CLIFTON, N.J. — Unity Bank said that it would use proceeds from its planned sale of five branches to help meet the capital levels demanded of it by regulators.

Unity Bank, which has 17 branches in central New Jersey, was told by federal and state regulators in July to increase its capital levels, stop making risky loans, and find ways to deal with problem assets.

The $417 million-asset subsidiary of Unity Bancorp said Tuesday that it has agreed to sell four branches, with $45 million of deposits, to SI Bank and Trust in Staten Island, N.Y., for a 6.5% premium to deposits. It will sell a fifth branch, with $9.5 million of deposits, to Hilltop Community Bank in Summit, N.J. for an 11.15% premium. The company said it also sold $43 million of home equity loans on Sept. 29.

“The decision to divest our company of five branches was a difficult one at best. However, the branch and loan sales were necessary and affirmative steps toward meeting our capital plan, increasing profitability, and improving shareholder value,” said Unity Bank’s chairman, David Dallas, in a news release.

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