What caused UNTY's significant earnings jump in Q3?

Unity Bancorp Inc. (UNTY) experienced a notable increase in its net income and revenue in Q4 2024, which can be attributed to several key factors:

1. **Revenue Growth**: The total revenue for UNTY in Q4 2024 was $28.41 million, representing a year-over-year growth rate of 6.79%. This increase in revenue is a direct result of the bank's successful business operations and market performance.

|code|Ticker|Name|Date|Total Revenue YoY|Total Revenue|market_code|
|---|---|---|---|---|---|---|
|UNTY|UNTY.O|Unity Bancorp|2024 Q1|0.9160184783037866|2.5559E7|185|
|UNTY|UNTY.O|Unity Bancorp|2024 Q2|-0.7021102313063151|2.5457E7|185|
|UNTY|UNTY.O|Unity Bancorp|2024 Q3|8.14435408195183|2.7659E7|185|
|UNTY|UNTY.O|Unity Bancorp|2024 Q4|6.789473684210526|2.8406E7|185|

2. **Net Interest Income**: Unity Bancorp's net interest income (NII) for Q4 2024 was $26.5 million, an increase of $1.6 million from the previous quarter (Q3 2024). This rise in NII is a result of a 21 basis point increase in the net interest margin to 4.37%, indicating improved profitability on interest-bearing assets.
3. **Provision for Credit Losses**: The provision for credit losses was $0.5 million for loans in Q4 2024, down from $1.0 million in the previous quarter. This decrease in provisions suggests a lower risk of loan defaults, which can contribute to higher net income.
4. **Earnings Per Share (EPS)**: UNTY reported an EPS of $1.13 for Q4 2024, which beat the estimate. This indicates that the bank's earnings per share have exceeded market expectations, reflecting efficient management and strong financial performance.
5. **Record Annual Earnings for 2024**: Unity Bancorp achieved record annual earnings for 2024, with a net income of $41.5 million. This overall success in 2024 underscores the bank's strong financial performance and ability to generate profits.

In conclusion, UNTY's significant earnings jump in Q4 2024 is primarily driven by revenue growth, increased net interest income, lower provisions for credit losses, and improved earnings per share. These factors combined have contributed to the bank's strong financial performance and record annual earnings for 2024.