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Unity Bancorp(UNTY) - 2025 Q1 - Quarterly Results
UNTYUnity Bancorp(UNTY)2025-04-11 10:15

Financial Performance - Net income for the quarter ended March 31, 2025, was 11.6million,a0.811.6 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,reflectingaslightincreaseof0.811,598,000, reflecting a slight increase of 0.8% from 11,505,000 in the previous quarter and a significant increase of 21.0% from 9,586,000year−over−year[12].−NetincomeforQ12025was9,586,000 year-over-year[12]. - Net income for Q1 2025 was 11,598,000, slightly up from 11,505,000inQ42024,representinganincreaseof0.8111,505,000 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 0.95year−over−year[12].InterestIncomeandMargin−Netinterestincomeincreasedto0.95 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 26.5million,withanetinterestmarginof4.4626.5 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 40,264,000forthepreviousquarteranda7.540,264,000 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,up3.025,934,000, up 3.0% from 25,190,000 in the previous quarter and 11.8% from 23,198,000year−over−year[12].−ThecompanyreportedanetinterestmarginforthequarterendedMarch31,2025,indicatingafocusonmaintainingprofitabilitythroughinterestincomestrategies[14].−Thenetinterestmarginimprovedto4.4623,198,000 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 2,345,130,000inQ12025from2,345,130,000 in Q1 2025 from 2,260,657,000 in Q4 2024, marking a growth of 3.73%[22]. - Total deposits increased by 75.1million,or3.675.1 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 2,100,313,000inQ42024,reflectingagrowthof3.572,100,313,000 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 2,654,017,000inthepreviousquarter[10].−Totalassetsincreasedto2,654,017,000 in the previous quarter[10]. - Total assets increased to 2,565,324,000 as of March 31, 2025, compared to 2,436,735,000onMarch31,2024,reflectingagrowthof5.32,436,735,000 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 295.6millionattheendofthepreviousquarter[2].−Totalshareholders′equitygrewby3.6295.6 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].−Retainedearningsincreasedby4.5295,583,000[10]. - Retained earnings increased by 4.5% to 237,518,000 from 227,331,000[10].−Totalshareholders′equityincreasedto227,331,000[10]. - Total shareholders' equity increased to 302,292,000 as of March 31, 2025, up from 266,148,000ayearearlier,reflectingagrowthof13.6266,148,000 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 1.9millionforthepreviousquarter,drivenbyincreasedserviceandloanfeeincome[2].−Totalnoninterestincomeroseto1.9 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 1,916,000inthepreviousquarteranda22.31,916,000 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,aslightdecreasefrom12,611,000, a slight decrease from 12,617,000 in the previous quarter but an increase of 3.9% from 12,132,000year−over−year[12].CreditQuality−Theallowanceforcreditlossesasapercentageofgrossloanswas1.1812,132,000 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 15.0millionasofDecember31,2024[6].−Provisionforcreditlossesonloanswas15.0 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 470,000inthepreviousquarterandup111.9470,000 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 27,651,000from27,651,000 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].