Unity Bancorp, Inc. (Nasdaq: UNTY - News), parent company of Unity Bank, reported net income of $1.6 million, or $0.25 per diluted share, for the quarter ended September 30, 2005, a 13.1% increase compared to net income of $1.4 million, or $0.22 per diluted share, for the quarter ended September 30, 2004. Return on average assets and average common equity for the third quarter of 2005 were 1.09% and 16.36%, respectively, as compared to 1.17% and 17.39%, respectively, for the third quarter of 2004. All share amounts have been restated to include the effect of the 5% stock dividend paid on June 30, 2005.

For the nine months ended September 30, 2005, net income was $4.5 million, or $0.69 per diluted share, a 12.2% increase from net income of $4.0 million, or $0.62 per diluted share for the same period a year ago. Return on average assets and average common equity for the nine months ended September 30, 2005, were 1.08% and 15.82%, respectively, as compared to 1.11% and 16.61%, respectively, from the prior year period.

"The third quarter was marked by strong loan and deposit growth and stable margins, which resulted in record earnings," said Unity President and Chief Executive Officer, James A. Hughes. "We are extremely pleased with our year to date results and continue to remain optimistic about future earnings growth."

Net interest income was $5.7 million for the third quarter of 2005, a 15.2% increase compared to a year ago. The increase in net interest income was primarily due to an increase in interest-earning assets offset by a slight decline in net interest margin. Net interest margin was 4.12% for the third quarter of 2005, compared to 4.30% for the third quarter of 2004.

The provision for loan losses for the third quarter of 2005 was $675 thousand, compared to $325 thousand for the quarter ended September 30, 2004. The increase in the provision was due to the increase in the loan portfolio and non-performing loans. Net loan charge-offs for the quarter ended September 30, 2005 were $356 thousand, compared to net-charge offs of $198 thousand for the quarter ended September 30, 2004.

Total non-interest income for the third quarter of 2005 was $2.1 million, up 7.4% from the same period a year ago. Service charges on deposits for the third quarter of 2005 increased 18.0% compared to the third quarter of 2004 due to an increase in overdraft charges. Service and loan fees for the third quarter of 2005 were flat from a year ago. Gains on sales of SBA loans amounted to $877 thousand for the third quarter of 2005, compared to $948 thousand for the quarter ended September 30, 2004. Other income for the third quarter of 2005 was flat from the same period a year ago.

Total non-interest expenses for the third quarter of 2005 were $4.6 million, an increase of 5.2% from the prior year's comparable quarter. The increase from the prior year's comparable quarter was primarily due to increases in compensation and benefits, processing and communications, furniture and equipment and advertising expenses. Compensation and benefits increased 21.0%, due to increased head count, merit increases and rising health insurance costs. Processing and communications increased 11.3% due to increased transactional volume. Furniture and equipment increased 8.8%, compared to the third quarter of 2004, due to software maintenance for systems upgrades and the refurbishment of the branch network. Advertising increased 31.3%, compared to the third quarter of 2004 due to increased direct mail marketing expense to attract new deposit relationships. Other expenses decreased 44.4% primarily due to a $275 thousand expense in September of 2004 to settle a lawsuit.

Total assets at September 30, 2005 were $609.9 million, a 23.5% increase from a year ago. The increase in assets from the prior year was primarily due to growth in the Company's loan portfolio and Federal Funds Sold. Total loans at September 30, 2005 were $434.7 million, a 22.7% increase from September 30, 2004. The growth in the loan portfolio occurred in all areas of lending. Commercial loans increased $42.0 million, or 20.9% from the third quarter of 2004. SBA loans increased $18.2 million, or 29.2% from the third quarter of 2004. Residential mortgage loans increased $13.3 million, or 26.4% from the third quarter of 2004. Consumer loans increased $7.1 million, or 17.4% from the third quarter of 2004.

"In the fourth quarter we will be closing on our Phillipsburg New Jersey location, which we are purchasing from interState Net Bank and for which we have received regulatory approval. We are also in the process of building our Middlesex and Washington New Jersey locations," said Mr. Hughes. "We are pleased to successfully move forward with our targeted branch expansion plans of one to three branches per year and look forward to providing increased convenience to our existing clients."

