CLINTON, N.J., April 18, 2018 (GLOBE NEWSWIRE) -- Unity Bancorp, Inc. (NASDAQ:UNTY), the parent company of Unity Bank, was one of only two New Jersey community banks to break the top 50 of S&P Global Market Intelligence (NYSE:SPGI) 2017 best-performing community bankswith assets between $1 billion and $10 billion. Unity was ranked 43rd nationally on the respected industry list. Nationally, 533 financial institutions were eligible for the list.
“We are honored to have Unity achieve this significant ranking on the highly-regarded S&P list as it illustrates the continued financial strength and performance of the bank,” said Unity Bank President & CEO James A. Hughes. “We truly believe that the bank and community grow stronger together because our fiscal health means the bank is better positioned to invest in the community. Our continued success is a tribute to the bank’s sales and service culture, and the diversity of our products.”
S&P Global Market Intelligence ranked the best-performing community banks using six core financial performance metrics: pretax return on average tangible common equity, net charge-offs as a percentage of average loans, efficiency ratio, adjusted Texas ratio, net interest margin and loan growth. Each company's standard deviation from the industry mean was calculated for every ranking metric, equally weighted, then added together to calculate a performance score. To help normalize the data and mitigate the impact of outliers, caps and floors were applied for each metric.
S&P Global Market Intelligence defined community banks as institutions with up to $10 billion in assets. In order for a bank to be eligible for the rankings, at least one-third of its balance sheet must be composed of loans, less than half of which could be attributable to credit card lending. Eligible banks had to be well-capitalized according to regulatory standards and could not have a majority of revenue derived from nontraditional banking activities.
In 2017, Unity continued to grow its service area, adding a new branch in Ramsey and a new branch facility in Phillipsburg, for a total of 18 branch locations. The bank continues to grow its residential and commercial loan portfolios as well with total loans exceeding $1.15 billion. Unity, which will open another new branch in Bethlehem, Pennsylvania this spring, has approximately $1.5 billion in assets and $1 billion in deposits.
“As a community bank, we can be more flexible and expedient in the way we operate than larger institutions, which produces benefits for both customers and employees,” said Hughes. “Unity fosters an entrepreneurial environment where our employees have the ability to advance and succeed. The bank’s culture has been a key to our success over the years and will continue to be as we move forward.”
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