Unity Bancorp Inc., parent company of Unity Bank, which has branches in Northampton County and Warren County, N.J., has completed the sale of 760,713 common shares in its 10-for-1 rights offering – a transaction that will in part help with expansion plans and loans to businesses.
The shares were sold for $8.30 per share, representing gross proceeds to the company of $6.3 million, the maximum offered. The offering was significantly oversubscribed as $16 million was collected.
The excess will be returned promptly to shareholders, Unity said.
All shareholders exercising their basic subscription right will receive the shares they subscribed for.
“The proceeds will enable the company to fund our expansion plans, increase working capital and pursue strategic opportunities,” said James A. Hughes, president and CEO of Unity Bancorp.
“As a community bank, we are focused on supporting business growth throughout our service footprint,” he added. “With the local economy continuing to grow, there has been increased demand from businesses of all sizes.”
Unity Bank also announced it has landed on the top 10 on the loan volume report from the Small Business Administration’s New Jersey District Office.
It is ninth on the list for that state, up from last year’s ranking of 15.
The bank’s total SBA loan volume was more than $14.4 million as of July 31.
“Unity Bank has experienced strong SBA activity resulting in increased loans closed and growth in the portfolio,” Hughes said. “… The loan volume data verifies that small business remains the key for economic growth.”
Unity Bancorp Inc., headquartered in Clinton, N.J., has about $932 million in assets and $728 million in deposits.