Unity Bancorp Reports Quarterly Earnings of $10.0 Million and Full Year Earnings of $38.5 Million

Rhea-AI Summary

Unity Bancorp, Inc. (NASDAQ: UNTY) reported a net income of $10.0 million, or $0.93 per diluted share, for Q4 2022, showing a 2.2% increase from Q4 2021 while maintaining flat EPS. For the full year, net income reached $38.5 million ($3.59 per diluted share), a 6.5% increase year-over-year. The termination of the BSA Consent Order allows for geographic expansion, particularly in New Jersey. However, rising interest rates present challenges for the banking industry in 2023, prompting a cautious approach to balance sheet management.

Positive

• Q4 2022 net income rose by 2.2% to $10.0 million.
• Full-year 2022 net income increased by 6.5% to $38.5 million.
• Termination of the BSA Consent Order allows for expansion in New Jersey.

Negative

• Flat EPS growth in Q4 2022 despite increased net income.
• Rising interest rates expected to create turbulence in 2023.

CLINTON, N.J., Jan. 13, 2023 (GLOBE NEWSWIRE) -- Unity Bancorp, Inc. (NASDAQ: UNTY), parent company of Unity Bank, reported net income of $10.0 million, or $0.93 per diluted share, for the quarter ended December 31, 2022, compared to net income of $9.7 million, or $0.93 per diluted share for the prior year’s fourth quarter. This represents a 2.2% increase in net income and net income per diluted share remains flat. For the twelve months ended December 31, 2022, Unity reported net income of $38.5 million, or $3.59 per diluted share, compared to $36.1 million or $3.43 per diluted share for the prior year. This represents a 6.5% increase in net income and a 4.7% increase in net income per diluted share.

James A. Hughes, President and CEO, commented on the financial results: “It is with great pleasure that we announce another record year for Unity Bancorp, Inc. For the quarter, we realized $10.0 million of net income, or $0.93 per diluted share. For the year, we generated $38.5 million of net income, or $3.59 per diluted share. In the fourth quarter, the FDIC and NJDOBI terminated the BSA Consent Order, to which Unity Bank had been subject. As a result, we are eager to resume our geographic expansion, specifically in Bergen, Ocean, and Morris counties, New Jersey. Throughout 2022, the Federal Reserve has increased interest rates at an unprecedented velocity, which has resulted in an inverted yield curve. This will likely pose turbulence for our customers and the banking industry in 2023. We will continue to monitor our balance sheet composition and as necessary, adjust course swiftly to manage market and credit risk, and meanwhile continue to deliver best in class customer service.”

For the full version of the Company’s 2022 fourth quarter earnings release, including financial tables, please visit News - Unity Bank (q4ir.com).

Unity Bancorp, Inc. is a financial services organization headquartered in Clinton, New Jersey, with approximately $2.4 billion in assets and $1.8 billion in deposits. Unity Bank, the Company’s wholly owned subsidiary, provides financial services to retail, corporate and small business customers through its 18 retail service centers located in Bergen, Hunterdon, Middlesex, Ocean Somerset, Union and Warren Counties in New Jersey and Northampton County in Pennsylvania. For additional information about Unity, visit our website at www.unitybank.com , or call 800-618-BANK.

This news release contains certain forward-looking statements, either expressed or implied, which are provided to assist the reader in understanding anticipated future financial performance. These statements may be identified by use of the words “believe”, “expect”, “intend”, “anticipate”, “estimate”, “project” or similar expressions. These statements involve certain risks, uncertainties, estimates and assumptions made by management, which are subject to factors beyond the Company’s control and could impede its ability to achieve these goals. These factors include those items included in our Annual Report on Form 10-K under the heading “Item IA-Risk Factors” as amended or supplemented by our subsequent filings with the SEC, as well as general economic conditions, trends in interest rates, the ability of our borrowers to repay their loans, our ability to manage and reduce the level of our nonperforming assets, results of regulatory exams, and the impact of COVID-19 on the Bank, its employees and customers, among other factors.

This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

News Media & Financial Analyst Contact:
George Boyan, EVP and CFO
(908) 713-4565

 

FAQ

What were Unity Bancorp's Q4 2022 earnings results?

Unity Bancorp reported a net income of $10.0 million, or $0.93 per diluted share for Q4 2022.

How did Unity Bancorp perform in 2022 compared to 2021?

Unity Bancorp's 2022 net income increased by 6.5% to $38.5 million compared to $36.1 million in 2021.

What challenges does Unity Bancorp face in 2023?

Unity Bancorp anticipates challenges from rising interest rates affecting the banking industry in 2023.

What is the significance of the BSA Consent Order termination for Unity Bancorp?

The termination allows Unity Bank to pursue geographic expansion, particularly in New Jersey.