Unity Bancorp Reports Quarterly Earnings of $14.4 Million

Rhea-AI Summary

Unity Bancorp (NASDAQ: UNTY) reported net income of $14.4M or $1.41 per diluted share for the quarter ended Sept 30, 2025, versus $16.5M (or $1.61) in the prior quarter. For the nine months ended Sept 30, 2025, net income was $42.5M (or $4.15 per diluted share) versus $29.9M (or $2.94) a year earlier.

Key metrics: return on average assets 2.11%, return on average equity 17.41%, net interest margin 4.54%. Sequential loan growth was $85.9M (3.6%) and deposits rose $80.1M (3.7%). A one-time conversion of Patriot National debt into ~2.7M restricted shares contributed $0.8M to the quarter. Total assets approximate $2.9B with deposits of $2.3B.

Positive

• Nine-month net income +42% YoY to $42.5M
• Return on average equity of 17.41%
• Sequential loan growth of $85.9M (3.6%)
• Deposits increased $80.1M sequentially (3.7%)
• One-time conversion added $0.8M to quarterly income

Negative

• Quarterly net income down ~12.7% sequentially ($16.5M to $14.4M)
• Non-GAAP quarterly net income excluding conversion fell to $13.6M

Insights

Regional bank analyst

Quarterly earnings show mixed signals: sequential decline in quarterly profit but stronger year‑to‑date performance and balance‑sheet growth.

Unity reported net income of $14.4 million ($1.41 per diluted share) for the quarter ended September 30, 2025, down from $16.5 million the prior quarter, while nine‑month net income rose to $42.5 million versus $29.9 million a year earlier. The company cited a 4.54% net interest margin (up 5 basis points sequentially), return on average assets of 2.11%, and return on average equity of 17.41%.

Sequential loan growth of $85.9 million (3.6%) and deposit growth of $80.1 million (3.7%) indicate ongoing organic expansion funded by deposits. The quarter included a one‑time conversion tied to Patriot National that added $0.8 million to income; excluding that item, non‑GAAP net income was $13.6 million ($1.33 per diluted share) with slightly lower returns. Key dependencies and risks noted include registration restriction on the converted Patriot shares and listed macro items such as interest‑rate moves and credit performance.

Watch near term: quarterly trends in net income and NIM over the next two quarters, loan/deposit growth consistency, and the registration or monetization status of the ~2.7 million restricted Patriot shares. These items will clarify whether the nine‑month improvement translates into sustainable quarterly earnings beyond one‑time gains.

CLINTON, N.J., Oct. 14, 2025 (GLOBE NEWSWIRE) -- Unity Bancorp, Inc. (NASDAQ: UNTY), parent company of Unity Bank, reported net income of $14.4 million, or $1.41 per diluted share, for the quarter ended September 30, 2025, compared to net income of $16.5 million, or $1.61 per diluted share for the quarter ended June 30, 2025. For the nine months ended September 30, 2025, Unity Bancorp reported net income of $42.5 million, or $4.15 per diluted share, compared to net income of $29.9 million, or $2.94 per diluted share, for the nine months ended September 30, 2024.

James A. Hughes, President and CEO, commented on the financial results: “We are pleased to announce another outstanding quarter for Unity Bancorp, Inc., with net income of $14.4 million, or $1.41 per diluted share. This performance reflects a return on average assets of 2.11%, and return on average equity of 17.41%. Notably, our net interest margin expanded by 5 basis points to 4.54%, underscoring our ability to drive profitability in a dynamic rate environment.

During the third quarter, we continued to execute on our organic balance sheet growth strategies. Sequentially, loans increased by $85.9 million, or 3.6%, and deposits grew by $80.1 million, or 3.7%. Our balance sheet remains strong, supported by disciplined credit origination and growth funded by lower-cost deposits. Looking ahead, our strategy of growing loans and deposits in tandem at a mid-to-high single digit rate, positions us well to achieve our growth targets for the remainder of 2025 and beyond.

The quarter also benefited from the continued resolution of our Patriot National Bancorp, Inc. position. Unity converted the remainder of its debt position into approximately 2.7 million restricted common shares of Patriot, which will remain restricted until registered. This conversion contributed $0.8 million to net income for the quarter. Excluding this one-time event, on a non-GAAP basis, Unity earned $13.6 million in net income, or $1.33 per diluted share, representing a 2.00% return on average assets and 16.49% return on average equity.

We are proud to expand our footprint with the opening of our 22nd branch in Madison, NJ, reinforcing our commitment to serving local communities with personalized banking solutions. This new location reflects our continued growth and dedication to deepening relationships across New Jersey. As the Federal Reserve’s recent rate cut aims to stimulate economic activity amid ongoing uncertainty, Unity is well-positioned to strengthen customer relationships and expand lending initiatives, driving continued momentum and long-term value for our shareholders.”

For the full version of the Company’s quarterly earnings release, including financial tables, please visit News - Unity Bank (q4ir.com).

Unity Bancorp, Inc. is a financial services organization headquartered in Clinton, New Jersey, with approximately $2.9 billion in assets and $2.3 billion in deposits. Unity Bank, the Company’s wholly owned subsidiary, provides financial services to retail, corporate and small business customers through its robust branch network located in Bergen, Hunterdon, Middlesex, Morris, Ocean, Somerset, Union, and Warren Counties in New Jersey and Northampton County in Pennsylvania. For additional information about Unity, visit our website at www.unitybank.com , or call 800-618-BANK.

This news release contains certain forward-looking statements, either expressed or implied, which are provided to assist the reader in understanding anticipated future financial performance. These statements may be identified by use of the words “believe”, “expect”, “intend”, “anticipate”, “estimate”, “project” or similar expressions. These statements involve certain risks, uncertainties, estimates and assumptions made by management, which are subject to factors beyond the Company’s control that could impede its ability to achieve these goals. These factors include those items included in our Annual Report on Form 10-K under the heading “Item IA-Risk Factors” as amended or supplemented by our subsequent filings with the SEC, as well as general economic conditions, trends in interest rates, the ability of our borrowers to repay their loans, our ability to manage and reduce the level of our nonperforming assets, results of regulatory exams, the impact of any health crisis or national disasters on the Bank, its employees and customers, and the impact of uncertain or changing political conditions or any current or future federal government shutdown and uncertainty regarding the federal government’s debt limit or changes in fiscal, monetary, trade or regulatory policy, among other factors.

This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

News Media & Financial Analyst Contact:
George Boyan, EVP and CFO
(908) 713-4565

PDF available: http://ml.globenewswire.com/Resource/Download/485fc43c-5ea3-440c-884a-9cee75328d28

FAQ

What did Unity Bancorp (UNTY) report for Q3 2025 net income?

Unity reported $14.4M net income, or $1.41 per diluted share for Q3 2025.

How did Unity's nine-month 2025 net income compare year-over-year for UNTY?

Nine-month net income was $42.5M versus $29.9M a year earlier, a ~42% increase.

What were Unity Bancorp's loan and deposit trends in Q3 2025 (UNTY)?

Sequentially, loans rose $85.9M (3.6%) and deposits grew $80.1M (3.7%).

How did the Patriot National conversion affect UNTY's Q3 2025 results?

Conversion of remaining debt into ~2.7M restricted Patriot shares contributed $0.8M to Q3 net income.

What are Unity Bancorp's key profitability metrics reported for Sept 30, 2025?

Reported return on average assets 2.11%, return on average equity 17.41%, and NIM 4.54%.