Unity Bancorp Reports Quarterly Earnings of $7.3 Million

Rhea-AI Summary

Unity Bancorp, Inc. (NASDAQ: UNTY) reported a net income of $7.3 million, or $0.69 per diluted share, for Q4 2020, marking a 20% increase from Q4 2019's $6.1 million. For the full year, net income stood at $23.6 million, slightly down from $23.7 million in 2019. The earnings growth was primarily driven by revenue from the SBA Paycheck Protection Program, although higher provisions for loan losses due to the COVID-19 pandemic impacted overall earnings. Unity's resilience is underscored by record loan volume in its mortgage division and a strong balance sheet.

Positive

• 20% increase in Q4 net income to $7.3 million.
• Record loan volume in the mortgage division.
• Strong balance sheet and solid credit quality.

Negative

• Increased provision for loan losses due to COVID-19.

CLINTON, N.J., Jan. 22, 2021 (GLOBE NEWSWIRE) -- Unity Bancorp, Inc. (NASDAQ: UNTY), parent company of Unity Bank, reported net income of $7.3 million, or $0.69 per diluted share, for the quarter ended December 31, 2020, a 20.0 percent increase compared to net income of $6.1 million, or $0.55 per diluted share for the prior year’s fourth quarter. For the year ended December 31, 2020, Unity reported net income of $23.6 million, or $2.19 per diluted share, compared to net income of $23.7 million, or $2.14 per diluted share for the year ended December 31, 2019. Overall earnings were impacted primarily due to an increased provision for loan losses, necessitated by the COVID-19 pandemic, partially offset by revenue generated by the Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”).

James A. Hughes, President and CEO, commented on the financial results: “2020 was a year of resilience for Unity. The safety and success of our employees and customers was, and continues to remain, our top priority. I am extremely proud of our employees who stepped up to deliver tremendous service to our customers and small businesses. Employees worked diligently with customers coming off payment deferrals, the majority of which are repaying their loans per the original terms. While 2020 was a challenging year, we achieved record loan volume in our mortgage division. Due to the uncertainty surrounding the COVID-19 pandemic, we continue to evaluate the sufficiency of our loan reserve. Our ability to sustain a robust balance sheet, strong liquidity and solid credit quality has made me optimistic about the future for Unity.”

For the full version of the Company’s 2020 fourth quarter earnings release, including financial tables, please visit https://unitybancorp.q4ir.com/news/default.aspx.

Unity Bancorp, Inc. is a financial service organization headquartered in Clinton, New Jersey, with approximately $2.0 billion in assets and $1.6 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 were Unity Bancorp's Q4 2020 earnings results?

Unity Bancorp reported a net income of $7.3 million, or $0.69 per diluted share, for Q4 2020, a 20% increase year-over-year.

How did Unity Bancorp perform for the full year of 2020?

For the full year 2020, Unity Bancorp reported net income of $23.6 million, slightly down from $23.7 million in 2019.

What factors impacted Unity Bancorp's earnings in 2020?

Earnings were impacted by increased provisions for loan losses due to the COVID-19 pandemic, although revenue from the SBA Paycheck Protection Program provided some offset.

What is the outlook for Unity Bancorp following its Q4 earnings?

Unity Bancorp remains optimistic due to its strong balance sheet, solid credit quality, and record loan volume in its mortgage division.