Unity Bancorp Reports 56.6% Increase in Earnings

• Branch fee income, which consists of deposit service charges and overdraft fees, decreased $39 thousand for the quarterly period due to lower overdraft fees. 
• Gains on sales of SBA loans increased $84 thousand for the quarter due to higher premiums on the sale of $2.3 million in loans during the period. 
• Gains on sales of residential mortgage loans increased $66 thousand on a higher volume of loan sales.  For the three month period, $22.6 million in residential mortgage loans were sold compared to $21.2 million in the first quarter of 2012. 

Noninterest Expense

Noninterest expense increased $167 thousand to $6.1 million for the three months ended March 31, 2013, compared to the first quarter of 2012.  Other noteworthy expenses include:

• Occupancy expense increased $85 thousand due to higher seasonal snow removal expenses, increased building depreciation expenses related to the Washington branch opened in late March 2012, and additional rental expense due to the termination of a sublease during 2012.
• Processing and communication expenses increased $27 thousand due to expenses related to our check cashing, merchant services and mortgage businesses.
• Deposit insurance expense decreased $22 thousand for the quarter ended March 31, 2013 due to a lower assessment basis.
• Advertising expenses decreased $26 thousand for the quarter ended March 31, 2013 due to a reduction in promotional gift expenses, the expiration of a third party marketing agreement and reduced promotional marketing.
• Other expenses increased $106 thousand for the quarter due to higher employee recruiting, increased director fees and an increase to the reserve for unfunded loan commitments.  

Financial Condition

At March 31, 2013, total assets were $827.2 million, an increase of $7.5 million from the prior year end.

• Total securities increased $8.3 million since December 31, 2012, due to $21.3 million in security purchases, partially offset by sales and prepayments. 
• Total loans increased $9.5 million or 1.6%, to $596.6 million at March 31, 2013. The Company plans to continue shrinking its out of market SBA portfolio.  Future loan growth is expected in both the commercial and residential portfolios.  The net increase was the result of the following:
  • Commercial loans increased $9.1 million or 3.0%,
  • Residential mortgage loans increased $4.3 million or 3.2%,
  • SBA 504 loans decreased $1.7 million or 4.0%,
  • SBA 7(a) loans decreased $2.1 million or 3.2%, and
  • Consumer loans remained stable at $46.4 million.    
• Core deposits, which exclude time deposits, increased $5.1 million during the quarter to $528.9 million, due to growth in retail deposits.  The net changes by product type include: 
  • A $3.7 million increase in noninterest-bearing demand deposits,
  • An $802 thousand increase in savings deposits, and
  • A $536 thousand increase in interest-bearing demand deposits.
• Time deposits decreased $1.7 million from year-end.
• Shareholders' equity was $78.2 million at March 31, 2013, an increase of $647 thousand from year-end 2012, primarily due to the increase in net income.
• Book value per common share was $7.67 as of March 31, 2013.
• At March 31, 2013 the leverage, Tier I and Total Risk Based Capital ratios were 11.12%, 14.54% and 15.80% respectively, all in excess of the ratios required to be deemed "well-capitalized".

Credit Quality

"Nonperforming assets have declined $3.3 million or 17.3% to $16.0 million since year-end 2012 and they have declined $7.9 million or 33.1% since March 31, 2012.  We expect to have continued success in resolving problem credits in 2013," said James A. Hughes.  "Many of our problem commercial and SBA relationships have been resolved and the majority of our larger problem relationships are behind us.  We anticipate declines in charge-offs and provisions for loan losses in future periods."

• Nonperforming assets totaled $16.0 million at March 31, 2013 or 2.67% of total loans and OREO, compared to $19.3 million or 3.28% of total loans and OREO at year-end 2012.
• The allowance for loan losses totaled $14.3 million at March 31, 2013 or 2.40% of total loans. The provision for loan losses for the quarter ended March 31, 2013 was $650 thousand compared to $1.2 million for the prior year's quarter. 
• Net charge-offs were $1.1 million for the three months ended March 31, 2013, compared to $1.2 million for the same period a year ago.
• Troubled debt restructurings ("TDRs") increased $1.5 million from year-end to $16.2 million.  At March 31, 2013, 93.3% of our TDRs were performing.  

Unity Bancorp, Inc. is a financial service organization headquartered in Clinton, New Jersey, with approximately $827 million in assets and $652 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
March 31, 2013
												March 31, 2013 vs.
												December 31, 2012		March 31, 2012
(In thousands, except percentages and per share amounts)		March 31, 2013			December 31, 2012			March 31, 2012				%		%
BALANCE SHEET DATA:
Total assets		$	827,182		$	819,730		$	810,198			0.9	%	2.1	%
Total deposits			652,117			648,760			643,101			0.5		1.4
Total loans			596,571			587,036			582,752			1.6		2.4
Total securities			119,334			111,053			128,061			7.5		(6.8)
Total shareholders' equity			78,157			77,510			74,002			0.8		5.6
Allowance for loan losses			(14,345)			(14,758)			(16,339)			2.8		12.2
FINANCIAL DATA - QUARTER TO DATE:
Income before provision for income taxes		$	1,738		$	1,810		$	1,364			(4.0)		27.4
Provision for income taxes			538			643			459			(16.3)		17.2
Net income			1,200			1,167			905			2.8		32.6
Preferred stock dividends and discount accretion			403			408			396			(1.2)		1.8 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 08:24 - PR Newswire Invesco Investment Trusts - Portfolio Update 07:23 - PR Newswire Invesco Perpetual UK Smaller Co's Investment Trust Plc - Director/PDMR Shareholding 02:00 - PR Newswire International Business Machines Corp - Doc re Form 10-Q Paukenschlag in USA    Cannabis-Neuregulierung durch DEA sorgt für Kursexplosion! weiterlesen» Anzeige wo-site-teaser-box-16809_site-teaser-box_2024-05-01_09%253A00%253A00_2024-05-02_09%253A00%253A59