At September 30, 2005, the allowance for loan losses was $6.6 million, or 1.51% of total loans, compared to 1.62% a year ago. Non-performing assets at September 30, 2005 were $5.7 million up $1.4 million from a year ago. The increase in non-performing assets is due to a defaulted $1.6 million residential mortgage. There were no loans greater than 90 days and still accruing as of September 30, 2005, compared to $82 thousand a year ago.

Total deposits at September 30, 2005 were $518.7 million, a 22.4% increase from September 30, 2004. This increase was primarily the result of growth in savings accounts and time deposits, partially offset by the decline in interest bearing checking accounts and demand deposits. Savings accounts increased $101.7 million, or 193.6% from September 30, 2004. Time deposits increased $42.4 million, or 41.8% from September 30, 2004. The increase in savings and time deposits is related to new account relationships from direct mail marketing efforts.

Total shareholders' equity was $39.5 million at September 30, 2005, a 14.9% increase from the prior year. The increase in shareholders' equity was primarily due to retained profits partially offset by the payment of cash dividends and a decline in other comprehensive income.

As of September 30, 2005, the Company's Tier I leverage ratio was 8.55%, Tier I risk-based capital ratio was 10.40%, and total risk-based capital ratio was 11.65%. All regulatory capital ratios exceed the well-capitalized federal capital adequacy requirements as of September 30, 2005.

Unity Bancorp, Inc. is a financial service organization headquartered in Clinton, New Jersey, with $609.9 million in assets and $518.7 million in deposits. Unity Bank provides financial services to retail, corporate & small business customers through its 13 retail service centers located in Hunterdon, Middlesex, Somerset and Union counties in New Jersey. For additional information about Unity visit our website at http://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 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 general economic conditions, trends in interest rates, the ability of our borrowers to repay their loans, and results of regulatory exams, among other factors.

Unity Bancorp, Inc.
Consolidated Financial Highlights
(Dollars in thousands, except per share data)

BALANCE SHEET DATA: 9/30/2005 6/30/2005 9/30/2004
Assets $609,916 $577,507 $493,713
Deposits 518,696 477,274 423,765
Loans 434,749 410,926 354,190
Securities 103,012 113,774 107,815
Shareholders' equity 39,526 38,411 34,395
Allowance for loan losses 6,558 6,239 5,726

FINANCIAL DATA - QUARTER TO DATE:
Net income before taxes 2,612 2,468 2,283
Federal and state income tax provision 993 941 852
Net income $1,619 $1,527 $1,431

Per share-basic $0.26 $0.25 $0.24
Per share-diluted 0.25 0.24 0.22
Return on average assets 1.09 % 1.13 % 1.17 %
Return on average common equity 16.36 16.50 17.39
Efficiency ratio 58.17 62.43 62.55

FINANCIAL DATA - YEAR TO DATE:
Net income before taxes $7,188 $- $6,249
Federal and state income tax provision 2,732 - 2,277
Net income $4,456 $- $3,972

Per share-basic $0.73 $- $0.66
Per share-diluted 0.69 - 0.62
Return on average assets 1.08 % - % 1.11 %
Return on average common equity 15.82 - 16.61
Efficiency ratio 62.16 - 64.60

SHARE INFORMATION:
Closing price per share $13.09 $11.96 $11.76
Cash dividends declared 0.05 0.05 0.04
Book value per share 6.46 % 6.29 5.68
Average diluted shares outstanding (QTD) 6,426 6,423 6,432

CAPITAL RATIOS:
Total equity to total assets 6.48 % 6.65 % 6.97 %
Tier I capital to average assets
(leverage) 8.55 8.67 9.04
Tier I capital to risk-adjusted assets 10.40 10.65 11.44
Total risk-based capital 11.65 11.91 12.69

