Unity Bancorp Reports Strong Q3 2025 Earnings, Highlights Ongoing Growth Strategies
Unity Bancorp Announces Solid Third Quarter 2025 Results
Unity Bancorp, Inc. (NASDAQ: UNTY), the holding company for Unity Bank, has released its financial results for the third quarter ended September 30, 2025. The company posted a net income of $14.4 million, or $1.41 per diluted share, compared to $16.5 million, or $1.61 per diluted share in the prior quarter. For the first nine months of 2025, Unity Bancorp earned $42.5 million, or $4.15 per diluted share, marking a notable increase from $29.9 million, or $2.94 per diluted share, for the same period in 2024.
Investment Returns and Performance Highlights
James A. Hughes, President and CEO, highlighted that Unity Bancorp achieved a return on average assets of 2.11% and a return on average equity of 17.41%. The net interest margin improved by 5 basis points to 4.54%, emphasizing the company’s ability to generate robust investment returns in a changing interest rate environment.
Managing Investment Risk and Strategic Growth
Unity continued its focus on organic balance sheet growth strategies in the third quarter. Loans increased by $85.9 million (3.6%), and deposits grew by $80.1 million (3.7%) sequentially. The company portfolio remains well-positioned for growth, supported by a disciplined approach to managing investment risk and funding expansion with lower-cost deposits.
A notable event during the quarter was the conversion of the company’s debt position in Patriot National Bancorp, Inc. into approximately 2.7 million restricted common shares, contributing $0.8 million to net income. Excluding this one-time gain, Unity Bancorp posted non-GAAP net income of $13.6 million, or $1.33 per diluted share, with adjusted return metrics still reflecting strong performance.
Expanding the Company Portfolio and Community Presence
Unity Bancorp extended its branch network by opening its 22nd location in Madison, NJ, reinforcing its commitment to local communities in New Jersey and Pennsylvania. The company’s growth strategy aims to continue expanding loans and deposits at a mid-to-high single digit pace, leveraging its established regional presence.
Emphasis on Risk and Investment Amid Market Uncertainty
With ongoing market uncertainty and recent interest rate adjustments by the Federal Reserve, Unity Bancorp is focused on strengthening customer relationships, enhancing the company portfolio, and preserving long-term value for shareholders. The company stresses prudent risk and investment management as central to its ongoing success in dynamic market conditions.
About Unity Bancorp
Unity Bancorp, Inc. is headquartered in Clinton, New Jersey, with assets totaling approximately $2.9 billion and $2.3 billion in deposits. Unity Bank operates branches across multiple New Jersey counties and Northampton County in Pennsylvania, providing comprehensive financial services to retail, corporate, and small business clients.
This content is for informational purposes only and does not constitute financial advice.
