PR Newswire
CLINTON, N.J., April 23, 2014
CLINTON, N.J., April 23, 2014 /PRNewswire/ -- Unity Bancorp, Inc. (NASDAQ: UNTY), parent company of Unity Bank, reported net income available to common shareholders of $1.3 million, or $0.17 per diluted share, for the three months ended March 31, 2014, a 62.4% increase compared to net income available to common shareholders of $796 thousand, or $0.10 per diluted share, for the same period a year ago. Return on average assets and average common equity for the quarter were 0.59% and 9.06%, respectively, compared to 0.59% and 5.65% for the same period a year ago.
First quarter highlights include:
"All things continue to remain very positive at Unity Bank," reported James A. Hughes, President and CEO. "Loan and deposit growth continue to be strong, asset quality is improving and our margin is stable. I look forward to reporting our continued progress as 2014 unfolds."
Net Interest Income
Net interest income increased $598 thousand to $7.3 million for the quarter ended March 31, 2014 compared to the prior year's quarter. This increase was the result of momentum from the strong growth in commercial and residential mortgage loan volume over the past year, as average commercial loans increased $59.6 million and average residential mortgage loans increased $45.2 million. The volume driven interest income increase offset the impact of lower rates on earning assets and the increase in interest paid on deposits due to the $82.4 million increase in average time deposits. The net interest margin increased 5 basis points to 3.57% for the quarter ended March 31, 2014 compared to 3.52% the prior year. We expect net interest income to continue to expand in future quarters due to strong loan growth and our net interest margin to remain stable.
Provision for Loan Losses
The provision for loan losses for the quarters ended March 31, 2014 and March 31, 2013 was $600 thousand and $650 thousand respectively. The reduced provision, year over year, reflects an improvement in credit quality and a lower level of net charge-offs.
Noninterest Income
Noninterest income decreased $299 thousand to $1.5 million for the three months ended March 31, 2014, compared to the same period last year. The decrease was driven by a reduced volume of residential mortgage loan sales, SBA loan sales and lower levels of security gains realized.
During the quarter, $17.4 million in residential mortgage loans were sold at a gain of $365 thousand, compared to $22.6 million sold at a gain of $477 thousand during the prior year's quarter. Approximately, $7.5 million of the sold loans were from our portfolio, with the remainder consisting of new production. We do not anticipate the recent rise in mortgage interest rates to have a material impact on our residential mortgage origination volume.
SBA loan sales totaled $928 thousand with net gains on sale of $83 thousand for the quarter, compared to $2.3 million sold and a gain of $241 thousand in the prior year's quarter. We anticipate an increase in the volume of originations and sales in 2014, due to the addition of SBA business development officers.
Noninterest Expense
Noninterest expense increased $132 thousand to $6.3 million for the three months ended March 31, 2014 compared to the prior year's first quarter. The increase was due primarily to expenses related to OREO properties. Other fluctuations include:
Financial Condition
At March 31, 2014, total assets were $961.2 million, an increase of $40.1 million from the prior year-end:
"In mid-2014, we plan to raise a limited amount of capital through a common stock rights offering. This capital will allow for continued loan and asset growth and will allow our existing shareholders to increase their investment in Unity," said James A. Hughes, President and CEO.
Credit Quality
Unity Bancorp, Inc. is a financial service organization headquartered in Clinton, New Jersey, with approximately $961 million in assets and $768 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.
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.
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
UNITY BANCORP, INC. | | | ||||||||||||||
SUMMARY FINANCIAL HIGHLIGHTS | | | ||||||||||||||
March 31, 2014 | | | ||||||||||||||
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | March 31, 2014 vs. | | | |||||
| | | | | | | | | December 31, 2013 | | March 31, 2013 | | | |||
(In thousands, except percentages and per share amounts) | | March 31, 2014 | | December 31, 2013 | | March 31, 2013 | | | % | | % | | | |||
BALANCE SHEET DATA: | | | | | | | | | | | | | | | | |
Total assets | | $ | 961,168 | | $ | 921,118 | | $ | 827,182 | | | 4.3 | % | 16.2 | % | |
Total deposits | | | 767,624 | | | 738,698 | | | 652,117 | | | 3.9 | | 17.7 | | |
Total loans | | | 683,951 | | | 678,701 | | | 596,571 | | | 0.8 | | 14.6 | | |
Total securities | | | 109,459 | | | 107,514 | | | 119,334 | | | 1.8 | | (8.3) | | |
Total shareholders' equity | | | 58,810 | | | 57,173 | | | 78,157 | | | 2.9 | | (24.8) | | |
Allowance for loan losses | | | (12,807) | | | (13,141) | | | (14,345) | | | (2.5) | | (10.7) | | |
| | | | | | | | | | | | | | | | |
FINANCIAL DATA - QUARTER TO DATE: | | | | | | | | | | | | | | | | |
Income before provision for income taxes | | $ | 1,955 | | $ | 1,872 | | $ | 1,738 | | | 4.4 | | 12.5 | | |
Provision for income taxes | | | 662 | | | 606 | | | 538 | | | 9.2 | | 23.0 | | |
Net income | | | 1,293 | | | 1,266 | | | 1,200 | | | 2.1 | | 7.8 | | |
Preferred stock dividends and discount accretion | | | - 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. |