CREDIT QUALITY AND RATIOS:
Nonperforming assets $5,733 $4,777 $4,290
Net charge offs to average loans (QTD) 0.33 % 0.05 % 0.23 %
Allowance for loan losses to total loans 1.51 1.52 1.62
Nonperforming assets to total loans
and OREO 1.32 1.16 1.21

Unity Bancorp, Inc.
Consolidated Balance Sheets
(In thousands)
9/30/2005 6/30/2005 9/30/2004
ASSETS
Cash and due from banks $11,675 $11,284 $9,312
Federal funds sold and interest
bearing deposits 41,947 23,336 11,361
Securities:
Available for sale 69,248 78,139 86,082
Held to maturity 33,764 35,635 21,733
Total securities 103,012 113,774 107,815
Loans:
SBA - Held for sale 14,832 13,880 10,439
SBA - Held to Maturity 65,858 57,315 52,008
Commercial 242,728 229,860 200,772
Residential mortgage 63,474 63,775 50,203
Consumer 47,857 46,096 40,768
Total loans 434,749 410,926 354,190
Less: Allowance for loan losses 6,558 6,239 5,726
Net loans 428,191 404,687 348,464
Premises and equipment, net 10,555 10,208 6,978
Accrued interest receivable 2,932 2,747 2,390
Loan servicing asset 2,288 2,177 1,846
Bank Owned Life Insurance 5,140 5,093 -
Other assets 4,176 4,201 5,547
Total Assets $609,916 $577,507 $493,713

LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Noninterest-bearing demand deposits $81,114 $79,830 $88,899
Interest-bearing deposits:
Interest bearing checking 139,544 147,315 180,878
Savings 154,224 149,348 52,532
Time, under $100,000 93,565 72,655 69,904
Time, $100,000 and over 50,249 28,126 31,552
Total deposits 518,696 477,274 423,765
Borrowed funds and subordinated
debentures 49,279 59,279 34,279
Accrued interest payable 249 249 165
Accrued expenses and other liabilities 2,166 2,294 1,109
Total liabilities 570,390 539,096 459,318
Commitments and Contingencies - - -

Shareholders' equity:
Common stock, no par value,
12,500 shares authorized 38,078 37,988 33,711
Retained earnings 2,454 1,155 1,200
Treasury stock at cost (242) (242) -
Accumulated other comprehensive
loss, net of tax (764) (490) (516)
Total shareholders' equity 39,526 38,411 34,395
Total Liabilities and Shareholders'
Equity $609,916 $577,507 $493,713

COMMON SHARES AT PERIOD END:
Issued 6,136 6,129 6,060
Outstanding 6,114 6,107 6,060
Treasury 22 22 -

Unity Bancorp, Inc.
Consolidated Statements of Income
(In thousands, except per share data)

FOR THE THREE MONTHS ENDED: 9/30/2005 6/30/2005 9/30/2004
INTEREST INCOME
Fed funds sold and interest on
deposits $108 $117 $28
Securities:
Available for sale 782 809 882
Held to maturity 411 348 265
Total securities 1,193 1,157 1,147
Loans:
SBA 1,784 1,448 1,121
Commercial 4,215 3,764 3,294
Residential mortgage 895 805 668
Consumer 690 652 464
Total loan interest income 7,584 6,669 5,547
Total interest income 8,885 7,943 6,722
INTEREST EXPENSE
Interest bearing demand deposits 655 635 682
Savings deposits 971 781 135
Time deposits 982 764 602
Borrowed funds and subordinated
debentures 540 498 324
Total interest expense 3,148 2,678 1,743
Net interest income 5,737 5,265 4,979
Provision for loan losses 675 350 325
Net interest income after
provision for loan losses 5,062 4,915 4,654
NONINTEREST INCOME
Service charges on deposit accounts 452 439 383
Service and loan fee income 473 630 448
Gain on SBA loan sales 877 741 948
Gain on Mortgage loan sales 133 54 34
Bank owned life insurance 47 46 -
Net securities gains (8) 24 -
Other income 158 261 172
Total noninterest income 2,132 2,195 1,985
NONINTEREST EXPENSES
Compensation and benefits 2,367 2,314 1,956
Processing and communications 541 489 486
Occupancy, net 555 501 533
Furniture and equipment 335 327 308
Professional fees 138 194 125
Loan servicing costs 105 169 169
Advertising 176 187 134
Deposit insurance 15 15 15
Other 350 446 630
Total noninterest expenses 4,582 4,642 4,356
Income before taxes 2,612 2,468 2,283
Federal and state income tax
provision 993 941 852
Net Income $1,619 $1,527 $1,431

