                 
SBA loans  81     -   34   150   109  
Commercial loans    -      -   31   120   76  
Residential mortgage loans    -    50   5   -     -  
Consumer loans  6   83   170   17   66  
Total chargeoffs  87   133   240   287   251  
Add: Recoveries                 
SBA loans  64   45   36   3   37  
Commercial loans  16   31   15   3   53  
Residential mortgage loans  13     -     -   -   12  
Consumer loans  134     -   2   -   1  
Total recoveries  227   76   53   6   103  
Net chargeoffs (recoveries)    (140)  57   187   281   148  
Balance, end of period $14,196  $13,556  $13,113  $12,800  $12,681  
LOAN QUALITY INFORMATION:                 
Nonperforming loans (1) $4,277  $2,994  $3,742  $5,681  $7,758  
Other real estate owned ("OREO")  56   426   707   581   1,172  
Nonperforming assets  4,333   3,420   4,449   6,262   8,930  
Less:  Amount guaranteed by SBA  27   27   27   41   60  
Net nonperforming assets $4,306  $3,393  $4,422  $6,221  $8,870  
                  
 Loans 90 days past due & still accruing  $  -  $60  $2,216  $230  $  -  
                  
Performing Troubled Debt Restructurings (TDRs) $774  $786  $  -  $-  $  -  
(1) Nonperforming TDRs included in nonperforming loans $  -   $  -  $  -  $-  $  -  
Total TDRs $774  $786  $  -   $-  $  -  
                  
Allowance for loan losses to:                 
Total loans at quarter end    1.19  %   1.16 %   1.20 % 1.22 %   1.27 %
Nonperforming loans (1)    331.91      452.77     350.43   225.31     163.46  
Nonperforming assets    327.63      396.37     294.74   204.41     142.00  
Net nonperforming assets    329.68      399.53     296.54   205.75     142.97  
                  
QTD net chargeoffs (recoveries) (annualized) to QTD average loans:                 
SBA loans    0.10  %   (0.28)%   (0.01)% 1.06 %   0.50 %
Commercial loans    (0.01)    (0.02)    0.01   0.08   0.02  
Residential mortgage loans    (0.01)    0.06     0.01   -     (0.02) 
Consumer loans    (0.47)    0.30     0.62   0.07     0.28  
Total loans    (0.05)%   0.02 %   0.07 % 0.11 %   0.06 %
                  
Nonperforming loans to total loans    0.36  %   0.26 %   0.34 % 0.54 %   0.78 %
Nonperforming loans and TDRs to total loans    0.42      0.32     0.34   0.54     0.78  
Nonperforming assets to total loans and OREO    0.36      0.29     0.41   0.60     0.89  
Nonperforming assets to total assets    0.30      0.23     0.33   0.49     0.73  
                  


     
UNITY BANCORP, INC.
 
QUARTERLY FINANCIAL DATA 
 
March 31, 2018
 
                 
(In thousands, except percentages and per share amounts) Mar. 31, 2018 Dec. 31, 2017 Sept. 30, 2017 Jun. 30, 2017 Mar. 31, 2017 
SUMMARY OF INCOME:                
Total interest income $15,640  $15,044  $14,195  $13,477  $12,594  
Total interest expense  2,768   2,544   2,378   2,327   2,204  
Net interest income  12,872   12,500   11,817   11,150   10,390  
Provision for loan losses  500   500   500   400   250  
Net interest income after provision for loan losses  12,372   12,000   11,317   10,750   10,140  
Total noninterest income  2,286   2,037   2,008   2,021   2,204  
Total noninterest expense  8,194   7,629   7,554   7,421   7,440  
Income before provision for income taxes  6,464   6,408   5,771   5,350   4,904  
Provision for income taxes  1,235   2,175   2,014   1,906   1,712  
Impact of Tax Reform Bill    -    1,733     -     -     -  
Net income $5,229  $2,500  $3,757  $3,444  $3,192  
                 
Net income per common share - Basic $  0.49   $  0.24  $  0.36  $  0.33  $  0.30  
Net income per common share - Diluted $  0.48   $  0.23  $  0.35  $  0.32  $  0.30  
                 
