CLINTON, N.J., April 25, 2016 (GLOBE NEWSWIRE) -- Unity Bancorp, Inc. (NASDAQ:UNTY), parent company of Unity Bank, reported a 41% increase in earnings, excluding the effect of a nonrecurring gain during the quarter. Major contributing factors included strong loan growth, increased levels of noninterest income, improved credit quality and expense control.
Net income, excluding a nonrecurring gain on the repurchase of subordinated debentures, was $2.7 million, or $0.31 per diluted share, for the three months ended March 31, 2016, a 41% increase compared to net income of $1.9 million, or $0.23 per diluted share, for the same period a year ago. Return on average assets and average common equity for the quarter, excluding the nonrecurring gain, were 1.00% and 13.67%, respectively, compared to 0.82% and 11.08% for the same period a year ago.
During the quarter, the Company repurchased $5.0 million of its outstanding subordinated “capital qualifying” debentures at a price of $0.5475 per dollar, thus reducing its outstanding subordinated debt to $10.3 million. The repurchase resulted in a nonrecurring pre-tax gain of approximately $2.26 million. James A. Hughes, President and CEO stated, “Although the securities were an inexpensive form of Tier I capital, the discount opportunity was too large to pass up.” Management believes excluding the nonrecurring gain from net income and reporting it in a format which is not in compliance with generally accepted accounting principles (“non-GAAP”) is beneficial to the reader and provides better comparability of the Company’s performance over both periods.
Net income, including the nonrecurring gain on the repurchase of subordinated debentures, was $4.2 million, or $0.48 per diluted share, for the three months ended March 31, 2016, compared to net income of $1.9 million, or $0.23 per diluted share, for the same period a year ago. Return on average assets and average common equity for the quarter were 1.54% and 21.05%, respectively, compared to 0.82% and 11.08% for the same period a year ago.
First quarter highlights also included:
- Announced plans to open a 16th branch location in Somerville, New Jersey.
- Purchased our Clinton, Corporate headquarters for $4.1 million.
- Noninterest-bearing demand deposits rose 1.5% and total deposits increased 3.6% since year-end 2015.
- Net interest income increased 12.1% compared to the prior year’s quarter due to strong loan growth.
- Net interest margin declined to 3.48% this quarter compared to 3.64% in the prior year’s quarter due to a larger Fed Funds balance.
- Credit quality continued to improve. Loan charge-offs declined and nonperforming loans fell 24.7%.
Mr. Hughes commented on this quarter’s performance, stating, “I am a firm believer that it is our culture of service that gives us the competitive edge. Our strategy is simple; to reach out to every small business in our footprint and sell our personalized banking services. It is our focus on our mission that drives us. It is our culture of respect and service that brings our results. We have a team of highly engaged bankers that make Unity a great place to work and bank.”
Net Interest Income
Net interest income, our core driver of earnings, increased $967 thousand to $9.0 million for the quarter ended March 31, 2016 compared to the prior year’s period. This increase was the result of strong commercial, residential mortgage and consumer loan growth over the past year. Quarterly average commercial loans increased $57.8 million, average residential mortgage loans have increased $38.1 million and consumer loans increased $16.0 million compared to the first quarter in 2015.
The cost of interest-bearing liabilities equaled 1.06% and 1.05% respectively. While the cost of deposits rose 13 basis points to 0.81%, the cost of borrowed funds and subordinated debentures decreased 74 basis points compared to the prior year due to the modification of borrowings with the Federal Home Loan Bank (“FHLB”) over the past year. The increase in the cost of deposits was primarily driven by the intentional growth of five year time deposits.
The net interest margin decreased 16 basis points to 3.48% for the quarter ended March 31, 2016 compared to 3.64% for the prior year’s quarter. This decrease may be attributed to a larger balance of Fed Funds and an increase in interest paid on deposits.
Provision for Loan Losses
The provision for loan losses was stable at $200 thousand for the quarters ended March 31, 2016 and 2015. Quarterly net charge-offs declined $245 thousand to $325 thousand compared to the first quarter 2015 and nonperforming loans have declined 25% to $6.9 million.
Noninterest Income
Noninterest income increased $375 thousand to $2.0 million for the three months ended March 31, 2016, compared to the same period last year. Quarterly noninterest income increased due to higher gains on the sale of residential mortgage loans.
During the quarter, $25.0 million in residential mortgage loans were sold at a gain of $715 thousand, compared to $15.0 million in loans sold at a gain of $344 thousand during the prior year’s quarter. Our mortgage pipeline remains strong and we expect a good year in mortgage originations. Since 2014, all residential mortgage loans that are held for investment are adjustable rate mortgages or fixed rate mortgages with a term of 15 years or less.
In addition to the increase in noninterest income related to gains on mortgage sales noted above, other notable items included:
- Branch fee income declined in the quarterly period due to lower levels of overdraft fees, partially offset by increased fees from our commercial analysis checking accounts.
- Service and loan fee income declined in the quarterly period due to reduced loan late charges and payoff fees, combined with lower SBA servicing fees as our serviced loan portfolio declined compared to the same quarter a year ago.
- SBA loan sales totaled $3.5 million during each quarter with net gains on sale of $308 thousand and $363 thousand, respectively. Lower net gains on sale were realized during the first quarter 2016 due to the sale of shorter-term loans with lower premiums on sale compared to the prior year’s quarter.
- Security gains totaled $94 thousand for the quarter. There were no gains on the sale of securities in the quarter-ended March 31, 2015.
Noninterest Expense
Noninterest expense increased $105 thousand or 1.6% to $6.6 million for the quarter. The increases were due to higher employee benefit expenses such as medical insurance, retirement and 401(k) plan benefits, higher network and software related maintenance costs to upgrade our technology, and advertising expenses. Occupancy expenses fell due to lower seasonal snow removal expense and property rental expense due to the purchase of our headquarters. In addition, loan and OREO expenses have declined as credit quality improves.
Financial Condition
At March 31, 2016, total assets were $1.1 billion, an increase of $36.1 million from year-end 2015:
- Total loans decreased $2.0 million or 0.2%, from year-end 2015 to $887.0 million at March 31, 2016. Consumer and commercial loan portfolios increased $2.1 million and $1.7 million, respectively. Residential mortgage loans decreased $3.6 million while SBA loans remained flat after $3.5 million in sales. The decline in total loans was due to slightly lower production levels, large prepayments and the sale of residential portfolio loans. Our pipeline in all categories remains strong and loan growth is expected in future quarters.
- Other assets increased due to the purchase of the Company’s Clinton, New Jersey headquarters for $4.12 million.
- Total deposits increased $32.3 million or 3.6%, to $926.8 million at March 31, 2016 due to our eSavings promotion and $10.0 million in brokered time deposits.