Net Income Per Common Share-Basic $0.26 $0.25 $0.24
Net Income Per Common Share-Diluted $0.25 $0.24 $0.22

AVERAGE COMMON SHARES OUTSTANDING:
Basic 6,112 6,109 6,049
Diluted 6,426 6,423 6,432

Unity Bancorp, Inc.
Consolidated Statements of Income
(Dollars in thousands, except per
share data)

YEAR TO DATE 9/30/2005 9/30/2004
INTEREST INCOME
Fed funds sold and interest on
deposits $287 $147
Securities:
Available for sale 2,387 2,472
Held to maturity 1,033 598
Total securities 3,420 3,070
Loans:
SBA 4,591 3,087
Commercial 11,617 9,470
Residential mortgage 2,502 2,014
Consumer 1,934 1,348
Total loan interest income 20,644 15,919
Total interest income 24,351 19,136
INTEREST EXPENSE
Interest bearing demand deposits 1,901 1,996
Savings deposits 2,212 360
Time deposits 2,509 1,810
Borrowed funds and subordinated
debentures 1,462 879
Total interest expense 8,084 5,045
Net interest income 16,267 14,091
Provision for loan losses 1,325 825
Net interest income after
provision for loan losses 14,942 13,266
NONINTEREST INCOME
Service charges on deposit accounts 1,321 1,272
Service and loan fee income 1,639 1,429
Gain on SBA loan sales 2,078 2,355
Gain on Mortgage loan sales 279 148
Bank owned life insurance 140 -
Net securities gains 69 71
Other income 592 486
Total noninterest income 6,118 5,761
NONINTEREST EXPENSES
Compensation and benefits 7,078 6,255
Processing and communications 1,496 1,435
Occupancy, net 1,649 1,573
Furniture and equipment 991 829
Professional fees 441 517
Loan servicing costs 451 505
Advertising 548 389
Deposit insurance 45 46
Other 1,173 1,229
Total noninterest expenses 13,872 12,778
Income before taxes 7,188 6,249
Federal and state income tax provision 2,732 2,277
Net Income $4,456 $3,972

Net Income Per Common Share-Basic $0.73 $0.66
Net Income Per Common Share-Diluted $0.69 $0.62

Average common shares outstanding:
Basic 6,100 6,036
Diluted 6,424 6,420

Consolidated Average Balance Sheets
with Resultant Interest and Rates
(Tax-equivalent basis, dollars in thousands)

Three Months Ended Three Months Ended
9/30/2005 6/30/2005
Balance Interest Rate Balance Interest Rate
ASSETS
Interest-earning
assets:
Federal funds sold
and
Interest-bearing
deposits with banks $14,465 $108 2.96 % $16,716 $117 2.81 %
Securities:
Available for sale 74,803 795 4.25 77,646 822 4.23
Held to maturity 35,274 411 4.66 29,124 348 4.78
Total securities 110,077 1,206 4.38 106,770 1,170 4.38
Loans, net of
unearned discount:
SBA 79,540 1,784 8.97 68,511 1,448 8.45
Commercial 240,382 4,215 6.96 215,985 3,764 6.99
Residential
mortgage 65,048 895 5.50 60,136 805 5.35
Consumer 48,305 690 5.67 44,493 652 5.88
Total loans 433,275 7,584 6.97 389,125 6,669 6.87
Total interest-
earning assets 557,817 8,898 6.35 % 512,611 7,956 6.22 %
Noninterest-earning
assets:
Cash and due from
banks 13,623 13,590
Allowance for loan
losses (6,575) (6,085)
Other assets 25,701 20,263
Total
noninterest-
earning assets 32,749 27,768
Total Assets $590,566 540,379