COMMON SHARE DATA:                
Market price per share $  22.00   $  19.75  $  19.80  $  17.20  $  16.95  
Dividends paid $  0.06   $  0.06  $  0.06  $  0.06  $  0.05  
Book value per common share $  11.50   $  11.13  $  10.94  $  10.64  $  10.38  
                 
Weighted average common shares outstanding - Basic  10,678   10,604   10,572   10,546   10,509  
Weighted average common shares outstanding - Diluted  10,853   10,794   10,761   10,735   10,705  
Issued and outstanding common shares  10,709   10,615   10,586   10,567   10,535  
                 
PERFORMANCE RATIOS (Annualized):                
Return on average assets    1.53  %   0.74 %   1.17 %   1.11 %   1.07 %
Return on average equity     17.69      8.54     13.00     12.47     12.02  
Efficiency ratio    54.00      52.45     54.86     56.41     59.08  
Noninterest expense to average assets    2.40      2.25     2.35     2.39     2.50  
                 
BALANCE SHEET DATA:                
Total assets $1,439,902  $1,455,496  $1,329,834  $1,275,517  $1,226,168  
Total deposits  1,117,514   1,043,137   1,043,632   1,003,967   980,703  
Total loans  1,195,110   1,170,674   1,092,873   1,046,804   1,000,677  
Total securities  67,521   69,800   72,105   75,066   73,022  
Total shareholders' equity  123,104   118,105   115,814   112,447   109,305  
Allowance for loan losses    (14,196)    (13,556)    (13,113)    (12,800)    (12,681) 
                 
TAX EQUIVALENT YIELDS AND RATES:                
Interest-earning assets    4.85  %   4.71 %   4.66 %   4.58 %   4.48 %
Interest-bearing liabilities    1.12      1.05     1.04     1.03     1.02  
Net interest spread    3.73      3.66     3.62     3.55     3.46  
Net interest margin    3.99      3.91     3.88     3.79     3.70  
                 
CREDIT QUALITY:                
Nonperforming assets $4,333  $3,420  $4,449  $6,262  $8,930  
QTD net (recoveries) chargeoffs (annualized) to QTD average loans    (0.05)%   0.02 %   0.07 %   0.11 %   0.06 %
Allowance for loan losses to total loans    1.19      1.16     1.20     1.22     1.27  
Nonperforming assets to total loans and OREO    0.36      0.29     0.41     0.60     0.89  
Nonperforming assets to total assets    0.30      0.23     0.33     0.49     0.73  
                 
CAPITAL RATIOS AND OTHER:                
Total equity to total assets    8.55  %   8.11 %   8.71 %   8.82 %   8.91 %
Leverage ratio    9.46      9.37     9.70     9.66     9.72  
Common equity tier 1 risk-based capital ratio    11.14      10.81     11.27     11.32     11.46  
Tier 1 risk-based capital ratio    12.07      11.75     12.26     12.34     12.53  
Total risk-based capital ratio    13.24      12.87     13.30     13.59     13.78  
Number of banking offices    18      18     17     17     17  
Number of ATMs    19      19     18     18     18  
Number of employees    199      199     166     186     181  
                 


                      
UNITY BANCORP, INC. 
Reconciliation of GAAP vs. Non-GAAP Financials 
March 31, 2018 
                      
                      
                 
  QTD  QTD  QTD  QTD  QTD  
(In thousands, except percentages and per share amounts) Mar. 31, 2018  Dec. 31, 2017  Sept. 30, 2017  Jun. 30, 2017  Mar. 31, 2017  
                      
GAAP                     
Income before provision for income taxes $6,464  $6,408  $5,771  $5,350  $4,904  
Provision for income taxes  1,235   3,908   2,014   1,906   1,712  
Net income  $5,229  $2,500  $3,757  $3,444  $3,192  
                      
Effective tax rate  19.1 % 61.0 % 34.9 % 35.6 % 34.9 %
                      
Net income per:                     
Common share - Basic $0.49  $0.24  $0.36  $0.33  $0.30  
Common share - Diluted $0.48  $0.23  $0.35  $0.32  $0.30  
                      
Performance ratios:                     
Return on average assets  1.53 % 0.74 % 1.17 % 1.11 % 1.07 %
Return on average equity   17.69 % 8.54 % 13.00 % 12.47 % 12.02 %