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Banking industry

Unity Bancorp Reports Record-Breaking Quarter, Net Income Increases 40.5%

Strategic Insights

— 1 min read

Unity Bancorp, Inc., the parent company of Unity Bank, has reported record-breaking net income of $16.5 million, or $1.61 per diluted share, for the quarter ended June 30, 2025, compared to net income of $11.6 million, or $1.13 per diluted share for the quarter ended March 31, 2025. This increase in net income was partially attributed to pre-tax one-time gains of $3.5 million realized on the sale of securities and $2.0 million release for credit losses on securities, each related to securities of Patriot National Bancorp, Inc. held by the Company. James A. Hughes, President and CEO, commented on the financial results, highlighting the Company's exceptional origination capabilities, robust loan pipeline, and disciplined pricing.

Key Takeaways:

  • Unity Bancorp's net income increased by 40.5% to $16.5 million in the second quarter of 2025, compared to the first quarter of 2025.
  • The Company reported a return on assets (ROA) of 2.51% and a return on equity (ROE) of 21.15% in the second quarter.
  • Excluding one-time realized gains and provision release, Unity Bancorp earned $12.2 million in net income, or $1.20 per diluted share, representing 1.86% ROA and 15.70% ROE.
  • Loan balances grew by $37.5 million, or 1.6% from March 31, 2025, and a 5.4% increase from year-end.
  • Total deposits have grown $12.0 million, or 0.6% from March 31, 2025, and 4.1% since year-end.
  • Credit quality remains stable, with nonaccrual assets as a percentage of total assets declining 11 basis points to 0.54%.
  • Unity Bank announced its second Morris County, NJ location, and the Company remains committed to growing loans and deposits in tandem.
  • The Company expects strong economic growth in the remainder of the year, driven by recent inflation data and anticipated rate cuts.

Statistics:

  • Net income: $16.5 million (2025 Q2), $11.6 million (2025 Q1), $28.1 million (2025 YTD)
  • Return on assets (ROA): 2.51% (2025 Q2), 2.00% (2025 Q1), 2.20% (2025 YTD)
  • Return on equity (ROE): 21.15% (2025 Q2), 19.30% (2025 Q1), 20.10% (2025 YTD)
  • Loan balances: $2.36 billion (2025 Q2), $2.29 billion (2025 Q1), $2.23 billion (2024 YE)
  • Total deposits: $2.27 billion (2025 Q2), $2.15 billion (2025 Q1), $2.16 billion (2024 YE)

Sources:

  • Globe Newswire
  • Unity Bancorp, Inc. quarterly earnings release
  • SEC filings (Form 10-K)
  • Company website

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