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
September
11, 2008
Date of
Report (Date of earliest event reported)
__________________________________
UNITY
BANCORP, INC.
(Exact
Name of Registrant as Specified in its Charter)
New
Jersey
(State or
Other Jurisdiction of Incorporation)
1-12431
(Commission
File Number)
22-3282551
(IRS Employer
Identification No.)
64 Old
Highway 22
Clinton, NJ
08809
(Address
of Principal Executive Office)
(908)
730-7630
(Registrant's
Telephone Number, Including Area Code)
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
|
o
|
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
|
| o |
Soliciting
material pursuant to Rule 14a12 under the Exchange Act (17 CFR
240.14a-12)
|
| o |
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
|
| o |
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
|
|
Item
8.01
|
Other
Events
|
In the
second quarter of 2008, Unity Bancorp Inc. ("Unity") disclosed that it holds
Freddie Mac perpetual preferred stock with a cost basis of approximately $1.9
million. Such securities are held in Unity’s available for sale
securities portfolio. Unity sold approximately $909 thousand in book
value of these securities in August 2008 and will record a pretax loss of
approximately $518 thousand on this sale. In addition, the market
value of the remaining $954 thousand of securities has declined
approximately $870 thousand as of September 8, 2008, due to recent actions by
the Treasury of the United States and the OFHEO (now FHFA) placing Freddie Mac
under conservatorship. The aggregate amount of security losses and
other-than-temporary impairment charges related to Freddie Mac perpetual
preferred stock for the third quarter of 2008 are estimated to be approximately
$1.4 million, pre-tax, or $923 thousand, 0.13 per diluted share after tax, based
upon current market valuations. The actual amount of any other-than-temporary
impairment charge is difficult to determine at this time based, in part, upon
the volatility in the market for Freddie Mac securities.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant has
duly caused this Report to be signed on its behalf by the undersigned hereunto
duly authorized.
|
UNITY
BANCORP, INC.
|
||||
|
Date:
September 11, 2008
|
By:
|
/s/ Alan J. Bedner,
Jr.
.
Alan
J. Bedner, Jr.
EVP
and Chief Financial Officer
|
||