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.
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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 – UNTY
+4.19%
+4.19%Session close to close
In the Jan 13 session, UNTY gained 4.19%, reflecting a moderate positive market reaction.
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 Figures
Q4 2025 net income:$15.5 millionQ4 2025 EPS:$1.52 per diluted shareFull-year 2025 net income:$58.0 million+5 more
8 metrics
Q4 2025 net income$15.5 millionQuarter ended December 31, 2025
Q4 2025 EPS$1.52 per diluted shareQuarter ended December 31, 2025
Full-year 2025 net income$58.0 millionTwelve months ended December 31, 2025
Full-year 2024 net income$41.5 millionTwelve 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 exposureOwner-occupied commercial mortgage to nonaccrual
Pre-tax impact$1.6 millionIncome statement impact from single credit
Strong Q2 2025 results with one-time gains and margin expansion.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
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.
Key Terms
roa, roe, nonaccrual, tariffs, +1 more
5 terms
roafinancial
"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.
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.
"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.
tariffsfinancial
"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 statementsregulatory
"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.
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
