Unity Bancorp Reports Strong Quarterly and Annual Earnings for 2025
CLINTON, N.J., Jan. 13, 2026 (GLOBE NEWSWIRE) — Unity Bancorp, Inc. (NASDAQ: UNTY), the parent company of Unity Bank, has announced its financial results for the fourth quarter and the full year ending December 31, 2025. The company reported a net income of $15.5 million, equating to $1.52 per diluted share, marking a significant increase from the previous quarter's earnings of $14.4 million, or $1.41 per diluted share.
Record Annual Performance for Unity Bancorp
For the full year 2025, Unity Bancorp achieved a net income of $58.0 million, or $5.67 per diluted share, a notable increase compared to $41.5 million, or $4.06 per diluted share, for the year ended December 31, 2024. This performance reflects a 39.8% increase in net income, boosted by effective execution of their growth strategy.
Highlights of Fourth Quarter Earnings
In the fourth quarter, the company recorded:
- $15.5 million in net income
- $1.52 per diluted share
- Return on Assets (ROA): 2.20%
- Return on Equity (ROE): 18.08%
Growth in Loans and Deposits
Unity Bancorp's growth in 2025 was characterized by significant expansions in both loans and deposits:
- Gross loans increased by $284 million, or 12.6%
- Total deposits grew by $224 million, or 10.7%
- Customer deposits (excluding brokered deposits) rose by $168 million, or 8.9%
CEO James A. Hughes remarked, “We are pleased to report a record year for Unity Bancorp, Inc. As we enter 2026, we remain optimistic about our lending pipelines amidst a supportive economic environment.”
Challenges and Future Outlook
Despite strong overall performance, Unity Bancorp experienced a setback with a large owner-occupied commercial mortgage migrating to nonaccrual status late in the fourth quarter. This$15.5 million credit is well-secured; however, it is expected to impact the income statement by $1.6 million due to reserve buildup and interest income reversals. The borrower's cash flow was adversely affected by tariffs on imports.
Hughes also noted that during this quarter, the company recognized a pre-tax unrealized gain of $1.5 million related to the resolution of Patriot National Bancorp, Inc.
Unity Bancorp's Commitment to Growth and Service
Unity Bancorp continues to focus on enhancing customer experiences and expanding its relationships. The company anticipates that these initiatives will help maintain its momentum and create long-term value for shareholders.
For more detailed information about Unity Bancorp's financial performance, visit the Company's quarterly earnings release at Unity Bank News.
About Unity Bancorp
Unity Bancorp, Inc., headquartered in Clinton, New Jersey, manages approximately $3.0 billion in assets and $2.3 billion in deposits. Unity Bank, a wholly-owned subsidiary, provides financial services to diverse retail, corporate, and small business clients through a comprehensive branch network across multiple counties in New Jersey and Pennsylvania.