- Borrowed funds increased $3.0 million to $95.0 million at March 31, 2016, due to reduced overnight borrowings of $7.0 million compared to year-end 2015 and the addition of a $10.0 million adjustable rate borrowing. Also, during the quarter, $10.0 million in Federal Home Loan Bank borrowings at an average cost of 4.27% were extended to 2020 at an average rate of 2.10%.
- Subordinated debentures decreased from year-end due to the repurchase of $5.0 million at a discount of $0.5475 per dollar.
- Shareholders’ equity was $82.3 million at March 31, 2016, an increase of $3.8 million from year-end 2015, due to year-to-date net income less the dividends paid to shareholders.
- Book value per common share was $9.72 as of March 31, 2016.
- At March 31, 2016, the leverage, common equity Tier I, Tier I and Total Risk Based Capital ratios were 8.31%, 9.77%, 10.97% and 12.22% respectively, all in excess of the ratios required to be deemed “well-capitalized”.
Credit Quality
- Nonperforming assets totaled $8.3 million at March 31, 2016, or 0.93% of total loans and OREO, compared to $8.9 million or 0.99% of total loans and OREO at year-end 2015.
- Nonperforming loans decreased 5.14% to $6.9 million at March 31, 2016 from year-end.
- OREO decreased $174 thousand to $1.4 million at March 31, 2016 from year-end.
- The allowance for loan losses totaled $12.6 million at March 31, 2016, or 1.42% of total loans compared to $12.2 million and 1.55% at March 31, 2015.
- Net charge-offs were $325 thousand for the three months ended March 31, 2016, compared to $570 thousand for the same period a year ago.
Unity Bancorp, Inc. is a financial service organization headquartered in Clinton, New Jersey, with approximately $1.1 billion in assets and $927 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 | ||||||||||||||||||||||||||
| NON-GAAP | ||||||||||||||||||||||||||
| March 31, 2016 | ||||||||||||||||||||||||||
| Mar. 31, 2016 vs. | ||||||||||||||||||||||||||
| Dec. 31, 2015 | Mar. 31, 2015 | |||||||||||||||||||||||||
| (In thousands, except percentages and per share amounts) | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | % | % | |||||||||||||||||||||
| BALANCE SHEET DATA: | ||||||||||||||||||||||||||
| Total assets | $ | 1,120,955 | $ | 1,084,866 | $ | 1,035,404 | 3.3 | % | 8.3 | % | ||||||||||||||||
| Total deposits | 926,819 | 894,493 | 789,441 | 3.6 | 17.4 | |||||||||||||||||||||
| Total loans | 886,990 | 888,958 | 784,642 | (0.2 | ) | 13.0 | ||||||||||||||||||||
| Total securities | 66,729 | 71,336 | 77,308 | (6.5 | ) | (13.7 | ) | |||||||||||||||||||
| Total shareholders' equity | 82,276 | 78,470 | 71,987 | 4.9 | 14.3 | |||||||||||||||||||||
| Allowance for loan losses | (12,634 | ) | (12,759 | ) | (12,181 | ) | 1.0 | 3.7 | ||||||||||||||||||
| FINANCIAL DATA - QUARTER TO DATE: | ||||||||||||||||||||||||||
| Income before provision for income taxes and gain on subordinated debenture | $ | 4,196 | $ | 3,954 | $ | 2,959 | 6.1 | 41.8 | ||||||||||||||||||
| Provision for income taxes | 1,464 | 1,315 | 1,020 | 11.3 | 43.5 | |||||||||||||||||||||
| Net income before gain on subordinated debenture | $ | 2,732 | $ | 2,639 | $ | 1,939 | 3.5 | 40.9 | ||||||||||||||||||
| Gain on subordinated debenture, net of tax | 1,473 | - | - | NM | NM | |||||||||||||||||||||
| Net income | $ | 4,205 | $ | 2,639 | $ | 1,939 | 59.3 | 116.9 | ||||||||||||||||||
| Net income before gain on subordinated debenture per: | ||||||||||||||||||||||||||
| Common share - basic | $ | 0.32 | $ | 0.31 | $ | 0.23 | 3.2 | 39.1 | ||||||||||||||||||
| Common share - diluted | $ | 0.31 | $ | 0.31 | $ | 0.23 | - | 34.8 | ||||||||||||||||||
| Net income per: | ||||||||||||||||||||||||||
| Common share - basic | $ | 0.50 | $ | 0.31 | $ | 0.23 | 61.3 | 117.4 | ||||||||||||||||||
| Common share - diluted | $ | 0.48 | $ | 0.31 | $ | 0.23 | 54.8 | 108.7 | ||||||||||||||||||
| Net income before gain on subordinated debenture ratios: | ||||||||||||||||||||||||||
| Return on average assets | 1.00 | % | 1.00 | % | 0.82 | % | - | 22.0 | ||||||||||||||||||
| Return on average equity | 13.67 | % | 13.59 | % | 11.08 | % | 0.6 | 23.4 | ||||||||||||||||||
| Efficiency ratio | 60.05 | % | 62.81 | % | 67.30 | % | (4.4 | ) | (10.8 | ) | ||||||||||||||||
| Net income ratios: | ||||||||||||||||||||||||||
| Return on average assets | 1.54 | % | 1.00 | % | 0.82 | % | 54.0 | 87.8 | ||||||||||||||||||
| Return on average equity | 21.05 | % | 13.59 | % | 11.08 | % | 54.9 | 90.0 | ||||||||||||||||||
| Efficiency ratio | 50.16 | % | 62.81 | % | 67.30 | % | (20.1 | ) | (25.5 | ) | ||||||||||||||||
| Net interest margin | 3.48 | % | 3.60 | % | 3.64 | % | (3.3 | ) | (4.4 | ) | ||||||||||||||||
| SHARE INFORMATION: | ||||||||||||||||||||||||||
| Market price per share | $ | 11.37 | $ | 12.47 | $ | 9.08 | (8.8 | ) | 25.2 | |||||||||||||||||
