Unity Bancorp Reports Quarterly Earnings of $5.8 Million

Rhea-AI Summary

Unity Bancorp, Inc. (NASDAQ: UNTY) reported a net income of $5.8 million, or $0.54 per diluted share, for Q3 2020, reflecting a 3.3% decline compared to $6.0 million in Q3 2019. Year-to-date, net income stood at $16.3 million, down 7.0% from $17.5 million in the same period last year. The decrease is linked to heightened provisions for loan losses amid the COVID-19 pandemic. Despite these challenges, the company achieved record loan volume in its mortgage division and remains well-capitalized with a strong liquidity position.

Positive

• Record loan volume in the mortgage division.
• Well-capitalized with a robust balance sheet.
• Strong liquidity position.

Negative

• 3.3% decrease in Q3 2020 net income compared to Q3 2019.
• 7.0% decrease in year-to-date net income compared to the previous year due to increased loan loss provisions.

CLINTON, N.J., Oct. 21, 2020 (GLOBE NEWSWIRE) -- Unity Bancorp, Inc. (NASDAQ: UNTY), parent company of Unity Bank, reported net income of $5.8 million, or $0.54 per diluted share, for the quarter ended September 30, 2020, a 3.3 percent decrease compared to net income of $6.0 million, or $0.54 per diluted share for the prior year’s third quarter. For the nine months ended September 30, 2020, Unity reported net income of $16.3 million, or $1.50 per diluted share, a 7.0 percent decrease compared to net income of $17.5 million or $1.59 per diluted share for the prior year’s period. The decreases in earnings were primarily due to an increased provision for loan losses, necessitated by the COVID-19 pandemic.

James A. Hughes, President and CEO, commented on the financial results: “As we continue to navigate through these unprecedented times, the safety and success of our employees and customers remains our top priority.   We have worked closely with those customers coming off payment deferrals, the majority of which are repaying their loans per the original terms. Our credit quality remains strong and we are building our provisions in anticipation of the uncertain future.   I am extremely proud of the resilience we have demonstrated throughout the year, despite the disruption to the economy. We continued to hit record loan volume in our mortgage division, we remain well-capitalized with a robust balance sheet and strong liquidity and we saw increased earnings over second quarter. I remain optimistic that the majority of our small businesses will continue to succeed despite the pandemic. Our team of community bankers are here for our customers and we look forward to reporting our progress.”

For the full version of the Company’s 2020 second quarter earnings release, including financial tables, please visit http://www.snl.com/IRW/News/101233.

Unity Bancorp, Inc. is a financial service organization headquartered in Clinton, New Jersey, with approximately $1.9 billion in assets and $1.5 billion in deposits. Unity Bank, the Company’s wholly owned subsidiary, provides financial services to retail, corporate and small business customers through its 19 retail service centers located in Bergen, Hunterdon, Middlesex, 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:
James Hughes, President and CEO
(908)713-4306

FAQ

What are Unity Bancorp's Q3 2020 earnings?

Unity Bancorp reported a net income of $5.8 million, or $0.54 per diluted share, for Q3 2020.

How did Unity Bancorp's net income change in 2020?

For the nine months ended September 30, 2020, Unity Bancorp's net income decreased by 7.0% compared to the previous year.

What factors contributed to the decrease in Unity Bancorp's earnings?

The decrease in earnings was primarily due to an increased provision for loan losses related to the COVID-19 pandemic.

Is Unity Bancorp financially stable?

Yes, Unity Bancorp maintains a robust balance sheet and a strong liquidity position despite recent earnings declines.