Unity Bancorp Reports Quarterly Earnings of $16.5 Million

CLINTON, N.J., July 15, 2025 (GLOBE NEWSWIRE) -- Unity Bancorp, Inc. (NASDAQ: UNTY), parent company of Unity Bank, reported net income of $16.5 million, or $1.61 per diluted share, for the quarter ended June 30, 2025, compared to net income of $11.6 million, or $1.13 per diluted share for the quarter ended March 31, 2025. For the six months ended June 30, 2025, Unity Bancorp reported net income of $28.1 million, or $2.74 per diluted share, compared to net income of $19.0 million, or $1.86 per diluted share, for the six months ended June 30, 2024. The increase in net income for the three and six months ended June 30, 2025 was partially attributable to pre-tax one-time gains of $3.5 million realized on the sale of securities and $2.0 million release for credit losses on securities, each related to securities of Patriot National Bancorp, Inc. held by the Company.

James A. Hughes, President and CEO, commented on the financial results: “We are pleased to announce another record-breaking quarter for Unity Bancorp, Inc., with net income of $16.5 million, or $1.61 per diluted share. This performance reflects 2.51% ROA and 21.15% ROE.

This quarter’s results were positively impacted by one-time realized gains and provision release related to the previously disclosed non-performing $5 million par investment security. This investment, issued by Patriot National Bancorp, Inc., benefited from a successful series of capital raises. We are pleased with the capital raise and Management’s new trajectory.

Excluding this one-time event, on a non-GAAP basis, we earned $12.2 million in net income, or $1.20 per diluted share, representing 1.86% ROA and 15.70% ROE. Net interest margin expanded 3 basis points to 4.49% in the second quarter.

Both Commercial and Residential lending teams continue to demonstrate exceptional origination capabilities. Loan balances grew by $37.5 million in the second quarter, representing a 1.6% increase from March 31, 2025 and a 5.4% increase from year-end. Our loan pipeline remains robust heading into the second half of the year, supported by high-quality credits and disciplined pricing. Credit quality remains stable, with nonaccrual assets as a percentage of total assets declining 11 basis points to 0.54%, from the prior quarter. Additionally, total deposits have grown $12.0 million, or 0.6% from March 31, 2025, and 4.1% since year-end. We are excited to have announced our second Morris County, NJ location and we remain committed to growing loans and deposits in tandem.

We are very optimistic about Unity Bank’s future. Loan demand continues to be strong due to robust economic growth in our footprint. Recent inflation data indicates that prices have stabilized after several years of price increases, and as a result, the market is anticipating additional rate cuts this year. If those rate cuts occur, we might expect to see even stronger economic growth through the remainder of the year.”

For the full version of the Company’s quarterly earnings release, including financial tables, please visit .

Unity Bancorp, Inc. is a financial services organization headquartered in Clinton, New Jersey, with approximately $2.9 billion in assets and $2.2 billion in deposits. Unity Bank, the Company’s wholly owned subsidiary, provides financial services to retail, corporate and small business customers through its robust branch network located in Bergen, Hunterdon, Middlesex, Morris, Ocean, Somerset, Union, and Warren Counties in New Jersey and Northampton County in Pennsylvania. For additional information about Unity, visit our website at , or call 800-618-BANK.

This news release contains certain forward-looking statements, either expressed or implied, which are provided to assist the reader in understanding anticipated future financial performance. These statements may be identified by use of the words “believe”, “expect”, “intend”, “anticipate”, “estimate”, “project” or similar expressions. These statements involve certain risks, uncertainties, estimates and assumptions made by management, which are subject to factors beyond the Company’s control that could impede its ability to achieve these goals. These factors include those items included in our Annual Report on Form 10-K under the heading “Item IA-Risk Factors” as amended or supplemented by our subsequent filings with the SEC, as well as general economic conditions, trends in interest rates, the ability of our borrowers to repay their loans, our ability to manage and reduce the level of our nonperforming assets, results of regulatory exams, and the impact of any health crisis or national disasters on the Bank, its employees and customers, among other factors.

This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

News Media & Financial Analyst Contact:

George Boyan, EVP and CFO

(908) 713-4565

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