Financial Performance - Net income for the year ended December 31, 2024, totaled $41.5 million, a 4.4% increase from $39.7 million in 2023[166] - Noninterest income was $8.5 million, a 4.0% increase compared to $8.1 million in the prior year[167] - The effective tax rate decreased to 23.8% from 25.1% in the prior year[170] - Noninterest expense totaled $48.7 million, an increase of $1.7 million compared to the prior year[170] - Total comprehensive income for 2024 was $55,220, compared to $53,665 in 2023, reflecting a 2.9% increase[291] - The company declared dividends of $0.52 per share in 2024, up from $0.48 per share in 2023[292] Interest Income and Margin - Net interest income increased by $3.6 million, or 3.8%, to $98.6 million, primarily due to higher yields on interest-earning assets[167] - The net interest margin increased by 10 basis points to 4.16% for the year ended December 31, 2024[167] - Net interest income on a fully tax-equivalent basis was $98.6 million for 2024, compared to $95.0 million in 2023, reflecting an increase in net interest margin to 4.16%[185] - Total interest income for 2024 increased to $155,738, up 8.5% from $143,494 in 2023[290] Loans and Credit Quality - Total gross loans rose by $88.6 million, or 4.1%, driven by a 10.5% increase in commercial loans[170] - The provision for credit losses for loans increased to $2.4 million in 2024 from $1.8 million in 2023, attributed to loan growth[186] - Nonaccrual loans decreased to $13.1 million at December 31, 2024, down from $18.2 million at year-end 2023, representing a reduction of $5.1 million[235] - The allowance for credit losses increased to $26.8 million at December 31, 2024, compared to $25.9 million at December 31, 2023, with an allowance to total loans ratio of 1.18%[240] - The net charge-offs for 2024 were $1.5 million, a decrease from $2.0 million in 2023, indicating improved asset quality[240] Deposits and Funding - Total deposits increased by $176.2 million, or 9.2%, primarily due to growth in time deposits[170] - Total deposits rose by $176.2 million, or 9.2%, to $2.1 billion at December 31, 2024, driven by increases in time deposits and noninterest-bearing demand deposits[194] - Noninterest-bearing demand deposits accounted for 21.0% of total deposits, while time deposits represented 29.9% as of December 31, 2024[246] - The company reported a 47.4% increase in time deposits from December 31, 2023, reflecting a strategic shift in deposit composition[249] - Total borrowed funds decreased by $135.9 million, or 38.1%, primarily due to customer deposit growth[170] Assets and Equity - Total assets increased by $75.5 million, or 2.9%, to $2.7 billion at December 31, 2024, primarily due to an increase of $88.6 million in gross loans[193] - Total shareholders' equity increased by $34.2 million compared to December 31, 2023, due to earnings and an increase in common stock[195] - Shareholders' equity increased by $34.2 million to $295.6 million as of December 31, 2024, compared to $261.4 million at December 31, 2023, primarily due to net income of $41.5 million[273] Investment Securities - AFS debt securities totaled $93.9 million at December 31, 2024, an increase of $2.1 million or 2.3 percent compared to $91.8 million at December 31, 2023[199] - HTM debt securities amounted to $41.3 million at December 31, 2024, an increase of $5.2 million or 14.3 percent from $36.1 million at December 31, 2023[201] - The fair value of HTM debt securities was $33.8 million at December 31, 2024, compared to $29.7 million at December 31, 2023[201] - The company recorded a valuation allowance of $2.8 million for available-for-sale debt securities as of December 31, 2024, compared to $1.3 million as of December 31, 2023[289] Accounting and Regulatory Compliance - The company adopted the CECL accounting guidance on January 1, 2023, resulting in an increase of $0.8 million in the allowance for credit losses related to loans[282] - The Company maintains a well-capitalized status, exceeding all capital requirements of federal banking regulators as of December 31, 2024[274] - The Company adopted the provisions of ASC 326 effective January 1, 2023, modifying its accounting policy for the allowance for credit losses on loans[330] Cash Flow and Activities - Operating activities generated $47.9 million in net cash for the year ended December 31, 2024, compared to $46.9 million in 2023[264] - Investing activities used $92.8 million in net cash in 2024, an increase from $57.8 million in 2023[265] - Financing activities provided $30.5 million in net cash for 2024, a decrease from $90.9 million in 2023[266]

