Unity Bancorp(US:UNTY)2025-01-15 11:09Financial 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].