| Dividends paid | $ | 0.04 | $ | 0.04 | $ | 0.03 | - | 0.3 | ||||||||||||||||||
| Book value per common share | $ | 9.72 | $ | 9.30 | $ | 8.55 | 4.5 | 13.7 | ||||||||||||||||||
| Average diluted shares outstanding (QTD) | 8,682 | 8,547 | 8,514 | 1.6 | 2.0 | |||||||||||||||||||||
| CAPITAL RATIOS: | ||||||||||||||||||||||||||
| Total equity to total assets | 7.34 | % | 7.23 | % | 6.95 | % | 1.5 | 5.6 | ||||||||||||||||||
| Leverage ratio | 8.31 | % | 8.82 | % | 8.94 | % | (5.8 | ) | (7.0 | ) | ||||||||||||||||
| Common equity tier 1 risk-based capital ratio | 9.77 | % | 9.37 | % | 9.25 | % | n/a | n/a | ||||||||||||||||||
| Tier 1 risk-based capital ratio | 10.97 | % | 11.18 | % | 11.22 | % | (1.9 | ) | (2.2 | ) | ||||||||||||||||
| Total risk-based capital ratio | 12.22 | % | 12.43 | % | 12.48 | % | (1.7 | ) | (2.1 | ) | ||||||||||||||||
| CREDIT QUALITY AND RATIOS: | ||||||||||||||||||||||||||
| Nonperforming assets | $ | 8,304 | $ | 8,851 | $ | 11,116 | (6.2 | ) | (25.3 | ) | ||||||||||||||||
| QTD net chargeoffs (annualized) to QTD average loans | 0.15 | % | (0.11 | ) | % | 0.30 | % | 236.4 | (50.0 | ) | ||||||||||||||||
| Allowance for loan losses to total loans | 1.42 | % | 1.44 | % | 1.55 | % | (1.4 | ) | (8.4 | ) | ||||||||||||||||
| Nonperforming assets to total loans and OREO | 0.93 | % | 0.99 | % | 1.41 | % | (6.1 | ) | (34.0 | ) | ||||||||||||||||
| Nonperforming assets to total assets | 0.74 | % | 0.82 | % | 1.07 | % | (9.8 | ) | % | (30.8 | ) | % | ||||||||||||||
| UNITY BANCORP, INC. | |||||||||||||||||||||||||
| CONSOLIDATED BALANCE SHEETS | |||||||||||||||||||||||||
| March 31, 2016 | |||||||||||||||||||||||||
| Mar. 31, 2016 vs. | |||||||||||||||||||||||||
| Dec. 31, 2015 | Mar. 31, 2015 | ||||||||||||||||||||||||
| (In thousands, except percentages) | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | % | % | ||||||||||||||||||||
| ASSETS | |||||||||||||||||||||||||
| Cash and due from banks | $ | 26,919 | $ | 22,681 | $ | 25,282 | 18.7 | % | 6.5 | % | |||||||||||||||
| Federal funds sold and interest-bearing deposits | 99,554 | 65,476 | 108,563 | 52.0 | (8.3 | ) | |||||||||||||||||||
| Cash and cash equivalents | 126,473 | 88,157 | 133,845 | 43.5 | (5.5 | ) | |||||||||||||||||||
| Securities: | |||||||||||||||||||||||||
| Securities available for sale | 48,566 | 52,865 | 57,875 | (8.1 | ) | (16.1 | ) | ||||||||||||||||||
| Securities held to maturity | 18,163 | 18,471 | 19,433 | (1.7 | ) | (6.5 | ) | ||||||||||||||||||
| Total securities | 66,729 | 71,336 | 77,308 | (6.5 | ) | (13.7 | ) | ||||||||||||||||||
| Loans: | |||||||||||||||||||||||||
| SBA loans held for sale | 13,224 | 13,114 | 6,929 | 0.8 | 90.9 | ||||||||||||||||||||
| SBA loans held for investment | 38,863 | 39,393 | 39,155 | (1.3 | ) | (0.7 | ) | ||||||||||||||||||
| SBA 504 loans | 27,482 | 29,353 | 29,893 | (6.4 | ) | (8.1 | ) | ||||||||||||||||||
| Commercial loans | 467,266 | 465,518 | 410,742 | 0.4 | 13.8 | ||||||||||||||||||||
| Residential mortgage loans | 260,957 | 264,523 | 235,371 | (1.3 | ) | 10.9 | |||||||||||||||||||
| Consumer loans | 79,198 | 77,057 | 62,552 | 2.8 | 26.6 | ||||||||||||||||||||
| Total loans | 886,990 | 888,958 | 784,642 | (0.2 | ) | 13.0 | |||||||||||||||||||
| Allowance for loan losses | (12,634 | ) | (12,759 | ) | (12,181 | ) | 1.0 | 3.7 | |||||||||||||||||
| Net loans | 874,356 | 876,199 | 772,461 | (0.2 | ) | 13.2 | |||||||||||||||||||
| Premises and equipment, net | 19,211 | 15,171 | 15,465 | 26.6 | 24.2 | ||||||||||||||||||||
| Bank owned life insurance ("BOLI") | 13,475 | 13,381 | 13,095 | 0.7 | 2.9 | ||||||||||||||||||||
| Deferred tax assets | 6,029 | 5,968 | 5,743 | 1.0 | 5.0 | ||||||||||||||||||||
| Federal Home Loan Bank ("FHLB") stock | 4,735 | 4,600 | 7,382 | 2.9 | (35.9 | ) | |||||||||||||||||||
| Accrued interest receivable | 3,839 | 3,884 | 3,637 | (1.2 | ) | 5.6 | |||||||||||||||||||
| Other real estate owned ("OREO") | 1,417 | 1,591 | 1,975 | (10.9 | ) | (28.3 | ) | ||||||||||||||||||
| Goodwill and other intangibles | 1,516 | 1,516 | 1,516 | - | - | ||||||||||||||||||||
| Other assets | 3,175 | 3,063 | 2,977 | 3.7 | 6.7 | ||||||||||||||||||||
| Total assets | $ | 1,120,955 | $ | 1,084,866 | $ | 1,035,404 | 3.3 | % | 8.3 | % | |||||||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||||||
| Liabilities: | |||||||||||||||||||||||||
| Deposits: | |||||||||||||||||||||||||
| Noninterest-bearing demand | $ | 188,026 | $ | 185,267 | $ | 163,535 | 1.5 | % | 15.0 | % | |||||||||||||||
| Interest-bearing demand | 128,774 | 130,605 | 124,110 | (1.4 | ) | 3.8 | |||||||||||||||||||
| Savings | 320,982 | 301,447 | 290,843 | 6.5 | 10.4 | ||||||||||||||||||||
| Time, under $100,000 | 145,784 | 134,468 | 112,671 | 8.4 | 29.4 | ||||||||||||||||||||
| Time, $100,000 and over, under $250,000 | 106,419 | 104,106 | 78,411 | 2.2 | 35.7 | ||||||||||||||||||||
