CLINTON, N.J., Oct. 14, 2025 (GLOBE NEWSWIRE) -- Unity Bancorp, Inc. (NASDAQ: UNTY), parent company of Unity Bank, reported net income of $14.4 million, or $1.41 per diluted share, for the quarter ended September 30, 2025, compared to net income of $16.5 million, or $1.61 per diluted share for the quarter ended June 30, 2025. For the nine months ended September 30, 2025, Unity Bancorp reported net income of $42.5 million, or $4.15 per diluted share, compared to net income of $29.9 million, or $2.94 per diluted share, for the nine months ended September 30, 2024.
James A. Hughes, President and CEO, commented on the financial results: “We are pleased to announce another outstanding quarter for Unity Bancorp, Inc., with net income of $14.4 million, or $1.41 per diluted share. This performance reflects a return on average assets of 2.11%, and return on average equity of 17.41%. Notably, our net interest margin expanded by 5 basis points to 4.54%, underscoring our ability to drive profitability in a dynamic rate environment.
During the third quarter, we continued to execute on our organic balance sheet growth strategies. Sequentially, loans increased by $85.9 million, or 3.6%, and deposits grew by $80.1 million, or 3.7%. Our balance sheet remains strong, supported by disciplined credit origination and growth funded by lower-cost deposits. Looking ahead, our strategy of growing loans and deposits in tandem at a mid-to-high single digit rate, positions us well to achieve our growth targets for the remainder of 2025 and beyond.
The quarter also benefited from the continued resolution of our Patriot National Bancorp, Inc. position. Unity converted the remainder of its debt position into approximately 2.7 million restricted common shares of Patriot, which will remain restricted until registered. This conversion contributed $0.8 million to net income for the quarter. Excluding this one-time event, on a non-GAAP basis, Unity earned $13.6 million in net income, or $1.33 per diluted share, representing a 2.00% return on average assets and 16.49% return on average equity.
We are proud to expand our footprint with the opening of our 22nd branch in Madison, NJ, reinforcing our commitment to serving local communities with personalized banking solutions. This new location reflects our continued growth and dedication to deepening relationships across New Jersey. As the Federal Reserve’s recent rate cut aims to stimulate economic activity amid ongoing uncertainty, Unity is well-positioned to strengthen customer relationships and expand lending initiatives, driving continued momentum and long-term value for our shareholders.”
For the full version of the Company’s quarterly earnings release, including financial tables, please visit News - Unity Bank (q4ir.com).