CLINTON, N.J., April 17, 2020 (GLOBE NEWSWIRE) -- Unity Bancorp, Inc. ( UNTY), parent company of Unity Bank, reported net income of $5.4 million, or $0.49 per diluted share, for the quarter ended March 31, 2020, a 6.5% decrease compared to the $5.7 million, or $0.52 per diluted share reported for the prior year’s first quarter, primarily due to an increase of $1.0 million in our provision for loan losses, necessitated by impacts on the loan portfolio caused by COVID-19.
James A. Hughes, President and CEO, commented on the financial results: “The COVID-19 pandemic has created turmoil around the globe. Virtually all businesses have been impacted by the mandated business closures and restrictions. Thankfully banking is an essential business and we are working very hard helping our customers with emergency funding, loan deferrals and assistance with the Paycheck Protection Program (PPP). I am optimistic that with the funding of the PPP most businesses will rebound quickly and there will be a speedy recovery. Nonetheless, there will likely be some level of increased credit losses, so we thought it was prudent to increase our provision for loan losses. Growth was deliberately slowed in the first quarter as our resources were redirected to help our customers through the COVID-19 crisis. We expect transitory growth in the second quarter due to the volume of PPP loans, which should leave our balance sheet quickly. I am optimistic that America will rebound swiftly, and Community Banking will continue to prosper. It is times like these that small businesses truly see the value in having a relationship with their community banker. We are here to serve, and to help our small businesses grow.”
For the full version of the Company’s 2020 first 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 $1.7 billion in assets and $1.4 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 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.
News Media & Financial Analyst Contact:
James A. Hughes, EVP and CEO
(908)713-4306
