Unity Bancorp Reports Quarterly Earnings of $16.5 Million

Core Viewpoint - Unity Bancorp, Inc. reported a record net income of $16.5 million for Q2 2025, reflecting strong financial performance driven by one-time gains and stable credit quality [1][2][3] Financial Performance - Net income for Q2 2025 was $16.5 million, or $1.61 per diluted share, compared to $11.6 million, or $1.13 per diluted share in Q1 2025 [1] - For the first half of 2025, net income reached $28.1 million, or $2.74 per diluted share, up from $19.0 million, or $1.86 per diluted share in the same period of 2024 [1] - The increase in net income was partially due to one-time pre-tax gains of $3.5 million from the sale of securities and a $2.0 million release for credit losses on securities [1] Return on Assets and Equity - The company achieved a return on assets (ROA) of 2.51% and a return on equity (ROE) of 21.15% for the quarter [2] - On a non-GAAP basis, net income was $12.2 million, or $1.20 per diluted share, with a ROA of 1.86% and a ROE of 15.70% [4] Lending and Deposit Growth - Loan balances increased by $37.5 million in Q2 2025, representing a 1.6% increase from Q1 2025 and a 5.4% increase from year-end [5] - Total deposits grew by $12.0 million, or 0.6% from Q1 2025, and 4.1% since year-end [5] - Credit quality remained stable, with nonaccrual assets as a percentage of total assets declining to 0.54% [5] Future Outlook - The company is optimistic about future growth due to strong loan demand and anticipated economic growth, supported by recent inflation data indicating price stabilization [6]