Core Insights - Unity Bank has been recognized as one of the top-performing small banks in the United States by the Hovde Group, marking the third consecutive inclusion in the annual high-performer list, indicating sustained excellence in financial management and customer service [1][3] Group 1: Performance Recognition - The Hovde Group's 2025 report evaluates small banks with market capitalizations between $100 million and $1.5 billion, ranking them based on key financial metrics such as pre-tax pre-provision net revenue, efficiency ratios, loan and deposit growth, tangible book value growth, and employee productivity [2] - Unity Bank's recognition reflects the consistent strength of its strategy, employee dedication, and customer trust, reinforcing a focus on long-term, responsible growth [3] Group 2: Company Overview - Unity Bancorp, Inc. (NASDAQ: UNTY) is the parent company of Unity Bank, which operates 21 branches across New Jersey and the Lehigh Valley, Pennsylvania, providing community-focused commercial banking services including deposit accounts, loans, and digital services [5]

Core Insights - Unity Bancorp reported revenue of $29.35 million for the quarter ended March 2025, reflecting a year-over-year increase of 14.8% [1] - Earnings per share (EPS) for the quarter was $1.13, up from $0.93 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $28.57 million by 2.74%, while the EPS also surpassed the consensus estimate of $1.12 by 0.89% [1] Financial Performance Metrics - Efficiency Ratio stood at 42.9%, slightly better than the average estimate of 43.2% from two analysts [4] - Average Earning Assets were reported at $2.48 billion, compared to the average estimate of $2.46 billion [4] - Net interest margin was 4.5%, exceeding the estimated 4.4% [4] - Total Noninterest Income reached $2.10 million, surpassing the average estimate of $1.95 million [4] - Net Interest Income was reported at $27.25 million, above the average estimate of $26.63 million [4] Stock Performance - Unity Bancorp's shares have returned -6.2% over the past month, compared to a -6.1% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Unity Bancorp (UNTY) came out with quarterly earnings of $1.13 per share, beating the Zacks Consensus Estimate of $1.12 per share. This compares to earnings of $0.93 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 0.89%. A quarter ago, it was expected that this bank holding company would post earnings of $1.08 per share when it actually produced earnings of $1.13, delivering a surprise of 4.63%.Over the last four quarters, the ...

