Unity Bancorp Reports Q2 Earnings of $16.5 Million, Exceeding Expectations

Unity Bancorp reported a record-breaking net income of $16.5 million, or $1.61 per diluted share, for Q2 2025, up from $11.6 million in Q1 2025. The increase was partly due to one-time gains and a release of credit losses on securities. Loan balances grew by $37.5 million, or 1.6%, and deposits increased by $12 million, or 0.6%. Credit quality remains stable, with nonaccrual assets at 0.54% of total assets.

Unity Bancorp, Inc. (NASDAQ: UNTY) has reported a record-breaking net income of $16.5 million, or $1.61 per diluted share, for the second quarter of 2025. This marks a significant increase from the previous quarter's net income of $11.6 million, or $1.13 per diluted share, as reported on March 31, 2025.

The increase in net income was primarily driven by one-time gains and a release of credit losses on securities. Specifically, Unity Bancorp realized pre-tax one-time gains of $3.5 million and a release of $2.0 million for credit losses on securities, both related to investments in Patriot National Bancorp, Inc.

Loan balances grew by $37.5 million, or 1.6%, during the second quarter, reflecting strong origination capabilities from both the Commercial and Residential lending teams. Deposits also increased by $12.0 million, or 0.6%, highlighting the bank's ability to attract and retain customers.

Credit quality remained stable, with nonaccrual assets accounting for 0.54% of total assets, a decline of 11 basis points from the previous quarter. This stability is a positive indicator for the bank's risk management practices.

Unity Bancorp's President and CEO, James A. Hughes, commented on the results, stating, "We are pleased to announce another record-breaking quarter for Unity Bancorp, Inc. This performance reflects a 2.51% return on assets (ROA) and 21.15% return on equity (ROE)."

Looking ahead, the bank remains optimistic about its future, citing strong economic growth and anticipated rate cuts as factors that could drive further growth. The bank's loan pipeline remains robust, supported by high-quality credits and disciplined pricing.

[1] https://www.globenewswire.com/news-release/2025/07/15/3115413/34252/en/Unity-Bancorp-Reports-Quarterly-Earnings-of-16-5-Million.html