PR Newswire
CLINTON, N.J., July 25, 2013
CLINTON, N.J., July 25, 2013 /PRNewswire/ -- Unity Bancorp, Inc. (NASDAQ: UNTY), parent company of Unity Bank, reported net income available to common shareholders of $882 thousand, or $0.11 per diluted share, for the three months ended June 30, 2013, a 53.4% increase compared to $575 thousand, or $0.07 per diluted share, for the same period a year ago. Return on average assets and average common equity for the quarter were 0.67% and 6.11%, respectively, compared to 0.49% and 4.25% for the same period a year ago.
Second quarter highlights included:
"This was a milestone quarter for Unity," reported James A. Hughes, President and CEO. "Due to significantly improved fundamentals of the Company, we were able to repay $20.6 million in high cost capital. In addition, loan demand has improved significantly, which should bolster revenue and enhance our future performance."
For the six months ended June 30, 2013, net income available to common shareholders totaled $1.7 million, or $0.21 per diluted share, compared to $1.1 million or $0.14 per diluted share. Return on average assets and average common equity for the six month periods were 0.63% and 5.88%, respectively, compared to 0.47% and 4.03% for the same period a year ago.
Net Interest Income
Compared to a year ago, net interest income decreased $55 thousand and $172 thousand for the three and six month periods, respectively. The net interest margin was 3.66% and 3.59% in the quarter and year-to-date periods, respectively. While slightly lower than the prior year, the net interest margin has stabilized and increased compared to the quarter ending March 31, 2013, as the increased loan volume offset lower yields on our securities and loan portfolios.
Provision for Loan Losses
The provision for loan losses for the quarter ended June 30, 2013 was $300 thousand compared to $1.0 million for the prior year's quarter, and for the six month period ended June 30, 2013, the provision declined to $950 thousand from $2.2 million in the first six months of 2012. The reduced provision reflects a lower level of net charge-offs for the quarter and year-to-date periods as well as a lower level of nonperforming assets.
Noninterest Income
Noninterest income decreased $183 thousand to $1.7 million for the three months and $74 thousand to $3.5 million for the six months ended June 30, 2013, compared to the same periods last year. The decreases were driven by lower levels of security gains being recognized, a lower volume of SBA loans being sold during the periods and recognition of lower gains on sales, and decreased fees on overdrawn accounts during the periods. Partially offsetting these decreases were increased gains on the sale of residential mortgage loans due to a higher volume of loans sold. We do not anticipate a material reduction in mortgage loan volume due to the recent increase in interest rates.
Noninterest Expense
Noninterest expense decreased $130 thousand to $6.1 million for the three months ended June 30, 2013, while year-to-date expense increased $38 thousand to $12.2 million. During both of these periods, occupancy, other real estate owned ("OREO") and advertising expenses decreased. Occupancy expense decreased as a result of cost savings realized from the purchase of three of our previously leased locations in April 2013. OREO expenses fell during each period as the number of properties and subsequent property taxes, maintenance and insurance costs declined compared to the prior year's periods. Advertising expenses varied based on the timing of retail branch related promotions such as the opening of the new branch in Washington Township, New Jersey in 2012. Loan collection costs remain elevated in both periods due to higher loan legal, insurance and other collection costs. Other expenses increased due to higher employee recruiting, increased director fees and an increase to the reserve for unfunded loan commitments.
Financial Condition
At June 30, 2013, total assets were $824.6 million, an increase of $4.8 million from the prior year end:
Credit Quality
Unity Bancorp, Inc. is a financial service organization headquartered in Clinton, New Jersey, with approximately $825 million in assets and $628 million in deposits. Unity Bank provides financial services to retail, corporate and small business customers through its 15 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 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.
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
UNITY BANCORP, INC. | | ||||||||||||||
SUMMARY FINANCIAL HIGHLIGHTS | | ||||||||||||||
June 30, 2013 | | ||||||||||||||
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | June 30, 2013 vs. | | |||||
| | | | | | | | | March 31, 2013 | | June 30, 2012 | | |||
(In thousands, except percentages and per share amounts) | | June 30, 2013 | | March 31, 2013 | | June 30, 2012 | | | % | | % | | |||
BALANCE SHEET DATA: | | | | | | | | | | | | | | | |
Total assets | | $ | 824,575 | | $ | 827,182 | | $ | 785,111 | | | (0.3) | % | 5.0 | % |
Total deposits | | | 628,369 | | | 652,117 | | | 616,443 | | | (3.6) | | 1.9 | |
Total loans | | | 622,316 | | | 596,571 | | | 604,901 | | | 4.3 | | 2.9 | |
Total securities | | | 111,269 | | | 119,334 | | | 114,846 | | | (6.8) | | (3.1) | |
Total shareholders' equity | | | 68,287 | | | 78,157 | | | 74,901 | | | (12.6) | | (8.8) | |
Allowance for loan losses | | | (14,309) | | | (14,345) | | | (16,284) | | | 0.3 | | 12.1 | |
| | | | | | | | | | | | | | | |
FINANCIAL DATA - QUARTER TO DATE: | | | | | | | | | | | | | | | |
Income before provision for income taxes | | $ | 2,086 | | $ | 1,738 | | $ | 1,494 | | | 20.0 | | 39.6 | |
Provision for income taxes | | | 739 | | | 538 | | | 518 | | | 37.4 | | 42.7 | |
Net income | | | 1,347 | | | 1,200 | | | 976 | | | 12.3 | | 38.0 | |
Preferred stock dividends and discount accretion | | | 465 | | | 404 | | | 401 Werbung Mehr Nachrichten zur Unity Bancorp Aktie kostenlos abonnieren
E-Mail-Adresse
Bitte überprüfe deine die E-Mail-Adresse.
Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News |