Core Viewpoint - Unity Bancorp, Inc. has declared a cash dividend of $0.14 per common share, reflecting an 8% increase from the previous quarter's dividend of $0.13, demonstrating the company's strong financial health and commitment to shareholder returns [1][2]. Financial Performance - Unity Bancorp, Inc. has approximately $2.7 billion in assets and $2.1 billion in deposits, indicating a solid financial foundation [2]. Dividend Announcement - The declared dividend is payable on March 28, 2025, to shareholders of record as of March 14, 2025 [1]. Management Commentary - The President & CEO of Unity Bank expressed confidence in the company's growth and earnings outlook, emphasizing a commitment to prudent capital management while delivering shareholder returns [2].

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying stocks that can fulfill this potential is challenging [1] Group 1: Company Overview - Unity Bancorp (UNTY) is highlighted as a recommended growth stock with a favorable Growth Score and a top Zacks Rank [2] - The stock is expected to outperform the market based on its growth features, particularly with a Growth Score of A or B and a Zacks Rank of 1 (Strong Buy) or 2 (Buy) [3] Group 2: Earnings Growth - Unity Bancorp has a historical EPS growth rate of 15.8%, with projected EPS growth of 18.8% this year, surpassing the industry average of 12.8% [5] Group 3: Cash Flow Growth - The year-over-year cash flow growth for Unity Bancorp is 1.5%, significantly better than the industry average of -14.9% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 11.7%, compared to the industry average of 6.6% [7] Group 4: Earnings Estimate Revisions - The current-year earnings estimates for Unity Bancorp have increased by 6.5% over the past month, indicating a positive trend in earnings estimate revisions [9] - This upward revision trend correlates strongly with near-term stock price movements, suggesting potential for price appreciation [8] Group 5: Conclusion - Unity Bancorp has achieved a Zacks Rank of 1 and a Growth Score of B, indicating it is a solid choice for growth investors and a potential outperformer [11]

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying strong candidates can be challenging due to inherent risks and volatility [1] Group 1: Company Overview - Unity Bancorp (UNTY) is currently highlighted as a recommended growth stock based on the Zacks Growth Style Score, which evaluates a company's growth potential beyond traditional metrics [2] - The stock has a favorable Growth Score and a top Zacks Rank, indicating strong investment potential [2] Group 2: Earnings Growth - Unity Bancorp has a historical EPS growth rate of 16.6%, with projected EPS growth of 13.3% for the current year, surpassing the industry average of 11.8% [5] Group 3: Cash Flow Growth - The year-over-year cash flow growth for Unity Bancorp stands at 1.5%, significantly better than the industry average of -14.8% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 11.7%, compared to the industry average of 6.9% [7] Group 4: Earnings Estimate Revisions - There have been upward revisions in current-year earnings estimates for Unity Bancorp, with the Zacks Consensus Estimate increasing by 1.5% over the past month [9] - The positive trend in earnings estimate revisions supports the stock's potential for near-term price movements [8] Group 5: Investment Conclusion - Unity Bancorp has achieved a Zacks Rank of 2 and a Growth Score of B, indicating it is a solid choice for growth investors and a potential outperformer [11]

