Unity Bancorp(UNTY) - 2025 Q3 - Quarterly Report

Financial Performance - Net income for the three months ended September 30, 2025, was $14,390, a 32.4% increase compared to $10,905 for the same period in 2024[10]. - Net income for the three months ended September 30, 2025, was $18,866,000, an increase of 29.8% compared to $14,567,000 for the same period in 2024[12]. - For the nine months ended September 30, 2025, net income reached $55,823,000, up 39.9% from $39,901,000 in the prior year[15]. - Net income for the nine months ended September 30, 2025, was $42,484,000, a 42% increase from $29,945,000 in 2024[23]. - Basic net income per common share increased to $1.43 for the three months ended September 30, 2025, up from $1.09 in 2024, a 31.1% rise[10]. - Basic net income per common share for the nine months ended September 30, 2025, was $4.23, up from $2.98 in 2024, marking a 42% increase[37]. - Diluted net income per common share for the nine months ended September 30, 2025, was $4.15, compared to $2.94 in 2024, also a 41% increase[37]. Asset and Liability Growth - Total assets increased to $2,876,365, up from $2,654,017, representing an 8.4% growth year-over-year[8]. - Total liabilities increased to $2,542,342, up from $2,358,434, reflecting a growth of 7.8% year-over-year[8]. - Total loans increased to $2,468,527, up 9.2% from $2,260,657 as of December 31, 2024[8]. - Total deposits grew to $2,267,484, an increase of 7.9% from $2,100,313 at the end of 2024[8]. - Shareholders' equity rose to $334,023, an increase of 13% from $295,583 at the end of 2024[8]. Income and Expense Analysis - Total interest income for Q3 2025 was $44,361, an increase of 12.5% compared to $39,550 in Q3 2024[10]. - Net interest income after provision for credit losses rose to $29,314, up from $23,776, reflecting a 23.3% increase year-over-year[10]. - Noninterest income for the nine months ended September 30, 2025, was $10,883, compared to $6,553 for the same period in 2024, marking a 66.5% increase[10]. - Total noninterest income for Q3 2025 was $2,967, compared to $2,803 in Q3 2024, reflecting a 5.8% growth[10]. Credit Losses and Provisions - The provision for credit losses on loans was $1,409 for the three months ended September 30, 2025, compared to $1,029 for the same period in 2024, indicating a 36.8% increase[10]. - The provision for credit losses charged to expense for the nine months ended September 30, 2025, was $4,491 thousand, compared to $1,937 thousand for the same period in 2024, representing an increase of approximately 132%[119]. - The allowance for credit losses was $30,245 thousand as of September 30, 2025, compared to $26,788 thousand at December 31, 2024[8]. Comprehensive Income - Total comprehensive income for the three months ended September 30, 2025, was $19,728,000, compared to $15,718,000 for the same period in 2024, reflecting a 25.7% increase[12]. - Total comprehensive income for the nine months ended September 30, 2025, included $275,000 in other comprehensive income, compared to a loss of $115,000 in the same period of 2024[20][23]. Shareholder Information - The company declared dividends on common stock of $0.15 per share for the three months ended September 30, 2025, compared to $0.13 per share in the same period of 2024[17]. - The total number of common shares outstanding as of September 30, 2025, was 10,041,000, slightly down from 10,063,000 a year earlier[17]. Fair Value Measurements - The fair value of the Company's available-for-sale (AFS) debt securities portfolio was $82.1 million, with most classified as Level 2 assets[47]. - The fair value of the Company's equity securities portfolio was $12.7 million, primarily classified as Level 1 assets[49]. - The fair value of loans, net of allowance for credit losses, was $2,422,861,000 as of September 30, 2025, compared to $2,221,706,000 at December 31, 2024, indicating an increase of approximately 9.0%[63]. - The total debt securities available for sale amounted to $82,063,000 as of September 30, 2025, a decrease from $93,884,000 as of December 31, 2024, representing a decline of approximately 12.6%[54]. Economic and Market Conditions - The company continues to assess the impact of macro-economic trends, including inflation and interest rate environments, on its operations[27]. - The company experienced fluctuations in collateral values and general economic conditions, affecting the risk of loss quantification[100].