Unity Bancorp Reports Increased Net Income in Fourth Quarter

Unity Bancorp, Inc. (NASDAQ: UNTY), the parent company of Unity Bank, has announced a notable increase in net income for the quarter ended December 31, 2024. The financial results, released on January 15, 2025, reveal a net income of $11.5 million, translating to $1.13 per diluted share. This marks a 5.5% rise in net income and a 5.6% surge in net income per diluted share compared to the quarter ended September 30, 2024.

For the twelve months ended December 31, 2024, Unity Bancorp reported a net income of $41.5 million, equating to $4.06 per diluted share. This represents a 4.4% escalation in net income and a 5.7% increase in net income per diluted share when compared to the same period in 2023.

Key highlights from the fourth quarter earnings include:

– Net interest income of $26.5 million, driven primarily by a 21 basis points increase in net interest margin to 4.37%
– A provision for credit losses on loans of $0.5 million, down from $1.0 million in the previous quarter
– A provision for credit losses on Available For Sale (“AFS”) debt securities at $0.9 million
– Noninterest income amounting to $1.9 million
– Noninterest expense of $12.6 million, with an increase due to a one-time valuation adjustment of $0.9 million related to the Company’s Supplemental Executive Retirement Plan (“SERP”)
– An effective tax rate of 20.6% for the quarter

Balance sheet highlights show total gross loans increased by $88.6 million, while total deposits surged by $176.2 million compared to the prior year. Unity Bancorp also reported improvements in regulatory capital ratios, with the Leverage Ratio increasing to 12.22% and the Common Equity Tier 1 Capital Ratio increasing to 13.90%.

The company continues to maintain a strong financial position with total assets of approximately $2.7 billion and $2.1 billion in deposits. Unity Bank provides financial services to retail, corporate, and small business customers across New Jersey and Pennsylvania.

Aside from financial performance, Unity Bank engages in community service projects and sustainability initiatives, further solidifying its commitment to both its customers and the environment.

This release contains forward-looking statements, and actual results may vary due to factors mentioned in the Company’s filings with the SEC. For more information about Unity Bancorp, visit www.unitybank.com.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Unity Bancorp’s 8K filing here.

About Unity Bancorp

Unity Bancorp, Inc operates as a bank holding company for Unity Bank that provides range of commercial and retail banking services to individuals, small and medium sized businesses, and professional communities. It offers personal and business checking accounts, time deposits, money market accounts, savings accounts, and retirement accounts, as well as noninterest and interest-bearing demand deposits.