LIABILITIES AND
SHAREHOLDERS' EQUITY
Interest-bearing
deposits:
Interest-bearing
demand deposits $147,124 $655 1.77 % $156,186 $635 1.63 %
Savings deposits 153,640 971 2.51 119,325 781 2.63
Time deposits 117,185 982 3.32 103,674 764 2.96
Total interest-
bearing
deposits 417,949 2,608 2.48 379,185 2,180 2.31
Borrowed funds and
subordinated
debentures 50,862 540 4.21 44,033 498 4.54
Total interest-
bearing
liabilities 468,811 3,148 2.66 % 423,218 2,678 2.54 %
Noninterest-bearing
liabilities:
Demand deposits 78,833 77,744
Other liabilities 3,663 2,292
Total
noninterest-
bearing
liabilities 82,496 80,036
Shareholders' equity 39,259 37,125
Total Liabilities and
Shareholders' Equity $590,566 $540,379

Net interest spread 5,750 3.69 % 5,278 3.68 %
Tax-equivalent basis
adjustment (13) (13)
Net interest income $5,737 $5,265

Net interest margin 4.12 % 4.12 %

Unity Bancorp, Inc.
Consolidated Average Balance Sheets
with Resultant Interest and Rates
(Tax-equivalent basis, dollars in thousands)

Three Months Ended Three Months Ended
9/30/2005 9/30/2004
Balance Interest Rate Balance Interest Rate
ASSETS
Interest-earning
assets:
Federal funds sold
and
Interest-bearing
deposits with banks $14,465 $108 2.96 % $5,875 $28 1.90 %
Securities:
Available for sale 74,803 795 4.25 87,019 896 4.12
Held to maturity 35,274 411 4.66 22,484 265 4.71
Total securities 110,077 1,206 4.38 109,503 1,161 4.24
Loans, net of
unearned discount:
SBA 79,540 1,784 8.97 64,104 1,121 6.99
Commercial 240,382 4,215 6.96 194,275 3,294 6.75
Residential
mortgage 65,048 895 5.50 50,663 668 5.27
Consumer 48,305 690 5.67 40,067 464 4.61
Total loans 433,275 7,584 6.97 349,109 5,547 6.33
Total interest-
earning assets 557,817 8,898 6.35 % 464,487 6,736 5.78 %
Noninterest-earning
assets:
Cash and due from
banks 13,623 13,123
Allowance for loan
losses (6,575) (5,803)
Other assets 25,701 16,165
Total
noninterest-
earning assets 32,749 23,485
Total Assets $590,566 487,972

LIABILITIES AND
SHAREHOLDERS' EQUITY
Interest-bearing
deposits:
Interest-bearing
demand deposits $147,124 $655 1.77 % $191,837 $682 1.41 %
Savings deposits 153,640 971 2.51 47,769 135 1.12
Time deposits 117,185 982 3.32 93,235 602 2.57
Total interest-
bearing
deposits 417,949 2,608 2.48 332,841 1,419 1.70
Borrowed funds and
subordinated
debentures 50,862 540 4.21 31,338 324 4.11
Total interest-
bearing
liabilities 468,811 3,148 2.66 % 364,179 1,743 1.90 %
Noninterest-bearing
liabilities:
Demand deposits 78,833 89,916
Other liabilities 3,663 1,140
Total
noninterest-
bearing
liabilities 82,496 91,056
Shareholders' equity 39,259 32,737
Total Liabilities and
Shareholders' Equity $590,566 $487,972

Net interest spread 5,750 3.69 % 4,993 3.88 %
Tax-equivalent basis
adjustment (13) (14)
Net interest income $5,737 $4,979

Net interest margin 4.12 % 4.30 %

Unity Bancorp, Inc.
Consolidated Average Balance Sheets
with Resultant Interest and Rates
(Tax-equivalent basis, dollars in thousands)