| Time, $250,000 and over | 36,834 | 38,600 | 19,871 | (4.6 | ) | 85.4 | |||||||||||||||||||
| Total deposits | 926,819 | 894,493 | 789,441 | 3.6 | 17.4 | ||||||||||||||||||||
| Borrowed funds | 95,000 | 92,000 | 155,000 | 3.3 | (38.7 | ) | |||||||||||||||||||
| Subordinated debentures | 10,310 | 15,465 | 15,465 | (33.3 | ) | (33.3 | ) | ||||||||||||||||||
| Accrued interest payable | 390 | 461 | 478 | (15.4 | ) | (18.4 | ) | ||||||||||||||||||
| Accrued expenses and other liabilities | 6,160 | 3,977 | 3,033 | 54.9 | 103.1 | ||||||||||||||||||||
| Total liabilities | 1,038,679 | 1,006,396 | 963,417 | 3.2 | 7.8 | ||||||||||||||||||||
| Shareholders' equity: | |||||||||||||||||||||||||
| Common stock | 59,546 | 59,371 | 58,927 | 0.3 | 1.1 | ||||||||||||||||||||
| Retained earnings | 23,431 | 19,566 | 12,880 | 19.8 | 81.9 | ||||||||||||||||||||
| Accumulated other comprehensive (loss) income | (701 | ) | (467 | ) | 180 | NM | NM | ||||||||||||||||||
| Total shareholders' equity | 82,276 | 78,470 | 71,987 | 4.9 | 14.3 | ||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 1,120,955 | $ | 1,084,866 | $ | 1,035,404 | 3.3 | % | 8.3 | % | |||||||||||||||
| Issued and outstanding common shares | 8,468 | 8,436 | 8,423 | ||||||||||||||||||||||
| UNITY BANCORP, INC. | |||||||||||||||||||||||||||||||
| QTD CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||||||||||||||||
| NON-GAAP | |||||||||||||||||||||||||||||||
| March 31, 2016 | |||||||||||||||||||||||||||||||
| Mar. 31, 2016 vs. | |||||||||||||||||||||||||||||||
| For the three months ended | Dec. 31, 2015 | Mar. 31, 2015 | |||||||||||||||||||||||||||||
| (In thousands, except percentages and per share amounts) | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | $ | % | $ | % | ||||||||||||||||||||||||
| INTEREST INCOME | |||||||||||||||||||||||||||||||
| Federal funds sold and interest-bearing deposits | $ | 44 | $ | 13 | $ | 9 | $ | 31 | 238.5 | % | $ | 35 | 388.9 | % | |||||||||||||||||
| FHLB stock | 52 | 37 | 44 | 15 | 40.5 | 8 | 18.2 | ||||||||||||||||||||||||
| Securities: | |||||||||||||||||||||||||||||||
| Taxable | 363 | 360 | 387 | 3 | 0.8 | (24 | ) | (6.2 | ) | ||||||||||||||||||||||
| Tax-exempt | 62 | 70 | 72 | (8 | ) | (11.4 | ) | (10 | ) | (13.9 | ) | ||||||||||||||||||||
| Total securities | 425 | 430 | 459 | (5 | ) | (1.2 | ) | (34 | ) | (7.4 | ) | ||||||||||||||||||||
| Loans: | |||||||||||||||||||||||||||||||
| SBA loans | 721 | 713 | 679 | 8 | 1.1 | 42 | 6.2 | ||||||||||||||||||||||||
| SBA 504 loans | 385 | 346 | 346 | 39 | 11.3 | 39 | 11.3 | ||||||||||||||||||||||||
| Commercial loans | 5,676 | 5,637 | 5,066 | 39 | 0.7 | 610 | 12.0 | ||||||||||||||||||||||||
| Residential mortgage loans | 2,942 | 2,939 | 2,582 | 3 | 0.1 | 360 | 13.9 | ||||||||||||||||||||||||
| Consumer loans | 931 | 880 | 699 | 51 | 5.8 | 232 | 33.2 | ||||||||||||||||||||||||
| Total loans | 10,655 | 10,515 | 9,372 | 140 | 1.3 | 1,283 | 13.7 | ||||||||||||||||||||||||
| Total interest income | 11,176 | 10,995 | 9,884 | 181 | 1.6 | 1,292 | 13.1 | ||||||||||||||||||||||||
| INTEREST EXPENSE | |||||||||||||||||||||||||||||||
| Interest-bearing demand deposits | 137 | 121 | 106 | 16 | 13.2 | 31 | 29.2 | ||||||||||||||||||||||||
| Savings deposits | 366 | 298 | 264 | 68 | 22.8 | 102 | 38.6 | ||||||||||||||||||||||||
| Time deposits | 951 | 910 | 686 | 41 | 4.5 | 265 | 38.6 | ||||||||||||||||||||||||
| Borrowed funds and subordinated debentures | 735 | 686 | 808 | 49 | 7.1 | (73 | ) | (9.0 | ) | ||||||||||||||||||||||
| Total interest expense | 2,189 | 2,015 | 1,864 | 174 | 8.6 | 325 | 17.4 | ||||||||||||||||||||||||
| Net interest income | 8,987 | 8,980 | 8,020 | 7 | 0.1 | 967 | 12.1 | ||||||||||||||||||||||||
| Provision for loan losses | 200 | 100 | 200 | 100 | 100.0 | - | - | ||||||||||||||||||||||||
| Net interest income after provision for loan losses | 8,787 | 8,880 | 7,820 | (93 | ) | (1.0 | ) | 967 | 12.4 | ||||||||||||||||||||||
| NONINTEREST INCOME | |||||||||||||||||||||||||||||||
| Branch fee income | 333 | 402 | 346 | (69 | ) | (17.2 | ) | (13 | ) | (3.8 | ) | ||||||||||||||||||||
| Service and loan fee income | 255 | 266 | 296 | (11 | ) | (4.1 | ) | (41 | ) | (13.9 | ) | ||||||||||||||||||||
| Gain on sale of SBA loans held for sale, net | 308 | 533 | 363 | (225 | ) | (42.2 | ) | (55 | ) | (15.2 | ) | ||||||||||||||||||||
| Gain on sale of mortgage loans, net | 715 | 379 | 344 | 336 | 88.7 | 371 | 107.8 | ||||||||||||||||||||||||
| BOLI income | 94 | 96 | 94 | (2 | ) | (2.1 | ) | - | - | ||||||||||||||||||||||
| Net security gains | 94 | - | - | 94 | 100.0 | 94 | 100.0 | ||||||||||||||||||||||||
| Other income | 217 | 244 | 198 | (27 | ) | (11.1 | ) | 19 | 9.6 | ||||||||||||||||||||||
| Total noninterest income | 2,016 | 1,920 | 1,641 | 96 | 5.0 | 375 | 22.9 | ||||||||||||||||||||||||
| NONINTEREST EXPENSE | |||||||||||||||||||||||||||||||
