Unity Bancorp, Inc. reported a net income of $11.6 million, or $1.13 per diluted share, for the first quarter of 2025, marking a significant increase from the $9.6 million, or $0.93 per diluted share, reported in the same period last year. This represents a 21% year-over-year growth in net income, driven by a 14.3% increase in net interest income, which rose to $27.3 million. The net interest margin improved to 4.46%, up from 4.09% in the prior year, primarily due to higher yields on loans and a decrease in the cost of interest-bearing liabilities.
The company experienced a 4.3% increase in total assets, reaching $2.8 billion as of March 31, 2025, compared to the end of 2024. This growth was largely attributed to an $84.5 million increase in gross loans, alongside a $31.2 million rise in cash and cash equivalents. Total loans amounted to $2.3 billion, with notable increases in commercial loans and residential mortgages, although there were slight declines in SBA loans and residential construction loans. The provision for credit losses also increased to $1.4 million, reflecting the growth in the loan portfolio.
In terms of operational metrics, Unity Bancorp's total deposits increased by $75.1 million to $2.2 billion, driven by growth in time deposits and interest-bearing demand deposits. The company reported a total of 16.8 million in nonaccrual loans, an increase from the previous quarter, indicating a need for continued monitoring of asset quality. The allowance for credit losses stood at $27.7 million, representing 1.18% of total loans, consistent with the previous quarter.
Strategically, Unity Bancorp continues to focus on expanding its market presence in New Jersey and Pennsylvania, leveraging its robust branch network and online banking platforms. The company has also maintained a strong capital position, exceeding all regulatory capital requirements, with a total risk-based capital ratio of 15.58% as of March 31, 2025. Looking ahead, Unity Bancorp anticipates continued growth in its loan portfolio and net interest income, while remaining vigilant about credit quality and market conditions that could impact its operations.
About UNITY BANCORP INC /NJ/
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