Year to Date Year to Date
9/30/2005 9/30/2004
Balance Interest Rate Balance Interest Rate
ASSETS
Interest-earning
assets:
Federal funds sold
and
Interest-bearing
deposits with
banks $13,788 $287 2.78 % $16,779 $147 1.17 %
Securities:
Available for
sale 76,572 2,426 4.22 83,486 2,529 4.04
Held to maturity 29,207 1,033 4.72 15,748 598 5.06
Total
securities 105,779 3,459 4.36 99,234 3,127 4.20
Loans, net of
unearned
discount:
SBA 71,853 4,591 8.52 61,924 3,087 6.65
Commercial 223,982 11,617 6.93 188,928 9,470 6.70
Residential
mortgage 62,030 2,502 5.38 49,646 2,014 5.41
Consumer 45,425 1,934 5.69 37,992 1,348 4.74
Total loans 403,290 20,644 6.84 338,490 15,919 6.28
Total
interest-
earning
assets 522,857 24,390 6.23 % 454,503 19,193 5.64 %
Noninterest-earning
assets:
Cash and due from
banks 13,098 13,849
Allowance for loan
losses (6,266) (5,655)
Other assets 24,034 15,100
Total
noninterest-
earning
assets 30,866 23,294
Total Assets $553,723 477,797

LIABILITIES AND
SHAREHOLDERS'
EQUITY
Interest-bearing
deposits:
Interest-bearing
demand deposits $153,396 $1,901 1.66 % $193,166 $1,996 1.38 %
Savings deposits 126,246 2,212 2.34 43,027 360 1.12
Time deposits 109,224 2,509 3.07 94,790 1,810 2.55
Total
interest-
bearing
deposits 388,866 6,622 2.28 330,983 4,166 1.68
Borrowed funds and
subordinated
debentures 45,884 1,462 4.26 27,922 879 4.21
Total
interest-
bearing
liabilities 434,750 8,084 2.49 % 358,905 5,045 1.88 %
Noninterest-bearing
liabilities:
Demand deposits 78,593 85,489
Other liabilities 2,713 1,451
Total
noninterest-
bearing
liabilities 81,306 86,940
Shareholders'
equity 37,667 31,952
Total Liabilities
and Shareholders'
Equity $553,723 $477,797

Net interest spread 16,306 3.74 % 14,148 3.76 %
Tax-equivalent basis
adjustment (39) (57)
Net interest income $16,267 $14,091

Net interest margin 4.16 % 4.15 %

Unity Bancorp, Inc.
Allowance for Loan Losses and Loan Quality Schedules
(Dollars in thousands)

9/30/2005 6/30/2005 3/31/2005 12/31/2004 9/30/2004
ALLOWANCE FOR LOAN
LOSSES:
Balance, beginning $6,239 $5,942 $5,856 $5,726 $5,599
Provision charged
to expense 675 350 300 350 325
6,914 6,292 6,156 6,076 5,924
Less: Charge offs
SBA 25 112 107 33 57
Commercial 87 30 165 220 150
Residential mortgage 275 - 24 - 18
Consumer 12 4 8 14 8
Total Charge Offs 399 146 304 267 233
Add: Recoveries
SBA 34 30 44 34 24
Commercial 8 7 45 10 5
Residential mortgage - - - - -
Consumer 1 56 1 3 6
Total Recoveries 43 93 90 47 35
Net Charge Offs 356 53 214 220 198
Balance, ending $6,558 $6,239 $5,942 $5,856 $5,726

LOAN QUALITY
INFORMATION:
Nonperforming loans $5,555 $4,777 $2,974 $4,091 $4,075
Other real estate owned,
net 178 - 198 345 215
Nonperforming assets $5,733 $4,777 $3,172 $4,436 $4,290

Loans 90 days past due
and still accruing $- $- $313 $- $82

Allowance for loan
losses to:
Total loans at period
end 1.51 % 1.52 % 1.56 % 1.57 % 1.62%
Nonperforming loans 118.06 130.60 199.80 143.14 140.52
Nonperforming assets 114.39 130.60 187.33 132.01 133.47
Net charge offs to
average loans (QTD) 0.33 0.05 0.23 0.24 0.23
Net charge offs to
average loans (YTD) 0.21 0.14 0.23 0.19 0.18
Nonperforming loans to
total loans 1.28 1.16 0.78 1.10 1.15
Nonperforming assets to
total loans and OREO 1.32 1.16 0.83 1.19 1.21