| Compensation and benefits | 3,549 | 3,528 | 3,472 | 21 | 0.6 | 77 | 2.2 | ||||||||||||||||||||||||
| Occupancy | 618 | 644 | 672 | (26 | ) | (4.0 | ) | (54 | ) | (8.0 | ) | ||||||||||||||||||||
| Processing and communications | 598 | 620 | 596 | (22 | ) | (3.5 | ) | 2 | 0.3 | ||||||||||||||||||||||
| Furniture and equipment | 420 | 455 | 373 | (35 | ) | (7.7 | ) | 47 | 12.6 | ||||||||||||||||||||||
| Professional services | 255 | 213 | 236 | 42 | 19.7 | 19 | 8.1 | ||||||||||||||||||||||||
| Loan costs | 198 | 113 | 221 | 85 | 75.2 | (23 | ) | (10.4 | ) | ||||||||||||||||||||||
| OREO expenses | 24 | 265 | 35 | (241 | ) | (90.9 | ) | (11 | ) | (31.4 | ) | ||||||||||||||||||||
| Deposit insurance | 160 | 173 | 183 | (13 | ) | (7.5 | ) | (23 | ) | (12.6 | ) | ||||||||||||||||||||
| Advertising | 241 | 302 | 182 | (61 | ) | (20.2 | ) | 59 | 32.4 | ||||||||||||||||||||||
| Other expenses | 544 | 533 | 532 | 11 | 2.1 | 12 | 2.3 | ||||||||||||||||||||||||
| Total noninterest expense | 6,607 | 6,846 | 6,502 | (239 | ) | (3.5 | ) | 105 | 1.6 | ||||||||||||||||||||||
| Income before provision for income taxes and gain on subordinated debenture | 4,196 | 3,954 | 2,959 | 242 | 6.1 | 1,237 | 41.8 | ||||||||||||||||||||||||
| Provision for income taxes | 1,464 | 1,315 | 1,020 | 149 | 11.3 | 444 | 43.5 | ||||||||||||||||||||||||
| Net income before gain on subordinated debenture | $ | 2,732 | $ | 2,639 | $ | 1,939 | $ | 93 | 3.5 | % | $ | 793 | 40.9 | % | |||||||||||||||||
| Gain on subordinated debenture, net of tax | 1,473 | - | - | 1,473 | NM | 1,473 | NM | ||||||||||||||||||||||||
| Net income | $ | 4,205 | $ | 2,639 | $ | 1,939 | $ | 1,566 | 59.3 | % | $ | 2,266 | 116.9 | % | |||||||||||||||||
| Effective tax rate | 34.9 | % | 33.3 | % | 34.5 | % | |||||||||||||||||||||||||
| Net income before gain on subordinated debenture per: | |||||||||||||||||||||||||||||||
| Common share - basic | $ | 0.32 | $ | 0.31 | $ | 0.23 | |||||||||||||||||||||||||
| Common share - diluted | $ | 0.31 | $ | 0.31 | $ | 0.23 | |||||||||||||||||||||||||
| Net income per: | |||||||||||||||||||||||||||||||
| Common share - basic | $ | 0.50 | $ | 0.31 | $ | 0.23 | |||||||||||||||||||||||||
| Common share - diluted | $ | 0.48 | $ | 0.31 | $ | 0.23 | |||||||||||||||||||||||||
| Weighted average common shares outstanding - Basic | 8,459 | 8,430 | 8,417 | ||||||||||||||||||||||||||||
| Weighted average common shares outstanding - Diluted | 8,682 | 8,547 | 8,514 | ||||||||||||||||||||||||||||
| UNITY BANCORP, INC. | ||||||||||||||||||||||||||||
| QUARTER TO DATE NET INTEREST MARGIN | ||||||||||||||||||||||||||||
| March 31, 2016 | ||||||||||||||||||||||||||||
| (Dollar amounts in thousands, interest amounts and interest rates/yields on a fully tax-equivalent basis) | ||||||||||||||||||||||||||||
| For the three months ended | ||||||||||||||||||||||||||||
| March 31, 2016 | December 31, 2015 | |||||||||||||||||||||||||||
| Average Balance | Interest | Rate/Yield | Average Balance | Interest | Rate/Yield | |||||||||||||||||||||||
| ASSETS | ||||||||||||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||||||||||
| Federal funds sold and interest-bearing deposits | $ | 78,681 | $ | 44 | 0.22 | % | $ | 47,421 | $ | 13 | 0.11 | % | ||||||||||||||||
| FHLB stock | 4,549 | 52 | 4.60 | 3,700 | 37 | 3.97 | ||||||||||||||||||||||
| Securities: | ||||||||||||||||||||||||||||
| Taxable | 59,152 | 363 | 2.47 | 59,425 | 360 | 2.40 | ||||||||||||||||||||||
| Tax-exempt | 9,548 | 94 | 3.96 | 11,564 | 104 | 3.57 | ||||||||||||||||||||||
| Total securities (A) | 68,700 | 457 | 2.68 | 70,989 | 464 | 2.59 | ||||||||||||||||||||||
| Loans: | ||||||||||||||||||||||||||||
| SBA loans | 53,942 | 721 | 5.38 | 54,912 | 713 | 5.15 | ||||||||||||||||||||||
| SBA 504 loans | 29,232 | 385 | 5.30 | 29,319 | 346 | 4.68 | ||||||||||||||||||||||
| Commercial loans | 463,927 | 5,676 | 4.92 | 452,494 | 5,637 | 4.94 | ||||||||||||||||||||||
| Residential mortgage loans | 264,208 | 2,942 | 4.48 | 259,938 | 2,939 | 4.49 | ||||||||||||||||||||||
| Consumer loans | 78,328 | 931 | 4.78 | 75,789 | 880 | 4.61 | ||||||||||||||||||||||
| Total loans (B) | 889,637 | 10,655 | 4.82 | 872,452 | 10,515 | 4.78 | ||||||||||||||||||||||
| Total interest-earning assets | $ | 1,041,567 | $ | 11,208 | 4.33 | % | $ | 994,562 | $ | 11,029 | 4.40 | % | ||||||||||||||||
| Noninterest-earning assets: | ||||||||||||||||||||||||||||
| Cash and due from banks | 27,006 | 24,214 | ||||||||||||||||||||||||||
| Allowance for loan losses | (12,926 | ) | (12,801 | ) | ||||||||||||||||||||||||
| Other assets | 45,486 | 44,055 | ||||||||||||||||||||||||||
| Total noninterest-earning assets | 59,566 | 55,468 | ||||||||||||||||||||||||||
| Total assets | $ | 1,101,133 | $ | 1,050,030 | ||||||||||||||||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||||||
