Unity Bancorp Reports Quarterly Earnings of $5.2 Million

Rhea-AI Summary

Unity Bancorp, Inc. (NASDAQ: UNTY) reported a net income of $5.2 million for Q2 2020, reflecting an 11.4% decline compared to $5.8 million in Q2 2019. For the first half of 2020, net income decreased 8.9% to $10.5 million, impacted largely by increased provisions for loan losses due to the COVID-19 pandemic. Despite these challenges, Unity Bank successfully assisted small businesses with Paycheck Protection Program loans and recorded strong mortgage loan volumes during the quarter, maintaining sound fundamentals.

Positive

• Assisted small businesses in securing Paycheck Protection Program loans, enhancing customer relationships.
• Achieved record loan volume in the mortgage division.

Negative

• Net income decreased by 11.4% year-over-year for Q2 2020.
• Increased provision for loan losses due to COVID-19 impacts.

CLINTON, N.J., July 23, 2020 (GLOBE NEWSWIRE) -- Unity Bancorp, Inc. (NASDAQ: UNTY), parent company of Unity Bank, reported net income of $5.2 million, or $0.47 per diluted share, for the quarter ended June 30, 2020, an 11.4 percent decrease compared to $5.8 million, or $0.53 per diluted share for the prior year’s second quarter.   For the six months ended June 30, 2020, Unity reported net income of $10.5 million, or $0.96 per diluted share, an 8.9 percent decrease compared to $11.6 million or $1.05 per diluted share for the prior year’s period. The decreases in earnings were primarily due to an increased provision for loan losses, necessitated by the COVID-19 pandemic and governmental responses.

James A. Hughes, President and CEO, commented on the financial results: “We are living in unprecedented times and throughout this challenging environment, our team has worked diligently to keep our employees and customers safe.  During the quarter, we devoted significant resources to ensure every eligible Unity Bank small business customer who applied received a Paycheck Protection Program (PPP) loan.  In addition, we were successful in working with new customers to obtain PPP loans.  I am extremely proud of our efforts to assist our local small businesses in obtaining critical funds when they need it most.  Many of our customers were negatively impacted by mandatory business closures and restrictions.  In trying to do what is best for our customers, we proactively assisted them with loan deferrals which have terms of 3 or 6 months.  Despite the many challenges from the pandemic, our results for the quarter were still strong.  Our mortgage division had record loan volume and our fundamentals remain sound.  I am optimistic that the vast majority of our small businesses will survive and the economy will begin to recover in the second half of the year.  Our team of community bankers are here for our customers and we look forward to reporting our progress.”

For the full version of the Company’s 2020 second quarter earnings release, including financial tables, please visit http://www.snl.com/IRW/News/101233.

Unity Bancorp, Inc. is a financial service organization headquartered in Clinton, New Jersey, with approximately $1.9 billion in assets and $1.5 billion in deposits.  Unity Bank provides financial services to retail, corporate and small business customers through its 19 retail service centers located in Bergen, Hunterdon, Middlesex, Somerset, Union and Warren Counties in New Jersey and Northampton County in 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 amended or supplemented by our subsequent filings with the SEC, 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, results of regulatory exams, and the impact of COVID-19 on the Bank, its employees and customers, 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.

News Media & Financial Analyst Contact:
Anthony Cossetti, EVP and CFO
(908)713-4565

FAQ

What were Unity Bancorp's earnings for Q2 2020?

Unity Bancorp reported a net income of $5.2 million, or $0.47 per diluted share, for Q2 2020.

How did Unity Bancorp perform in the first half of 2020?

For the first six months of 2020, Unity reported a net income of $10.5 million, a decrease of 8.9% compared to the previous year.

What factors contributed to the decline in Unity Bancorp's earnings?

The decline was primarily due to an increased provision for loan losses as a result of the COVID-19 pandemic.

Did Unity Bancorp assist small businesses during the pandemic?

Yes, Unity Bancorp actively assisted small business customers in obtaining Paycheck Protection Program loans.