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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) May 4, 2000
UNITY BANCORP, INC.
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(Exact name of registrant as specified in its charter)
DELAWARE 1-12431 22-3282551
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
64 OLD HIGHWAY 22, CLINTON, NEW JERSEY 08809
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (908) 730-7630
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Item 5. Other.
The Registrant issued a press release on May 4, 2000 announcing the
Registrant's first quarter 2000 results.
Item 7. Exhibits.
The following exhibit is filed with this Current Report on Form 8-K.
Exhibit No. Description
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99 Press Release dated May 4, 2000
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
Unity Bancorp, Inc. has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
UNITY BANCORP, INC.
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(Registrant)
Dated: May 12, 2000 By: /s/ KEVIN KILLIAN
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KEVIN KILLIAN, Chief Financial Officer
EXHIBIT INDEX
CURRENT REPORT ON FORM 8-K
Exhibit No. Description Page No.
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99 Press Release dated May 4, 2000 5 -9
EXHIBIT 99
UNITY BANCORP, INC. REPORTS 1ST QUARTER 2000 RESULTS
CLINTON, N.J.--(BUSINESS WIRE)--May 4, 2000--For the quarter ended March 31,
2000, UNITY BANCORP, INC. (NASDAQ: UNTY), parent company of Unity Bank, reported
a net loss of $989 thousand, or a $0.27 loss per basic share, including $439
thousand associated with a previously disclosed sale of assets as part of the
Company's Capital Restoration Plan. For the quarter ended March 31, 1999, the
Company reported net income of $501 thousand or $0.13 basic earnings per share.
On March 13, 2000, Unity Bancorp announced it had successfully completed a $5.2
million private placement offering. Unity issued 103,500 shares of newly created
Class A Preferred Stock at a price of $50.00 per share. Current shareholders and
insiders contributed nearly 40% or $1.9 million, while $3.3 million was funded
by new shareholders. As a result of the capital offering and the loan sale,
which effectively reduced the capital required by the Restoration Plan by over
$2 million due to a reduction in total assets, the Company and its subsidiary,
Unity Bank are in full compliance with federal regulatory capital ratios as of
March 31, 2000.
Chairman and CEO Robert J. Van Volkenburgh commented, "Having fully absorbed
most of the one-time and extraordinary expenses, including those associated with
the Company's Capital Restoration Plan, and since many of the Bank's newly
opened retail financial service centers now meet or exceed pro-forma
projections, the Company is confident it can capitalize on the diversified
market and product opportunities it has built over the course of the last twelve
months and is poised to recognize returns consistent with that objective."
At March 31, 2000, total assets grew to $409.7 million, an increase of $111.5
million, or 37.4% over the $298.3 million reported as of March 31, 1999. For the
same period, total loans grew to $286.0 million, an increase of $115.2 million,
or 67.4% over last year's total of $170.8 million. Total deposits increased to
$377.3 million at March 31, 2000, a $112.1 million, or 42.3% increase on the
$265.2 million reported as of March 31, 1999. As a result of the aforementioned
asset sale, total assets and total loans declined $29.2 million, or 6.7% and
$35.4 million, or 11.0%, respectively, from December 31, 1999. Total deposits
increased $19.8 million, or 5.5% from December 31, 1999. The increase in
deposits, along with the funds generated by the asset sale, were primarily used
to eliminate borrowings, reported as $53 million at December 31, 1999.
Unity Bancorp, Inc., parent company of Unity Bank, is headquartered in Clinton,
New Jersey, and has assets is excess of $400 million. The Bank operates 17 full
service retail financial service centers located throughout central New Jersey
offering a large array of traditional deposit products and credit facilities
developed for consumers and commercial entities. Unity Bank provides a variety
of residential mortgage programs through its subsidiary, Certified Mortgage
Associates. Unity is also a leading "Preferred Lender" of SBA financing in New
Jersey, Pennsylvania, Delaware and New York.
For additional information about the Bank, call Unity Direct at 800.618.BANK, or
visit Unity's website at www.unitybank.com. E-mail may be addressed to the Bank
at [email protected].