| Total interest-bearing demand deposits | $ | 131,339 | $ | 137 | 0.42 | % | $ | 131,800 | $ | 121 | 0.36 | % | ||||||||||||||||
| Total savings deposits | 310,251 | 366 | 0.47 | 295,013 | 298 | 0.40 | ||||||||||||||||||||||
| Total time deposits | 282,110 | 951 | 1.36 | 271,647 | 910 | 1.33 | ||||||||||||||||||||||
| Total interest-bearing deposits | 723,700 | 1,454 | 0.81 | 698,460 | 1,329 | 0.75 | ||||||||||||||||||||||
| Borrowed funds and subordinated debentures | 104,350 | 735 | 2.83 | 87,465 | 686 | 3.11 | ||||||||||||||||||||||
| Total interest-bearing liabilities | $ | 828,050 | $ | 2,189 | 1.06 | % | $ | 785,925 | $ | 2,015 | 1.02 | % | ||||||||||||||||
| Noninterest-bearing liabilities: | ||||||||||||||||||||||||||||
| Noninterest-bearing demand deposits | 187,226 | 182,024 | ||||||||||||||||||||||||||
| Other liabilities | 5,528 | 5,056 | ||||||||||||||||||||||||||
| Total noninterest-bearing liabilities | 192,754 | 187,080 | ||||||||||||||||||||||||||
| Total shareholders' equity | 80,329 | 77,025 | ||||||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 1,101,133 | $ | 1,050,030 | ||||||||||||||||||||||||
| Net interest spread | $ | 9,019 | 3.27 | % | $ | 9,014 | 3.38 | % | ||||||||||||||||||||
| Tax-equivalent basis adjustment | (32 | ) | (34 | ) | ||||||||||||||||||||||||
| Net interest income | $ | 8,987 | $ | 8,980 | ||||||||||||||||||||||||
| Net interest margin | 3.48 | % | 3.60 | % | ||||||||||||||||||||||||
| (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 35 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, 2016 | ||||||||||||||||||||||||||||
| (Dollar amounts in thousands, interest amounts and interest rates/yields on a fully tax-equivalent basis) | ||||||||||||||||||||||||||||
| For the three months ended | ||||||||||||||||||||||||||||
| March 31, 2016 | March 31, 2015 | |||||||||||||||||||||||||||
| Average Balance | Interest | Rate/Yield | Average Balance | Interest | Rate/Yield | |||||||||||||||||||||||
| ASSETS | ||||||||||||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||||||||||
| Federal funds sold and interest-bearing deposits | $ | 78,681 | $ | 44 | 0.22 | % | $ | 37,280 | $ | 9 | 0.10 | % | ||||||||||||||||
| FHLB stock | 4,549 | 52 | 4.60 | 3,847 | 44 | 4.64 | ||||||||||||||||||||||
| Securities: | ||||||||||||||||||||||||||||
| Taxable | 59,152 | 363 | 2.47 | 67,046 | 387 | 2.34 | ||||||||||||||||||||||
| Tax-exempt | 9,548 | 94 | 3.96 | 11,984 | 106 | 3.59 | ||||||||||||||||||||||
| Total securities (A) | 68,700 | 457 | 2.68 | 79,030 | 493 | 2.53 | ||||||||||||||||||||||
| Loans: | ||||||||||||||||||||||||||||
| SBA loans | 53,942 | 721 | 5.38 | 48,405 | 679 | 5.69 | ||||||||||||||||||||||
| SBA 504 loans | 29,232 | 385 | 5.30 | 33,397 | 346 | 4.20 | ||||||||||||||||||||||
| Commercial loans | 463,927 | 5,676 | 4.92 | 406,095 | 5,066 | 5.06 | ||||||||||||||||||||||
| Residential mortgage loans | 264,208 | 2,942 | 4.48 | 226,125 | 2,582 | 4.63 | ||||||||||||||||||||||
| Consumer loans | 78,328 | 931 | 4.78 | 62,355 | 699 | 4.55 | ||||||||||||||||||||||
| Total loans (B) | 889,637 | 10,655 | 4.82 | 776,377 | 9,372 | 4.90 | ||||||||||||||||||||||
| Total interest-earning assets | $ | 1,041,567 | $ | 11,208 | 4.33 | % | $ | 896,534 | $ | 9,918 | 4.49 | % | ||||||||||||||||
| Noninterest-earning assets: | ||||||||||||||||||||||||||||
| Cash and due from banks | 27,006 | 29,908 | ||||||||||||||||||||||||||
| Allowance for loan losses | (12,926 | ) | (12,701 | ) | ||||||||||||||||||||||||
| Other assets | 45,486 | 43,206 | ||||||||||||||||||||||||||
| Total noninterest-earning assets | 59,566 | 60,413 | ||||||||||||||||||||||||||
| Total assets | $ | 1,101,133 | $ | 956,947 | ||||||||||||||||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||||||
| Total interest-bearing demand deposits | $ | 131,339 | $ | 137 | 0.42 | % | $ | 126,593 | $ | 106 | 0.34 | % | ||||||||||||||||
| Total savings deposits | 310,251 | 366 | 0.47 | 290,006 | 264 | 0.37 | ||||||||||||||||||||||
| Total time deposits | 282,110 | 951 | 1.36 | 211,425 | 686 | 1.32 | ||||||||||||||||||||||
| Total interest-bearing deposits | 723,700 | 1,454 | 0.81 | 628,024 | 1,056 | 0.68 | ||||||||||||||||||||||
| Borrowed funds and subordinated debentures | 104,350 | 735 | 2.83 | 91,909 | 808 | 3.57 | ||||||||||||||||||||||
| Total interest-bearing liabilities | $ | 828,050 | $ | 2,189 | 1.06 | % | $ | 719,933 | $ | 1,864 | 1.05 | % | ||||||||||||||||
| Noninterest-bearing liabilities: | ||||||||||||||||||||||||||||
| Noninterest-bearing demand deposits | 187,226 | 161,729 | ||||||||||||||||||||||||||
| Other liabilities | 5,528 | 4,307 | ||||||||||||||||||||||||||
| Total noninterest-bearing liabilities | 192,754 | 166,036 | ||||||||||||||||||||||||||
| Total shareholders' equity | 80,329 | 70,978 | ||||||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 1,101,133 | $ | 956,947 | ||||||||||||||||||||||||