Core Insights - The financial sector, particularly small-cap banks like Unity Bancorp, Plumas Bancorp, and Community Trust Bancorp, is experiencing significant growth driven by healthy consumer conditions, improving commercial volumes, and sustained high interest rates [1][2] Group 1: Financial Performance - All three banks reported solid quarterly results for 2024, with revenue and earnings growth, particularly Community Trust Bancorp, which saw a 15% increase in net investment income [3][5] - Analysts forecast robust growth for 2025, with Plumas Bancorp expected to lead with a 15% revenue increase and margin expansion [5] Group 2: Market Conditions - The Federal Reserve is unlikely to cut interest rates significantly, maintaining elevated rates that support net investment income [2] - Economic conditions, including a healthy labor market and consumer trends, are expected to drive increased consumer and business activity [2] Group 3: Stock Performance and Analyst Sentiment - Stock prices for these banks are on the rise, with Community Trust Bancorp currently priced at $53.99, Unity Bancorp at $45.40, and Plumas Bancorp at $46.60, reflecting positive market sentiment [3][6][8] - Analyst coverage is limited but generally bullish, with price targets indicating potential mid-single to mid-teen percentage increases in 2025 [8][9] Group 4: Institutional Activity - Institutional ownership of these stocks ranges from 40% to 60%, with a bullish buying trend observed in 2024 and continued positive activity into Q3 2025 [9]

Core Insights - Unity Bancorp reported revenue of $28.41 million for the quarter ended December 2024, reflecting a year-over-year increase of 6.8% [1] - Earnings per share (EPS) for the quarter was $1.13, up from $0.96 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $28.02 million, resulting in a surprise of +1.38% [1] - The company also delivered an EPS surprise of +4.63%, with the consensus EPS estimate being $1.08 [1] Financial Metrics - Net interest margin was reported at 4.4%, surpassing the estimated 4.2% by two analysts [4] - The efficiency ratio stood at 44.4%, slightly above the average estimate of 44.3% from two analysts [4] - Total noninterest income was $1.92 million, below the average estimate of $2.42 million from two analysts [4] - Net interest income reached $26.49 million, exceeding the average estimate of $25.60 million from two analysts [4] Stock Performance - Over the past month, shares of Unity Bancorp have returned -6.1%, compared to a -3.3% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Insights - Unity Bancorp reported quarterly earnings of $1.13 per share, exceeding the Zacks Consensus Estimate of $1.08 per share, and up from $0.96 per share a year ago, representing an earnings surprise of 4.63% [1] - The company posted revenues of $28.41 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.38%, compared to $26.6 million in the same quarter last year [2] - Unity Bancorp has outperformed the market slightly, with shares down about 0.6% year-to-date, compared to a decline of 0.7% for the S&P 500 [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.06 on revenues of $28.24 million, and for the current fiscal year, it is $4.53 on revenues of $118.48 million [7] - The estimate revisions trend for Unity Bancorp is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Banks - Northeast industry, to which Unity Bancorp belongs, is currently ranked in the top 32% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Valley National, another company in the same industry, is expected to report quarterly earnings of $0.15 per share, reflecting a year-over-year decline of 31.8%, with revenues projected at $469.49 million, up 4.3% from the previous year [9][10]

