Unity Bancorp Reports Modest Income Growth in Q1 2025

Unity Bancorp ( (UNTY) ) has released its Q1 earnings. Here is a breakdown of the information Unity Bancorp presented to its investors.

Unity Bancorp, Inc. is a financial services organization based in Clinton, New Jersey, operating primarily through its subsidiary, Unity Bank, which offers a range of financial services to retail, corporate, and small business customers across various counties in New Jersey and Pennsylvania.

In its latest earnings report, Unity Bancorp announced a slight increase in net income for the first quarter of 2025, reaching $11.6 million, or $1.13 per diluted share, compared to $11.5 million in the previous quarter. The company also reported a notable increase in net interest income, driven by a higher net interest margin and reduced costs of interest-bearing liabilities.

Key financial highlights include a 0.8% rise in net income, a 3.7% increase in total gross loans, and a 3.6% growth in total deposits. Notably, the provision for credit losses on loans rose significantly, attributed to loan growth, while there was no provision for credit losses on available-for-sale debt securities due to a modification agreement. Noninterest income saw a modest increase, primarily from service and loan fee income, despite lower gains on mortgage loan sales.

Unity Bancorp’s management remains cautiously optimistic about the future, focusing on maintaining strong capital ratios and managing loan quality. The company continues to leverage its robust branch network to support growth and profitability, while also being recognized with a 5-Star Superior rating from BauerFinancial, highlighting its strong financial position.