Unity Bancorp Reports Quarterly Earnings of $15.5 Million and Full Year Earnings of $58.0 Million

Core Viewpoint - Unity Bancorp, Inc. reported a record net income of $58.0 million for the year 2025, reflecting a significant increase of 39.8% compared to the previous year, driven by strong growth in loans and deposits [2][3]. Financial Performance - For Q4 2025, Unity Bancorp achieved a net income of $15.5 million, or $1.52 per diluted share, up from $14.4 million, or $1.41 per diluted share in Q3 2025 [1][2]. - The company reported a return on assets (ROA) of 2.20% and a return on equity (ROE) of 18.08% for the fourth quarter [2]. - For the full year 2025, the ROA was 2.17% and the ROE was 18.07% [2]. Growth Metrics - Gross loans increased by $284 million, or 12.6%, primarily due to growth in commercial portfolios [3]. - Total deposits grew by $224 million, or 10.7%, with customer deposits (excluding brokered) increasing by $168 million, or 8.9% [3]. Challenges and Risks - A significant commercial mortgage relationship of $15.5 million migrated to nonaccrual status, impacting the income statement by $1.6 million due to reserve build-up and interest income reversals [4]. - The borrower was affected by tariffs on Chinese imports, which negatively impacted their cash flow [4]. Future Outlook - Unity Bancorp aims to continue its organic growth strategy, focusing on enhancing customer experiences and attracting new clients [6]. - The company believes that a favorable economic environment will support its operations as a high-performing institution [3]. Company Overview - Unity Bancorp, Inc. is headquartered in Clinton, New Jersey, with approximately $3.0 billion in assets and $2.3 billion in deposits [7]. - Unity Bank, its wholly owned subsidiary, provides financial services through a robust branch network across several counties in New Jersey and Pennsylvania [7].