Unity Bancorp, Inc.
Quarterly Financial Data

09/30/05 06/30/05 03/31/05 12/31/04 09/30/04
SUMMARY OF INCOME
(in thousands) :
Interest income $ 8,885 $ 7,943 $ 7,523 $ 7,030 $ 6,722
Interest expense 3,148 2,678 2,258 1,963 1,743
Net interest income 5,737 5,265 5,265 5,067 4,979
Provision for
loan losses 675 350 300 350 325
Net interest income
after provision 5,062 4,915 4,965 4,717 4,654
Noninterest income 2,132 2,195 1,791 1,868 1,985
Noninterest expense 4,582 4,642 4,648 4,452 4,356
Income before
income taxes 2,612 2,468 2,108 2,133 2,283
Federal and state
income tax provision 993 941 798 775 852
Net Income $ 1,619 $ 1,527 $ 1,310 $ 1,358 $ 1,431
Net Income per
Common Share:
Basic $ 0.26 $ 0.25 $ 0.22 $ 0.22 $ 0.24
Diluted $ 0.25 $ 0.24 $ 0.20 $ 0.21 $ 0.22
COMMON SHARE DATA:
Cash dividends
declared $ 0.05 $ 0.05 $ 0.04 $ 0.04 $ 0.04
Book value at
quarter end 6.46 6.29 5.96 5.91 5.68
Market value at
quarter end 13.09 11.96 11.43 12.19 11.76
Average common shares
outstanding: (000's)
Basic 6,112 6,109 6,078 6,063 6,049
Diluted 6,426 6,423 6,422 6,433 6,432
Common shares
outstanding at
period end (000's) 6,114 6,107 6,108 6,067 6,060
OPERATING RATIOS:
Return on average
assets 1.09 % 1.13 % 1.03 % 1.08 % 1.17%
Return on average
common equity 16.36 16.50 14.63 15.53 17.39
Efficiency ratio 58.17 62.43 66.37 64.24 62.55
BALANCE SHEET DATA
(in thousands):
Assets $ 609,916 $ 577,507 $ 525,842 $ 515,417 $493,713
Deposits 518,696 477,274 447,790 433,898 423,765
Loans 434,749 410,926 381,172 373,580 354,190
Shareholders' equity 39,526 38,411 36,406 35,868 34,395
Allowance for
loan losses 6,558 6,239 5,942 5,856 5,726
TAX-EQUIVALENT YIELDS
AND RATES:
Interest-earning
assets 6.35 % 6.22 % 6.20 % 5.88 % 5.78%
Interest-bearing
liabilities 2.66 2.54 2.28 2.06 1.90
Net interest spread 3.69 3.68 3.92 3.82 3.88
Net interest margin 4.12 4.12 4.30 4.26 4.30
CREDIT QUALITY:
Nonperforming assets
(in thousands) $ 5,733 $ 4,777 $ 3,172 $ 4,436 $ 4,290
Allowance for loan
losses to period-end
loans 1.51 1.52 1.56 1.57 1.62
Net charge offs to
average loans 0.33 0.05 0.23 0.24 0.23
Nonperforming assets to
loans and OREO 1.32 1.16 0.83 1.19 1.21
CAPITAL AND OTHER:
Total equity to assets 6.48 % 6.65 % 6.92 % 6.96 % 6.97%
Tier I capital to
average assets
(leverage) 8.55 8.67 8.99 9.09 9.04
Tier I capital to
risk-adjusted assets 10.40 10.65 11.18 11.14 11.44
Total capital to
risk-adjusted assets 11.65 11.91 12.43 12.39 12.69
Number of banking
offices 13 13 13 13 13
Number of ATMs 15 15 15 15 15
Number of employees 185 178 185 173 161