Unity Bancorp (UNTY) has reported 18.38 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $3.02 million, or $0.32 a share in the quarter, compared with $2.55 million, or $0.27 a share for the same period last year. Revenue during the quarter grew 8.68 percent to $11.63 million from $10.70 million in the previous year period. Net interest income for the quarter rose 14.51 percent over the prior year period to $9.87 million. Non-interest income for the quarter fell 4.48 percent over the last year period to $2.17 million.
Unity Bancorp has made provision of $0.42 million for loan losses during the quarter, up 110 percent from $0.20 million in the same period last year.
Net interest margin improved 3 basis points to 3.63 percent in the quarter from 3.60 percent in the last year period. Efficiency ratio for the quarter improved to 58.11 percent from 62.88 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.
"We had record earnings and strong financial results for the third quarter," stated James A. Hughes, president and chief executive officer. "We are now focusing on growing our market presence. We opened our Emerson branch on October 17th and we anticipate opening our Somerville office in November. In addition, we have hired two seasoned lenders in the Lehigh Valley market, so we will now be looking for opportunities in Pennsylvania. We are extremely excited about our future and look forward to the challenges ahead."
Assets outpace liabilities growthTotal assets stood at $1,152.90 million as on Sep. 30, 2016, up 9.52 percent compared with $1,052.71 million on Sep. 30, 2015. On the other hand, total liabilities stood at $1,064.74 million as on Sep. 30, 2016, up 9.02 percent from $976.65 million on Sep. 30, 2015.
Loans outpace deposit growthNet loans stood at $937.15 million as on Sep. 30, 2016, up 11.15 percent compared with $843.14 million on Sep. 30, 2015. Deposits stood at $933.32 million as on Sep. 30, 2016, up 7.74 percent compared with $866.25 million on Sep. 30, 2015. Noninterest-bearing deposit liabilities were $209.12 million or 22.41 percent of total deposits on Sep. 30, 2016, compared with $175.30 million or 20.24 percent of total deposits on Sep. 30, 2015.
Investments stood at $72.36 million as on Sep. 30, 2016, up 1.21 percent or $0.87 million from year-ago. Shareholders equity stood at $88.15 million as on Sep. 30, 2016, up 15.89 percent or $12.09 million from year-ago.
Return on average assets moved up 5 basis points to 1.05 percent in the quarter from 1 percent in the last year period. At the same time, return on average equity increased 36 basis points to 13.90 percent in the quarter from 13.54 percent in the last year period.
Nonperforming assets moved down 34.17 percent or $4.27 million to $8.23 million on Sep. 30, 2016 from $12.50 million on Sep. 30, 2015. Meanwhile, nonperforming assets to total assets was 0.71 percent in the quarter, down from 1.19 percent in the last year period.
Equity to assets ratio was 7.65 percent for the quarter, up from 7.23 percent for the previous year quarter. Book value per share was $9.45 for the quarter, up 15.24 percent or $1.25 compared to $8.20 for the same period last year.
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