CLINTON, N.J. - The chairman and chief executive officer of Unity Bancorp has stepped down after nine years at the helm.
Robert Van Volkenburg, who co-founded subsidiary Unity Bank in 1991, said Tuesday that he could no longer devote the necessary time to run the $417 million-asset company. He will remain Unity's largest shareholder.
Federal and state regulators in mid-July told the bank to increase its capital levels, stop making risky loans, and identify ways to deal with problem assets. Since then the company has suspended the pay of Mr. Van Volkenburg and its vice chairman, David Dallas, even though regulators only suggested that their pay be reduced, the company said.
Unity also announced that Mr. Dallas has been named chairman of Unity Bank. Unity Bancorp has reported losses in five consecutive quarters, putting the blame mainly on expenses related to the opening of 10 branches in 1999. In the quarter that ended June 30, Unity lost $239,000, against a $375,000 loss in the year-earlier period. It also lost more than $2 million in the fourth quarter of 1999 and about $1 million in the first quarter of 2000.