Unity Bancorp (NASDAQ:UNTY), the parent company of Unity Bank, reported a record-breaking fiscal year 2025, characterized by robust loan growth and industry-leading profitability metrics.
The Clinton, New Jersey-based lender posted a full-year net income of $58 million, or $5.67 per diluted share, representing a 39.8% increase over the previous year.
The bank’s efficiency and performance remained high throughout the year, ending with a return on average assets (ROA) of 2.17% and a return on average equity (ROE) of 18.07%.
For the fourth quarter alone, Unity earned $15.5 million, or $1.52 per diluted share, slightly up from the $14.4 million reported in the third quarter.
Growth was driven primarily by an expansion in the bank's core portfolios.
Gross loans rose by $284 million (12.6%), while total deposits increased by $224 million (10.7%).
Notably, customer-driven deposits—excluding more volatile brokered funds—grew by $168 million (8.9%), signaling a strengthening of Unity's community banking franchise.
Total assets for the company now stand at approximately $3 billion.
Despite the record performance, the fourth quarter saw a minor uptick in credit concerns as one $15.5 million owner-occupied commercial mortgage was moved to nonaccrual status after falling 42 days past due.
The shift resulted in a $1.6 million pre-tax impact on quarterly income due to reserve builds.
However, this was largely offset by a $1.5 million pre-tax unrealized gain stemming from the continued resolution of the bank's position in Patriot National Bancorp.