| Net interest spread | $ | 9,019 | 3.27 | % | $ | 8,054 | 3.44 | % | ||||||||||||||||||||
| Tax-equivalent basis adjustment | (32 | ) | (34 | ) | ||||||||||||||||||||||||
| Net interest income | $ | 8,987 | $ | 8,020 | ||||||||||||||||||||||||
| Net interest margin | 3.48 | % | 3.64 | % | ||||||||||||||||||||||||
| (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 35 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. | ||||||||||||||||||||||
| QUARTERLY ALLOWANCE FOR LOAN LOSSES AND LOAN QUALITY SCHEDULES | ||||||||||||||||||||||
| March 31, 2016 | ||||||||||||||||||||||
| Amounts in thousands, except percentages | Mar. 31, 2016 | Dec. 31, 2015 | Sept. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | |||||||||||||||||
| ALLOWANCE FOR LOAN LOSSES: | ||||||||||||||||||||||
| Balance, beginning of period | $ | 12,759 | $ | 12,421 | $ | 12,404 | $ | 12,181 | $ | 12,551 | ||||||||||||
| Provision for loan losses charged to expense | 200 | 100 | 200 | - | 200 | |||||||||||||||||
| 12,959 | 12,521 | 12,604 | 12,181 | 12,751 | ||||||||||||||||||
| Less: Chargeoffs | ||||||||||||||||||||||
| SBA loans | 86 | 151 | 86 | 6 | 128 | |||||||||||||||||
| SBA 504 loans | - | - | - | - | 589 | |||||||||||||||||
| Commercial loans | 228 | 52 | 10 | 147 | 100 | |||||||||||||||||
| Residential mortgage loans | - | - | 50 | - | - | |||||||||||||||||
| Consumer loans | 28 | 41 | 52 | 7 | 30 | |||||||||||||||||
| Total chargeoffs | 342 | 244 | 198 | 160 | 847 | |||||||||||||||||
| Add: Recoveries | ||||||||||||||||||||||
| SBA loans | 11 | 6 | 10 | 2 | 37 | |||||||||||||||||
| SBA 504 loans | - | - | - | - | - | |||||||||||||||||
| Commercial loans | 6 | 476 | 5 | 370 | 201 | |||||||||||||||||
| Residential mortgage loans | - | - | - | 10 | 39 | |||||||||||||||||
| Consumer loans | - | - | - | 1 | - | |||||||||||||||||
| Total recoveries | 17 | 482 | 15 | 383 | 277 | |||||||||||||||||
| Net chargeoffs (recoveries) | 325 | (238 | ) | 183 | (223 | ) | 570 | |||||||||||||||
| Balance, end of period | $ | 12,634 | $ | 12,759 | $ | 12,421 | $ | 12,404 | $ | 12,181 | ||||||||||||
| LOAN QUALITY INFORMATION: | ||||||||||||||||||||||
| Nonperforming loans (1) | $ | 6,887 | $ | 7,260 | $ | 10,742 | $ | 8,837 | $ | 9,141 | ||||||||||||
| Other real estate owned ("OREO") | 1,417 | 1,591 | 1,759 | 2,265 | 1,975 | |||||||||||||||||
| Nonperforming assets | 8,304 | 8,851 | 12,501 | 11,102 | 11,116 | |||||||||||||||||
| Less: Amount guaranteed by SBA | 243 | 288 | 225 | 267 | 270 | |||||||||||||||||
| Net nonperforming assets | $ | 8,061 | $ | 8,563 | $ | 12,276 | $ | 10,835 | $ | 10,846 | ||||||||||||
| Loans 90 days past due & still accruing | $ | - | $ | - | $ | 272 | $ | 273 | $ | 5 | ||||||||||||
| Performing Troubled Debt Restructurings (TDRs) | $ | 844 | $ | 3,015 | $ | 3,268 | $ | 3,360 | $ | 3,458 | ||||||||||||
| (1) Nonperforming TDRs included in nonperforming loans | 293 | 293 | 2,808 | 2,843 | 2,911 | |||||||||||||||||
| Total TDRs | $ | 1,137 | $ | 3,308 | $ | 6,076 | $ | 6,203 | $ | 6,369 | ||||||||||||
| Allowance for loan losses to: | ||||||||||||||||||||||
| Total loans at quarter end | 1.42 | % | 1.44 | % | 1.45 | % | 1.51 | % | 1.55 | % | ||||||||||||
| Nonperforming loans (1) | 183.45 | 175.74 | 115.63 | 140.36 | 133.26 | |||||||||||||||||
| Nonperforming assets | 152.14 | 144.15 | 99.36 | 111.73 | 109.58 | |||||||||||||||||
| Net nonperforming assets | 156.73 | 149.00 | 101.18 | 114.48 | 112.31 | |||||||||||||||||
| QTD net chargeoffs (annualized) to QTD average loans: | ||||||||||||||||||||||
| SBA loans | 0.56 | % | 1.05 | % | 0.57 | % | 0.03 | % | 0.76 | % | ||||||||||||
| SBA 504 loans | - | - | - | - | 7.15 | |||||||||||||||||
| Commercial loans | 0.19 | (0.37 | ) | - | (0.21 | ) | (0.10 | ) | ||||||||||||||
| Residential mortgage loans | - | - | 0.08 | (0.02 | ) | (0.07 | ) | |||||||||||||||
| Consumer loans | 0.14 | 0.21 | 0.28 | 0.04 | 0.20 | |||||||||||||||||
| Total loans | 0.15 | % | (0.11 | ) | % | 0.09 | % | (0.11 | ) | % | 0.30 | % | ||||||||||
| Nonperforming loans to total loans | 0.78 | % | 0.82 | % | 1.26 | % | 1.08 | % | 1.16 | % | ||||||||||||
| Nonperforming loans and TDRs to total loans | 0.87 | 1.16 | 1.64 | 1.48 | 1.61 | |||||||||||||||||
| Nonperforming assets to total loans and OREO | 0.93 | 0.99 | 1.46 | 1.35 | 1.41 | |||||||||||||||||
| Nonperforming assets to total assets | 0.74 | 0.82 | 1.19 | 1.08 | 1.07 | |||||||||||||||||
| UNITY BANCORP, INC. | |||||||||||||||||||||||||||
| QUARTERLY FINANCIAL DATA | |||||||||||||||||||||||||||
| NON-GAAP | |||||||||||||||||||||||||||
| March 31, 2016 | |||||||||||||||||||||||||||
| (In thousands, except percentages and per share amounts) | Mar. 31, 2016 | Dec. 31, 2015 | Sept. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | ||||||||||||||||||||||
| SUMMARY OF INCOME: | |||||||||||||||||||||||||||
