Unity Bancorp Reports Quarterly Earnings of $15.5 Million and Full Year Earnings of $58.0 Million

Rhea-AI Summary

Unity Bancorp (NASDAQ: UNTY) reported Q4 net income $15.5M or $1.52 diluted EPS and FY 2025 net income $58.0M or $5.67 diluted EPS for the year ended December 31, 2025. FY net income rose 39.8% vs prior year with ROA 2.17% and ROE 18.07%.

Key drivers: gross loans +$284M (12.6%), total deposits +$224M (10.7%), customer deposits (ex-brokered) +$168M (8.9%). Q4 included a $15.5M owner-occupied commercial mortgage moved to nonaccrual (42 days past due) with a $1.6M pre-tax income impact; the quarter also had a $1.5M pre-tax unrealized gain related to Patriot National Bancorp resolution. Unity reports approximately $3.0B assets and $2.3B deposits.

Positive

• FY net income +39.8% to $58.0M
• Gross loans +$284M (+12.6%) year-over-year
• Total deposits +$224M (+10.7%) year-over-year
• ROA 2.17% and ROE 18.07% for FY 2025
• Recognized $1.5M pre-tax unrealized gain

Negative

• Owner-occupied commercial mortgage of $15.5M moved to nonaccrual
• $1.6M pre-tax hit from reserve build and interest reversals
• Nonaccrual loan was 42 days past due as of Dec 31, 2025

News Market Reaction

+4.19%

1 alert

+4.19% News Effect

On the day this news was published, UNTY gained 4.19%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Q4 2025 net income: $15.5 million Q4 2025 EPS: $1.52 per diluted share Full-year 2025 net income: $58.0 million +5 more

8 metrics

Q4 2025 net income $15.5 million Quarter ended December 31, 2025

Q4 2025 EPS $1.52 per diluted share Quarter ended December 31, 2025

Full-year 2025 net income $58.0 million Twelve months ended December 31, 2025

Full-year 2024 net income $41.5 million Twelve months ended December 31, 2024

Loan growth $284 million (12.6%) Gross loans increase in 2025

Deposit growth $224 million (10.7%) Total deposits increase in 2025

Nonaccrual credit $15.5 million exposure Owner-occupied commercial mortgage to nonaccrual

Pre-tax impact $1.6 million Income statement impact from single credit

Market Reality Check

Price: $53.96 Vol: Volume 44,280 is slightly...

normal vol

$53.96 Last Close

Volume Volume 44,280 is slightly below the 20-day average of 46,615 (relative volume 0.95). normal

Technical Price at $52.48 is trading above the 200-day MA of $48.02 and 8.32% below the 52-week high.

Peers on Argus

UNTY was down 0.57% pre-news while peers were mixed: GNTY (-1.46%) and EGBN (-0....

UNTY was down 0.57% pre-news while peers were mixed: GNTY (-1.46%) and EGBN (-0.37%) declined, while NFBK (+0.61%), PFIS (+0.99%), and SPFI (+0.87%) rose, suggesting stock-specific positioning rather than a clear sector trend.

Historical Context

5 past events · Latest: Nov 20 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Nov 20	Leadership changes	Positive	+2.4%	Executive promotions signaling leadership depth and continuity.
Nov 20	Dividend declaration	Positive	+2.4%	Cash dividend announcement reinforcing shareholder return policy.
Oct 14	Quarterly earnings	Positive	+4.6%	Higher Q3 2025 earnings with solid loan and deposit growth.
Aug 21	Dividend increase	Positive	+7.5%	7% increase in quarterly dividend highlighting earnings strength.
Jul 15	Quarterly earnings	Positive	-1.5%	Strong Q2 2025 results with one-time gains and margin expansion.

Pattern Detected

Recent news (earnings, dividends, leadership changes) generally aligned with positive price reactions, with one notable divergence on strong Q2 2025 earnings.

Recent Company History

Over the past six months, Unity Bancorp reported multiple positive developments, including strong Q2 and Q3 2025 earnings, dividend increases, and leadership promotions. Q2 results with elevated one-time gains saw a modest negative reaction, while Q3 earnings and dividend announcements in November 2025 produced price gains above 2%. Dividend growth in August 2025 coincided with a 7.48% rise. Today’s record full-year $58.0M earnings and loan/deposit growth extend this trajectory of operational strength and capital returns.

Market Pulse Summary

This announcement detailed record 2025 earnings of $58.0 million, strong returns on assets and equit...

Analysis

This announcement detailed record 2025 earnings of $58.0 million, strong returns on assets and equity, and double-digit growth in loans and deposits, underscoring Unity Bancorp’s organic expansion strategy. Management also disclosed a single $15.5 million commercial mortgage moving to nonaccrual, with a $1.6 million pre-tax impact, and an unrealized gain of $1.5 million. Investors may focus on credit quality trends, core earnings metrics, and ongoing loan and deposit growth in upcoming periods.

Key Terms

roa, roe, nonaccrual, tariffs, +1 more

5 terms

roa financial

"delivering a 2.17% ROA and 18.07% ROE."

