Unity Bancorp Reports Quarterly Earnings of $10.3 Million

Rhea-AI Summary

Unity Bancorp, Inc. (NASDAQ: UNTY) reported a net income of $10.3 million or $0.96 per diluted share for Q1 2023, reflecting a 3.0% increase in net income and a 3.2% rise in earnings per share compared to Q4 2022. The CEO, James A. Hughes, highlighted the company's resilience amid a challenging banking environment, exacerbated by significant bank failures and rising interest rates. Unity's proactive risk management and liquidity strategies have positioned the company favorably, ensuring continued service to customers and communities. With approximately $2.5 billion in assets, Unity Bank serves various sectors across New Jersey and Pennsylvania, aiming to enhance shareholder value through financial stability and technological investments.

Positive

• Net income increased by 3.0% to $10.3 million in Q1 2023.
• Earnings per diluted share rose by 3.2% to $0.96 compared to Q4 2022.
• Proactive risk management strategies have positioned the company favorably amid banking challenges.

Negative

• None.

CLINTON, N.J., April 17, 2023 (GLOBE NEWSWIRE) -- Unity Bancorp, Inc. (NASDAQ: UNTY), parent company of Unity Bank, reported net income of $10.3 million, or $0.96 per diluted share, for the quarter ended March 31, 2023, compared to net income of $10.0 million, or $0.93 per diluted share for the quarter ended December 31, 2022. This represents a 3.0% increase in net income and a 3.2% increase in net income per diluted share.

James A. Hughes, President and CEO, commented on the financial results: “Today, we are announcing another great quarter for Unity Bancorp, Inc. For the quarter, we realized $10.3 million of net income, or $0.96 per diluted share, reflecting our continued financial strength and resilience in a challenging banking industry landscape.

With the largest bank failures since the Great Financial Crisis, this is a time of difficulty for the banking industry. These failures, largely resulting from the challenging interest rate environment, have highlighted the importance of managing risk for banks of all sizes. Fortunately, we have proactively positioned our balance sheet to mitigate the risks associated with this unprecedented rate velocity.

Our longstanding commitment to sound risk management and prudent liquidity management has enabled us to provide the financial services our customers and communities rely on. The Company will continue to deliver value for our shareholders by maintaining the strength of our balance sheet and investing in our people and technology to ensure we are well-positioned for the future.”

For the full version of the Company’s 2023 first 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 $2.5 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 robust branch network 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) 713-456

FAQ

What were Unity Bancorp's earnings for Q1 2023?

Unity Bancorp reported net income of $10.3 million, or $0.96 per diluted share for Q1 2023.

How does Unity Bancorp's Q1 2023 performance compare to Q4 2022?

Unity Bancorp's net income increased by 3.0% and earnings per diluted share rose by 3.2% compared to Q4 2022.

What challenges is Unity Bancorp facing in the banking industry?

Unity Bancorp is navigating a challenging banking environment marked by significant bank failures and rising interest rates.

How has Unity Bancorp positioned itself in response to banking challenges?

The company has proactively managed risk and liquidity to mitigate impacts from the recent banking challenges.