SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) August 25, 1998
DELAWARE 1-12431 22-3282551
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
64 OLD HIGHWAY 22, CLINTON, NEW JERSEY 08809
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(Address of principal executive offices) (Zip Code)
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Registrant's telephone number, including area code (908) 730-7630
ITEM 5. OTHER.
The Registrant issued a press release on August 25, 1998 announcing that
the Company had executed long-term leases with First States Properties for eight
(8) new branch locations. The branches are existing bank offices located in
Cranford, Kenilworth, Berkeley Heights and Springfield in Union County, New
Jersey and in East Brunswick, North Brunswick, South Plainfield and Edison in
Middlesex County, New Jersey. The Company had previously announced the execution
of a lease for a new branch in the Colonia section of Woodbridge Township,
Middlesex County, New Jersey and construction of a new office in Whitehouse,
Hunterdon County, New Jersey. The Company anticipates that pending regulatory
approvals, these branches will open in stages from January through May, 1999.
At the completion of this expansion, the Company will have a 17 office network.
The Company stated that it believed that its costs of acquiring these existing branch locations will be substantially less than the costs required for building de novo facilities. The Company noted that historically, the eight (8) existing branch locations had averaged $50 million in deposits and that the Company anticipated its breakeven point for the branches to be $9 million in deposits. The Company further indicated that it believed the breakeven point can be reached within 12 months.
This filing contains forward-looking statements with the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, affecting components of the Company's future performance during 1999. The Company believes these statements to be reasonable and makes them in good-faith; however, the Company's actual results may vary substantially from such forward-looking statements. Factors which may make the actual results different from the anticipated results include, but are not limited to, changes in economic activity in the Company's local market areas, changes in market rates of interest, unforeseen competition, changes in customer economic activity which may effect deposit activity and loan originations and other uncertainties, all of which are difficult or impossible to predict and beyond the control of the Company. Accordingly, investors should not rely upon these forward-looking statements in making investment decisions.
ITEM 7. EXHIBITS.
The following exhibit is filed with this Current Report on Form 8-K.
Exhibit No. Description
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99 Press Release dated August 25, 1998
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, Unity Bancorp, Inc. has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
UNITY BANCORP, INC.
(Registrant)
Dated: September 14, 1998 By: /s/ KEVIN KILLIAN
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Kevin Killian,
Chief Financial Officer
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EXHIBIT INDEX
CURRENT REPORT ON FORM 8-K
Exhibit No. Description Page No.
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99 Press Release dated August 25, 1998
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EXHIBIT 99
UNITY BANCORP, INC.
ANNOUNCES EIGHT (8) BRANCH EXPANSIONS
CLINTON, NEW JERSEY -- Unity Bancorp, Inc. (AMEX:"UBI" "UBI.WS"), parent company of First Community Bank, announced today that it had executed long-term leases for eight new branch locations. The branches, former offices of First Union National Bank or CoreStates Bank, are located in Cranford, Kenilworth, Berkeley Heights and Springfield in Union County and New Brunswick, North Brunswick, South Plainfield and Edison in Middlesex County. The Company had previously announced the execution of a lease for a new branch in the Colonia section of Woodbridge Township, Middlesex County, New Jersey and construction of a new office in Whitehouse, Hunterdon County, New Jersey. The Bank anticipates that pending regulatory approval, the branches will open in stages in February through May of 1999. At the completion of this expansion, Unity Bancorp, Inc. will have a 17 branch network serving local communities, placing them among the top 10 commercial institutions in the State of New Jersey.
Mr. Robert J. Van Volkenburgh, Jr., Chairman and Chief Executive Officer of the Company, stated "These branches provide the Company with an historic opportunity to significantly increase the scope and value of our franchise, while continuing to operate in familiar communities where our formula has proven successful. The communities served by these new branch locations are natural extensions of our current branch network, and demographically resemble the communities in which we currently conduct business. Each of these communities has a significant number of small businesses, our target market. This expansion conforms perfectly with the strategic plan outlined to our investors in 1996. We believe that acquiring this package of branches provides us with an excellent cost efficient manner of significantly enhancing the size and value of our franchise."
Mr. John F. Tremblay, President of Unity Bancorp, Inc. noted, "By acquiring existing branch locations, our cost will be substantially less than would be required for building de novo facilities. Historically these branch sites have averaged $50 million in deposits. We anticipate our breakeven point for these locations to be $9 million in deposits. This can be achieved within the first year."
Unity Bancorp, Inc. is the holding company for First Community Bank, a New Jersey commercial bank operating through its main office in Clinton and six offices located in Linden, Springfield, North Plainfield, Scotch Plains, and Union, New Jersey.
This news release contains forward-looking statements within the meaning of
Section 21E of the Securities Exchange Act of 1934, as amended, affecting
components of the Company's future performance during 1999. The Company believes
such statements to be
reasonable and makes them in good-faith; however, the Company's actual results may vary substantially from such forward-looking statements. Factors which may make the actual results differ from the anticipated results include, but are not limited to, changes in economic activity in the Bank's local market areas, changes in market rates of interest, unforseen competition, changes in customer economic activity which may affect deposit activity and loan originations and other uncertainties, all of which are difficult or impossible to predict and are beyond the control of the Company. Accordingly, investors should not rely upon these forward-looking statements in making investment decisions.