Financial Performance - Unity Bancorp reported net income of $11.5 million, or $1.13 per diluted share, for Q4 2024, a 5.5% increase in net income compared to Q3 2024[2]. - Net income for the quarter rose by 5.5% to $11,505,000, up from $10,905,000 in the prior quarter[10]. - Net income for the period was $11,505,000, reflecting a 5.5% increase from $10,900,000 in the previous quarter[16]. - Net income for 2024 was $41,450,000, representing a 4.4% increase from $39,707,000 in 2023[18]. - Net income for the quarter reached $11,505,000, compared to $9,770,000 in the prior year, reflecting a year-over-year increase of 17.7%[29]. Interest Income and Margin - Net interest income for Q4 2024 was $26.5 million, up $1.6 million from $24.9 million in Q3 2024, with a net interest margin of 4.37%[4]. - Total interest income increased by 1.8% to $40,264,000 compared to $39,550,000 in the previous quarter[15]. - Interest income for 2024 increased to $155,738,000, up 8.5% from $143,494,000 in 2023[18]. - Net interest income after provision for credit losses rose by 5.9% to $25,190,000, compared to $23,776,000 in the prior quarter[15]. - Net interest margin improved to 4.37% from 4.06% year-over-year[20]. Loans and Deposits - Total gross loans increased by $88.6 million, or 4.1%, from December 31, 2023, primarily due to growth in commercial loans[4]. - Total loans reached $145,534,000, a 9.4% increase compared to $133,058,000 in the previous year[18]. - Total deposits rose by $176.2 million, or 9.2%, from December 31, 2023, with 19.3% of total deposits being uninsured or uncollateralized[4]. - Total deposits grew by 2.6% to $2,100,313,000 from $2,046,137,000 in the prior quarter[10]. - Total loans increased to $2,260,657,000, up from $2,172,063,000 a year ago, marking a growth of 4.1%[31]. Asset Quality and Credit Losses - The allowance for credit losses as a percentage of gross loans was 1.18% as of December 31, 2024[4]. - Nonperforming assets decreased by 5.2% to $15,046,000, down from $15,879,000 in the previous quarter[11]. - Provision for credit losses on loans decreased by 54.3% to $470,000, down from $1,029,000[15]. - The allowance for credit losses at the end of the period was $26,788,000, down from $27,002,000 in the previous quarter[29]. - Non-accrual loans totaled $13,082,000, slightly up from $19,186,000 a year ago, indicating improved asset quality[29]. Shareholder Equity and Market Performance - Shareholders' equity increased by $34.2 million to $295.6 million as of December 31, 2024, driven by earnings and offset by share repurchases and dividends[8]. - Book value per common share rose to $29.48 as of December 31, 2024, compared to $25.98 a year earlier[8]. - Market price per share rose by 28.0% to $43.61 from $34.06 in the previous quarter[10]. - The Common Equity Tier 1 Capital Ratio improved to 13.90%, up from 12.70% in the previous year, reflecting a stronger capital position[29]. Efficiency and Profitability - Return on average assets improved to 1.83% from 1.76% in the previous quarter[10]. - The efficiency ratio improved to 44.44% from 44.23% in the previous quarter[10]. - The efficiency ratio improved to 44.44%, down from 45.18% in the same quarter last year, indicating better cost management[29]. - The return on average assets was 1.83%, an increase from 1.59% in the prior year, demonstrating enhanced profitability[29]. Sustainability Initiatives - Unity Bank installed electric vehicle charging stations at its corporate headquarters, reflecting a commitment to sustainability[8].

Core Insights - Unity Bancorp, Inc. reported a net income of $11.5 million for Q4 2024, a 5.5% increase from $10.9 million in Q3 2024, with earnings per diluted share rising to $1.13 from $1.07 [1] - For the full year 2024, net income reached $41.5 million, up 4.4% from $39.7 million in 2023, with earnings per diluted share increasing to $4.06 from $3.84 [1][2] Financial Performance - The company achieved a record net income of $41.5 million for the fiscal year 2024, translating to a return on assets (ROA) of 1.68% and a return on equity (ROE) of 14.99% [2] - In Q4 2024, the ROA was 1.83% and the ROE was 15.77% [2] Balance Sheet and Growth - Unity Bancorp's net interest margin expanded by 21 basis points, driven by a 20 basis point reduction in the cost of funds and a 4 basis point increase in loan yields [3] - Loans grew by $43.3 million, or 1.95%, quarter over quarter, funded by a $54.2 million increase in deposits, which represents a 2.65% growth [3] - Noninterest bearing demand deposits increased by $16.8 million, or 3.97%, quarter over quarter [3] Market Outlook - Despite a recent 50 basis point cut in overnight interest rates by the Federal Reserve, the company remains optimistic about growth and profitability in 2025, focusing on core deposit growth and lending to local consumers and small-to-medium sized businesses [4]

CLINTON, N.J., Jan. 15, 2025 (GLOBE NEWSWIRE) -- Unity Bancorp, Inc. (NASDAQ: UNTY), parent company of Unity Bank, reported net income of $11.5 million, or $1.13 per diluted share, for the quarter ended December 31, 2024, compared to net income of $10.9 million, or $1.07 per diluted share for the quarter ended September 30, 2024. This represents a 5.5% increase in net income and a 5.6% increase in net income per diluted share. For the twelve months ended December 31, 2024, Unity Bancorp reported net income ...