Financial Performance - Net income for the quarter ended March 31, 2025, was $11.6 million, a 0.8% increase from $11.5 million for the quarter ended December 31, 2024[1]. - Net income for the period was $11,598,000, reflecting a slight increase of 0.8% from $11,505,000 in the previous quarter and a significant increase of 21.0% from $9,586,000 year-over-year[12]. - Net income for Q1 2025 was $11,598,000, slightly up from $11,505,000 in Q4 2024, representing an increase of 0.81%[22]. - Basic net income per common share was $1.15, unchanged from the previous quarter and up from $0.95 year-over-year[12]. Interest Income and Margin - Net interest income increased to $27.3 million for the quarter ended March 31, 2025, up from $26.5 million, with a net interest margin of 4.46%, an increase of 9 basis points[2]. - Total interest income for the three months ended March 31, 2025, was $40,801,000, an increase of 1.3% compared to $40,264,000 for the previous quarter and a 7.5% increase from $37,937,000 year-over-year[12]. - Net interest income after provision for credit losses was $25,934,000, up 3.0% from $25,190,000 in the previous quarter and 11.8% from $23,198,000 year-over-year[12]. - The company reported a net interest margin for the quarter ended March 31, 2025, indicating a focus on maintaining profitability through interest income strategies[14]. - The net interest margin improved to 4.46% for the three months ended March 31, 2025, compared to 4.09% for the same period in 2024[15]. Loans and Deposits - Total gross loans rose by $84.5 million, or 3.7%, from December 31, 2024, primarily due to growth in commercial and mortgage loans[2]. - Total loans increased to $2,345,130,000 in Q1 2025 from $2,260,657,000 in Q4 2024, marking a growth of 3.73%[22]. - Total deposits increased by $75.1 million, or 3.6%, from December 31, 2024, with 20.0% of total deposits being uninsured or uncollateralized[2]. - Total deposits rose to $2,175,398,000 in Q1 2025 from $2,100,313,000 in Q4 2024, reflecting a growth of 3.57%[22]. Asset Growth - Total assets increased by 4.3% to $2,767,943,000 compared to $2,654,017,000 in the previous quarter[10]. - Total assets increased to $2,565,324,000 as of March 31, 2025, compared to $2,436,735,000 on March 31, 2024, reflecting a growth of 5.3%[15]. Equity and Retained Earnings - Shareholders' equity increased to $306.1 million as of March 31, 2025, compared to $295.6 million at the end of the previous quarter[2]. - Total shareholders' equity grew by 3.6% to $306,142,000 compared to $295,583,000[10]. - Retained earnings increased by 4.5% to $237,518,000 from $227,331,000[10]. - Total shareholders' equity increased to $302,292,000 as of March 31, 2025, up from $266,148,000 a year earlier, reflecting a growth of 13.6%[15]. Noninterest Income and Expenses - Noninterest income was $2.1 million for the quarter ended March 31, 2025, compared to $1.9 million for the previous quarter, driven by increased service and loan fee income[2]. - Total noninterest income rose to $2,101,000, a 9.7% increase from $1,916,000 in the previous quarter and a 22.3% increase from $1,718,000 year-over-year[12]. - Total noninterest expense remained stable at $12,611,000, a slight decrease from $12,617,000 in the previous quarter but an increase of 3.9% from $12,132,000 year-over-year[12]. Credit Quality - The allowance for credit losses as a percentage of gross loans was 1.18% as of March 31, 2025[2]. - Nonaccrual assets increased to $18.0 million as of March 31, 2025, compared to $15.0 million as of December 31, 2024[6]. - Provision for credit losses on loans was $1,358,000, a significant increase of 188.9% compared to $470,000 in the previous quarter and up 111.9% from $641,000 year-over-year[12]. - Nonaccrual loans to total loans ratio increased to 0.72% in Q1 2025 from 0.58% in Q4 2024, showing a deterioration in loan quality[22]. - The allowance for credit losses increased by 3.2% to $27,651,000 from $26,788,000[10]. Ratings and Recognition - Unity Bank received a 5-Star Superior rating from BauerFinancial in March 2025, indicating strong performance in capital, loan quality, and profitability[4].

Financial Performance - Unity Bancorp, Inc. reported net income of $11.6 million, or $1.13 per diluted share, for Q1 2025, reflecting a 0.8% increase from the previous quarter's net income of $11.5 million [1] - The company achieved a return on assets (ROA) of 1.83% and a return on equity (ROE) of 15.56% [2] Lending and Deposits - Commercial and residential lending saw strong originations, with loans increasing by $84.5 million, a 3.74% rise from year-end [3] - Customer deposits (excluding brokered deposits) grew by $90.7 million, or 4.82%, quarter over quarter [3] Strategic Outlook - The company aims to manage its balance sheet diligently, focusing on funding future credit growth through deposit growth [3] - Unity Bancorp remains committed to disciplined credit-risk management, including conservative underwriting practices and proactive management of delinquency and non-performing assets [3] Market Context - Despite capital market volatility due to tariffs, Unity Bancorp does not anticipate adverse impacts on loan demand, with some small business customers potentially benefiting from tariffs on foreign goods [4] - The company emphasizes its role as a trusted advisor to customers facing challenges, reinforcing its commitment to local economic development [4] Company Overview - Unity Bancorp, Inc. is headquartered in Clinton, New Jersey, with approximately $2.8 billion in assets and $2.2 billion in deposits [5] - Unity Bank, the wholly owned subsidiary, serves retail, corporate, and small business customers through a robust branch network across several counties in New Jersey and Pennsylvania [5]

CLINTON, N.J., April 11, 2025 (GLOBE NEWSWIRE) -- Unity Bancorp, Inc. (NASDAQ: UNTY), parent company of Unity Bank, reported net income of $11.6 million, or $1.13 per diluted share, for the quarter ended March 31, 2025, compared to net income of $11.5 million, or $1.13 per diluted share for the quarter ended December 31, 2024. This represents a 0.8% increase in net income. James A. Hughes, President and CEO, commented on the financial results: “We are pleased to announce another strong quarter for Unity Ban ...

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]