Return on assets (ROA) measures how efficiently a company turns what it owns—like factories, equipment, and cash—into profit, expressed as a percentage of its total assets. Investors use ROA to compare how well different companies squeeze earnings from their resources; higher ROA is like a car that gets more miles from a gallon of gas, signaling better efficiency and potentially stronger returns on investment.

roe financial

"delivering a 2.17% ROA and 18.07% ROE."

Return on equity (ROE) measures how much profit a company generates from the money shareholders have invested, like checking how effectively a chef turns ingredients into meals. Investors use it to compare how well companies turn investor funds into earnings—higher ROE usually means management is using capital more efficiently, while a low ROE can signal weaker profitability or poor use of equity.

nonaccrual financial

"relationship migrated to nonaccrual status late in the fourth quarter."

A nonaccrual asset is a loan or investment that a lender stops counting as earning interest because the borrower is not making scheduled payments or the lender doubts future payments. Think of it like putting a subscription on hold when you stop receiving payments; it reduces reported income and signals a higher risk that the lender may not get repaid, which can affect a bank's profits and the value of its loan portfolio.

tariffs financial

"was impacted by the tariffs imposed on Chinese imports, which had a negative"

Tariffs are taxes imposed by a government on goods imported from other countries. They increase the cost of those goods, which can lead to higher prices for consumers and impact international trade. For investors, tariffs matter because they can influence the profitability of companies, affect supply chains, and shift economic stability across different regions.

forward-looking statements regulatory

"This news release contains certain forward-looking statements, either expressed"

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

AI-generated analysis. Not financial advice.

CLINTON, N.J., Jan. 13, 2026 (GLOBE NEWSWIRE) -- Unity Bancorp, Inc. (NASDAQ: UNTY), parent company of Unity Bank, reported net income of $15.5 million, or $1.52 per diluted share, for the quarter ended December 31, 2025, compared to net income of $14.4 million, or $1.41 per diluted share for the quarter ended September 30, 2025. For the twelve months ended December 31, 2025, Unity Bancorp reported net income of $58.0 million, or $5.67 per diluted share, compared to net income of $41.5 million, or $4.06 per diluted share, for the twelve months ended December 31, 2024.

James A. Hughes, CEO, commented on the financial results: “We are pleased to report a record year for Unity Bancorp, Inc. For the year, we generated $58.0 million in net income, or $5.67 per diluted share, delivering a 2.17% ROA and 18.07% ROE. This represents a $16.5 million, or 39.8% increase in net income from the prior year. For the fourth quarter, net income totaled $15.5 million, or $1.52 per diluted share, representing 2.20% ROA and 18.08% ROE.

In 2025, we continued to execute on our organic growth strategy, achieving meaningful expansion across loans and deposits. Gross loans increased $284 million, or 12.6%, driven primarily by growth in our commercial portfolios. Total deposits grew $224 million, or 10.7%, with customer deposits (ex-brokered) increasing $168 million, or 8.9%. As we enter 2026, our lending pipelines remain healthy, and we believe a constructive economic backdrop will support Unity’s ability to continue operating as a high-performing institution.

While our overall performance was strong, one large owner-occupied commercial mortgage relationship migrated to nonaccrual status late in the fourth quarter. This $15.5 million credit is well-secured and is not expected to result in a material loss, if any. However, this individual credit represented a $1.6 million pre-tax impact to the Company’s income statement due to general reserve build up and interest income reversals. This borrower’s core business was impacted by the tariffs imposed on Chinese imports, which had a negative impact on their global cash flow. The credit is 42 days past due as of December 31, 2025 and we will continue to monitor the relationship closely.

During the quarter, we also recognized a pre-tax unrealized gain of $1.5 million, related to the continued resolution of Patriot National Bancorp, Inc. Excluding this item, on a core basis, for the quarter, Unity earned $14.4 million, or $1.41 per diluted share, representing a 2.04% ROA and 16.77% ROE.

As we look ahead to 2026, Unity remains focused on delivering exceptional customer experiences, deepening relationships, and attracting new customers to the franchise. These priorities position us well to sustain our momentum and continue creating 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 $3.0 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:
James Davies, FSVP and CFO
(908) 713-4330

PDF available: http://ml.globenewswire.com/Resource/Download/3f5778fd-7e8e-4ff9-b431-1a5d77441e72

FAQ

What were Unity Bancorp (UNTY) Q4 2025 earnings and EPS?

Unity reported Q4 net income $15.5M, or $1.52 per diluted share for the quarter ended Dec 31, 2025.

How much net income did Unity Bancorp (UNTY) report for full-year 2025?

Unity reported $58.0M net income for the twelve months ended Dec 31, 2025, or $5.67 per diluted share.

What loan and deposit growth did Unity (UNTY) report for 2025?

Gross loans increased $284M (12.6%) and total deposits grew $224M (10.7%) year-over-year.

Did Unity Bancorp (UNTY) report any significant credit issues in Q4 2025?

Yes; one owner-occupied commercial mortgage of $15.5M moved to nonaccrual and caused a $1.6M pre-tax income impact.

What were Unity Bancorp's (UNTY) capital/return metrics for 2025?

For FY 2025 Unity reported a 2.17% ROA and 18.07% ROE.

How large are Unity Bancorp's (UNTY) assets and deposits?

Unity reported approximately $3.0B in assets and $2.3B in deposits as of the press release.