Unity Bancorp Reports Record Q2 Earnings, Net Income Reaches $16.5mln

Unity Bancorp reported a record-breaking Q2 net income of $16.5 million, or $1.61 per diluted share, driven by one-time gains from investments in Patriot National Bancorp Inc. Key financial highlights include a net interest income of $28.6 million, an expansion of the loan portfolio by $37.5 million, and total deposits increasing by $12.0 million. The company expects continued growth prospects, supported by strong loan demand and stable economic conditions.

Unity Bancorp, Inc. (NASDAQ: UNTY) reported a record-breaking net income of $16.5 million for the second quarter of 2025, a significant increase from the previous quarter. The company's net income per diluted share was $1.61, up from $1.13 in the first quarter. The robust performance was driven by one-time gains from investments in Patriot National Bancorp Inc. and stable loan growth.

Key financial highlights for the quarter include:
- Net interest income of $28.6 million
- Expansion of the loan portfolio by $37.5 million, reflecting strong origination capabilities
- Total deposits increasing by $12.0 million

The company's President and CEO, James A. Hughes, highlighted the quarter's strong performance, noting a return on assets of 2.51% and a return on equity of 21.15%. Loan balances increased by $37.5 million during the quarter, while total deposits rose by $12.0 million. Hughes expressed optimism about the company's future, citing robust loan demand and expectations of economic growth amid stabilizing inflation and potential interest rate cuts.

Unity Bancorp also announced plans to open a second location in Morris County, New Jersey, further expanding its branch network and services. The company's total assets stood at approximately $2.9 billion as of July 2025, with total deposits reaching $2.2 billion.

While the net income was significantly boosted by one-time gains, there are concerns about the sustainability of financial performance moving forward. The company's reliance on pre-tax one-time gains and credit loss releases suggests potential volatility in future earnings, which could affect investor confidence.

[1] https://www.nasdaq.com/articles/unity-bancorp-inc-reports-record-net-income-165-million-q2-2025