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UNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF CONDITION
FOR THE PERIODS ENDED
MARCH 31, 2000, MARCH 31, 1999 AND DECEMBER 31, 1999
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(In thousands, except
share amounts (unaudited) (unaudited)
March 31, December 31, March 31,
ASSETS 2000 1999 1999
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Cash and due from banks $19,464 $15,121 $27,703
Federal funds sold 3,500 0 29,150
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Total cash and cash
equivalents 22,964 15,121 56,853
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Securities :
Available for sale, at fair value
Held to maturity, at amortized cost
(aggregate fair value of $31,946,
$24,040 and $32,270 at 3/31/00,
12/31/99 and 3/31/99,
respectively) 34,016 34,250 24,646
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Total securities 73,526 74,349 47,017
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Loans held for sale - SBA loans 3,839 3,745 2,566
Loans held for sale - ARM loans 0 36,362 0
Loans held to maturity 282,179 281,376 168,268
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Total loans 286,018 321,483 170,834
Plus: Deferred Costs 1,051 1,049 (273)
Less: Allowance for loan losses 2,341 2,173 1,684
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Net loans 284,728 320,359 169,423
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Premises and equipment, net 11,906 12,370 8,560
Accrued interest receivable 3,314 2,862 1,207
Cash surrender value of
insurance policies 2,218 2,203 6,082
Other real estate owned 758 1,505 0
Other assets 10,328 10,200 9,148
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Total Assets $409,742 $438,969 $298,290
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LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES:
Deposits
Demand:
Non-interest bearing $58,613 $65,079 $45,325
Interest bearing 115,716 104,343 75,923
Savings 36,697 37,910 32,661
Time, $100,000 and over 71,275 71,102 27,271
Time, under $100,000 95,038 79,104 84,020
Total time 166,313 150,206 111,291
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Total Deposits 377,339 357,538 265,200
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Borrowed funds 0 53,000 0
Obligation under capital lease 3,876 4,096 3,401
Accrued interest payable 1,046 1,199 509
Accrued expenses and other
liabilities 1,851 1,344 1,423
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Total liabilities 384,112 417,177 270,533
Shareholders' Equity:
Common stock, no par value
7,500,000 shares authorized,
3,861,568 shares issued and
3,704,708 outstanding at
3/31/00 and 12/31/99, and
3,776,935 at 3/31/99 26,224 26,224 25,332
Treasury stock, at cost, 156,860
shares outstanding at 3/31/00 and
12/31/99, and 84,633 shares
outstanding at 3/31/99 (1,762) (1,762) (1,070)
Preferred Stock, 103,500 shares
issued and outstanding at
3/31/00 and 0 shares issued
and outstanding at 12/31/99
and 3/31/99 4,929 0 0
Retained (deficit) earnings (2,872) (1,856) 3,694
Accumulated other comprehensive
loss, net of tax benefit (889) (814) (199)
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Total Shareholders' Equity 25,630 21,792 27,757
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Total Liabilities and
Shareholders' Equity $409,742 $438,969 $298,290
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UNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2000 AND 1999 (unaudited)
(In thousands, except share
and share amounts) For the three months ending
March 31,
2000 1999
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Interest Income:
Interest on loans $5,928 3,750
Interest on securities 1,163 670
Interest on Federal funds sold 10 169
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Total interest income 7,101 4,589
Interest Expense on deposits 3,641 1,949
Interest Expense on borrowings 584 43
Total Interest Expense 4,225 1,992
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Net Interest Income 2,876 2,597
Provision for loan losses 200 61
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Net Interest Income After
Provision for Loan Losses 2,676 2,536
Other Income:
Service charges on deposits 268 169
Gain on sale of loans (133) 1,116
Net gain on sale of securities 1 121
Other income 407 284
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Total Other Income 543 1,690
Other Expenses:
Salaries and employee benefits 2,301 1,802
Occupancy, Furniture and
Equipment Expense 684 451
Other operating expenses 1,913 1,179
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Total Other Expenses 4,898 3,432
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(Loss) income before provision
for income taxes (1,679) 794
(Benefit) provision for income taxes (690) 293
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Net (Loss) income $(989) $501
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Basic (Loss) earnings per Share $(0.27) $0.13
Diluted (Loss) earnings per Share $(0.27) $0.13
Contact:
Kevin J. Killian
CFO Unity Bancorp, Inc. and Unity Bank
908.730.7630
