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Also reporting Six Month Net Income Increased 55%
Unity Bancorp, Inc. (NASDAQ:UNTY), parent company of Unity Bank, reported increased second quarter and year-to-date earnings. Major contributing factors included strong loan growth, increased deposits and improved credit quality. Both commercial and consumer lending were up; with over ten percent growth in residential mortgages year-to-date.
“Our growth is a reflection of our investment in our communities and employees,” reported James A. Hughes, President and CEO. “Our customers tell us what they need, and we deliver. When our communities grow, we grow. It’s a win-win.”
Net income was $2.4 million, or $0.28 per diluted share, for the three months ended June 30, 2015, a 58.9% increase compared to net income of $1.5 million, or $0.20 per diluted share, for the same period a year ago. Return on average assets and average common equity for the quarter were 1.01% and 13.35%, respectively, compared to 0.68% and 10.31% for the same period a year ago.
Highlights include:
– 7.9% loan growth since year-end 2014 – 18.3% growth in consumer loans, 10.1% growth in residential mortgage loans, and 6.6% growth in commercial loans.
– 14.7% increase in noninterest-bearing demand deposits since year-end 2014.
– 14.6% increase in net interest income compared to the prior year’s quarter due to strong loan growth.
– Net interest margin of 3.70% this quarter compared to 3.49% in the prior year’s quarter.
– Improved credit quality metrics and reduced loan loss provision – net recoveries posted compared to net charge-offs in the prior year’s quarter and a 25.9% decrease in nonperforming loans.
“I am extremely pleased with the operating results of the Bank,” said James A. Hughes, President and CEO. “The record earnings are the direct result of an organization that focuses on sales and service. With a vast array of products that are tailored to our customers’ needs, we are experiencing very strong loan and deposit growth. I am proud to see the continued improvement in the bank’s progress, as it is a direct reflection of a great team of employees that are providing the highest level of service to our valued customers.”
For the six months ended June 30, 2015, net income totaled $4.4 million, or $0.51 per diluted share, compared to $2.8 million or $0.37 per diluted share in the prior year’s period. Return on average assets and average common equity for the six month periods were 0.92% and 12.23%, respectively, compared to 0.64% and 9.70% for the same period a year ago.