| Total interest income | $ | 11,176 | $ | 10,995 | $ | 10,554 | $ | 10,218 | $ | 9,884 | |||||||||||||||||
| Total interest expense | 2,189 | 2,015 | 1,932 | 1,849 | 1,864 | ||||||||||||||||||||||
| Net interest income | 8,987 | 8,980 | 8,622 | 8,369 | 8,020 | ||||||||||||||||||||||
| Provision for loan losses | 200 | 100 | 200 | - | 200 | ||||||||||||||||||||||
| Net interest income after provision for loan losses | 8,787 | 8,880 | 8,422 | 8,369 | 7,820 | ||||||||||||||||||||||
| Total noninterest income | 2,016 | 1,920 | 2,275 | 1,893 | 1,641 | ||||||||||||||||||||||
| Total noninterest expense | 6,607 | 6,846 | 6,852 | 6,652 | 6,502 | ||||||||||||||||||||||
| Income before provision for income taxes and gain on subordinated debenture | 4,196 | 3,954 | 3,845 | 3,610 | 2,959 | ||||||||||||||||||||||
| Provision for income taxes | 1,464 | 1,315 | 1,294 | 1,182 | 1,020 | ||||||||||||||||||||||
| Net income before gain on subordinated debenture | $ | 2,732 | $ | 2,639 | $ | 2,551 | $ | 2,428 | $ | 1,939 | |||||||||||||||||
| Gain on subordinated debenture, net of tax | 1,473 | - | - | - | - | ||||||||||||||||||||||
| Net income | $ | 4,205 | $ | 2,639 | $ | 2,551 | $ | 2,428 | $ | 1,939 | |||||||||||||||||
| Net income per common share - Basic | $ | 0.50 | $ | 0.31 | $ | 0.30 | $ | 0.29 | $ | 0.23 | |||||||||||||||||
| Net income per common share - Diluted | $ | 0.48 | $ | 0.31 | $ | 0.30 | $ | 0.28 | $ | 0.23 | |||||||||||||||||
| COMMON SHARE DATA: | |||||||||||||||||||||||||||
| Market price per share | $ | 11.37 | $ | 12.47 | $ | 9.77 | $ | 9.79 | $ | 9.08 | |||||||||||||||||
| Dividends paid | $ | 0.04 | $ | 0.04 | $ | 0.04 | $ | 0.03 | $ | 0.03 | |||||||||||||||||
| Book value per common share | $ | 9.72 | $ | 9.30 | $ | 9.02 | $ | 8.75 | $ | 8.55 | |||||||||||||||||
| Weighted average common shares outstanding - Basic | 8,459 | 8,430 | 8,427 | 8,425 | 8,417 | ||||||||||||||||||||||
| Weighted average common shares outstanding - Diluted | 8,682 | 8,547 | 8,536 | 8,524 | 8,514 | ||||||||||||||||||||||
| Issued and outstanding common shares | 8,468 | 8,436 | 8,429 | 8,425 | 8,423 | ||||||||||||||||||||||
| OPERATING RATIOS (Annualized): | |||||||||||||||||||||||||||
| Return on average assets | 1.54 | % | 1.00 | % | 1.00 | % | 1.01 | % | 0.82 | % | |||||||||||||||||
| Return on average equity | 21.05 | 13.59 | 13.54 | 13.35 | 11.08 | ||||||||||||||||||||||
| Efficiency ratio | 50.16 | 62.81 | 62.88 | 64.99 | 67.30 | ||||||||||||||||||||||
| BALANCE SHEET DATA: | |||||||||||||||||||||||||||
| Total assets | $ | 1,120,955 | $ | 1,084,866 | $ | 1,052,711 | $ | 1,024,303 | $ | 1,035,404 | |||||||||||||||||
| Total deposits | 926,819 | 894,493 | 866,247 | 815,427 | 789,441 | ||||||||||||||||||||||
| Total loans | 886,990 | 888,958 | 855,560 | 821,696 | 784,642 | ||||||||||||||||||||||
| Total securities | 66,729 | 71,336 | 71,492 | 74,375 | 77,308 | ||||||||||||||||||||||
| Total shareholders' equity | 82,276 | 78,470 | 76,065 | 73,690 | 71,987 | ||||||||||||||||||||||
| Allowance for loan losses | (12,634 | ) | (12,759 | ) | (12,421 | ) | (12,404 | ) | (12,181 | ) | |||||||||||||||||
| TAX EQUIVALENT YIELDS AND RATES: | |||||||||||||||||||||||||||
| Interest-earning assets | 4.33 | % | 4.40 | % | 4.41 | % | 4.52 | % | 4.49 | % | |||||||||||||||||
| Interest-bearing liabilities | 1.06 | 1.02 | 1.01 | 1.03 | 1.05 | ||||||||||||||||||||||
| Net interest spread | 3.27 | 3.38 | 3.40 | 3.49 | 3.44 | ||||||||||||||||||||||
| Net interest margin | 3.48 | 3.60 | 3.60 | 3.70 | 3.64 | ||||||||||||||||||||||
| CREDIT QUALITY: | |||||||||||||||||||||||||||
| Nonperforming assets | 8,304 | 8,851 | 12,501 | 11,102 | 11,116 | ||||||||||||||||||||||
| QTD net chargeoffs (annualized) to QTD average loans | 0.15 | % | (0.11 | ) | % | 0.09 | % | (0.11 | ) | % | 0.30 | % | |||||||||||||||
| Allowance for loan losses to total loans | 1.42 | 1.44 | 1.45 | 1.51 | 1.55 | ||||||||||||||||||||||
| Nonperforming assets to total loans and OREO | 0.93 | 0.99 | 1.46 | 1.35 | 1.41 | ||||||||||||||||||||||
| Nonperforming assets to total assets | 0.74 | 0.82 | 1.19 | 1.08 | 1.07 | ||||||||||||||||||||||
| CAPITAL RATIOS AND OTHER: | |||||||||||||||||||||||||||
| Total equity to total assets | 7.34 | % | 7.23 | % | 7.23 | % | 7.19 | % | 6.95 | % | |||||||||||||||||
| Leverage ratio | 8.31 | 8.82 | 8.92 | 9.09 | 8.94 | ||||||||||||||||||||||
| Common equity tier 1 risk-based capital ratio | 9.77 | 9.37 | 9.37 | 9.39 | 9.25 | ||||||||||||||||||||||
| Tier 1 risk-based capital ratio | 10.97 | 11.18 | 11.25 | 11.33 | 11.22 | ||||||||||||||||||||||
| Total risk-based capital ratio | 12.22 | 12.43 | 12.50 | 12.59 | 12.48 | ||||||||||||||||||||||
| Number of banking offices | 15 | 15 | 15 | 15 | 15 | ||||||||||||||||||||||
| Number of ATMs | 16 | 16 | 16 | 16 | 16 | ||||||||||||||||||||||
| Number of employees | 164 | 162 | 163 | 177 | 166 | ||||||||||||||||||||||