CLINTON, N.J., Jan. 15, 2025 (GLOBE NEWSWIRE) -- Unity Bancorp, Inc. (NASDAQ: UNTY), parent company of Unity Bank, reported net income of $11.5 million, or $1.13 per diluted share, for the quarter ended December 31, 2024, compared to net income of $10.9 million, or $1.07 per diluted share for the quarter ended September 30, 2024. This represents a 5.5% increase in net income and a 5.6% increase in net income per diluted share. For the twelve months ended December 31, 2024, Unity Bancorp reported net income of $41.5 million, or $4.06 per diluted share, compared to net income of $39.7 million, or $3.84 per diluted share, for the twelve months ended December 31, 2023. This represents a 4.4% increase net income and a 5.7% increase in net income per diluted share.
James A. Hughes, President and CEO, commented on the financial results: "We are proud to share with you the results of Unity Bancorp Inc. for the 2024 fiscal year. We achieved both a record year and a record quarter of earnings. For the year, we earned $41.5 million in net income, or $4.06 per diluted share, representing a 1.68% ROA and a 14.99% ROE. For the fourth quarter, we earned $11.5 million in net income, or $1.13 per diluted share, representing a 1.83% ROA and a 15.77% ROE.
"In the fourth quarter, our net interest margin expanded 21 basis points by lowering our cost of funds 20 basis points and increasing our yield on loans 4 basis points. On the balance sheet, we grew loans $43.3 million in the fourth quarter, representing a 1.95% increase quarter over quarter. We funded this loan growth with deposits, which grew $54.2 million or 2.65% quarter over quarter. Notably, noninterest bearing demand deposits grew $16.8 million, or 3.97% quarter over quarter.
"In the fourth quarter, the Federal Reserve cut overnight interest rates by an additional 50 basis points; however, the Federal Reserve's 2025 outlook indicates a more hawkish stance compared to three months ago. Despite this outlook, we remain confident in our ability to deliver continued growth and profitability in 2025. We will continue to keep our business model simple; focusing on growing our core deposit franchise and making loans to consumers and small-to-medium sized businesses in our local communities. This growth will be driven by our talented employees, who are the Company's most important asset. A focus on customer service and community engagement is aligned with a culture of engaged employees taking care of our valuable clients."
For the full version of the Company's quarterly earnings release, including financial tables, please visit News - Unity Bank (q4ir.com).
Unity Bancorp, Inc. is a financial services organization headquartered in Clinton, New Jersey, with approximately $2.7 billion in assets and $2.1 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 www.unitybank.com, 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.
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